A mergermArket report on globAl m&A Activity Monthly M&A ... MA_Insider_May_2012.pdfBelgium-based...
Transcript of A mergermArket report on globAl m&A Activity Monthly M&A ... MA_Insider_May_2012.pdfBelgium-based...
Monthly M&A InsIderA mergermArket report on globAl m&A Activity
mAy 2012
MONTHLY M&A INSIDERMERGERMARKET
GLOBAL OVERVIEW 01
AMERICAS: LATIN AMERICA 06
NORTH AMERICA 11
ASIA-PACIFIC 15
EUROPE 20
MIDDLE EAST & AFRICA 25
ABOUT MERRILL CORPORATION 30
www.mergermarket.comPart of The Mergermarket Group
CONTENTS
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Monthly M&A Insider
global overview
01
The US$11.9bn sale of Pfizer’s infant nutrition unit to Switzerland-based Nestlé – the largest M&A deal of the year to date – reflects Pfizer’s retreat from non-core areas and its refocus on pharmaceuticals. This same strategy is also driving the widely anticipated sale (or listing) of the company’s animal health unit, which has so far drawn strategic interest from Germany-based Bayer and Novartis.
A similar back-to-basics approach is reflected on the buy-side, with Nestlé describing infant nutrition as being “at the heart of the company since it was founded in 1866” in the official deal announcement. Going forward Nestlé’s baby food business will seek to strengthen its grip on the Chinese market – an effort that should be pushed along smoothly with the newly-acquired Pfizer business, which boasts a market share of about 7.4% in China.
A renewed focus on core activities has also underpinned the M&A strategy of UK-based GlaxoSmithKline (GSK), which announced its US$2.5bn acquisition of Human Genome Sciences Inc., a biopharmaceutical company, in early May. The deal follows a string of non-core divestments from GSK, including the sale of several international over the counter (OTC) brands – including Nytol, Zantac and Beconase – to Belgium-based Omega Pharma for US$615m, and the sale of certain US and Canadian consumer brands to Prestige Brand Holdings for US$660m last December.
Large conglomerates’ asset sales are creating attractive growth opportunities for deep-pocketed strategic acquirers. But these non-core sales are also presenting opportunities to private equity buyers, particularly in smaller, more specialised industry subsectors. One recent example is the sale of Thomson Reuters’ healthcare analytics business, which provides software, data and analysis to healthcare companies seeking cost savings and operational improvements. US-based private equity firm Veritas Capital acquired the company in a US$1.3bn deal in April, as part of its expansion into the healthcare analytics market.
There are smaller-scale examples of this too. Platinum Equity – a US-based buyout firm that specialises in working with “strategic sellers” – acquired a 65% stake in the Logistics Services business of Caterpillar Inc. for US$750m, and in Europe, steel producer ArcelorMittal sold a minority stake to French buyout group AXA Private Equity as part of its non-core divestment strategy.
The next few months will likely see more of these attractive, high quality assets come to market. Hopefully, this trend will offset some of the more pressing challenges plaguing the market right now, like extended uncertainty in the eurozone or a looming election season in the US, and give new opportunities to cash-rich corporate acquirers and private equity buyers.
GLOBAL OVERVIEw
CORE STRENGTHGLOBALLy, THERE wERE 706 DEALS wORTH US$147.1BN REGISTERED IN THE MONTH OF APRIL, REPRESENTING A 34% DECLINE IN VOLUME AND A 42% DECLINE IN VALUE FROM THE SAME PERIOD LAST yEAR. ALL THINGS CONSIDERED, M&A HAS KEPT AN IMPRESSIVE PACE THROUGH TURBULENT TIMES, DUE LARGELy TO COMPANIES’ RENEwED FOCUS ON CORE OPERATIONS.
Head of Research: Elias Latsis
Editor: Gwen Ceton
For advertising opportunities contact:
Erik Wickman
Tel: + (1) 212 6863329 [email protected]
Global overview: Elizabeth Castro
Latin America: Urna Chakraborty
North America: Jason Cozza
Asia-Pacific: Timothy Phillips
Europe: Darragh Riordan, Peter Kruk and yannis Papacostas
Middle East & Africa: Marie-Laure Keyrouz and Silvia Paparello
Monthly M&A Insider 02
GLOBAL OVERVIEW
TREND GRAPHS
GLOBAL M&A QUARTERLY TREND
0
200
400
600
800
1,000
1,200
1,400
Q212*
Q112
Q411
Q311
Q211
Q111
Q410
Q310
Q210
Q110
Q409
Q309
Q209
Q109
Q408
Q308
Q208
Q108
Q407
Q307
Q207
Q107
Q406
Q306
Q206
Q106
Valu
e (U
S$bn
)
Total value Mid-market value
Num
ber of deals
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
Total volume Mid-market volume
0
50
100
150
200
250
300
350
400
Q212*
Q112
Q411
Q311
Q211
Q111
Q410
Q310
Q210
Q110
Q409
Q309
Q209
Q109
Q408
Q308
Q208
Q108
Q407
Q307
Q207
Q107
Q406
Q306
Q206
Q106
Valu
e (U
S$bn
)
Buyout value Exit value
Num
ber of deals
Buyout volume Exit volume
0
100
200
300
400
500
600
700
800
900
GLOBAL M&A ANNUAL TREND GLOBAL M&A ANNUAL PRIVATE EQUITY TREND
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
YTD 2012*201120102009200820072006
Valu
e (U
S$bn
)
Total value Mid-market value
Num
ber of deals
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
Total volume Mid-market volume
0
100
200
300
400
500
600
700
800
900
YTD 2012*201120102009200820072006
Valu
e (U
S$bn
)
Buyout value Exit value
Num
ber of deals
Buyout volume Exit volume
0
500
1,000
1,500
2,000
2,500
3,000
3,500
GLOBAL M&A QUARTERLY PRIVATE EQUITY TREND
Monthly M&A Insider 03
GLOBAL OVERVIEW
TREND GRAPHS
GLOBAL M&A SECTOR BREAKDOWN YTD 2012
GLOBAL GEOGRAPHIC BREAKDOWN YTD 2012
VALUE
VALUE
VOLUME
VOLUME
31.9%
5.6%
3.7%
3.4%
2.4%1.6%
7.9%
1.4%
10.1%
11.9%
10.7%
9.4%
Industrials & Chemicals
TMT
Consumer
Business Services
Energy, Mining & Utilities
Financial Services
Pharma, Medical & Biotech
Construction
Leisure
Transportation
Real Estate
Agriculture
2.3% 4.4%
36.1%
39.3%
17.9% Asia-Pacific
Europe
North America
Middle East & Africa
Central & South America
9.1%
11.1%
1.0%
0.3%3.2%
3.2%
2.0%
7.5%
3.7%
8.3%
21.2%
15.7%
13.7%
Industrials & Chemicals
TMT
Consumer
Business Services
Energy, Mining & Utilities
Financial Services
Pharma, Medical & Biotech
Construction
Leisure
Transportation
Real Estate
Agriculture
4.7%2.6%
34.2%
40.5%
18.0% Asia-Pacific
Europe
North America
Middle East & Africa
Central & South America
Monthly M&A Insider 04
globAl overvieW
TREND GRAPHS
GlobAl M&A deAl sIze breAkdown
VALUE VOLUME
0
10
20
30
40
50
60
70
80
90
100
YTD 2012*201120102009200820072006
42.1%
16.7%
21.0%
7.5%
12.7%
39.8%
16.8%
23.0%
7.9%
12.5%
42.8%
15.0%
19.1%
8.8%
14.3%
40.8%
16.3%
20.4%
7.9%
14.6%
27.3%
20.9%
27.4%
9.5%
14.9%
30.2%
19.3%
25.9%
10.2%
14.4%
28.1%
20.1%
29.0%
10.3%
12.5%
<US$250m or undisclosed value
US$251m-US$500m
US$501m-US$2,000m
US$2,001m-US$5,000m
>US$5,001m
Per
cent
age
80
82
84
86
88
90
92
94
96
98
100
YTD 2012*201120102009200820072006
<US$250m or undisclosed value
US$251m-US$500m
US$501m-US$2,000m
US$2,001m-US$5,000m
>US$5,001m
1.2%
5.0%
4.7%
88.4%
1.3%
5.5%
5.1%
87.4%
0.6%
0.9%
3.9%
4.6%
90.0%
0.9%
3.7%
3.9%
91.0%
89.3%
4.5%
4.7%
1.1%
0.4%
1.1%
4.7%
4.9%
88.8%
0.7% 0.7% 0.5%
1.1%
4.9%
5.0%
88.6%
0.4%0.5%
Per
cent
age
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M E R R I L L D A T A S I T E
LATIN AM
ERICA
LATIN AMERICAA MERgERMARkET M&A REpoRT oN
Monthly M&A Insider 06
April’s top deal is Brazil-based AmBev Brasil Bebidas’ acquisition of a 41.76% stake in Dominican Republic-based Cerveceria Nacional Dominican. This acquisition will form a strategic alliance to create the leading beverage company in the Caribbean through the combination of both businesses in the region. The combined business will include beer, malt, and soft drinks operations in the Dominican Republic, Antigua, Saint Vincent, and Dominica, as well as exports to 16 other countries in the Caribbean, the US, and Europe.
