Monthly M&A Insider 2014 - Amazon S3...Q3 13 Q2 13 Q1 13 Q4 12 Q3 12 Q2 12 Q1 12 Q4 11 Q3 11 Q2 11...

A MERGERMARKET REPORT ON GLOBAL M&A ACTIVITY

MONTHLY M&A INSIDERMAY 2014

Monthly M&A Insider | May

INSIDE:

GLOBAL OVERVIEW

LATIN AMERICA

NORTH AMERICA

ASIA-PACIFIC

EUROPE

MIDDLE EAST & AFRICA

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GLOBAL OVERVIEW

Monthly M&A Insider | May | 01

Jumbo deals reignFinancial Services saw three large transactions from various parts of the world totalling approximately US$49.3bn. In fact, the largest deal during the month was from the Asia-Pacific. In a move that said it will increase its capital base, China-based CITIC Pacific Limited purchased for US$35.6bn a 100% stake in CITIC Limited from CITIC Group Corporation and Beijing CITIC Enterprise Management Co. Two other large-scale financial services deals were announced in April: a US$6.3bn private equity exit involving Madison Dearborn Partners sale of Nuveen Investments to TIAA-CREF and Banco Santader’s approximate US$6.5bn acquisition of all of the shares of its Brazilian unit Banco Santander Brasil.

Europe’s Construction sector also saw Holcim’s US$28.3bn purchase of Lafarge in a landmark deal not only for its size but because the combination resulted in the world’s biggest cement manufacturer. The deal is also as controversial as it was large because it underwent heavy scrutiny from European antitrust regulators, which required the companies to divest some assets for the merger to push through.

During the month, there was a smattering of sectors that contributed to the significant rise in numbers including transactions from Business Services, Energy, Mining and Utilities, Industrial and Chemicals as well as Telecommunications.

Sizeable drug deals In contrast to the one-off large-scale deals from various industries, the Pharmaceuticals, Medical and Biotech sector grabbed headlines during the month because of the number and size of M&A deals that came one after the other. In fact, four out of April’s 13 deals with values of over US$5bn were from the sector. These transactions, which totalled almost US$35bn, were led by Zimmer Holdings’ acquisition of Biomet worth approximately US$13.4bn. The combination of the former rivals in orthopedic medical device manufacturing was a way for these medical device companies to remain dominant in a competitive marketplace.

Another mega transaction is Novartis AG’s US$10.5bn acquisition of the oncology division of GlaxoSmithKline, which was also announced in April. The transaction happened simultaneously with GlaxoSmithKline’s purchase of Novartis AG’s global vaccines business for US$5.3bn. These deals allow Novartis to focus on its more profitable businesses where it already has a global presence. GSK, on the other hand, is able to significantly expand its vaccine business by using Novartis’ extensive worldwide network. These transactions come at a time when pharmaceutical companies are rationalising their businesses to focus on core competencies as they deal with increased competition for their products.

The slew of large-scale transactions seen in April seems to suggest that that recent industry talk of a return of mega deals might be on the mark.

Deal values rose in April 2014 as certain sectors witnessed an array of mega transactions. In fact, the total value of deals announced during the month reached US$348.2bn, which is double that of April 2013 (US$168.3bn). At the same time, the beginning of Q2 2014 is slightly behind in terms of the number of transactions at 1,022 compared to 1,110 deals at the same time last year. Leading April numbers were two transactions from the Asia-Pacific’s Financial Services and Europe’s Construction sectors.

Head of Research: Elias Latsis

Editor: Laura Resetar

For advertising opportunities contact: Erik Wickman Tel: + (1) 212 686 3329 [email protected]

Global Overview: Karen Sibayan and Demis Memedoski

Latin America: Raquel Mozzer and Fabio Lopes

North America: Urna Chakraborty and Lana Vilner

Asia-Pacific: Brandon Taylor and Hiro Mak

Europe: Alan Nasrat and Damien Julliard

Middle East & Africa: Silvia Paparello and Andrea Putaturo

TREND GRAPHS

GLOBAL OVERVIEW Monthly M&A Insider | May | 02

GLOBAL M&A QUARTERLY TREND GLOBAL M&A QUARTERLY PRIVATE EQUITY TREND

GLOBAL M&A ANNUAL TREND GLOBAL M&A ANNUAL PRIVATE EQUITY TREND

Valu

e (U

S$bn

)

Num

ber of deals

0

200

400

600

800

1,000

1,200

1,400

Q214*

Q114

Q413

Q313

Q213

Q113

Q412

Q312

Q212

Q112

Q411

Q311

Q211

Q111

Q410

Q310

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Total value Mid-market value Total volume Mid-market volume

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

Num

ber of deals

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

YTD 2014*201320122011201020092008


Valu

e (U

S$bn

)

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

Num

ber of deals

0

100

200

300

400

500

600

700

800

900

YTD 2014*201320122011201020092008

Valu

e (U

S$bn

)

Buyout value Exit value Buyout volume Exit volume

0

500

1,000

1,500

2,000

2,500

3,000

3,500

Valu

e (U

S$bn

)

Num

ber of deals

0

50

100

150

200

250

300

350

400

Q214*

Q114

Q413

Q313

Q213

Q113

Q412

Q312

Q212

Q112

Q411

Q311

Q211

Q111

Q410

Q310

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108


0

100

200

300

400

500

600

700

800

900


TREND GRAPHS

GLOBAL M&A SECTOR BREAKDOWN YTD 2014

VALUE VOLUME

GLOBAL M&A GEOGRAPHIC BREAKDOWN YTD 2014

VALUE VOLUME

13.0%

12.0%

19.7%

11.4%

9.3%

8.9%

7.3%

4.2%

1.9%1.1%

3.7%

3.1%3.3%

0.9%

0.2%

Industrials & Chemicals

Consumer

Technology

Business Services

Energy, Mining & Utilities

Financial Services

Pharma, Medical & Biotech

Leisure

Media

Transportation

Construction

Real Estate

Telecommunications

Agriculture

Defence

10.6%

10.5%

7.7%

4.8%

8.1%

12.5%14.0%

2.9%

1.4%

5.2%

2.6%

4.2%

14.4%

1.1%


Consumer

Technology

Business Services


Financial Services


Leisure

Media

Transportation

Construction

Real Estate

Telecommunications

Agriculture

22.5%

30.6%

41.6%

1.1%4.2%

Asia-Pacific

Europe

North America

Middle East & Africa

Central & South America

21.5%

37.8%

35.0%

2.2%3.5%

Asia-Pacific

Europe

North America

Middle East & Africa

Central & South America


TREND GRAPHS

GLOBAL M&A DEAL SIZE BREAKDOWN YTD 2014

VALUE VOLUME

Return to contents

80

82

84

86

88

90

92

94

96

98

100

YTD 2014*201320122011201020092008

Perc

enta

ge

90.1% 90.9%89.3% 89.0% 89.2%

0.9% 1.0% 1.1% 1.0% 1.0%

4.6%3.9%

4.5% 4.8% 4.6%

3.8% 3.7%4.7% 4.7% 4.8%

0.6% 0.5% 0.4% 0.5%0.7%

0.4% 0.4%

89.8%

1.0%

4.3%

4.5%

88.7%

1.2%

4.7%

4.7%

US$0-US$250m

US$251m-US$500m

US$501m-US$2,000m

US$2,001m-US$5,000m

>US$5,001m

0

10

20

30

40

50

60

70

80

90

100

YTD 2014*201320122011201020092008

Perc

enta

ge

41.9% 40.5%

27.3% 29.9% 29.3%

8.9% 7.9% 9.7% 10.1% 9.7%

15.2% 16.5%

20.4%19.0% 19.5%

19.4% 20.5%27.5% 26.3% 27.6%

14.6% 14.6% 15.1% 14.7% 13.9%

44.0%

7.7%

15.4%

21.7%

11.2%

28.7%

9.8%

18.9%

27.8%

14.8%

US$0-US$250m

US$251m-US$500m

US$501m-US$2,000m

US$2,001m-US$5,000m

>US$5,001m

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A MERGERMARKET M&A REPORT ON

LATIN AMERICA


Even though the first quarter saw an increase in M&A activity, the first month of the second quarter witnessed a big slow down. During Q1 there were 121 deals valued at US$25.8bn, while in April 2014 there were only 28 deals, valued at US$15.4bn. There has to be a 500% increase in deal volume for the rest of the quarter in order to reach the 168 deals announced in Q2 2013.

