M&A activity in Singapore almost doubled that of 2009 in value, with US$40.7 billion worth of deals taking place. That value is expected to continue increasing in 2011, dominated by expansion of the real estate sector.

Not only that, but the number of outbound Singapore acquisitions increased more than 500% on last year, amounting to $23 billion worth. The figure includes the Singapore Exchange’s (SGX) proposed acquisition of the Australian Securities Exchange (ASX), worth $8 billion. Australia and Hong Kong were the biggest destinations for outbound acquisitions.

After the SGX-ASX deal (yet to be fully approved in Australia) the largest acquisitions were of CapitaLand China-Orient Overseas Developments ($2.2 billion) and Investor Group Banco BTG Pactual ($1.8 billion).

Analysts are predicting most action will come from real estate next year as the many Singaporean REITs looked for local acquisitions to build up their portfolios. Financial services will also figure but aren’t generating much excitement, while the energy sector looks set to benefit from developing economies in the region, after a 45% fall in M&A activity in 2010.

source & article: Channel NewsAsia