The Energy, Mining & Utilities sector dominated top deals for the month of April, including Endeavour Silver Corp’s US$200m acquisition of El Cubo and guadalupe y Calvo Mining project from AuRico gold Inc. The sector had the second highest deal volume in the year-to-date with 28 deals worth US$6.7bn, a 17.8% market share by volume and 27.8% by value.
Looking forward, Mexico has begun its presidential campaigns for elections to be held on 1 June 2012. As the United States’ third-largest trading partner, it has been making its presence known with 15 deals worth US$1.6bn in the year-to-date, despite reports of horrific organised crimes that have rocked the country. The candidates include Enrique pena Nieto, representing the Institutional Revolutionary party, Josefina Vazquez Mota, a former education secretary under the former president representing the National Action party, and Andres Manuel Lopez obrador, a liberal former mayor of Mexico City. With the elections taking place at the end of the second quarter, it remains to be seen how the results will affect Mexican M&A in the future.
LATIN AMERICAN M&A ACTIVITy DURINg ApRIL SAW 35 DEALS WoRTh US$2.5BN, BRINgINg ThE ToTAL yEAR-To-DATE VALUE To 157 DEALS WoRTh US$24.2BN. ThE INDUSTRIALS AND ChEMICALS SECToR hAD ThE hEAVIEST DEAL fLoW AT 29 DEALS IN ThE yEAR-To-DATE VALUE WoRTh US$732M. hoWEVER, BUSINESS SERVICES hAD ThE hIghEST DEAL VALUE IN ThE yEAR-To-DATE WITh US$7.5BN WoRTh of DEALS, ExCEEDINg INDUSTRIALS AND ChEMICALS.
07
LATIN AM
ERICA
Monthly M&A Insider
TOP 10 LATIN AMERICAN ANNOUNCED DEALS OF THE MONTH (APR-12)Announced Bidder company Target company Target dominant
sectorSeller company Exit multiples (x) Bid premia
1-day before
Deal value
(US$m)Revenue EBITDA P/E
16-Apr-12 Ambev Brasil Bebidas Ltda Cerveceria Nacional Dominicana C. por A. (41.76% stake)
Consumer Grupo Leon Jimenes
- - - - 1,000
26-Apr-12 Celesio AG Panpharma Participacoes SA (49.90% stake)
Pharma, Medical & Biotech
- - - - 346
17-Apr-12 Endeavour Silver Corp El Cubo; and Guadalupe y Calvo Mining Project
Energy, Mining & Utilities
AuRico Gold Inc - - - - 200
08-Apr-12 BNDES Participacoes SA; Fundacao Petrobras de Seguridade Social; and GP Investments Limited
Lupatech SA (39.30% stake)
Industrials & Chemicals
3.8 76.6 - -12.1% 192
27-Apr-12 Enagas SA GNL Quintero SA (20.00% stake)
Energy, Mining & Utilities
BG Group Plc - - - - 176
27-Apr-12 Pacific Rubiales Energy Corp BPZ Energy Inc (Block Z-1 assets) (49.00% stake)
Energy, Mining & Utilities
BPZ Energy Inc - - - - 150
08-Apr-12 Lupatech SA San Antonio Brazil Energy, Mining & Utilities
GP Investments Limited
- - - - 82
18-Apr-12 Svenska Cellulosa Aktiebolaget SCA
Papeles Industriales SA (50.00% stake)
Consumer 1.3 - - - 77
12-Apr-12 Parex Resources Inc Nabors Industries Inc (Exploration blocks in Llanos and Middle Magdalena Basin)
Energy, Mining & Utilities
Nabors Industries Inc
- - - - 73
05-Apr-12 Amcor Limited Aluprint SA de CV (tobacco packaging plant)
Industrials & Chemicals
Aluprint SA de CV
1.3 - - - 40
Based on announced deals, including lapsed and withdrawn bids Based on dominant geography of target company being Latin AmericaData correct as of 07-May-12
Source: mergermarket
TOP DEALS
LATIN AM
ERICA
Monthly M&A Insider
TREND GRAPHS
0
10
20
30
40
50
60
70
Q212*
Q112
Q411
Q311
Q211
Q111
Q410
Q310
Q210
Q110
Q409
Q309
Q209
Q109
Q408
Q308
Q208
Q108
Q407
Q307
Q207
Q107
Q406
Q306
Q206
Q106
Total value Mid-market value
Num
ber of dealsValu
e (U
S$bn
)
0
20
40
60
80
100
120
140
160
180
Total volume Mid-market volume
0
500
1,000
1,500
2,000
2,500
3,000
3500
4,000
4,500
Q212*
Q112
Q411
Q311
Q211
Q111
Q410
Q310
Q210
Q110
Q409
Q309
Q209
Q109
Q408
Q308
Q208
Q108
Q407
Q307
Q207
Q107
Q406
Q306
Q206
Q106
Valu
e (U
S$m
)
Buyout value Exit value
Num
ber of deals
Buyout volume Exit volume
0
2
4
6
8
10
12
14
16
18
0
20
40
60
80
100
120
140
160
180
YTD 2012*201120102009200820072006
Total value Mid-market value
Num
ber of dealsValu
e (U
S$bn
)
0
100
200
300
400
500
600
700
Total volume Mid-market volume
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
YTD 2012*201120102009200820072006
Valu
e (U
S$m
)
Buyout value Exit value
Num
ber of deals
Buyout volume Exit volume
0
5
10
15
20
25
30
35
40
45
50
08
LATIN AMERICAN M&A QUARTERLY TREND
LATIN AMERICAN M&A ANNUAL TREND LATIN AMERICAN M&A ANNUAL PRIVATE EQUITY TREND
LATIN AMERICAN M&A QUARTERLY PRIVATE EQUITY TREND
LATIN AM
ERICA
Monthly M&A Insider
TREND GRAPHS
LATIN AMERICAN M&A GEOGRAPHIC BREAKDOWN YTD 2012
VALUE VOLUME
5.1%
4.8%
4.1%
4.2%
6.5%
0.9% 0.1%2.1%
71.5%
0.7%
Argentina
Brazil
Chile
Colombia
Costa Rica
Dominican Republic