The Industrial and Chemicals sector announced 29 deals worth US$1.4bn and the Consumer sector registered 19 deals worth US$2.6bn. The deal of the month was in the Financial Services sector, which by April had 12 deals worth US$9.9bn. A total of US$6.5bn came from Banco Santander’s voluntary offer to acquire 25% of Banco Santander Brasil. Banco Santander is a Spain based financial services company. The deal is still pending shareholders’ and regulatory approval and is expected to be completed in October this year.

If all minority shareholders accept the offer, Banco Santander will be issuing roughly 665 million shares. The shareholders of Santander Brasil will get 0.7 shares of Banco Santander for every Brazilian Depositary Receipts, which represents a 20% premium to Santander Brasil’s closing price on 28-Apr-14. Advisors on the deal include Goldman Sachs,UBS Investment Bank, Davis Polk & Wardwell and Santander Global Banking and Markets.

The weakening market in Brazil has made Santander Brasil shares decrease 40% in the past four and a half years. Britain now contributes as much to Santander’s earnings as Brazil –about 20%. Santander Brasil has declined more than 40% since 2009, when its initial public offering price was at R$23.5, the worst performer in the MSCI Latin America/Financials Index.

The most active sector was once again Energy, Mining and Utilities, with 34 deals announced, worth US$22.2bn. The second highest deal in April was in this sector, with MMG South America Management Company Limited’s acquisition of a 99.99% stake in Xstrata Las Bambas from Glencore Queensland Limited and Xstrata South America Limited for a cash consideration of US$5.9bn.

Brazil has been one of the most active countries in Energy deals. In the year-to-date, Brazil saw eight deals in Q1 and three additional transactions happened in April. From these 11 deals, four of them had targets operating in the alternative energy subsector: Dobreve Energia, Rio Pardo Termoeletrica, Hidroeletrica de Candonga, and CLWP Brasil III. From the same pool, eight transactions were domestic. The upward trend to domestic deals in the Energy sector, especially in Brazil, has been very clear throughout the years. During 2011, 65.5% of all Energy deals were domestic transactions (20 transactions). In 2012 the number went up to 65.7% (23 transactions) and in 2013 increased again to 72.7% (24 deals).

The heat in the Energy sector and in domestic deals has kept its steady growth so far, even with Law 12.783 that was approved on January 2013. According to Oliver Hill, Deputy Editor, Latin America and the Caribbean, at Mergermarket, the reform prompted major energy generators like Companhia Energética de Minas Gerais (Cemig) and Companhia Energética de São Paulo (CESP) to give up rather than renew generation concessions expiring between 2015 and 2017 and accept lower energy tarriffs imposed by the new law. The activity in the sector can be explained by the necessity these companies have to acquire energy assets in Brazil and regionally to compensate for their losses or just to find alternative ways to generate energy at a lower cost. As a result, the expectation is that the Energy sector will continue its upward trend throughout 2014.


TOP DEALS

LATIN AMERICA

TOP 10 LATIN AMERICAN ANNOUNCED DEALS OF THE MONTH (APR-14)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

29-Apr-14 Banco Santander SA Banco Santander Brasil SA (25% stake)

Financial Services - n/a n/a 8.3 18.7% 6,517

13-Apr-14 MMG South America Management Company Limited

Xstrata Las Bambas SA (99.99% stake)


Glencore Queensland Limited; and Xstrata South America Limited

- - - - 5,850

4-Apr-14 Empresa de Energia de Bogota SA ESP

Transportadora de Gas Internacional SA ESP (31.92% stake)

Transportation Citi Venture Capital International

- - - - 880

01-Apr-14 Kohlberg Kravis Roberts & Co LP

Aceco TI SA Business Services General Atlantic LLC 2.8 13.5 - - 665

07-Apr-14 Banco Santander Brasil SA Getnet Tecnologia em Captura e Processamento de Transacoes HUAH SA (88.5% stake)

Business Services - - - - - 495

15-Apr-14 The Mosaic Company Archer Daniels Midland Company (Fertilizer distribution business in Brazil and Paraguay)

Business Services Archer Daniels Midland Company

- - - - 200

21-Apr-14 InterGen NV Energia Sierra Juarez (50% stake)


Infraestructura Energetica Nova SAB de CV

- - - - 150

08-Apr-14 International Paper Company Orsa International Paper Embalagens SA (25% stake)


Jari Celulose SA 1.8 - - - 141

10-Apr-14 GAEC Anima Educacao SA Universidade Sao Judas Tadeu

Business Services Mesquita family (private investor)

1.8 10.3 - - 140

30-Apr-14 Alicorp SA Global Alimentos; and Molinos Saracolca SAC

Consumer - - - - - 107

n/a=not applicable Based on announced deals, including lapsed and withdrawn bids Based on dominant geography of target company being Latin American Data correct as of 05-May-14

Source: Mergermarket

TREND GRAPHS

LATIN AMERICA Monthly M&A Insider | May | 08

LATIN AMERICAN M&A QUARTERLY TREND LATIN AMERICAN M&A QUARTERLY PRIVATE EQUITY TREND

LATIN AMERICAN M&A ANNUAL TREND LATIN AMERICAN M&A ANNUAL PRIVATE EQUITY TREND

Valu

e (U

S$bn

)

Num

ber of deals

0

10

20

30

40

50

60

70

Q214*

Q114

Q413

Q313

Q213

Q113

Q412

Q312

Q212

Q112

Q411

Q311

Q211

Q111

Q410

Q310

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108


0

50

100

150

200

250

Num

ber of deals

0

20

40

60

80

100

120

140

160

180

YTD 2014*201320122011201020092008


Valu

e (U

S$bn

)

0

100

200

300

400

500

600

700

800

Num

ber of deals

0

1,000

2,000

3,000

4000

5,000

6,000

7,000

8,000

YTD 2014*201320122011201020092008

Valu

e (U

S$m

)


0

10

20

30

40

50

60

70

Valu

e (U

S$m

)

