M&A Monthly Insider – May 2015

21 May 2015

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Worldwide M&A took a tumble in 2015 as activity struggled to hit the record-breaking highs of 2014. April saw 917 deals worldwide valued at US$293.1bn, down 21.5% in value and 39% in volume year-on-year (YoY). However, despite the overall fall in numbers across the globe, certain bright spots across sectors and geographies kept activity afloat.
Highlights from the report include:
  • Energy, Mining & Utilities saw the sector’s value take up nearly half of deal value worldwide in April, with US$126.2bn-worth of acquisitions.
  • The North American Real Estate sector registered five deals collectively worth US$10.3bn, up more than 350% from the same period last year.
  • The Consumer sector in Asia-Pacific saw 83 deals in April worth US$51.3bn, up 94.5% by value compared to April 2014.

Market Spotlight: Initial Public Offerings

30 January 2014

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Welcome to January’s Venue® Market Spotlight. This month’s edition focuses on initial public offerings (IPOs).

Mergermarket, commissioned by RR Donnelley, interviewed investment bankers based in the US and Europe to gain insight on what they believe the trends are going to be in the next year. According to respondents, IPOs are expected to have a good run in 2014, a continuation of the landmark year they had in 2013 when the market saw the most IPOs since the financial crisis.

Inside Corporate – Wolf Theiss Corporate Monitor HY/2 2013

06 February 2014

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Mergermarket is pleased to present the second edition of INSIDE CORPORATE, a study of M&A activity – alongside macroeconomic and legal developments – in Central, Eastern and South Eastern Europe (CEE and SEE), published in cooperation with WOLF THEISS, one of the leading European law firms in CEE/SEE with a focus on international business law.

Drawing from extensive data on CEE/SEE M&A trends, the report offers insight into the economic, political and legal challenges and opportunities facing the region, as well as the outlook for 2014.

Key findings include:

  • In 2013, the CEE region collectively produced 475 deals worth €27.9bn, marking a 10% increase in volumeand a 56% increase in value from 2012. Taken against a still somewhat difficult economic and political background in many parts of the region generally, and the eurozone in particular, these increases strike a note of cautious optimism for the year ahead.
  • The past year has seen a sizeable portion of large-scale M&A driven by foreign buyers. Netherlands-based PPF Group made two of the year’s priciest acquisitions, paying €2.5bn for a 65.9% stake in Telefonica O2 Czech Republic and €1.3bn for a 25% stake in Czech financial services company Generali PPF Holding.
  • Sector trends: The TMT sector accounted for 32.5% of total CEE deal value in 2012-2013 – up from 19.8% in the period from 2008-2011. According to Mergermarket’s Heat Chart, which logs the number of “company for sale” stories announced over the past six months, the consumer and industrials and chemicals sectors – which were the busiest by volume in 2012-2013 – are both generating the highest volume of potential M&A targets going into 2014 (95 and 90 respectively).

Market Spotlight: Cross-border and PE Activity

01 June 2015

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Welcome to May’s Venue® Market Spotlight. This month’s edition focuses on cross-border and private equity (PE).
In May 2015, RR Donnelley commissioned Mergermarket to interview professionals based in the US, Europe and Asia-Pacific who expect the level of cross-border PE activity to increase over the next 12 months. This bullish attitude amongst PE executives comes after a year of blockbuster deals, fueled by factors such as the increasing availability of cheap debt and investor demand, building up PE’s dry powder reserves. However, respondents do note that the landscape of today will be different to that of last year.

Aviation and Aerospace M&A Quarterly

09 June 2015

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Q1 2015 proved to be another healthy three months for investment activity across the aircraft, airlines, aerospace and airports sectors according to the seventh edition of Aviation and Aerospace M&A Quarterly, published by global consulting firm ICF International in association with Mergermarket.
  • Large deals between leasing companies continue in the aircraft finance space.
  • Aviation in-flight technology remains active for airlines.
  • Metals continue to be acquisition magnets.

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.


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