China, India to be top M&A targets till 2012: UNCTAD

Merger and acquisition activities of trans-national corporations (TNC) are due for a rebound and will be the major focus in foreign direct investment (FDI) activities around the globe, according to an UNCTAD survey. China, India and Brazil are likely to be the major beneficiaries of this rebound in global M&A business.

According to the survey, the world's biggest companies intend to boost international investments over the next two or three years with most of the planned spending heading in the direction of major emerging economies.

China, India, Brazil, US, Russian Federation, Mexico, UK, Vietnam, Indonesia and Germany are the top ten investment destinations for FDI until the end of 2012, says the survey. Last year's number two, the United States of America, is now in fourth place with India moving up from third position to occupy the second slot behind China.

The survey says global FDI growth prospects for the next three years are brighter in the primary sector, principally extractive industries and to a lesser extent in the services sector than in manufacturing.

The United Nations Conference on Trade and Development (UNCTAD) is a permanent intergovernmental body and the principal organ of the United Nations General Assembly dealing with trade, investment and development issues.

The survey is based on the responses of 236 TNCs and 116 investment promotion agencies to an UNCTAD questionnaire. The survey indicates a recovery in global FDI flows in 2010 and further growth in 2011 and 2012.