Global mergers and acquisitions took a hit last year as the value of deals fell by 2.7 per cent to its lowest point in two years while Australia's activity was curtailed by a slowdown in energy and mining transactions.
In its round-up of M&A in 2012, Mergermarket reported a decrease in the value of deals to $US2.17 trillion from $US2.23 trillion in 2011 -- 40.7 per cent below the highs seen in 2007.
Overall, the number of transactions across the world last year fell by 4.7 per cent to 12,512.
In the Asia-Pacific, the value of deals increased by 2.5 per cent on 2011, totalling $US365.5 billion.
The region's 2146 deals contributed almost 17 per cent of global M&A activity last year.
The report said bidders searching for a target in the Asia-Pacific favoured Chinese firms, with 627 deals worth $US126.7bn completed, followed by Japan. Australian targets were third favoured with 397 deals worth $US46.1bn.
Mergermarket noted a "drop off" in energy and mining deals affecting Australia's result. It represented 10.6 per cent of region's activity in value and almost 16 per cent of volume.
Overall, Australia made up 2.3 per cent of global deal value while North America was the leader, contributing 40.9 per cent of M&A.
China made up just over 29 per cent of deal value in the Asia-Pacific and 25.7 per cent of volume in the region.
China also led activity in the emerging markets, making up a quarter of its deal value, while India added just 7.2 per cent.
The country grouping, which also includes Russia, Brazil and Mexico, contributed 23.2 per cent of global mergers and acquisitions worth $US505.4bn -- up 5 per cent on $US481.6bn recorded in 2011.
The BRIC nations also boosted deals in the emerging markets where values peaked in the fourth quarter at $US124.3bn, up 117 per cent on the same period in 2011 and the largest quarterly value ever recorded by Mergermarket.
The eurozone experienced its worst year since 2009, making up 13.6 per cent of global M&A, down by more than 16 per cent.
The US experienced its slowest year since 2010, with deals worth $US768.9bn coming in 4.7 per cent below 2011's result and 46 per cent down on 2006's peak of $US1.42 trillion.
Globally, mining, energy and utilities had the highest market share for deal value at 26.5 per cent, while agriculture recorded the largest increase in value, up almost 41 per cent to $US14.3bn, from $US10.1bn in 2011.
Media, defence, consumer, transport and business services all saw better values on the previous year.
Mergermarket predicted more consolidation in the advertising market while multinational mining companies were also expected to keep reducing spending and exposure to mature assets. More M&A activity was also forecast for precious metals, particularly between the "cash-poor and asset rich" and emerging producers.