Mexico
Panama
Peru
Uruguay
56.1%
1.3%
8.9%
10.2%
0.6%
9.6%
0.6% 5.7%
0.6%
6.4%Argentina
Brazil
Chile
Colombia
Costa Rica
Dominican Republic
Mexico
Panama
Peru
Uruguay
LATIN AMERICAN M&A SECTOR BREAKDOWN YTD 2012
VALUE VOLUME
27.8%
13.2%
31.0%
11.1%
0.6%1.5%
0.9%1.6% 3.3%
3.0%4.8%1.2%
Industrials & Chemicals
Energy, Mining & Utilities
Consumer
Business Services
Financial Services
Technology
Pharma, Medical & Biotech
Leisure
Real Estate
Transportation
Construction
Media
18.7%
17.8%
15.9%10.8%
10.2%
5.1%
5.1%
1.9%2.5%
0.6%0.6%
3.8%
3.8%3.2% Industrials & Chemicals
Energy, Mining & Utilities
Consumer
Business Services
Financial Services
Technology
Pharma, Medical & Biotech
Leisure
Real Estate
Transportation
Construction
Agriculture
Media
Telecommunications
09
10
LATIN AM
ERICA
Monthly M&A Insider
LATIN AMERICAN M&A DEAL SIZE BREAKDOWN
VALUE VOLUME
0
10
20
30
40
50
60
70
80
90
100
YTD 2012*201120102009200820072006
<US$250m or undisclosed value
US$251m-US$500m
US$501m-US$2,000m
US$2,001m-US$5,000m
>US$5,001m
46.9%
8.3%
21.8%
10.3%
12.7%
16.1%
10.6%
32.1%
16.0%
25.2%
30.5%
20.3%
24.5%
10.0%
14.7%
9.2%
29.3%
36.6%
10.1%
14.8%9.4%
6.9%
24.9%
19.2%
39.6%
29.0%
18.4%
27.4%
10.8%
14.4%
28.3%
19.6%
35.2%
16.9%
Perc
enta
ge
20
30
40
50
60
70
80
90
100
YTD 2012*201120102009200820072006
1.0%
5.4%
7.4%
85.2%
0.2%
5.5%
6.3%
87.3%
0.6%
4.7%
5.3%
88.2%
0.3%
6.9%
5.4%
85.6% 82.4%
6.3%
8.1%
1.2%1.0% 0.7% 1.2% 1.8% 2.0%
6.0%
5.9%
86.2%
0.8% 0.6%
Perc
enta
ge
1.1%
8.3%
5.7%
85.4%
<US$250m or undisclosed value
US$251m-US$500m
US$501m-US$2,000m
US$2,001m-US$5,000m
>US$5,001m
TREND GRAPHS
NORTH
AMERICA
A mergermArket m&A report on
11Monthly M&A Insider
nortH AmerICA
ConsuMer And LeIsure heAt up In AprILtHe Consumer spACe HeAted up In AprIl wItH tHe lArgest AnnounCed yeAr-to-dAte deAl. swItzerlAnd-bAsed nestlÉ HAs Agreed to ACquIre pfIzer’s nutrItIon unIt, A provIder of nutrItIonAl HeAltH produCts for InfAnts, for A CAsH ConsIderAtIon of us$11.9bn. tHe trAnsACtIon Is expeCted to fACe CArtel Issues In AustrAlIA, tHAIlAnd And venezuelA, And Industry sourCes speCulAte nestlÉ wIll need to sell An ApproxImAte 20.00% stAke In tHe bAby-food unIt to AppeAse regulAtors. nestlÉ HAs not ConfIrmed Any defInItIve dIsposAls. tHe potentIAl Cross-border deAl Is not expeCted to Close untIl tHe fIrst HAlf of 2013.
meanwhile, in the leisure space, us-based investment holding company Justice Holdings limited announced its intention to acquire a 29.00% stake in burger king Holdings, Inc. from new york-based hedge fund firm 3g Capital partners, marking one of the largest leisure deals in north America worth us$1.4bn. the transaction is in line with burger king’s growth strategy, which intends to file for an Ipo on the nyse later this summer.
energy, Mining & utilities dominates market sharethe energy, mining & utilities sector leads north America sector activity by deal value with 123 deals worth an aggregate us$58.4bn, or about 29% of north America’s market share. energy transfer partners, which reportedly initiated talks with prospective target sunoco, Inc., agreed to acquire the philadelphia-based petroleum refiner and chemicals manufacturer for a combined cash and stock consideration worth approximately us$7bn.
pharma, Medical & Biotech sees aggregate us$8bn in top deals; pe firms watch Allscriptsthe pharma, medical & biotech space also heated up in April with the announcement of two mega deals: Catalyst Health solutions has agreed to merge with sxC Health solutions, and Hologic has agreed to acquire gen-probe in an effort to expand its diagnostics portfolio. the combined deals are valued at approximately us$8bn, and could pave the way for further consolidation within the diagnostics and pharmacy benefit management (pbm) services industries this year. Ceo mark thierer of sxC said, “turmoil” within the pbm space will make more companies potential m&A targets. sxC will continue to evaluate strategic acquisitions.”
private equity firms are said to be watching clinical software provider Allscripts Healthcare solutions for the right opportunity to engage in talks regarding a leveraged buyout, according to industry sources. the hospital healthcare information technology company has faced many recent challenges. on 26-Apr-12 the company announced disappointing earnings, the ouster of the chairman of the board and the resignation of three board members in protest.
the Chicago-based company would benefit from being private in order to sort through the issues it is experiencing, sources speculate. However, the company stock will need to stabilise in order to initiate a sale process.
