Monthly M&A Insider: October20 October 2008

This is the definitive crib sheet to see what is happening in global M&A. This edition comprises of over 200 pages of comment, data and statistics on the key issues in key M&A territories.

Table of Contents

1. Introduction

2. Consolidation in Italian banking sector to continue despite current credit turmoil

3. Trucking and air companies will be hit harder than rail and marine players in banking crisis, acquisitions unlikely until credit crunch eases

4. BOS/Lloyds TSB: Scottish Widows, St James’ Place and Bankwest could be the first likely disposals

5. North America

6. Latin America

7. Asia-Pacific

8. China

9. Japan

10. Australia

11. Europe

12. UK

13. Germany

14. France

15. Italy

16. Benelux

17. Iberia

18. Nordic

19. CEE/CIS

20. Russia

Globally, there have been 1,040 deals worth €264bn from 1 September to 17 October this year, according to mergermarket. Comparing this to the same period last year, where there were 14,781 deals worth €2,264bn, it is clear that the hype surrounding the drop in M&A has a sound basis. The headlines have focused on the ailing banks, and the stream of forced nationalisations which are taking place across Europe and America. Additionally, smaller hedge funds appear to be disappearing into oblivion, whilst the larger ones shut down underperforming funds and attempt to ‘hold tight’. So where does this leave M&A?

For the moment it looks like a case of survival of the fittest. Those with the capital to make money in the current situation will be quietly hunting for cheap buys. For example, many Japanese companies who previously had a conservative approach to capital by holding off on dividend payments and making only reasonably risk adverse buys, are now seeing the benefits of this strategy. Indeed, Japanese bidders have made 379 acquisitions at a total of €57.5bn this year to date, compared to last year where they made €43.4bn from 398 deals.

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