Num

ber of deals

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

Q214*

Q114

Q413

Q313

Q213

Q113

Q412

Q312

Q212

Q112

Q411

Q311

Q211

Q111

Q410

Q310

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108


0

5

10

15

20

25

30

LATIN AMERICAN M&A GEOGRAPHIC BREAKDOWN YTD 2014

LATIN AMERICAN M&A SECTOR BREAKDOWN YTD 2014

VALUE VOLUME

LATIN AMERICA Monthly M&A Insider | May | 09

TREND GRAPHS

VALUE VOLUME

53.7%

3.5%

6.3%

4.5%

24.0%

2.9%

2.8%

0.2%0.2%

1.0%0.1%

0.1%0.6%



Consumer

Business Services

Financial Services

Technology


Leisure

Transportation

Telecommunications

Construction

Real Estate

Agriculture

22.4%

19.1%

12.5%

9.9%

7.9%

5.9%

3.9%3.3%

2.0%

2.0%

0.7%

0.7%

4.6%

5.3%



Consumer

Business Services

Financial Services

Technology


Leisure

Transportation

Media

Telecommunications

Construction

Real Estate

Agriculture

19.4%

0.2%

0.1%

5.0%

40.2%

23.0%

9.0%

3.1%

Argentina

Brazil

Chile

Colombia

Mexico

Peru

Uruguay

Venezuela

0.7%

0.7%

5.9%

0.7%

7.9%

0.7%

13.8%

0.7%0.7%

50.7%

7.9%

9.9%

Argentina

Brazil

Chile

Colombia

Costa Rica

Dominican Republic

Guatemala

Mexico

Panama

Peru

Uruguay

Venezuela

LATIN AMERICAN M&A DEAL SIZE BREAKDOWN YTD 2014

VALUE VOLUME

Return to contentsLATIN AMERICA Monthly M&A Insider | May | 10

TREND GRAPHS

20

30

40

50

60

70

80

90

100

YTD 2014*201320122011201020092008

Perc

enta

ge

88.0% 85.8% 86.3% 86.7%

4.9% 6.8% 8.1%6.2% 5.8%

5.3%5.3%

6.7%5.6% 6.5%

1.2% 1.8% 2.0% 1.1% 0.7%0.6% 0.3% 1.2% 0.9%0.8% 2.0%0.3%

86.1%

6.0%

7.0% 1.3%

84.2%

5.3%

7.2%

US$0-US$250m

US$251m-US$500m

US$501m-US$2,000m

US$2,001m-US$5,000m

>US$5,001m

82.0%

0

10

20

30

40

50

60

70

80

90

100

YTD 2014*201320122011201020092008

Perc

enta

ge

30.3%

9.2%

39.2%28.6%

21.9%

9.9% 10.1%

7.5%

9.5%

10.3%13.6%

25.1%36.6%

24.8%

28.6%

33.8%

20.1%

29.3%

19.0%

18.2%

14.4%

14.6% 14.8% 14.3% 16.3%

16.4%

45.8%

17.4%

20.4%8.0%

21.0%

50.1%

10.3%

10.6%

US$0-US$250m

US$251m-US$500m

US$501m-US$2,000m

US$2,001m-US$5,000m

>US$5,001m



NORTH AMERICA

April M&A activity in North America ended with 339 deals, worth US$103.2bn. Two transactions over US$10bn in the Pharma, Medical & Biotech and Energy, Mining & Utilities sectors primarily helped boost April’s total deal value and this quarter is already poised to overtake Q2 2013’s deal value of US$187.6bn if April’s M&A activity continues to produce higher value transactions. This quarter’s private equity activity started off with 55 buyout deals worth US$12.1bn and 61 exit deals worth US$36.8bn.

The Pharma, Medical & Biotech sector took the lead with 151 deals in the year-to-date, collectively valued at US$76.6bn. The top deal for April, Zimmer Holdings’s acquisition of Biomet Inc. for US$13.4bn, helped bring the sector’s market share to 19% by value. The merger of the companies will position the combined entity as a leader in the musculoskeletal industry and comes on the back of increased consolidation in the sector with industry players looking to set their long term strategies.

The Energy, Mining & Utilities sector is the third largest by value with 167 deals worth US$56.6bn. Exelon Corporation’s US$12.1bn acquisition of Pepco Holdings and Yamana Gold and Agnico Eagle Mines Limited’s US$3.4bn acquisition of Osisko Mining Corporation helped boost the sector’s market share to 14% by value. The sector may be seeing increased activity as the year progresses due to a rise in investor confidence.

The Telecommunications, Media and Technology sectors have been seeing a flurry of activity with a collective 304 deals worth US$125.8bn. These sectors have been an interesting study for acquisitions as investors are more willing to pay a premium for a target that they believe demonstrates significant growth potential. A large player in the Asian TMT sector, Alibaba Group’s US listing offer could value the company at more than US$100bn, making it one of the largest stock listings in history. The company has been ramping up with acquisitions pre-IPO, with three in April alone ranging from US$250m to US$1.2bn.

The first quarter has set a positive tone for 2014 and with Q2 starting strong with April numbers, North American M&A seems to be back on the rise. The TMT, Pharma, Medical & Biotech, and Energy, Mining & Utilities sectors will be in the spotlight for the upcoming months as the outcome of optimistic predictions in these sectors remain to be seen.


TOP DEALS

NORTH AMERICA

TOP 10 NORTH AMERICAN ANNOUNCED DEALS OF THE MONTH (APR-14)Announced Bidder company Target company Target dominant


1-day before

Deal value

(US$m) Revenue EBITDA P/E

24-Apr-14 Zimmer Holdings Inc Biomet Inc Pharma, Medical & Biotech

- 4.4 40.3 (loss) - 13,350

30-Apr-14 Exelon Corporation Pepco Holdings Inc Energy, Mining & Utilities

- 2.6 10.6 60.6 19.6% 12,138

14-Apr-14 Teachers Insurance and Annuity Association of America-College Retirement Equities Fund

Nuveen Investments Inc Financial Services Madison Dearborn Partners LLC

n/a n/a - - 6,250

07-Apr-14 Mallinckrodt Plc Questcor Pharmaceuticals Inc Pharma, Medical & Biotech

- 6.9 12.5 18.1 26.8% 5,546

04-Apr-14 Blackstone Group LP The Gates Corporation Industrials & Chemicals

Onex Corporation; and Canada Pension Plan Investment Board

1.8 10.0 - - 5,400

22-Apr-14 GlaxoSmithKline Plc Novartis AG (Global vaccines business)


Novartis AG - - - - 5,250

15-Apr-14 Zebra Technologies Corporation

Motorola Solutions Inc (Enterprise division)

Technology Motorola Solutions Inc 1.4 10.9 - - 3,450

16-Apr-14 Yamana Gold Inc; and Agnico Eagle Mines Limited

Osisko Mining Corporation Energy, Mining & Utilities

- 5.4 (loss) (loss) 11.2% 3,410

09-Apr-14 Mars Incorporated Procter & Gamble Company (Iams, Eukanuba, and Natura pet-food brands)

Consumer Procter & Gamble Company

- - - - 2,900

17-Apr-14 Post Holdings Inc Michael Foods Inc Consumer Thomas H. Lee Partners LP; and GS Capital Partners

- - - - 2,450

n/a=not applicable Based on announced deals, including lapsed and withdrawn bids Based on dominant geography of target company being North American (US + Canada) Data correct as of 05-May-14


TREND GRAPHS

NORTH AMERICA Monthly M&A Insider | May | 13

NORTH AMERICAN M&A QUARTERLY TREND

NORTH AMERICAN M&A ANNUAL TREND

NORTH AMERICAN M&A QUARTERLY PRIVATE EQUITY TREND

NORTH AMERICAN M&A ANNUAL PRIVATE EQUITY TREND

Valu

e (U

S$bn

)

Num

ber of deals

0

50

100

150

200

250

300

350

400

450

500

YTD 2014*201320122011201020092008


0

200

400

600

800

1,000

1,200

Valu

e (U

S$bn

)

Num

ber of deals

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

YTD 2014*201320122011201020092008


0

1,000

2,000

3,000

4,000

5,000

6,000

Valu

e (U

S$bn

)

Num

ber of deals

0

50

100

150

200

250

Q214*

Q114

Q413

Q313

Q213

Q113

Q412

Q312

Q212

Q112

Q411

Q311

Q211

Q111

Q410

Q310

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108


0

50

100

150

200

250

300

350

Valu

e (U

S$bn

)

