TABLE OF CONTENTS
ABSTRACT ... II
ACKNOWLEDGEMENT ...IV
LIST OF FIGURES ...VI
LIST OF TABLES ... VII
LIST OF ABBREVIATIONS ...IX
CHAPTER 1: INTRODUCTION ... 1
1.1 OVERVIEW AND BACKGROUND OF THE STUDY... 1
1.2 RESEARCH PROBLEMS... 6
1.3 RESEARCH QUESTIONS... 8
1.4 RESEARCH OBJECTIVES... 9
1.5 SIGNIFICANCE OF THE STUDY... 9
1.6 SCOPE OF THE STUDY... 10
1.7 ORGANIZATION OF THE STUDY... 11
CHAPTER 2: LITERATURE REVIEW ... 13
2.1 DEFINITION AND CONCEPT OF CROSS-BORDER MERGER AND ACQUISITIONS... 13
2.2 MOTIVE FOR CROSS-BORDER MERGERS AND ACQUISITIONS... 15
2.2.1 Growth... 19
2.2.2 Synergy ... 20
2.2.3 Diversification of risk ... 21
2.3 DEFINITION OF EMERGING MARKETS... 21
2.4 EMERGING MARKETS CHARACTERISTICS... 22
2.5 THE ROLE OF EMERGING MARKETS IN THE WORLD ECONOMY... 23
2.6 FOREIGN DIRECT INVESTMENTS... 25
2.7 CROSS-BORDER MERGERS AND ACQUISITIONS IN EMERGING MARKETS... 32
CHAPTER 3: RESEARCH METHODOLOGY ... 36
3.1 OBJECTIVES... 36
3.2 RESEARCH QUESTIONS... 37
3.2 DATA SOURCES... 37
3.3 DATA COLLECTION METHODOLOGY... 37
3.4 DATA ANALYSIS METHODOLOGY... 38
3.5 DESIGN. ... 39
CHAPTER 4: RESULTS AND ANALYSIS ... 41
4.1CROSS- BORDER MERGERS AND ACQUISITIONS ACTIVITIES IN INDONESIA,MALAYSIA,PHILIPPINES AND THAILAND FOR THE PERIOD FROM 2000-2006 ... 41
4.2CROSS-BORDER MERGERS AND ACQUISITIONS TRENDS AFTER 2007 IN INDONESIA,MALAYSIA, PHILIPPINES AND THAILAND... 45
4.3 INDUSTRIAL TRENDS... 49
4.4 ACQUIRING AND TARGET COUNTRIES... 50
4.4 ACQUIRE AND TARGET FINANCIAL ADVISER... 52
4.5MAJOR FINDINGS... 54
4.5.1 Cross- border mergers and acquisitions trend ... 54
4.5.2 Cross-border merger and acquisition termination in Indonesia, Malaysia, Philippines and Thailand from 2000- 2010 ... 58
4.5.3 Impact of crisis to economy and countries mitigation policies... 62
CHAPTER 5: CONCLUSION AND RECOMMENDATION ... 69
6.0 REFERENCES... 73
7.0 APPENDIX ... 80
vi
List of Figures
Figure 2.1 The driving forces of CBMA 17
Figure 2.2 Global FDI flow, 2002 to 2009 and projections for 2010 to 2012(billion of dollars)
31
Figure 2.3 M&A Sales in Developing Asia, 1987-2006 33 Figure 2.4 M&A Purchases in Developing Asia, 1987-2006 34 Figure 4.1 Completed CBMA deals in Indonesia, Malaysia,
Philippines and Malaysia from 2007 to 2010
48
Figure 4.2 CBMA top target countries from 2007-2010 51 Figure 4.3 CBMA top acquirer countries from 2007-2010 51 Figure 4.4 Top ten financial advisers in value for the
acquiring firm in Indonesia, Malaysia, Philippines and Thailand ( 2007-2010 )
53
Figure 4.5 Top ten financial advisers in numbers of deals for the acquiring firm in Indonesia, Malaysia, Philippines and Thailand ( 2007-2010)
53
Figure 4.6 Trend for completed CBMA deals in Indonesia, Malaysia, Philippines and Malaysia from 2000 to 2010
56
Figure 4.7
Figure 4.8
Sector distribution of CBMA in Indonesia, Malaysia, Philippines and Thailand from 2007- 2010
CBMA termination trend in Indonesia, Malaysia, Philippines and Thailand ( 2007-2010)
57
59
List of Tables
Table 2.1 Global Foreign Investments Inflows (billion of dollar) 27 Table 2:2 Emerging Markets Foreign Investments Inflows (billion
of dollar)
28
Table 2.3 Percentage of Global FDI Inflows 29 Table 2.4 Performance of CBMA in five East Asian countries
(sectors distributions)
32
Table 2.5 Performance of CBMA in five East Asian countries (Nationality of acquiring firms)
35
Table 4.1 Summary of CBMA activities in Indonesia, Malaysia, Philippines and Thailand (2000-2006)
42
Table 4.2 Numbers of completed CBMA deals (2000 – 2006) 43 Table 4.3 Value of completed CBMA deals from 2000 to 2006
(USD- Million)
44
Table 4.4 CBMA top acquirer and target industries for the four countries ( 2000-2006)
44
Table 4.5 Home countries of leading acquiring and targeted companies from the four countries (2000-2006.)
45
Table 4.6 Summary of CBMA activities in Indonesia, Malaysia, Philippines and Thailand (2007-2010)
46
Table 4.7 Completed CBMA deals in Indonesia, Malaysia, Philippines and Thailand (2007 – 2010)
47
Table 4.8 Value of completed CBMA deals for the year (2007- 2010) (USD Million)
49
Table 4.9 Average value per a completed CBMA deal in 49
viii
Indonesia, Malaysia, Philippines and Thailand (2007- 2010)
Table 4.10 Completed CBMA deals- top target industries in Indonesia, Malaysia, Philippines and Thailand (2007- 2010) ‘number of completed deals’
50
Table 4.11 Completed CBMA deals: top value acquire countries (2007- 2010)
52
Table 4.12
Table 4.13
Trend for completed CBMA deals in Indonesia Malaysia, Philippines and Thailand (2000-2010) Sector distribution of CBMA in Indonesia, Malaysia, Philippines and Thailand ( 2007- 2010)
55 58
Table 4.14 CBMA termination trends in Indonesia, Malaysia, Philippines and Thailand ( 2000 – 2010)
61
Table 4.15 GDP Real Growth rate percentages ( 2006 – 2010) 64 Table 4.16 Average Exchange Rate per US dollar 64 Table 4.17 Inflation Rate Consumer Price percentages as at
2010 65
List of Abbreviations
ADB Asia Development Bank
CBMA EMMS
Cross Border Merger and Acquisition Emerging Market Multinationals ERP Economic Resiliency Plan
EU European Union
FDI Foreign Direct Investment
FTSE Financial Times and London Stock of Exchange GDP Gross Domestic Product
IMF International Monetary Funds M & A Merger and Acquisition
OFDI Outward Foreign Direct Investments OPR Overnight Policy Rate
S & P Standard and Poor’s
SRR Statutory Reverse Requirement TNCs Transnational corporations
UN United Nations
UNCTAD United Nations Conference on Trade and Development
US United States
USA United States of America USD United States dollar