12
NORTH
AMERICA
Monthly M&A Insider
top deAls
top 10 north AMerICAn AnnounCed deALs of the Month (Apr-12) Announced Bidder company target company target dominated
sectorseller company exit multiples (x) Bid premia
1-day before
deal value(us$m)revenue eBItdA p/e
23-Apr-12 nestlé sA pfizer nutrition Consumer pfizer Inc 5.6 - - - 11,850
30-Apr-12 energy transfer partners lp sunoco Inc energy, mining & utilities
0.1 - - 25.4% 6,959
18-Apr-12 sxC Health solutions Corp Catalyst Health solutions Inc
pharma, medical & biotech
0.8 37.6 60.8 27.5% 4,292
30-Apr-12 Hologic Inc gen-probe Incorporated
pharma, medical & biotech
6.2 28.5 74.8 20.4% 3,599
26-Apr-12 starlight Investments ltd transglobe Apartment real estate Investment trust
real estate - - - 15.0% 1,984
26-Apr-12 suburban propane partners lp
Inergy propane llC business services Inergy lp - - - - 1,800
18-Apr-12 wideopenwest Holdings llC knology Inc telecommunications 2.7 17.1 15.9 9.4% 1,411
04-Apr-12 Justice Holdings limited burger king Holdings Inc (29.00% stake)
leisure 3g Capital partners
3.0 19.2 45.1 - 1,400
17-Apr-12 new mountain Capital llC AmwIns group Inc financial services parthenon Capital partners
- - - - 1,300
23-Apr-12 veritas Capital thomson reuters Corporation (Healthcare business)
business services thomson reuters Corporation
- - - - 1,250
based on announced deals, including lapsed and withdrawn bids based on dominant geography of target company being north America (us + Canada) data correct as of 07-may-12
source: mergermarket
13
NORTH AM
ERICA
Monthly M&A Insider
TREND GRAPHS
NORTH AMERICAN M&A QUARTERLY TREND
0
100
200
300
400
500
600
Q212*
Q112
Q411
Q311
Q211
Q111
Q410
Q310
Q210
Q110
Q409
Q309
Q209
Q109
Q408
Q308
Q208
Q108
Q407
Q307
Q207
Q107
Q406
Q306
Q206
Q106
Valu
e (U
S$bn
)
Total value Mid-market value
Num
ber of deals
0
200
400
600
800
1,000
1,200
1,400
1,600
Total volume Mid-market volume
0
50
100
150
200
250
Q212*
Q112
Q411
Q311
Q211
Q111
Q410
Q310
Q210
Q110
Q409
Q309
Q209
Q109
Q408
Q308
Q208
Q108
Q407
Q307
Q207
Q107
Q406
Q306
Q206
Q106
Valu
e (U
S$bn
)
Buyout value Exit value
Num
ber of deals
Buyout volume Exit volume
0
50
100
150
200
250
300
350
NORTH AMERICAN M&A ANNUAL TREND NORTH AMERICAN M&A ANNUAL PRIVATE EQUITY TREND
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
YTD 2012*201120102009200820072006
Total value Mid-market value
Num
ber of dealsValu
e (U
S$bn
)
0
1,000
2,000
3,000
4,000
5,000
6,000
Total volume Mid-market volume
0
50
100
150
200
250
300
350
400
450
500
YTD 2012*201120102009200820072006
Valu
e (U
S$bn
)
Buyout value Exit value
Num
ber of deals
Buyout volume Exit volume
0
200
400
600
800
1,000
1,200
NORTH AMERICAN M&A QUARTERLY PRIVATE EQUITY TREND
14
NORTH AM
ERICA
Monthly M&A Insider
TREND GRAPHS
NORTH AMERICAN M&A SECTOR BREAKDOWN YTD 2012
VALUE VOLUME
12.5%
7.6%
11.7%
11.4%
28.0%
6.4%
4.9%
2.8%
2.7%0.4%
4.3%
1.9%0.4% 5.0%
Industrials & Chemicals
Technology
Consumer
Pharma, Medical & Biotech
Energy, Mining & Utilities
Business Services
Financial Services
Media
Leisure
Construction
Transportation
Real Estate
Telecommunications
Agriculture
19.4%
15.4%
11.1%
11.0%
10.9%
10.5%
3.5%3.5%
2.4%
1.6%1.2%
8.5%
0.5%
0.1%0.4%
Industrials & Chemicals
Technology
Consumer
Pharma, Medical & Biotech
Energy, Mining & Utilities
Business Services
Financial Services
Media
Leisure
Construction
Transportation
Real Estate
Telecommunications
Defence
Agriculture
NORTH AMERICAN M&A DEAL SIZE BREAKDOWN
VALUE VOLUME
0
10
20
30
40
50
60
70
80
90
100
YTD 2012*201120102009200820072006
<US$250m or undisclosed value
US$251m-US$500m
US$501m-US$2,000m
US$2,001m-US$5,000m
>US$5,001m
52.8%
14.7%
16.8%
6.2%
9.5%
43.6%
18.8%
21.5%
6.5%
9.6%
49.1%
14.0%
17.4%
7.3%
12.2%
58.7%
13.3%
13.2%
5.5%
9.3% 12.5%
9.7%
27.7%
18.0%
32.1%37.5%
21.3%
20.7%
8.8%
11.7%
19.1%
23.2%
35.9%
10.0%
11.8%
Perc
enta
ge
75
80
85
90
95
100
YTD 2012*201120102009200820072006
1.1%
1.5%
5.3%
5.3%
86.8%
1.1%
1.8%
6.2%
5.3%
85.6%
0.9%
3.7%
4.1%
90.6%
1.0%
3.5%
3.8%
91.0%
87.4%
5.3%
5.6%
1.1% 1.4%
4.9%
5.4%
87.6%
0.7% 0.7% 0.6% 0.7%
1.3%
6.3%
5.2%
86.7%
0.5%
<US$250m or undisclosed value
US$251m-US$500m
US$501m-US$2,000m
US$2,001m-US$5,000m
>US$5,001m
Perc
enta
ge
ASIA-PAcIfIc
A mergermArket m&A report on
Monthly M&A Insider 15
ASIA-pAcIfIc
Financial Services cashing inWhile the financial Services sector accounted for nearly 11% of volume for the month of April, US$13bn was spent on buys in the sector, accounting for over 60% of total value in the region. Indeed, the sector hosted the three largest deals and five out of the top eight. the two largest transactions were cross-border deals involving Singaporean bidders for other regional assets. A familiar player, temasek, moved further into china’s commercial banking sector, spending US$2.4bn for roughly a 1% stake in Beijing-based Industrial and commercial Bank of china Limited (IcBc). Despite some recent criticism of profits in china’s banking sector and fears of a slowdown in china’s economy, long-term growth prospects remain strong.
In the largest deal of the month, temasek again played a role. the transaction saw Singapore-based DBS group (DBS) make the largest-ever takeover bid for a South east Asian bank, when it agreed to acquire Indonesia’s pt Bank Danamon Indonesia tbk (Danamon) for US$7.3bn. this time, temasek, which previously held 67% of the Indonesian bank, was the seller. However, also as a part of the deal, temasek raised its ownership in DBS from 29.5% to 40.4%, and DBS will use the acquisition to expand its footprint in Indonesia and the rest of South east Asia.
Larger deals in smaller economiesWhile china, Australia, Japan and India accounted for nearly two thirds of m&A transactions in Asia-pacific in the month of April, a few other countries saw significant activity. In terms of deal flow, South korea saw 15 deals (all but two were domestic transactions) totalling US$210m. on the other hand, while not seeing a significant number of transactions, Indonesia, taiwan and Hong kong witnessed some larger deals. In Indonesia, out of the six transactions that took place, the lion’s share of money spent can be accounted for in the previously mentioned DBS – Danamon acquisition.
In taiwan the story was similar as only one large transaction took place. Also in the financial Services sector, china Development financial Holdings (china Development), a taiwan-listed financial services company, made an offer to acquire kgI Securities co Ltd, a taiwan-listed securities brokerage firm in a deal worth US$1.7bn. china Development has reportedly been looking for an acquisition like this since January 2011 when its interest in polaris Securities was thwarted by a merger between polaris and Yuanta financial Holding. However, the fruition of the china Development and kgI tie up is a significant consolidation of two taiwanese players in the financial Services sector.
TMT M&A callingAccording to a recent financial times report, technology-based m&A has bucked a downward trend in global activity and the same could be true of Asia-pacific. for example, mergermarket’s proprietary intelligence shows that a chinese company in the telecommunications hardware sector is looking to emerging markets in Latin America for growth opportunities. In addition, a Hong kong-based media company is looking to raise money for an acquisition and another Australia-based telecommunications company, significantly involved in new technology is looking to scale up through acquisitions down under. no doubt that energy, mining & Utilities will remain on the radar as will Industrials & chemicals, but a number of other sectors will continue to gain in prominence as the region develops.
ASIA-pAcIfIc m&A In tHe montH of AprIL feLL SLIgHtLY off pAce BUt contInUeD to DISpLAY HeALtHY ActIvItY In LIgHt of ongoIng economIc UncertAIntY gLoBALLY AnD In eUrope. AprIL WItneSSeD 143 DeALS WortH US$21.6Bn, DecLIneS of 9% AnD 19% reSpectIveLY. AprIL 2012 ALSo SAW Some IntereStIng ActIvItY BotH In termS of tHe geogrApHIc LocAtIon of DeAL fLoW WItHIn tHe regIon AS WeLL AS SectorS tArgeteD BY InveStorS.