Num

ber of deals

0

100

200

300

400

500

600

Q214*

Q114

Q413

Q313

Q213

Q113

Q412

Q312

Q212

Q112

Q411

Q311

Q211

Q111

Q410

Q310

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108


0

200

400

600

800

1,000

1,200

1,400

1,600

Monthly M&A Insider | May | 14NORTH AMERICA

NORTH AMERICAN M&A SECTOR BREAKDOWN YTD 2014

VALUE VOLUME

NORTH AMERICAN M&A DEAL SIZE BREAKDOWN YTD 2014

VALUE VOLUME

TREND GRAPHS

Return to contents

75

80

85

90

95

100

YTD 2014*201320122011201020092008

Perc

enta

ge

90.5% 91.1%

87.6% 87.6% 87.1%

0.9% 1.0% 1.1% 1.4% 1.4%

4.2% 3.8%

5.2% 5.4%5.0%

3.7% 3.4%5.5% 4.9% 6.0%

0.7% 0.7% 0.6% 0.7% 0.7%0.5%

86.9%

1.3%

5.1%

6.0%

0.7%

88.4%

1.0%

4.5%

5.4%

US$0-US$250m

US$251m-US$500m

US$501m-US$2,000m

US$2,001m-US$5,000m

>US$5,001m

0

10

20

30

40

50

60

70

80

90

100

YTD 2014*201320122011201020092008

Perc

enta

ge

49.1%58.7%

31.8%37.2%

32.3%

7.3%5.5%

9.8% 9.0% 8.2%

17.4%

13.2%

27.7%20.8% 27.5%

13.9%

13.3%

17.9%

21.2%21.3%

12.3% 9.3% 12.8% 11.8% 10.7%

43.3%

7.3%

24.0%

15.0%

44.5%

14.7%

9.2%

6.9%

24.7%

10.4%

US$0-US$250m

US$251m-US$500m

US$501m-US$2,000m

US$2,001m-US$5,000m

>US$5,001m

19.1%

15.6%

12.8%10.7%

9.8%

9.7%

9.2%

3.1%

2.2%

0.8%1.9%

0.7%

0.6%

3.3%

0.3%


Technology

Business Services


Consumer


Financial Services

Leisure

Media

Construction

Transportation

Telecommunications

Real Estate

Agriculture

Defence

9.7%

12.0%

4.3%

14.0%

12.1%

19.0%

6.3%

1.0%

17.9%

0.7%

0.9%1.3%

0.6%0.1%


Technology

Business Services


Consumer


Financial Services

Leisure

Media

Construction

Transportation

Telecommunications

Real Estate

Agriculture



ASIA-PACIFIC

M&A activity for April yielded 235 deals worth US$95.3bn, a 1% decrease by volume but a 38% increase in value from March figures. Of these transactions, PE buyouts produced 20 deals worth US$8.7bn, a 15% decrease in volume and a 34% decrease in value from the previous month. Highlighting deal activity for the month was the US$37bn merger of CITIC Group and its Hong-Kong-listed subsidiary CITIC Pacific, a deal that has helped make 2014 a record year for M&A in the region.

Standout sectorsAsia’s Industrials & Chemicals sector saw the bulk of deal activity (21% of volume), driven by a number of industry consolidations in China, followed by TMT (19%). Tech M&A has recently seen a number of major tech companies set their sights on small and mid-cap startups in the mobile space to add new hardware and software assets to their portfolios.

The Energy, Mining & Utilities and Consumer sectors accounted for 11% of transaction volume each for the month. Energy deals were led by China Petroleum & Chemical Corporation’s acquisition of a 50% stake in Caspian Investments Resource, based in Kazakhstan, from Russian Lukoil for US$1.2bn. Highlighting consumer deals was United Kingdom based Diageo’s 26% stake acquisition in Indian United Spirits, a transaction valued at US$3.1bn.

Alibaba continues M&A foraysChinese ecommerce giant Alibaba, in a continuation of an ongoing M&A buying spree, completed three transactions in April highlighted by the US$1.2bn acquisition of a 24% stake in Youku Tudou, the listed China-based Internet television company. The deal was made in partnership with Yunfeng Capital. The investment will help Alibaba bring new products and services to its customers while strengthening Youku Tudou’s balance sheet.

Alibaba also completed a 20% acquisition of Wasu Media Holdings through Hangzhou Yunxi Investment Partnership for US$1bn, followed by a 72% stake acquisition of navigation provider and digital map application AutoNavi for US$649m. The ecommerce giant has been acquisitive as of late as competition in the Chinese tech space escalates between Alibaba and Tencent Holdings. Each company has turned to M&A to buy potentially useful assets before the other has the opportunity to acquire.

The acquisitions also come as Alibaba prepares for a much anticipated public listing in the United States.

Japan PE upbeat on exit, buyout opportunitiesCultural shifts and economic changes could be setting the stage for a wave of opportunities involving small to mid-cap exits and buyouts in Japan. A solid pipeline comprising founder-backed exits, renewed inbound acquisition interest, and potential non-core divestitures are all contributing to an uptick in deal flow, according to Mergermarket intelligence.

While Abenomics has certainly been recognised as a catalyst for change, the current rise in mid-market deal flow can be attributed to a shift in cultural attitudes and to the rise of a new generation of entrepreneurs. This has been seen in the emergence of a younger generation of founders in their 40s looking to sell their companies. Many may not be looking to pursue an IPO and are instead considering private equity buyers as an exit strategy. According to Mergermarket intelligence, some may consider the timing perfect to exit, given higher benchmark valuations.

TOP DEALS

Monthly M&A Insider | May | 16ASIA-PACIFIC

TOP 10 ASIA-PACIFIC ANNOUNCED DEALS OF THE MONTH (APR-14)Announced Bidder company Target company Target dominant


1-day before

Deal value

(US$m)Revenue EBITDA P/E

16-Apr-14 CITIC Pacific Limited CITIC Limited Financial Services CITIC Group Corporation 0.90 3.11 - - 36,490

23-Apr-14 Transurban Group; AustralianSuper Pty Ltd; and Tawreed Investments Ltd

Queensland Motorways Pty Limited

Business Services QIC Limited - - - - 6,195

13-Apr-14 MMG South America Management Company Limited

Xstrata Las Bambas SA (99.99% stake)


Glencore Queensland Limited; and Xstrata South America Limited

- - - - 5,850

01-Apr-14 Oversea Chinese Banking Corporation Limited

Wing Hang Bank Limited Financial Services n/a n/a 17.43 1.6% 4,953

02-Apr-14 COFCO Corporation Noble Agri Limited (51% stake)

Agriculture Noble Group Limited 0.37 - - - 4,000

07-Apr-14 Sun Pharmaceutical Industries Limited

Ranbaxy Laboratories Limited


Daiichi Sankyo Company Limited

2.21 29.00 - -0.5% 3,991

15-Apr-14 Diageo Plc United Spirits Limited (26% stake)

Consumer - - - - 18.5% 3,140

14-Apr-14 CapitaLand Limited CapitaMalls Asia Limited (34.7% stake)

Real Estate - 27.03 16.49 14.62 23.2% 2,390

09-Apr-14 Woolworths Holdings Ltd David Jones Limited Consumer - 1.16 10.92 22.60 25.4% 2,010

14-Apr-14 Consortium for Hotel Properties Ltd

Hotel Properties Limited (58.1% stake)

Leisure - 3.98 10.59 9.70 0.12 1,577

n/a=not applicable Based on announced deals, including lapsed and withdrawn bids Based on dominant geography of target company being Asia-Pacific Data correct as of 02-May-14


TREND GRAPHS


ASIA-PACIFIC M&A QUARTERLY TREND

ASIA-PACIFIC M&A ANNUAL TREND

ASIA-PACIFIC M&A QUARTERLY PRIVATE EQUITY TREND

ASIA-PACIFIC M&A ANNUAL PRIVATE EQUITY TREND

ASIA-PACIFIC

Valu

e (U

S$bn

)

Num

ber of deals

0

100

200

300

400

500

YTD 2014*201320122011201020092008


0

500

1,000

1,500

2,000

2,500

3,000

3,500

Valu

e (U

S$bn

)

Num

ber of deals

0

10

20

30

40

50

60

70

YTD 2014*201320122011201020092008


0

50

100

150

200

250

300

350

Valu

e (U

S$bn

)

