Deal Drivers EMEA Full-Year 2013

13 February 2014

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Mergermarket is pleased to release the full-year edition of Deal Drivers EMEA, in association with Merrill DataSite.

The report provides an in-depth review of M&A activity in 2013, offering key insights into how announced deals in the past year will impact M&A for 2014.

Highlights of the report include:

  • The TMT sector was the major contributor to 2013′s deal activity with €97.2bn worth of deals – a 97% uptick over 2012′s total value of €49.3bn – and nine deals in the EMEA top 20. Examples include Vodafone’s sale of its 45% stake in US-based Verizon for €94bn in June and US-based Liberty Global’s acquisition of the UK’s Virgin Media for €18.5bn.
  • In the private equity space, the picture for exits during 2013 was mixed. Volumes rose by a sizeable 18%compared to 2012, but value dropped by 16% over the same period. Exit activity was bolstered by a rise in the number of European IPO exits which included high-profile deals such as Merlin Entertainment’s €1.14bn listing in November, and CVC’s listing of a stake in Belgian postal service bpost.
  • Central & Eastern Europe (CEE) is set to be the hottest region for M&A activity, with dealmaking supported by rapid consolidation in the Industrials & Chemicals space, as well as attractive opportunities across the Consumer, TMT and Energy, Mining & Utilities sectors.
  • The outlook for M&A in the Middle East & North Africa (MENA) region is more positive for 2014 than it has been for the past two years. 2013 saw 186 deals with a total value of €28.4bn, the highest activity levels since 2007.

Wired up: The convergence of technology, media and entertainment

15 June 2015

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Mergermarket is pleased to present Wired up: The convergence of technology, media and entertainment, published in association with Reed Smith. The first report in Reed Smith’s Deal Dimensions series, Wired up explores the drivers of cross-sector dealmaking (or convergence), identifies potential deal-blockers, and considers steps firms need to take to ease the path to convergence.
 
Key findings from the report include:
 
  • 2014 set the scene for the convergence trend, with TME cross-sector deals amounting to $34.5bn in 2014, an increase of 11% over 2013. Deal volume spiked 52% YoY to 326 deals in 2014.
  • 84% of technology, media and entertainment (TME) companies surveyed say they expect to see more cross-sector, or convergence, deals over the next two years (26% believe there will be significantly more).
  • Technology targets accounted for the largest share of TME convergence volumes (48%) and value (41%) in 2014/2015. This included US-based Scientific Games Corporation’s more than US$5bn merger with gaming operator and distributor Bally Technologies, a deal aimed at creating the world’s leading gaming and lottery entertainment and technology company.
  • Entertainment firms are the most interested in making cross-sector acquisitions. More than a third of the entertainment companies surveyed are planning non-entertainment purchases, with 21% targeting media and a further 13% planning to pursue technology firms.

Deal Drivers Americas Full-Year 2013

13 February 2014

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Mergermarket is pleased to release the full-year edition of Deal Drivers Americas, in association with Merrill DataSite.

The reports provide an in-depth review of M&A activity for the full-year of 2013, offering key insights into how announced deals of FY 2013 will impact M&A for the remainder of the year.

Highlights of the report include:

  • There were a total of 4,321 deals worth US$965 billion in North America
  • In North America, the rollout of the Affordable Care Act is spurring hospital M&A as these companies seek to gain economies of scale to remain profitable in the face of reimbursement cutbacks mandated by the new law
  • In Latin America, the top sectors that performed well over 2012′s figures were Financial Services, TMT, Transportation and Agriculture

We hope you enjoy reading the reports.

Global M&A Series – China Outbound M&A Trends

26 February 2014

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Mergermarket is pleased to present the sixth edition of its Global M&A Series, a study of activity in the Chinese M&A market, published in association with Squire Sanders. This study examines China outbound M&A trends, with a detailed review of financial investors, sector snapshots, and a spotlight feature on North America.