16Monthly M&A Insider
ASIA-PACIFIC
TOP DEALS
TOP 10 ASIA-PACIFIC ANNOUNCED DEALS OF THE MONTH (APR-12)Announced Bidder company Target company Target dominant
sectorSeller company Exit multiples (x) Bid premia
1-day beforeDeal value
(US$m)Revenue EBITDA P/E
02-Apr-12 DBS Group Holdings Ltd Bank Danamon Indonesia Tbk PT
Financial Services n/a n/a 18.3 52.5% 7,338
16-Apr-12 Temasek Holdings Pte Ltd Industrial and Commercial Bank of China Limited (1.02% stake)
Financial Services Goldman Sachs n/a n/a 7.1 3.2% 2,384
05-Apr-12 China Development Financial Holdings
KGI Securities Co Ltd Financial Services 3.4 12.9 25.1 29.6% 1,722
19-Apr-12 Brookfield Asset Management Inc
Thakral Holdings Limited Real Estate 3.6 10.7 (loss) 30.8% 760
11-Apr-12 CVC Asia Pacific Ltd Hong Kong Broadband Network Ltd; and CTI Guangzhou Customer Services Co Ltd
Media City Telecom (HK) Ltd
- - 17.4 n/a 646
12-Apr-12 Mitsui Sumitomo Insurance Co Ltd
Max Life Insurance Company (26.00% stake)
Financial Services Max India Limited; and New York Life Insurance Company
n/a n/a - n/a 530
12-Apr-12 AmG Insurance Berhad Kurnia Insurans (M) Berhad Financial Services Kurnia Asia Berhad
n/a n/a 18.5 n/a 506
03-Apr-12 Sumitomo Corporation Isaac Plains Coal Joint Venture (50.00% stake)
Energy, Mining & Utilities
Aquila Resources Limited
- - - n/a 446
24-Apr-12 Yahoo Japan Corporation ASKUL Corporation (42.27% stake)
Business Services 0.4 7.7 (loss) -11.4% 406
11-Apr-12 WesTrac Holdings Pty Ltd Bucyrus International Inc (Distribution and support business)
Business Services Caterpillar Inc - - - n/a 400
Based on announced deals, including lapsed and withdrawn bids Based on dominant geography of target company being Asia-Pacific Data correct as of 04-May-12
Source: mergermarket
17
ASIA-PACIFIC
Monthly M&A Insider
TREND GRAPHS
ASIA-PACIFIC M&A QUARTERLY TREND
0
20
40
60
80
100
120
140
160
180
Q212*
Q112
Q411
Q311
Q211
Q111
Q410
Q310
Q210
Q110
Q409
Q309
Q209
Q109
Q408
Q308
Q208
Q108
Q407
Q307
Q207
Q107
Q406
Q306
Q206
Q106
Valu
e (U
S$bn
)
Total value Mid-market value
Num
ber of deals
0
100
200
300
400
500
600
700
800
900
Total volume Mid-market volume
0
5
10
15
20
25
Q212*
Q112
Q411
Q311
Q211
Q111
Q410
Q310
Q210
Q110
Q409
Q309
Q209
Q109
Q408
Q308
Q208
Q108
Q407
Q307
Q207
Q107
Q406
Q306
Q206
Q106
Valu
e (U
S$bn
)
Buyout value Exit value
Num
ber of deals
Buyout volume Exit volume
0
10
20
30
40
50
60
70
80
90
100
ASIA-PACIFIC M&A ANNUAL TREND ASIA PACIFIC M&A ANNUAL PRIVATE EQUITY TREND
0
50
100
150
200
250
300
350
400
450
500
YTD 2012*201120102009200820072006
Total value Mid-market value
Num
ber of dealsValu
e (U
S$bn
)
0
500
1,000
1,500
2,000
2,500
3,000
Total volume Mid-market volume
0
10
20
30
40
50
60
70
YTD 2012*201120102009200820072006
Valu
e (U
S$bn
)
Buyout value Exit value
Num
ber of deals
Buyout volume Exit volume
0
50
100
150
200
250
300
350
ASIA-PACIFIC M&A QUARTERLY PRIVATE EQUITY TREND
18
ASIA-PACIFIC
Monthly M&A Insider
TREND GRAPHS
ASIA-PACIFIC M&A GEOGRAPHIC BREAKDOWN YTD 2012
VALUE VOLUME
China
India
Australia
Japan
Indonesia
Malaysia
Hong Kong
South Korea
Taiwan
Vietnam
Other
25.2%
16.9%
14.9%
9.8%
5.1%
4.6%
4.0%
2.7%
1.5%
2.3%
13.0%
21.4%
14.9%
4.2%
17.2%
2.2%
5.2%
10.2%
1.3%
1.5%9.5%
12.4%
China
India
Australia
Japan
Indonesia
Malaysia
Hong Kong
South Korea
Taiwan
Vietnam
Other
ASIA-PACIFIC M&A SECTOR BREAKDOWN YTD 2012
VALUE VOLUME
26.8%
6.2%
5.3%
1.6%1.0% 4.7%
1.5%0.1%
1.7%
19.9%
6.1%
20.9%
2.9%
1.3%Industrials & Chemicals
Business Services
Energy, Mining & Utilities
Consumer
Technology
Financial Services
Pharma, Medical & Biotech
Transportation
Construction
Leisure
Real Estate
Media
Telecommunications
Agriculture
22.0%
12.2%
9.8%
9.7%
8.8%
8.3%
5.5%
4.8%
4.5%
4.2%
4.2%3.3%
1.7%1.0%
Industrials & Chemicals
Business Services
Energy, Mining & Utilities
Consumer
Technology
Financial Services
Pharma, Medical & Biotech
Transportation
Construction
Leisure
Real Estate
Media
Telecommunications
Agriculture
19
ASIA-PACIFIC
Monthly M&A Insider
ASIA-PACIFIC M&A DEAL SIZE BREAKDOWN
VALUE VOLUME
0
10
20
30
40
50
60
70
80
90
100
YTD 2012*201120102009200820072006
<US$250m or undisclosed value
US$251m-US$500m
US$501m-US$2,000m
US$2,001m-US$5,000m
>US$5,001m
17.6%
22.8%
27.3%
11.3%
21.0%
15.6%
17.0%
30.3%
12.6%
24.5%
29.6%
15.8%
22.2%
12.0%
20.4%
19.8%
16.9%
30.7%
11.2%
21.4% 21.7%
10.9%
26.5%
27.4%
13.5%
24.4%
13.8%
29.6%
12.6%
19.6%
17.6%
26.2%
26.1%
10.3%
19.8%
Perc
enta
ge
75
80
85
90
95
100
YTD 2012*201120102009200820072006
1.2%
4.8%
4.9%
88.8%
0.9%
5.1%
5.4%
88.3%
0.9%
4.5%
5.8%
88.4%
1.0%
5.5%
5.3%
87.8% 88.8%
5.0%
4.4%
1.5% 0.8%
5.3%
6.2%
87.3%
0.3% 0.3% 0.3% 0.3%0.4%
1.3%
4.2%
5.0%
89.2%
0.4% 0.4%
<US$250m or undisclosed value
US$251m-US$500m
US$501m-US$2,000m
US$2,001m-US$5,000m
>US$5,001m
Perc
enta
ge
TREND GRAPHS
20Monthly M&A Insider
europe
A mergermArket m&A report on
eUrope
So far, in regards to year-to-date, europe has seen 1,359 deals worth €168.7bn, with just 373 mid-market transactions worth €36.3bn. to compare, Q2 2011 alone saw more deals (443) amounting to a greater value (€44.7bn). In fact, all but one of the quarters since then have seen a decrease in both volume and value. the optimism around the new year of a rebound in european m&A has yet to become apparent, and it has become clear that political infighting with the eU , including pivotal elections in greece and France, have been key contributing factors.