Num

ber of deals

0

5

10

15

20

25

Q214*

Q114

Q413

Q313

Q213

Q113

Q412

Q312

Q212

Q112

Q411

Q311

Q211

Q111

Q410

Q310

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

0

20

40

60

80

100

120

0

20

40

60

80

100

120


Valu

e (US$

bn)

Num

ber of deals

0

20

40

60

80

100

120

140

160

Q214*

Q114

Q413

Q313

Q213

Q113

Q412

Q312

Q212

Q112

Q411

Q311

Q211

Q111

Q410

Q310

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108


0

100

200

300

400

500

600

700

800

900

ASIA-PACIFIC M&A GEOGRAPHIC BREAKDOWN YTD 2014

VALUE VOLUME


TREND GRAPHS

6.8%

8.3%

11.8%

10.9%

25.6%

4.5%

3.1%

3.1%

5.8%

10.4%

1.7%2.3%

3.0%

2.7%


Technology

Consumer


Financial Services

Business Services

Leisure


Transportation

Media

Real Estate

Construction

Agriculture

Telecommunications

12.9%

20.3%

12.1%

9.7%

9.1%

8.3%

6.2%

5.6%

3.9%

3.8%

2.5%

3.8%

1.1%0.7%


Technology

Consumer


Financial Services

Business Services

Leisure


Transportation

Media

Real Estate

Construction

Agriculture

Telecommunications

44.6%

13.0%

11.1%

8.2%

4.9%

5.9%

1.6%

4.7%

1.6% 1.1%

3.3%China

Australia

South Korea

Japan

Singapore

India

Papua New Guinea

Malaysia

Hong Kong

Taiwan

Other

34.7%

9.8%

13.1%

4.9%

4.5%

7.9%

0.3%

12.9%

2.7%

0.4%8.6%

China

Australia

South Korea

Japan

Singapore

India

Papua New Guinea

Malaysia

Hong Kong

Taiwan

Other

ASIA-PACIFIC M&A SECTOR BREAKDOWN YTD 2014

VALUE VOLUME


ASIA-PACIFIC M&A DEAL SIZE BREAKDOWN YTD 2014

VALUE VOLUME

TREND GRAPHS

Return to contents

75

80

85

90

95

100

YTD 2014*201320122011201020092008

Perc

enta

ge

88.5%

0.9%

5.7%

4.5%

0.4% 0.2%0.3%0.4%

87.9% 88.7%87.6%

88.6%

1.0% 1.5% 0.8% 0.9%

5.3%5.1%

5.9%5.5%

5.4% 4.4% 5.3% 4.7%

0.4% 0.3%

88.1%

5.6%

0.8%

5.3%

0.6%

86.4%

6.4%

1.5%

5.1%

US$0-US$250m

US$251m-US$500m

US$501m-US$2,000m

US$2,001m-US$5,000m

>US$5,001m

0

10

20

30

40

50

60

70

80

90

100

YTD 2014*201320122011201020092008

Perc

enta

ge

13.5%

34.2%

11.7%

17.0%

23.6%

9.9%

21.8%

33.2%

18.4%

16.7%

29.6%19.9%

13.4%24.4% 20.6%

12.0% 11.2% 11.1% 12.0% 12.1%

22.2%30.4% 26.2% 29.7% 28.9%

15.7%

17.0% 27.3%13.6%

16.6%

20.5% 22.0% 20.3% 21.8%

US$0-US$250m

US$251m-US$500m

US$501m-US$2,000m

US$2,001m-US$5,000m

>US$5,001m

21.5%



EUROPE

In April 2014, Europe increased in overall value as transactions totalled US$132.1bn, up 83.3% from US$72.1bn in April 2013 though logging a 12.6% decrease in number of deals from 453 to 396. April 2013 marks the best month in value since the financial crisis, following the region’s record figure of US$197.9bn in April 2007.

April’s high performance marks a positive development as so far this year total value in the region has reached US$309.3bn, reaching 48.2% of last year’s value (US$641.1bn), with three quarters of the year remaining.

European buyout activity showed a slowdown in April 2014 with US$10.5bn worth of deals, representing a 33.4% decrease to the same period in 2013 (US$15.7bn). On the other hand, exit activity increased by 80.6% reaching US$18.7bn from US$10.4bn in 2013, however the number of deals has decreased from 64 in 2013 to 50 in 2014.

The most active sector in April was Telecommunication with US$54.3bn worth of deals accounting for an 18.2% share of the region. With two of the top ten deals announced in the region in April 2014, the sector posted a 60.6% increase on its deal value performance compared to YTD 2012 (US$33.8bn), at which time the sector accounted for 16.3% of the dealmaking landscape. The top deal in the sector was Luxembourg-based ALTICE acquisition of France-based SFR SA, for a total consideration of US$23.3bn.

With the largest deal in April, Construction followed suit, claiming a 13.8% share of the market as it logged US$41.1bn worth of deals through 2014. The figure represents a 1,138.6% increase on the US$3.3bn value logged in the same period 2013. The sector’s top deal Holcim Ltd acquisition of Lafarge SA, for a total consideration of US$38.8bn will create synergies valued at US$1.9bn and expand Holcim’s capabilities to 90 countries around the world.

Switzerland (US$55.8bn) and USA (US$51.6bn) were the most active countries by deal value with market shares ranking at 18.7% and 17.3% respectively. The United Kingdom, which was the third most active country in terms of value (US$38.4bn), led the market by share of transaction volume, logging 271 deals (15.7%).

TOP DEALS

Monthly M&A Insider | May | 21EUROPE

TOP 10 EUROPEAN ANNOUNCED DEALS OF THE MONTH (APR-14)Announced Bidder company Target company Target dominant


1-day before

Deal value


07-Apr-14 Holcim Ltd Lafarge SA Construction - 1.9 9.1 29.4 4.3% 28,261

05-Apr-14 ALTICE VII SA SFR SA Telecommunications Vivendi SA - - - - 17,000

22-Apr-14 Novartis AG GlaxoSmithKline Plc (Oncology division)


GlaxoSmithKline Plc - - - - 10,506

22-Apr-14 Eli Lilly and Company Limited

Novartis Animal Health Inc Pharma, Medical & Biotech

Novartis AG 4.9 - - - 3,916

07-Apr-14 ALTICE VII SA Numericable (34.6% stake) Telecommunications Cinven Limited; and The Carlyle Group

4.8 11.2 53.1 12.5% 3,886

28-Apr-14 Cinven Limited Visma ASA Business Services HgCapital; Montagu Private Equity LLP; and Kohlberg Kravis Roberts & Co LP

3.3 15.9 - - 2,524

16-Apr-14 Rolls-Royce Plc Rolls-Royce Power Systems AG (50% stake)

Industrial & Chemicals

Daimler AG - - - - 2,430

10-Apr-14 Goldman Sachs; and Koch Equity Development LLC

Flint Group (Formed from the merged Flint Ink Corporation and XSYS Print Solutions)

Industrial & Chemicals

CVC Capital Partners Limited

1.0 6.3 - - 2,200

18-Apr-14 IC Ictas Enerji Yenikoy Yatagan Electrik Uretim ve Ticaret AS; and Kemerkoy Elektrik Uretim Ve Tic AS


Government of Turkey - - - - 1,936

07-Apr-14 Alfa Laval AB Frank Mohn AS Industrial & Chemicals

Wimoh AS 3.9 - - - 1,582

Based on announced deals, including lapsed and withdrawn bids Based on dominant geography of target company being European Data correct as of 06-May-14


TREND GRAPHS


EUROPEAN M&A QUARTERLY PRIVATE EQUITY TREND

EUROPEAN M&A QUARTERLY TREND

EUROPE

Num

ber of deals

0

100

200

300

400

500

600

Q214*

Q114

Q413

Q313

Q213

Q113

Q412

Q312

Q212

Q112

Q411

Q311

Q211

Q111

Q410

Q310

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108


Valu

e (US$bn

)

