Maximizing Corporate Value through Mergers and Acquisitions: A Strategic Growth Guide

Chapter 7

Growth through Emerging Market M&A

In this chapter, we will discuss both the merger and acquisition (M&A) opportunities that exist in emerging markets for companies in the developed markets as well as the rise of the emerging market acquirer. We will first focus on M&A in emerging markets by companies in more developed economies that are seeking faster growth. Then we will shift to focusing on the emerging market acquirers. The emerging market acquirers are a relatively new breed of acquirer from emerging markets, which have targeted companies in the developed world for a variety of reasons.

A comprehensive discussion of the M&A opportunities in all the major emerging markets throughout the world is well beyond the bounds of this chapter. Instead, we focus on the opportunities, but also the pitfalls, of doing M&A in some of the major emerging markets. As with the rest of this book, we demonstrate many of our points through discussing actual M&As—some that have worked out well and some that have not. In doing so, we hope to raise many of the issues that dealmakers and would-be acquirers have to be cognizant of prior to doing deals.

Companies can benefit from doing M&A in emerging markets by realizing an expanded demand for their products or services. They can also secure better sources of supply in emerging markets. Such deals are not new but have been going on for a long time. Our initial discussion focuses on companies in developed nations pursuing growth and greater ...