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M&As boom despite economic downturn: economics official

M&As boom despite economic downturn: economics official

Taipei, April 4 (CNA) Merger and acquisition activity remained robust in Taiwan last year despite the global financial crisis, an economics official said Sunday.
According to the official, 185 mergers and acquisitions worth NT$34.42 billion (US$1.08 billion) were made last year, of which 84.3 percent were mergers. Most of the deals came in the electronics sector.
The high rate of mergers reflected the ambition of domestic enterprises to boost their international competitiveness during the economic downturn by expanding the sizes of their companies, the official said.
Since the Business Mergers And Acquisitions Act was promulgated Feb. 6, 2002, there have been more than 1,300 mergers and acquisitions worth a total of NT$620 billion in Taiwan, according to Ministry of Economic Affairs statistics.
Such deals are considered favorable to corporate restructuring and to help companies increase their economies of scale, cut costs, enhance production efficiency and boost international competitiveness.
Last year, the highest number of deals was seen in the electronics sector, with 40, or 21.6 percent of the total, followed by 24 deals made in the construction sector and 16 in the communications industry, according to the official.
(By Lin Su-yuan and Y.L. Kao)




Updated : 2021-08-04 14:17 GMT+08:00