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

Valu

e (US$bn

)

Num

ber of deals

0

20

40

60

80

100

120

140

Q214*

Q114

Q413

Q313

Q213

Q113

Q412

Q312

Q212

Q112

Q411

Q311

Q211

Q111

Q410

Q310

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

0

50

100

150

200

250

300

350

400

450


EUROPEAN M&A ANNUAL TREND EUROPEAN M&A ANNUAL PRIVATE EQUITY TREND

Valu

e (US$

bn)

Num

ber of deals

0

200

400

600

800

1,000

1,200

1,400

1,600

YTD 2014*201320122011201020092008


0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

Num

ber of deals

0

50

100

150

200

250

300

350

YTD 2014*201320122011201020092008


Valu

e (US$

bn)

0

200

400

600

800

1,000

1,200

1,400

1,600


EUROPEAN M&A GEOGRAPHIC BREAKDOWN YTD 2014

EUROPEAN M&A SECTOR BREAKDOWN YTD 2014

VALUE VOLUME

TREND GRAPHS

VALUE VOLUME

EUROPE

16.0%

12.7%8.9%

8.4%

6.5%

6.4%

4.5%

4.2%

4.1%

1.3%

0.2%

0.9%

3.7%

1.7%

20.5% Industrials & Chemicals

Consumer

Business Services

Technology

Financial Services



Construction

Transportation

Media

Leisure

Real Estate

Telecommunications

Agriculture

Defence

5.6%

2.1%

7.0%

6.7%

8.9%

10.5%

2.0%

13.8%

5.3%

1.2%

4.3%

18.2%

1.1%0.1%

13.3% Industrials & Chemicals

Consumer

Business Services

Technology

Financial Services



Construction

Transportation

Media

Leisure

Real Estate

Telecommunications

Agriculture

Defence

18.7%

12.9%

17.3%

9.2%

10.6%

5.7%

3.6%

2.8%

2.8%

3.5%

2.2%

1.7% 7.5%1.4%

Switzerland

USA

UK

Luxembourg

France

Germany

CEE

Brazil

China

Denmark

Sweden

Finland

Canada

Others

12.3%

3.5%

15.7%

0.5%

9.3%7.9%

1.2%

27.4%

1.0%1.9%

4.5%

2.1%

0.1%12.5%

Switzerland

USA

UK

Luxembourg

France

Germany

CEE

Brazil

China

Denmark

Sweden

Finland

Canada

Others

Monthly M&A Insider | May | 24EUROPE

TREND GRAPHS

EUROPEAN M&A DEAL SIZE BREAKDOWN YTD 2014

VALUE VOLUME

Return to contents

80

82

84

86

88

90

92

94

96

98

100

YTD 2014*201320122011201020092008

Perc

enta

ge

90.6%93.1%

92.0% 91.1% 91.6%

0.9% 0.9% 0.7% 0.9% 0.8%

4.2%

2.9%3.2%

3.6%3.7%

3.7%2.7% 3.8% 4.0% 3.5%

0.6%0.7%

92.0%

0.9%

3.2%

3.2%

0.4%0.4% 0.4%

92.4%

0.9%

3.2%

3.3%

US$0-US$250m

US$251m-US$500m

US$501m-US$2,000m

US$2,001m-US$5,000m

>US$5,001m

0.3% 0.2%

0

10

20

30

40

50

60

70

80

90

100

YTD 2014*201320122011201020092008

Perc

enta

ge

44.3%

8.4%

19.2%

15.0%

13.1%

33.6%28.6% 26.6%

33.9%

8.5% 9.0% 9.8% 9.5%

20.9%29.1% 28.9%

25.3%

20.7%18.7% 20.4%

18.7%

16.3% 14.6% 14.3% 12.6%

22.1%

10.2%

27.5%

25.8%

14.4%

50.6%

6.6%

17.9%

15.6%

9.3%

US$0-US$250m

US$251m-US$500m

US$501m-US$2,000m

US$2,001m-US$5,000m

>US$5,001m



THE MIDDLE EAST & AFRICAAfter a lacklustre first quarter, deal activity in the Middle East and Africa (ME&A) offers a more refreshing picture in April, with total value well ahead of the same period last year (US$4.5bn against US$2.4bn - a 90.5% increase) but volume (25 transactions against 33) was down 24.2%. The average deal size in Q2 14 is already double the average recorded in the first quarter (US$182m against US$90m). The overall trend year-to-date (YTD) is instead on the downside, both in terms of volume (98 vs 112 deals) and value (US$11.1bn vs US$15.1bn), reflecting a more general trajectory on M&A across the world.

Deal activity YTD shows an overall rebalancing across sectors, with Telecommunications (TMT) coming up on top in terms of value (US$3.1bn spread on just 5 transactions), followed by Energy, Mining & Utilities (US$2.1bn), Financial Services (US$1.8bn), Technology (US$1.4bn), and Consumer (US$1.1bn). These five sectors together account for 84.9% of deal activity by value in the region, but hold a market share of only 57.1% in terms of number of transactions. The same period last year saw Energy, Mining & Utilities having the lion’s share (36%), with 19 transactions worth US$5.4bn. Together with Real Estate, Construction, and Pharma, these four sectors covered almost three-quarters of 2013 deal activity by value. A different picture emerges as far as deal counting is concerned: so far this year Consumer leads with 17 transactions, followed by Industrials & Chemicals (14 operations worth only US$201m, which is equivalent to less than 2% of market by value), Financial Services (13), and Energy (11). Last year Industrials & Chemicals, Financial Services and Energy each had 19 deals on record.

However, the very nature of the region’s deals has to be taken into account when running year-on-year comparisons. Given the average transaction size and the modest contributions on global M&A activity, single high-value operations in the Middle East and Africa can have a substantial impact on sector contributions and significantly skew the overall order.

As we outlined in the Q1 Insider released last month, TMT was the dominant sector when Mergermarket ran its original report in 2013, but the same sector declined to a meagre 0.7% share by value and 3 deals in total after updating the rankings this year. Last June, Cyprus-based Baskindale dropped its bid to acquire Egyptian telecommunications provider Orascom Telecom, taking out a transaction worth US$6.4bn and prompting a major re-ranking.

The TMT sector offers a similar case this year: one single high-ticket deal that is responsible for 84% of sector’s total contribution - the US$2.65bn acquisition by the Algerian Fonds National d’Investissement of a 51% stake in Orascom Telecom Algerie. Because of this operation, Algeria accounts for 24.1% of total transactions by value (top country), but just 2% in terms of volume. In geographical terms, April continues the trend outlined in recent years, with Israel, South Africa and United Arab Emirates covering most of deal activity, both by value and volume.

Following an IMF-backed overhaul of national GDP statistics, Nigeria announced in April that it has moved up to become the largest African economy, overtaking South Africa. Compared to last year, Nigeria’s deal contribution by value remained the same at around 5%.

Other noteworthy operations are the acquisition (US$500m) of National Petroleum Services by a consortium led by Fajr Capital Limited, in the United Arab Emirates; and Growthpoint Properties’ acquisition of a 34.9% stake in Acucap Properties for US$291m. Both companies are based in South Africa.

Private equity activity was negligible, with just two buyouts (against five last year) and a single US$22m exit (against four worth US$1.1bn in 2013).