April’s biggest deal saw gDF Suez acquire the remaining 30.23% of International power for a consideration of €8.3bn. the offer price of 418 pence per share, an increase from the rejected 390 pence offer made in march, represents a premium of 20.8% from the day before speculation of when a bid arose in February. HSBC, rothschild, Bnp paribas and ondra partners provided financial advice to gDF Suez, whilst International power turned to morgan Stanley, Lazard, Barclays and nomura. the deal is thought to leave gDF Suez better positioned to win contracts in emerging markets.
According to a mergermarket report, gDF Suez could look to offload some of its wind power assets in germany, Italy, portugal, and possibly north America to fund the acquisition. gDF Suez hopes to raise €3bn from additional asset sales, on top of its on-going €10bn divestment programme.
elsewhere, pharma, medical and Biotech deals made up three of the top ten transactions by value this month, with Watson pharmaceuticals’ €4.4bn acquisition of Activis group the largest. For 2012 so far, energy, mining and Utilities remains ahead by value with €64.07bn worth of deals. Industrials and Chemicals have seen the largest number of deals with 333, almost 25% of total m&A activity. As expected, Switzerland remains the most active region by value, yet holds just 2.8% of the market share by volume while the Uk holds 21.1%.
m&A activity in greece looks set to remain largely on hiatus as elections failed to determine a clear direction for the indebted nation once again. A mergermarket analysis piece cited a government source who said, “the best case scenario is for the pro-european parties – primarily nD and pASok – to get enough votes to form a coalition government.” With these two parties gaining just 32% of the vote, foreign investments and privatisations alike remain unlikely to pick up.
meanwhile in Spain, rumours persist over the possible CaixaBank takeover of Banco BpI. CaixaBank purchased an 18.87% stake of the portuguese bank from Banco Itaú, the Brazilian lender which has been looking to decrease its exposure to the european crisis. mergermarket intelligence reveals that whilst one person familiar with CaixaBank’s thinking believes it was an opportunistic purchase at an attractive price of €93m the general consensus is that a full takeover is likely once BpI completes its recapitalisation process. Consolidation within the Iberian banking sector remains an ongoing theme, with the number of cajas whittled down to just 15, and developments here could pave the way for deals in the pipeline in other sectors to come to fruition. However, this process could be played out over a matter of years rather than months.
AprIL SAW A totAL oF 257 eUropeAn m&A trAnSACtIonS vALUIng €41.97Bn, repreSentIng A DeCreASe oF 46.9% AnD 31.5% In AprIL 2011 By voLUme AnD vALUe reSpeCtIveLy. tHIS mArkS A WorSenIng oF tHe generAL trenD oF 2012 So FAr, In WHICH ContInUIng ConCernS over tHe SovereIgn DeBt CrISIS HAve SLoWeD m&A ACtIvIty. Q1 2012 WAS DoWn 3.9% on Q1 2011 By vALUe, even WItH FeBrUAry’S €55.94Bn gLenCore–XStrAtA megADeAL. At tHe CUrrent rAte, Q2 2012 LookS Set to FALL ConSIDerABLy SHort oF Q2 2011, WHICH SAW 1,482 DeALS At €166.99Bn.
21
EUROPE
Monthly M&A Insider
TOP DEALS
TOP 10 EUROPEAN ANNOUNCED DEALS OF THE MONTH (APR-12) Announced Bidder company Target company Target dominated
sectorSeller company Exit multiples (x) Bid premia
1-day before
Deal value(€m)Revenue EBITDA P/E
16-Apr-12 GDF Suez SA International Power Plc (30.23% stake)
Energy, Mining & Utilities
2.5 9.2 18.9 4.8% 8,301
25-Apr-12 Watson Pharmaceuticals Inc
Actavis Group hf Pharma, Medical & Biotech
2.4 14.3 - - 4,400
26-Apr-12 Fresenius SE & Co KGaA
Rhoen-Klinikum AG Pharma, Medical & Biotech
1.4 10.5 19.3 52.3% 3,732
18-Apr-12 Alimentation Couche Tard Inc
Statoil Fuel & Retail ASA Consumer 0.3 7.3 15.1 52.8% 2,841
03-Apr-12 Molson Coors Brewing Company
StarBev LP Consumer CVC Capital Partners Limited
3.8 11.0 - - 2,650
23-Apr-12 Vodafone Group Plc Cable & Wireless Worldwide Plc
Telecommunications - - - 18.8% 1,281
24-Apr-12 Royal Dutch Shell Plc Cove Energy Plc Energy, Mining & Utilities
- - - 1.4% 1,236
24-Apr-12 AF Telecom Holding MegaFon OJSC (10.70% stake)
Telecommunications Altimo - - - - 1,220
24-Apr-12 AF Telecom Holding OJSC Telecominvest (26.10% stake)
Technology TeliaSonera AB - - - - 1,099
30-Apr-12 Terra Firma Capital Partners Limited
Four Seasons Health Care Limited
Pharma, Medical & Biotech
Royal Bank of Scotland Group Plc
- 8.3 - - 1,009
Based on announced deals, including lapsed and withdrawn bids Based on dominant geography of target company being Europe Data correct as of 08-May-12
Source: mergermarket
EUROPE
Monthly M&A Insider 22
TREND GRAPHS
EUROPEAN M&A QUARTERLY TREND
0
100
200
300
400
500
Q212*
Q112
Q411
Q311
Q211
Q111
Q410
Q310
Q210
Q110
Q409
Q309
Q209
Q109
Q408
Q308
Q208
Q108
Q407
Q307
Q207
Q107
Q406
Q306
Q206
Q106
Valu
e (!
bn)
Total value Mid-market value
Num
ber of deals
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
Total volume Mid-market volume
0
10
20
30
40
50
60
70
80
90
100
110
120
130
140
Q212*
Q112
Q411
Q311
Q211
Q111
Q410
Q310
Q210
Q110
Q409
Q309
Q209
Q109
Q408
Q308
Q208
Q108
Q407
Q307
Q207
Q107
Q406
Q306
Q206
Q106
Buyout value Exit value Buyout volume Exit volume
Valu
e (!
bn)
Num
ber of deals
0
50
100
150
200
250
300
350
400
450
EUROPEAN M&A ANNUAL TREND EUROPEAN M&A ANNUAL PRIVATE EQUITY TREND
0
200
400
600
800
1,000
1,200
YTD 2012*201120102009200820072006
Total value Mid-market value
Num
ber of deals
Valu
e (!
bn)
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
Total volume Mid-market volume
0
50
100
150
200
250
300
YTD 2012*201120102009200820072006
Valu
e (!
