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M&A totals for this year have already overtaken 2023 as technology, green energy and a financial services megadeal drive activity
Taiwan’s M&A scene has been extremely active throughout 2024.
A total of 74 deals valued at US$11.2 billion were announced in the first three quarters of the year, already eclipsing the whole of 2023 in terms of both volume and value. Given the current trajectory, it is likely the province will post its highest annual deal value since 2021.
Overseas bidders eye TMT assets
The technology, media and telecommunications (TMT) sector has provided the bulk of deal activity in terms of volume, with 23 deals valued at US$1.6 billion changing hands during the first three quarters of the year. Significantly, the total for 2024 is almost double the 12 transactions announced in the same period in 2023.
The largest of these deals saw Silicon Valley giant Uber acquire food ordering platform foodpanda. Valued at US$950 million, the tie-up seeks to expand Uber’s influence beyond Taiwan’s urban centers into its southern regions and smaller cities. The acquisition is subject to regulatory approval.
Alongside e-commerce, Taiwan’s fast-developing AI and semiconductor markets are proving a major draw for overseas investors. The island’s depth of data availability, engineering talent and semiconductor expertise make it an attractive prospect for investors across the globe.
A good barometer of this interest is the annual computer expo, Computex, held in Taipei. The 2024 meeting attracted semiconductor C-suite heavyweights including from AMD, Qualcomm and Intel.
Financial services sector delivers megadeal
While the TMT sector posted the largest volume, it was financial services that delivered the highest-valued deal of the year: Taiwanese financial conglomerate Taishin’s US$7.8 billion bid for local peer Shin Kong Financial. Through the proposed combination, which would create the island’s fourth-largest financial company, the businesses are aiming to expand their footprint and increase their competitiveness on the global stage.
The merger is the only megadeal to target a Taiwanese company so far this year and, if it completes, will be Taiwan’s largest financial services merger on record.
However, the deal faced an unexpected challenge in the form of a rival bid from local bank CTBC Financial. The takeover attempt was subsequently blocked by Taiwan’s Financial Supervisory Commission, citing potential risks to market stability. This was largely down to the use of share swaps in a hostile takeover bid and uncertainties surrounding the funding of the deal.
Clean energy investment gets a boost
The renewable energy sector is also attracting international investors to Taiwan’s shores, with the government actively promoting the sector as it strives to meet net zero by 2050. Certain incentives—for example, a 20-year preferential feed-in tariff rate for the purchase of electricity generated by renewable power—create an attractive and reliable investment environment for foreign investors.
Such incentives appear to be making an impact. As part of its strategy to cut carbon emissions throughout its supply chain and operations, global tech powerhouse Google purchased a stake in Taiwanese solar power company New Green Power (NGP) from BlackRock. The undisclosed investment, which allows Google to procure up to 300 MW of clean energy, is expected to pave the way for the development of NGP’s 1 GW pipeline.
Domestic interest in the sector is also high. In February, state-owned oil and gas business CPC Corporation partnered with electric power producer Taiwan Power Company—also known as Taipower—to acquire a 40 percent stake in the Formosa 4 Wind Farm Project for the sum of US$318.6 million. With its strong winds and expansive coastlines, Taiwan is emerging as a major regional player in the offshore wind industry.
Outbound investment fires up
Meanwhile, Taiwanese dealmakers are eyeing deals abroad. According to data compiled by Taiwan’s central bank, outbound direct investment during April to June this year totaled US$10.7 billion, up from US$3 billion in the same period last year.
Technology companies have been particularly active as they look to strengthen operations overseas. Both Taiwan Semiconductor Manufacturing Co and Hon Hai Precision Industry Co are reportedly eager to invest abroad to expand their global footprint.
Pharmaceutical companies are also set to become more active in cross-border dealmaking. Bora Pharmaceuticals, a local company engaged in the research, development, marketing and sale of medicines, is currently looking to expand its footprint across Taiwan and North America. According to Mergermarket, this could result in several acquisitions in the US.
Outlook
With the wind in its sails, Taiwan’s M&A activity looks set to continue its upward trajectory in the final quarter of 2024. The province’s appeal outside of Asia-Pacific remains strong—indeed, three of this year’s top ten deals were conducted by US bidders.
And the outlook for 2025 is robust. Interest from domestic and overseas bidders is particularly focused on the key sectors of technology, clean energy and financial services, while burgeoning innovation and local talent will ensure that deals for prize assets continue to get done this year and beyond.
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