Key findings include:

  • In 2013, there were 220 deals worth US$68.9bn, representing a 37% and 17% increase in volume and value, respectively, from 2012.
  • Energy and resources continues to command the lion’s share of outbound activity: 26% and 61% of volume and value respectively in 2012 through 2013.
  • The proportion of outbound M&A activity from the consumer sector grew to 15% of volume and 9% of value in 2012 through 2013, the industry’s most notable deal being China’s largest pork producer, Shuanghui International’s US$6.9bn purchase of its US-based counterpart, Smithfield Foods.
  • In terms of target regions, 2012 through 2013 saw a moderate uptick in activity into other Asian countries – up 5% of value from 2008 to 2011 – although the developed markets of North America and Western Europe continue to take the lead (52% of volume and value).

Japan’s inbound potential

27 February 2014

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While attention remains fixed on corporate Japan’s impressive outbound buying spree, anticipation has been building for a renewed influx of foreign investment in the year ahead. This is likely to occur first through property transactions as a number of foreign real estate funds begin to enter the market. Another of Japan’s strengths lies in the tech sector, where investors from abroad look to cash in on innovations in everything from handheld tech to advanced industrial capabilities. Japan’s inbound potential, a special newsletter produced by Deloitte Tohmatsu in collaboration with Mergermarket, takes an inside look at these trends and others.

Highlights from the newsletter include:

  • Inbound M&A has remained stagnant in recent years but is expected to rebound on the heels of increasing interest in Japanese real estate and the optimism surrounding Japan’s economy as a result of Prime Minister Shinzo Abe’s economic stimulus plans known as “Abenomics” and Tokyo winning the bid to host the 2020 Summer Olympics.
  • Japan’s industrial sector and tech space accounted for a combined 51% of completed inbound deals and 49% of deal value over the past four years as foreign investors search for deals among Japanese electrical components and advanced battery manufacturers.
  • While domestic firms have been the dominant participants in private equity in Japan, international firms continue to solidify their place. Since 2010, international private equity firms completed 38 deals worth ¥1.2tn (US$12.3bn), compared to domestic firms with 96 buyouts worth ¥979bn (US$9.9bn).
  • By the numbers, buyers from outside Asia have shown the most interest in Japan, completing 66% of inbound transactions since 2010. In value terms, the divide is even more impressive with non-Asian acquirers accounting for 84% of deal dollars, or roughly ¥3.4tn (US$35bn) in acquisitions.
  • An exclusive interview with Tsutomu Kishi, Partner at Deloitte Tohmatsu Financial Advisory  Reorganization Services, and Tomokazu Hashimoto, Senior Vice President, Deloitte Tohmatsu Financial Advisory Reorganization Services, on developing trends in Japan’s real estate market.

Market Spotlight: Financial Regulatory Update

27 February 2014

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Welcome to February’s Venue® Market Spotlight. This month’s edition focuses on financial regulatory updates.

Mergermarket, commissioned by RR Donnelley, interviewed investment bankers based in the US, Europe, and Asia-Pacific to gain insight into their views regarding the ramifications of financial regulations. Respondents discussed how the Volcker Rule, Basel III and Solvency II are impacting M&A decision-making.

Aviation & Aerospace M&A Quarterly Q4 2013

05 March 2014

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In Q4 2013, aviation activity was up while aerospace activity was down compared to the previous quarter, according to the second edition of Aviation & Aerospace M&A Quarterly, published by global consulting firm, ICF SH&E in association with Mergermarket.

Highlights include:

  • The big three Gulf carriers – Emirates, Qatar Airways, and Etihad – further solidified their ambitious expansion plans via massive orders at the Dubai Airshow
  • The aircraft leasing industry witnessed a landmark transaction in the consolidation of AerCap and ILFC
  • Consolidation in the helicopter industry picked up speed
  • Textron makes a major strategic move with the acquisition of Beech Holdings
  • China’s outbound M&A continues unabated, with significant US buys in Q4 2013

This newsletter examines the drivers of M&A activity in the coming months and years, and looks at advances in additive manufacturing, also known as 3-D printing, a disruptive technology poised to fundamentally transform parts of the aerospace supply chain.

