Big Aussie deals on the rise

Photo / Bay of Plenty Times

Merger and acquisition deals in Australia are tipped to rise this year on the back of more private equity investors returning to the fold, an analyst says.

Activity in M&A more than doubled in Australia to US$164.4 billion ($213.7 billion) last year from US$68.8 billion a year earlier, according to Thompson Reuters data.

"A lot of the growth is from high-profile investment in the resources sector," Allens Arthur Robinson corporate partner Richard Kriedmann said yesterday. "What is less visible is a significant upsurge in private equity investment, which we expect to fuel further M&A activity in the next 12 months."

The latest data available for capital spending showed investors were becoming more confident about the outlook for the Australian economy.

New private capital expenditure rose 6.2 per cent in real terms, seasonally adjusted, in the September quarter, the Australian Bureau of Statistics said in November.

- AAP