Monday, October 4, 2010

Global M&A involving sovereign wealth funds fall in Q3

(Reuters) - Global corporate mergers and acquisitions activity involving sovereign wealth funds fell in the third quarter to $9.2 billion with 24 deals completed, Thomson Reuters data showed on Monday.

Global announced M&A volumes involving state investment vehicles fell 46 percent in the three months ending September from the same period in 2009. In the second quarter of 2010, such volumes totaled $12.5 billion with 37 deals completed.

At the height of the boom in the first quarter of 2006, sovereign wealth funds sealed 35 deals worth $45.7 billion.

After a poor performance during the financial crisis, many sovereign wealth funds have shifted their focus away from aggressive investment abroad and instead put money into assets at home or into "strategic" foreign assets, such as food and energy, that fit in with national economic policy.

Over the past year they also have been expanding their portfolio in emerging and frontier markets, where some of them have invested in long-term infrastructure or resource projects.

(Reporting by Natsuko Waki)

Source: www.reuters.com

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