2015 sets record for Israeli mergers and acquisitions

One trend that is an increasingly important part is M&A activity between Israel and emerging markets, particularly China.

By NIV ELIS
Updated: OCTOBER 27, 2015 02:02
THE TEL AVIV skyline (photo credit: REUTERS)
THE TEL AVIV skyline
(photo credit: REUTERS)
With two months left to go, 2015 has already broken records for mergers and acquisitions, posting a 52 percent increase over the same time period last year, according to Alain Dobkin, a managing partner of the Catalyst CEL Fund.
Moderating a panel at the annual Go4Israel investor conference in Tel Aviv, Dobkin said that M&A values have reached $21 billion so far this year. The figure, which itself sets a record, does not include the $40b. Teva acquisition of Allergan’s generic pharmaceuticals company.
“If you look at the last six quarters in Israel, we’re basically breaking the $1b. per quarter barrier,” he said.
One trend that is an increasingly important part is M&A activity between Israel and emerging markets, particularly China.
Before 2010, there were almost no such transactions, but since there have been over $10b. worth. Chinese investors contributing to Venture Capital Financing rounds also boomed, from nonexistent in 2010 to $302 million in 2014, he said, citing figures from IVC.
French-Israeli Édouard Cukierman, chairman of Cukierman & Co. Investment House and managing partner of Catalyst Funds, which runs the conference, said that this year, more participants came from China than from Europe.
While Europe was still by far a more important trade partner, the trend was important, he said.
“It also demonstrates that we have less dependence on Chinese regarding the geopolitical situation here,” he added.