TOP DEALS

Monthly M&A Insider | May | 26MIDDLE EAST & AFRICA

TOP 10 MIDDLE EASTERN & AFRICAN ANNOUNCED DEALS OF THE MONTH (APR-14)Announced Bidder company Target company Target dominant


1-day before

Deal value


18-Apr-14 Fonds National d'Investissement

Orascom Telecom Algerie SPA (51% stake)

Telecommunications Global Telecom Holding SAE

2.9 4.9 - - 2,643

22-Apr-14 A consortium led by Fajr Capital Limited

National Petroleum Services Energy, Mining & Utilities

- - - - - 500

14-Apr-14 Growthpoint Properties Ltd Acucap Properties Ltd (34.9% stake)

Real Estate - - - - 7.2% 291

10-Apr-14 BNP Paribas Personal Finance

RCS Group (Pty) Ltd Financial Services Standard Bank Group Limited; and Foschini Limited

- - - - 253

06-Apr-14 Abu Dhabi Islamic Bank Barclays UAE retail assets Financial Services Barclays Plc - - - - 177

14-Apr-14 Growthpoint Properties Ltd Sycom Property Fund (31.5% stake)

Financial Services - - - 14.5% 166

16-Apr-14 Holmarcom SA Cie D'assurances Et De Reassurances Atlanta SA (30% stake)

Financial Services Caisse de Depot et de Gestion

- - - - 147

03-Apr-14 The Cullinan Hotel (Pty) Ltd Garden Court Kings Beach Hotel; Garden Court Eastgate Hotel; Garden Court Hatfield Hotel; StayEasy Eastgate Hotel; and Southern Sun Waterfront Cape Town Hotel

Leisure Liberty Group Limited; and Southern Sun Hotels (Pty) Limited

- - - - 130

01-Apr-14 Arrowhead Properties Limited

Vividend Income Fund Ltd (68.34% stake)

Real Estate - - - 0.5 4.7% 82

06-Apr-14 Avnei Shoham Rotshtein Realestate Ltd (55% stake)

Real Estate - 0.8 9.2 13.7 0.3% 25

Based on announced deals, including lapsed and withdrawn bids Based on dominant geography of target company being Middle East or Africa Data correct as of 06-May-14


TREND GRAPHS


MIDDLE EASTERN & AFRICAN M&A QUARTERLY TREND

MIDDLE EASTERN & AFRICAN M&A QUARTERLY PRIVATE EQUITY TREND

MIDDLE EASTERN & AFRICAN M&A ANNUAL TREND

MIDDLE EASTERN & AFRICAN M&A ANNUAL PRIVATE EQUITY TREND

Valu

e (U

S$bn

)

Num

ber of deals

0

2

4

6

8

10

12

14

YTD 2014*201320122011201020092008


0

10

20

30

40

50

60

70

Valu

e (U

S$bn

)

Num

ber of deals

0

10

20

30

40

50

60

70

80

90

100

YTD 2014*201320122011201020092008


0

100

200

300

400

500

600

Valu

e (U

S$m

)

Num

ber of deals

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

Q214*

Q114

Q413

Q313

Q213

Q113

Q412

Q312

Q212

Q112

Q411

Q311

Q211

Q111

Q410

Q310

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108


0

5

10

15

20

25

Valu

e (U

S$m

)

Num

ber of deals

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

Q214*

Q114

Q413

Q313

Q213

Q113

Q412

Q312

Q212

Q112

Q411

Q311

Q211

Q111

Q410

Q310

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108


0

20

40

60

80

100

120

140

160


MIDDLE EASTERN & AFRICAN M&A GEOGRAPHIC BREAKDOWN YTD 2014

VALUE

TREND GRAPHS

VOLUME

MIDDLE EASTERN & AFRICAN M&A SECTOR BREAKDOWN YTD 2014

VALUE VOLUME

16.8%

14.9%

2.7%1.2%

24.1%

6.7%

0.9% 5.9%

1.3%0.4% 0.2%

0.1%

3.5%0.3%

5.1%

14.7%

1.0%

South Africa

Israel

United Arab Emirates

Kenya

Nigeria

Saudi Arabia

Egypt

Algeria

Angola

Namibia

Botswana

Mozambique

Qatar

Morocco

Ghana

Oman

Tunisia

1.0%

24.5%

20.4%

13.3%

6.1%

5.1%

4.1%

3.1%

2.0%

South Africa

Israel

United Arab Emirates

Kenya

Nigeria

Saudi Arabia

Egypt

Algeria

Angola

Namibia

Botswana

Mozambique

Lebanon

Tanzania

Qatar

Morocco

Ghana

Oman

Tunisia

Liberia

Ethiopia

Bahrain

Jordan

14.3%

13.3%

17.3%

5.1%

11.2%

10.2%

5.1%

5.1%

4.1%

4.1%

3.1%2.0%

5.1%

Consumer


Financial Services


Technology

Telecommunications

Real Estate

Leisure

Business Services


Transportation

Media

Agriculture

9.6%7.4%

1.5%

12.0%

0.8%2.2% 1.1%

0.2%0.1%

1.8%

15.8%

19.3%

28.2%

Consumer


Financial Services


Technology

Telecommunications

Real Estate

Leisure

Business Services


Transportation

Media

Agriculture


MIDDLE EASTERN & AFRICAN M&A DEAL SIZE BREAKDOWN YTD 2014

VALUE VOLUME

TREND GRAPHS

Return to contents

0

10

20

30

40

50

60

70

80

90

100

YTD 2014*201320122011201020092008

Perc

enta

ge

47.5%53.1%

67.8%59.2%

65.7%

13.7% 12.9%9.0% 9.0% 8.2%

18.9%13.2%

12.6%

13.6% 13.8%

44.5%

10.5%

23.0%

20.9%18.2% 19.2%

9.6%

16.9%11.4%

1.6% 1.0% 1.3%

72.5%

6.3%

10.0%

10.4%

US$0-US$14.9m

US$15m-US$100m

US$101m-US$250m

US$251m-US$500m

>US$501m

1.7% 0.9% 0.8% 1.1% 0

10

20

30

40

50

60

70

80

90

100

YTD 2014*201320122011201020092008

Perc

enta

ge

42.6%47.3% 45.1% 46.6% 45.5%

5.6% 4.0%5.6% 6.1% 4.7%

11.5% 13.0%10.3% 11.1% 12.5%

36.5%32.4% 33.1% 28.6% 29.7%

3.8% 3.3% 5.9% 7.6% 7.6%

54.9%

4.3%

9.4%

25.6%

5.8%

44.9%

15.3%

28.6%

4.1%7.1%

US$0-US$14.9m

US$15m-US$100m

US$101m-US$250m

US$251m-US$500m

>US$501m

32.4%

Merrill DataSite The No.1 VDR Choice for Dealmakers

The Market Leading VDR Solution With decades of experience in document management and due diligence services, Merrill Corporation has created a smart, simple and secure virtual data room (VDR) solution - Merrill DataSite. With Merrill DataSite you can easily execute on all of your acquisition checklist items and turn your paper and electronic files into a fully searchable, secure, and completely edit-enabled online library – no additional hardware, software, personnel or programming needed. We have worked with great success on many thousands of deals, so far uploading approximately 700,000,000 pages of data on over 30,000 projects.

Round-the-clock availabilityMerrill DataSite VDRs offer international dealmakers multiple business benefits. We offer rapid set-up and round-the-clock support, a reliable hosted service from a single source, advanced but easy to use functionality, plus – complete cost transparency.

Our clients have effectively used our VDRs to enhance the following types of transaction: Mergers, acquisitions and divestitures Private placements Leveraged buyouts Bankruptcy and reorganisation transactions Financing restructuring IPOs and dual track processes

Unrivalled International Service Our multilingual project managers between them speak 27 languages, and a dedicatedproject management team will be assigned to your deal right from the start and then be available 24/7/365 – giving you peace of mind that the right person is always on hand to address any issue. Our structured approach to setting up every VDR applies tried and tested practices that make it easy for you to open, manage and maintain your data room, while adding value for all the parties involved in the due diligence process.

