Successive trillion-won investments by major Korean conglomerates and large overseas private equity funds (PEFs) drove the country's mergers and acquisitions (M&A) market significantly higher in the first half of this year. The increase came as major companies completed big deals to expand into new businesses while divesting non-core operations. Global PEFs are ramping up large-scale investments in Korea, which offers a well-established artificial intelligence (AI) value chain.
According to a league table compiled by The Seoul Economic Daily on Wednesday, M&A deals that completed final payment in the first half of this year totaled 244 transactions worth 46.9796 trillion won. That marked a 65.5% surge from 28.3945 trillion won (222 transactions) in the same period last year. On an announcement basis, however, deals in the first half numbered 57 transactions worth a total of 20.0624 trillion won, suggesting the market could contract somewhat in the second half.
DB Insurance completed its acquisition of U.S. insurer Fortegra for 2.3106 trillion won, finishing a cross-border big deal. POSCO, which is undergoing a business restructuring, sold its Chinese stainless steel unit for 524.8 billion won and invested 1.6096 trillion won in a joint venture in India.
Europe-based EQT Partners spent 3.2 trillion won to acquire management control of Douzone Bizon, a Korean comprehensive information and communications technology (ICT) solutions firm. Kohlberg Kravis Roberts (KKR) of the United States invested 1.12 trillion won in Samsung SDS convertible bonds (CBs), becoming the first global PEF to join hands with Samsung. France's Air Liquide acquired DIG Airgas for 4.85 trillion won.
The investment banking (IB) industry said the trend of major companies injecting large sums to secure future growth engines emerged across the board. The industry also pointed to the inflow of global capital seeking to gain an early foothold in Korea's AI infrastructure and technological capabilities as a major shift spreading recently.