bn)
Buyout value Exit value
Num
ber of deals
Buyout volume Exit volume
0
200
400
600
800
1,000
1,200
1,400
1,600
EUROPEAN M&A QUARTERLY PRIVATE EQUITY TREND
EUROPE
Monthly M&A Insider 23
TREND GRAPHS
EUROPEAN M&A GEOGRAPHIC BREAKDOWN YTD 2012
VALUE VOLUME
UK
CEE
Iberia
France
Nordic
Germany
Benelux
Italy
Switzerland
Others5.7%
9.6%
24.7%
4.1%
21.0%
9.5%
2.5%
6.4%
6.9%
9.6%
13.7%
8.9%
2.8%
8.9%
5.7%
21.1%
10.5%
11.3%
5.2%
11.9%
UK
CEE
Iberia
France
Nordic
Germany
Benelux
Italy
Switzerland
Others
EUROPEAN M&A SECTOR BREAKDOWN YTD 2012
VALUE VOLUME
8.0%
9.2%
2.1%
37.9%
4.9%
6.8%
0.6%
3.1%
2.8%0.2%
0.9%
6.1%
7.7%
9.7%
Industrials & Chemicals
Consumer
Business Services
Technology
Financial Services
Pharma, Medical & Biotech
Energy, Mining & Utilities
Construction
Transportation
Media
Leisure
Real Estate
Telecommunications
Agriculture
4.6%
24.5%
2.7%
5.9%
3.8%
5.5%
4.0%
1.7%1.4%
1.2%0.2%
17.2%
10.8%9.4%
7.1%
Industrials & Chemicals
Consumer
Business Services
Technology
Financial Services
Pharma, Medical & Biotech
Energy, Mining & Utilities
Construction
Transportation
Media
Leisure
Real Estate
Telecommunications
Agriculture
Defence
EUROPE
Monthly M&A Insider 24
TREND GRAPHS
EUROPEAN M&A DEAL SIZE BREAKDOWN
VALUE VOLUME
0
10
20
30
40
50
60
70
80
90
100
YTD 2012*201120102009200820072006
<!250m or undisclosed value
!251m-!500m
!501m-!2,000m
!2,001m-!5,000m
>!5,001m
17.6%
23.5%
8.4%
15.9%
34.6%
16.4%
22.3%
8.4%
13.7%
39.2%
14.8%
20.4%
9.1%
17.0%
38.7%
20.0%
24.1%
9.2%
20.3% 17.6%
9.4%
29.7%
20.8%
26.4% 22.5%17.2%
21.8%
30.9%
11.3%
18.8%
35.3%
18.1%
24.7%
9.6%
12.3%
Perc
enta
ge
88
90
92
94
96
98
100
YTD 2012*201120102009200820072006
3.8%
0.9%
3.5%
91.4%
4.0%
0.9%
3.9%
90.8%
2.7%
0.6%
3.2%
93.1%
2.1%
0.6%
2.3%
94.8%
93.1%
2.7%
3.3%
0.7% 0.7%
3.1%
3.0%
93.0%
0.4%0.4% 0.4% 0.3%0.2% 0.2% 0.2%
0.7%
3.2%
3.3%
92.5%
<!250m or undisclosed value
!251m-!500m
!501m-!2,000m
!2,001m-!5,000m
>!5,001m
Perc
enta
ge
25
Mid
dle east &
africa
THE MIDDLE EAST & AFRICA
A MERgERMARkET M&A REpoRT on
Monthly M&A Insider
M&A activity during April in the ME&A region was mainly driven by the long awaited acquisition of the remaining shares in Egyptian Company for Mobile Services (Mobinil) by France Telecom SA for US$3.3bn. other acquisitions in the Energy, Mining & Utilities sector contributed to the largest percentage of deal value in the region, with 43.6% of the market share. This trend will not last however, as an energy research consultancy has predicted that the energy investments in the Middle East are shifting towards north America. The main reason for this is that the Middle East market has been hit by the Arab Spring and the regional stability in countries like Libya, Syria and Egypt. The most active country in the ME&A is South Africa, leading with a deal flow volume of 26 and deal value of US$2.5bn while Israel closely follows with a deal flow volume of 23 and a deal value of US$3.6bn.
France Telecom Tender Offer for Mobinil SharesAfter a long period of talks and disputes, the sale, which was subject to the decisions of the Egyptian Financial Supervisory Authority (EFSA) and of the companies’ respective boards of directors, has been approved. France Telecom has launched a public tender offer to acquire the remaining shares in Mobinil, the Egyptian Company for Mobile Services (ECMS) at Egp 202.5 per share. one reason for delays with this sale included the reaching of agreement terms between France Telecom and its partner orascom Media and Technology Holding SAE.
now that it has finally taken place, France Telecom CEo Stephane Richard has said that he would like to further increase ECMS’s integration in the Egyptian economy through hopefully ensuring that up to 15% of ECMS’s shares are held by Egyptian shareholders.
Expected DealsVarious companies are seeking to acquire targets in the ME&A region where opportunities are high. one of these companies includes pure Chemicals, the India-based private chemical distribution company. Due to the slight drag in chemical consumption demand in India, it is looking to expand into markets such as kenya and South Africa through acquisitions. It estimates the value of the potential acquisition to be InR1.5bn to InR2bn and plans to fund the acquisition via internal accruals and through its debt providers, which include Indian overseas Bank and State Bank of India.
Further opportunity in the ME&A region exists for bidders interested in acquiring two coal mines in Mozambique, which are owned by Coal India Africana. These have an estimated reserve of a billion tons and although the process for two bids stalled last year due to technical failures, CIL will soon launch another tender for bids this year.
DEAL ACTIVITy In AFRICA AnD THE MIDDLE EAST AMoUnTED To US$4.8Bn In ApRIL, A 29.9% InCREASE CoMpARED To MARCH AnD An InCREASE oF 99.8% CoMpARED To THE SAME pERIoD LAST yEAR. THIS SHowS SIgnS oF RECoVERy In THE REgIon, ALTHoUgH THE SITUATIon IS noT yET STABILISED. ACCoRDIng To DELoITTE, M&A ACTIVITy In THE REgIon IS ExpECTED To ConTInUE ITS gRADUAL IMpRoVEMEnT THRoUgHoUT THE REST oF THE yEAR, pARTICULARLy In CoUnTRIES noT IMpACTED By LIqUIDITy ConSTRAInTS LIkE SAUDI ARABIA, ABU DHABI AnD qATAR. THERE SEEM To BE InCREASIng SIgnS THAT ACTIVE FUnDS In THE REgIon ARE REDIRECTIng THEIR FoCUS To TARgET noRTH AFRICA, LEBAnon, JoRDAn AnD IRAq.
