Merger and acquisition (M&A) activity here took a hammering in the first quarter in the wake of the turmoil unleashed in the corporate sector by the coronavirus crisis.

The value of deals came in at US$10.2 billion (S$14.6 billion) in the three months to March 31, 22.4 per cent down from the US$13.1 billion recorded in the same period last year.

There were still some headline transactions here before the virus put a stranglehold on dealmaking.

The proposed $8.27 billion merger via a cash-and-stock deal between CapitaLand Commercial Trust and CapitaLand Mall Trust was the top deal by value and the second-largest in the Asia-Pacific.

Overall, M&A activity in the Asia-Pacific excluding Japan generated US$103.2 billion across 616 deals in the first quarter - 32 per cent lower year on year and the lowest quarterly value since the first three months of 2013.

China and Hong Kong were the most significant contributors to M&A activity in the region and the first to be impacted by Covid-19.

Their combined deal value in the first quarter plunged 35.8 per cent year on year to US$51.3 billion, while the 268 transactions were 32.5 per cent lower.

"The coronavirus crisis might create M&A opportunities for dealmakers in the coming months as cash-starved Chinese companies seek to weather the storm," Mergermarket said in its report.

That said, companies are now vying for emergency loans, but equity injections are also to be expected, it added.

Private equity buyouts in the first quarter fell 54.2 per cent in value to US$9.4 billion across 74 deals - the smallest quarterly value since the fourth quarter of 2013.

Private equity exits in the first quarter generated only US$4.8 billion across 27 deals, down 72.2 per cent from US$17.3 billion spanning 41 transactions a year earlier.

Globally, M&A activity fell 39.1 per cent in deal value to US$563.7 billion across 3,685 transactions after nearly a decade of growth, comparable with levels seen during the global financial crisis.

THE BUSINESS TIMES