KPMG survey: emerging market deals falter
KPMG study finds activity at six year low
The number of western companies buying into emerging markets has fallen to a
six year low, a KPMG study has found.
Immediately prior to the credit crunch, western companies sought to invest in
rapidly growing economies such as China and India.
But the end of cheap credit, and uncertain prospects for the global economy
has led to a sharp fall in the number of deals being struck.
KPMG’s study found 230 western companies buying into markets in the second
half of 2008, a decline of 37% compared with the first half of the year.
Deals done in the opposite direction – emerging market to developed country –
have not suffered the same decline, the study also found.