Monthly M&A Insider: March 2014

21 March 2014

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The beginning of 2014 finds the M&A climate holistically improving. This past February, the number of global deals increased 7% year-on-year (YoY) to 1,028 deals, while value jumped 24% to US$274.5bn over the same period.

Highlights include:

 

  • Real Estate YoY volume increased by 69% to 22 deals globally
  • While China and Japan saw volume and value figures decline sharply in February after a strong start to the year while Australia saw a slight uptick with bulge bracket deals
  • February 2014 revealed to be a month of large deals in Europe with three of the top transactions totaling US$27.9bn

Opportunity Knocks: Success in Restructuring

16 June 2015

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Picking an approach to transforming or reorganizing a company’s structure can be the difference between a successful turnaround and the loss of tremendous amounts of time, resources, and value. Today, amid macroeconomic uncertainties and the slowdown in the Chinese economy, deciding on a course of action — be it cash management, corporate expansion, overhead optimization, or efforts to enhance revenue – is even more pressing in Asia as corporation and private businesses reorganize their financial and operational structures.
 
In this third annual report on restructuring in the Asia-Pacific region, titled Opportunity Knocks: Success in Restructuring, AlixPartners and Remark analyze current trends and challenges, as well as the options available during a turnaround and their anticipated use in the year ahead.
 
Highlights from Opportunity Knocks: Success in Restructuring include:
 
  • 93% of survey participants anticipate an increase in corporate restructurings in the Asia-Pacific region in the year ahead. This represents a significant increase over expectations from surveys in 2013 (66% of respondents) and 2014 (70%).
  • Only 18% of respondents say they take a proactive approach to restructuring, despite widespread realization that early action can give corporate leaders greater control over the process.
  • Strategies that can be applied to cope with operational and financial changes include mergers and acquisitions (M&A), cash management, overhead optimization, and revenue enhancement. Within each overall strategy, respondents pinpoint particular initiatives they say offer the best chance for a successful restructuring.
  • When using M&A as a restructuring tactic, respondents note that poorly executed integration can have a lasting, negative impact on the future fortunes of a company. Whereas 30% say post-deal processes represent the most challenging aspect of a deal, 90% admit that the most time and resources are dedicated to earlier stages in the transaction. Close to 25% say post-merger integration deserves more attention than it is being given.
  • Generally, respondents say the restructuring profession has yet to establish a foothold in the region comparable to that in North America or Europe. Although regulatory and political developments are paving the way to make it easier to restructure, 57% of respondents say the region is still less mature than markets in the West.

Baltic M&A Monitor

27 March 2014

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Mergermarket is pleased to present the third edition of the Baltic M&A Monitor in association with Raidla Lejins & Norcous. This report provides a detailed look at M&A activity in Estonia, Latvia and Lithuania, along with forecasts for the 12 months ahead.

According to the report, the Baltics saw a four-fold increase in M&A value in the past year, with €1.1bn worth of deals in 2013 compared to €311m in 2012. This was despite no change in the overall volume of deals in the region (51) and a 12% drop in M&A values across Europe as a whole.

Highlights from the report include:

  • The year-on-year growth in Baltic M&A value hinged largely on the €782m investment into AB Ukio Bankas by Lithuanian bank Siauliu Bankas AB, which points to the importance of domestic restructuring among the Baltic regional banks to the wider M&A landscape.
  • The Financial Services and TMT sectors played an important part in boosting recent deal flow, accounting for 60% and 17% respectively of aggregate deal value in 2012-2013. On the other hand, the Energy sector’s share of deal value declined from 57% in the 2008-2011 period to just 3% in 2012-2013.
  • Deal volume in 2013 was also distributed more evenly across the three Baltic states than in previous years. Latvia, which typically trails behind Lithuania and Estonia in terms of M&A volume, is starting to account for a larger share of the region’s M&A activity.

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