26
MIDDLE EAST &
AFRICA
Monthly M&A Insider
TOP DEALS
TOP 10 MIDDLE EASTERN & AFRICAN ANNOUNCED DEALS OF THE MONTH (APR-12) Announced Bidder company Target company Target dominated
sectorSeller company Exit multiples (x) Bid premia
1-day before
Deal value(US$m)Revenue EBITDA P/E
12-Apr-12 France Telecom SA Egyptian Company for Mobile Services
TMT Orascom Telecom Media and Technology Holding SAE
2.6 8.2 - 14.4% 3,281
16-Apr-12 Stratasys Inc Objet Limited TMT 4.8 29.2 42.9 - 630
24-Apr-12 Industrial Development Corporation; and Black Economic Empowerment
Scaw South Africa (Pty) Ltd (74.00% stake)
Industrials & Chemicals
Anglo American Plc - - - - 438
05-Apr-12 Covidien Plc Oridion Systems Ltd Pharma, Medical & Biotech
4.6 33.4 4835.0 75.2% 295
18-Apr-12 Qatari investor (Undisclosed)
Qatar Engineering & Construction Company WLL (41.00% stake)
Construction Qatar First Investment Bank
- - - - 77
02-Apr-12 Gold One International Limited
Ezulwini Mining Company (Pty) Limited
Energy, Mining & Utilities
First Uranium Corporation
- - - - 70
24-Apr-12 Zungu Investments Company (Pty) Ltd; and Kwande Group (Pty) Ltd
Spring Lights Gas (Pty) Limited (51.00% stake)
Energy, Mining & Utilities
- - - - 46
22-Apr-12 A-Online Capital Ltd Harel Finance Trade & Securities Ltd
Financial Services Harel Insurance Investments and Financial Services Ltd
- - - - 22
18-Apr-12 Gold One International Limited; and Goliath Gold
Pamodzi East Rand Operations
Energy, Mining & Utilities
- - - - 9
04-Apr-12 ARB Electrical Wholesalers (Pty) Limited
Industrial Cable Suppliers (Pty) Ltd
Business Services - - - - 7
Based on announced deals, including lapsed and withdrawn bids Based on dominant geography of target being Middle East or Africa Data correct as of 08-May-12
Source: mergermarket
27
MIDDLE EAST &
AFRICA
Monthly M&A Insider
TREND GRAPHS
MIDDLE EASTERN & AFRICAN M&A QUARTERLY TREND
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
Q212*
Q112
Q411
Q311
Q211
Q111
Q410
Q310
Q210
Q110
Q409
Q309
Q209
Q109
Q408
Q308
Q208
Q108
Q407
Q307
Q207
Q107
Q406
Q306
Q206
Q106
Valu
e (U
S$m
)
Total value Mid-market value
Num
ber of deals
0
20
40
60
80
100
120
140
160
Total volume Mid-market volume
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
Q212*
Q112
Q411
Q311
Q211
Q111
Q410
Q310
Q210
Q110
Q409
Q309
Q209
Q109
Q408
Q308
Q208
Q108
Q407
Q307
Q207
Q107
Q406
Q306
Q206
Q106
Buyout value Exit value Buyout volume Exit volume
Num
ber of dealsValu
e (U
S$m
)
0
5
10
15
20
25
MIDDLE EASTERN & AFRICAN M&A ANNUAL TREND
MIDDLE EASTERN & AFRICAN M&A ANNUAL PRIVATE EQUITY TREND
0
10
20
30
40
50
60
70
80
90
100
YTD 2012*201120102009200820072006
Total value Mid-market value
Valu
e (U
S$bn
)
Num
ber of deals
0
50
100
150
200
250
300
350
400
450
500
Total volume Mid-market volume
0
2
4
6
8
10
12
14
YTD 2012*201120102009200820072006
Buyout value Exit value Buyout volume Exit volume
Valu
e (U
S$bn
)
0
10
20
30
40
50
60
70
Num
ber of deals
MIDDLE EASTERN & AFRICAN M&A QUARTERLY PRIVATE EQUITY TREND
28
MIDDLE EAST &
AFRICA
Monthly M&A Insider
TREND GRAPHS
MIDDLE EASTERN & AFRICAN M&A GEOGRAPHIC BREAKDOWN YTD 2012
MIDDLE EASTERN & AFRICAN M&A SECTOR BREAKDOWN YTD 2012
VALUE
VALUE
VOLUME
VOLUME
4.1%
11.2%
2.6%
2.0%0.2%
16.7%
43.5%
4.0%
15.7%
TMT
Energy, Mining & Utilites
Consumer
Business Services
Financial Services
Construction
Pharma, Medical & Biotech
Transportation
Industrials & Chemicals
29.7%
10.1%25.8%
6.7%
3.4%
3.4%
2.2%2.2%
2.2%
1.1% each
South Africa
Israel
United Arab Emirates
Saudi Arabia
Egypt
Nigeria
Democratic Republicof Congo
Ethiopia
Tanzania
Angola
Ghana
Iraq
Kuwait
Libya
Mali
Mauritius
Morocco
Mozambique
Oman
Qatar
Zambia
Zimbabwe
20.6%
15.9%
15.9%
15.9%
9.1%
4.5%
4.5%
4.5%
4.5%2.3% 2.3%
TMT
Energy, Mining & Utilites
Consumer
Business Services
Financial Services
Construction
Pharma, Medical & Biotech
Transportation
Industrials & Chemicals
Leisure
Agriculture
18.7%
27.7%
1.3%
9.6%
2.6%0.1%
1.0%1.0%
0.5%0.6%
0.2%
27.0%
7.7%2.0%
South Africa
Israel
United Arab Emirates
Saudi Arabia
Egypt
Nigeria
Democratic Republicof Congo
Ethiopia
Tanzania
Iraq
Mali
Morocco
Mozambique
Qatar
29
MIDDLE EAST &
AFRICA
Monthly M&A Insider
TREND GRAPHS
MIDDLE EASTERN & AFRICAN M&A DEAL SIZE BREAKDOWN
VALUE VOLUME
0
10
20
30
40
50
60
70
80
90
100
YTD 2012201120102009200820072006
12.7%
12.8%
65.7%
13.2%
11.3%
67.1%
18.0%
19.0%
47.6%
19.2%
13.2%
53.1%
68.1%
12.6%
9.4%
17.8%
7.8% 7.5%13.7% 12.9%
8.9%
13.7%
9.1%
58.1%
23.1%
13.1%
7.2%
55.6%
1.0% 0.9% 1.7% 1.6% 1.0% 1.3% 1.0%
<US$14.9m or undisclosed value
US$15m-US$100m
US$101m-US$250m
US$251m-US$500m
>US$501m
Perc
enta
ge
0
10
20
30
40
50
60
70
80
90
100
YTD 2012*201120102009200820072006
33.9%
14.5%
6.2%
9.1%
32.5%
15.4%
5.6%
7.2%
36.3%
11.3%
5.7%3.8%
32.6%
13.1%
4.0%3.4% 6.0%
5.7%
33.7%
10.2%10.8%
6.3%
36.3% 39.3% 42.9%46.9% 44.5%
47.8%
27.9%
7.2%
12.4%
9.0%
50.5%
22.5%
5.6%
<US$14.9m or undisclosed value
US$15m-US$100m
US$101m-US$250m
US$251m-US$500m
>US$501m
Perc
enta
ge
Monthly M&A Insider 30
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31Monthly M&A Insider
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Monthly M&A Insider 32
ABoUT MERRILL CoRpoRATIon
aBO
Ut M
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EXEcuTIvE MAnAGEMEnT
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EXEcuTIvE SAlES
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Disclaimer
This publication contains general information and is not intended to be comprehensive nor to provide financial, investment, legal, tax or other professional advice or services. This publication is not a substitute for such professional advice or services, and it should not be acted on or relied upon or used as a basis for any investment or other decision or action that may affect you or your business. Before taking any such decision you should consult a suitably qualified professional adviser. Whilst reasonable effort has been made to ensure the accuracy of the information contained in this publication, this cannot be guaranteed and neither Mergermarket nor any of its subsidiaries nor any affiliate thereof or other related entity shall have any liability to any person or entity which relies on the information contained in this publication, including incidental or consequential damages arising from errors or omissions. Any such reliance is solely at the user’s risk.
Remark, the events and publications arm of The Mergermarket Group, offers a range of publishing, research and events services that enable clients to enhance their own profile, and to develop new business opportunities with their target audience.
The following notes pertain to data contained in this publication:
• Deals are included where the deal value is greater than or equal to !5m.
• Where no deal value has been disclosed, deals are included if the turnover of the target is greater than or equal to !10m.
• Deals are included in the graphs and Top Deals in each section based on the dominant geography and dominant sector of the target company. Data underlying the League Tables are based on deals where the bidder, target or parent geography of either is that of the geography in focus.
• *Q2 2012 refers to the period 01-Apr-12 to 30-Apr-12. *YTD 2012 refers to the period 01-Jan-12 to 30-Apr-12.