Ironclad SecurityMerrill DataSite leads the way in VDR security having become the first VDR provider to be fully accredited with ISO 27001, the industry gold-standard for security certification. Certified since 2007, we are audited annually, to maintain the highest standards. In addition, documents are 256-bit SSL encrypted, watermarks are tamperproof and can be customised, and data can be viewed, printed and downloaded only by the users you designate. Added to this, we are fully Safe Harbor certified. You’ll have peace of mind knowing your information is being shared only with the people you choose.

About Merrill DataSiteMerrill DataSite is established as the market-leader for virtual data rooms (VDRs) in Europe and across the world. As first to market, we have many years of experience to bring to your transaction and have had time to develop and refine our technology, leading to a peerless Project Management and systems infrastructure that operates 24/7/365. This is why many thousands of companies trust Merrill DataSite to manage their online due diligence processes.

About Merrill CorporationMerrill Corporation is a leading provider of outsourced solutions for complex business communication and information management. Founded in 1968 and headquartered in St. Paul, Minnesota, Merrill’s services include document and data management, litigation support, language translation services, fulfilment, imaging and printing. Merrill serves the corporate, legal, financial services, insurance and real estate markets. With more than 5,000 people in over 40 domestic and 22 international locations, Merrill Corporation empowers the communications of the world’s leading organisations.

Merrill DataSite is a division of Merrill Corporation.

2013 WINNERM&A Advisor

Turnaround Awards

Information Management Product/Service of the Year

2013 WINNER3rd Annual ACG

New York Champion’s Awards

Product/Service of the Year

2012 WINNERGlobal M&A Advisor

M&A Awards


2012 WINNERAcquisitions International UK

UK VDR Provider of the Year


International Awards


ISO 27001 Industry Leading Security

85 Project Managers, speaking 27 languages

Working with Dealmakers around the world

30,000 700 million pages and counting...

andVDR projects

Call Us: +44 (0)845 602 6912www.datasite.com

To find out more, or to arrange a demonstration of our VDR solution,call +44 (0)845 602 6912, email us at [email protected], or visit www.datasite.com today.

DataSite_DriverDeals_DPS.indd 2-3 11/02/2014 13:43

Return to contents

The No.1 VDR Choice for Dealmakers

The Market Leading VDR Solution With decades of experience in document management and due diligence services, Merrill Corporation has created a smart, simple and secure virtual data room (VDR) solution - Merrill DataSite. With Merrill DataSite you can easily execute on all of your acquisition checklist items and turn your paper and electronic files into a fully searchable, secure, and completely edit-enabled online library – no additional hardware, software, personnel or programming needed. We have worked with great success on many thousands of deals, so far uploading approximately 700,000,000 pages of data on over 30,000 projects.

Round-the-clock availabilityMerrill DataSite VDRs offer international dealmakers multiple business benefits. We offer rapid set-up and round-the-clock support, a reliable hosted service from a single source, advanced but easy to use functionality, plus – complete cost transparency.

Our clients have effectively used our VDRs to enhance the following types of transaction: Mergers, acquisitions and divestitures Private placements Leveraged buyouts Bankruptcy and reorganisation transactions Financing restructuring IPOs and dual track processes

Unrivalled International Service Our multilingual project managers between them speak 27 languages, and a dedicatedproject management team will be assigned to your deal right from the start and then be available 24/7/365 – giving you peace of mind that the right person is always on hand to address any issue. Our structured approach to setting up every VDR applies tried and tested practices that make it easy for you to open, manage and maintain your data room, while adding value for all the parties involved in the due diligence process.

Ironclad SecurityMerrill DataSite leads the way in VDR security having become the first VDR provider to be fully accredited with ISO 27001, the industry gold-standard for security certification. Certified since 2007, we are audited annually, to maintain the highest standards. In addition, documents are 256-bit SSL encrypted, watermarks are tamperproof and can be customised, and data can be viewed, printed and downloaded only by the users you designate. Added to this, we are fully Safe Harbor certified. You’ll have peace of mind knowing your information is being shared only with the people you choose.

About Merrill DataSiteMerrill DataSite is established as the market-leader for virtual data rooms (VDRs) in Europe and across the world. As first to market, we have many years of experience to bring to your transaction and have had time to develop and refine our technology, leading to a peerless Project Management and systems infrastructure that operates 24/7/365. This is why many thousands of companies trust Merrill DataSite to manage their online due diligence processes.

imaging and printing. Merrill serves the corporate, legal, financial services, insurance and real estate markets. With more than 5,000 people in over 40 domestic


Turnaround Awards

Information Management Product/Service of the Year

2013 WINNER3rd Annual ACG

New York Champion’s Awards


2012 WINNERGlobal M&A Advisor

M&A Awards


2012 WINNERAcquisitions International UK

UK VDR Provider of the Year


International Awards


Working with Dealmakers around the world

700 million

Call Us: +44 (0)845 602 6912www.datasite.com


MERRILL CORPORATION CONTACTS

Return to contents

EXECUTIVE MANAGEMENTEd BifulkPresident Tel: +1 212 229 6563

EXECUTIVE SALESWill BrownRegional Director, France Tel: +33 1 40 06 13 02

Anna ScottRegional Director, UK Tel: +44 (0) 207 422 6263

Chris BeckmannRegional Director, Germany, Switzerland & Poland Tel: +49 69 244 321 480

Martin AlamriRegional Director, Germany Tel: +49 69 244 321 471

Jérôme PottierRegional Director, France Tel: +33 (0) 1 40 06 13 12

Hakema El-HadadRegional Director, France & Northern Africa Tel: +33 (0) 1 40 06 13 10

Manuel BianchiRegional Director, Europe Tel: +44 (0) 207 422 6271

Mike HinchliffeRegional Director, Europe Tel: +44 (0) 207 422 6256

Bryan BrightonRegional Director, Europe Tel: +44 (0)207 422 6212

Adam PangRegional Director, Europe Tel: +44 (0) 207 422 6268

Merlin J. PiscitelliRegional Director, Europe Tel: +44 (0) 207 422 6266

Mary WalshRegional Director, Europe Tel: +44 (0) 207 422 6270

Jonathan HughesAccount Manager, Europe Tel: +44 (0) 207 422 6267

Malcolm NeateAccount Manager, Europe Tel: +44 (0) 207 422 6272

Alex GrossRegional Director, Eastern Europe & Middle East Tel: +49 69 7593 7148

Alvaro OrtegaRegional Director, Southern Europe Tel: +39 27 6362314 Tel: +34 91 7691022

David Haynes Regional Director, Asia-Pacific Tel: +852 2536 2288

Vincent LorkRegional Director, South East Asia Tel: +65 6248 4602

Patrick CabreraRegional Director, South East Asia Tel: +65 9834 4557

John PateRegional Director, Australia & New Zealand Tel: +61 (0) 499 992 400

Manuel BentosinosRegional Director, Mexico, Columbia & Caribbean Tel: +52 55 9171 2237

Ana Paula Macêdo Távora de CastroVice President, South America Tel: +55 11 9908 0858

Luis Felipe Salles CunhaRegional Director, Brazil Tel: +55 11 3568 2429

Brian GilbreathVice President, Midwest & Latin America Tel: +1 404 934 8085

Hank GregorySVP, Western Canada & Pacific Northwest Tel: + 604 603 4360

Todd CaveNorthern California, Pacific Northwest & Western Canada Tel: +1 651 632 4369

Ryan MacMillanRegional Director, Canada Tel: +1 416 214 2448

Michael KennedyRegional Director, New England Tel: +1 207 829 4369

Ross WhittakerRegional Director, New England Tel: +1 617.535.1516

Jon LenihanRegional Director, Boston Tel: +1 617 535 1618

Scott RedikerRegional Director, Mid Atlantic Tel: +1 443 690 3122

Forrest R. DoaneRegional Director, New York Tel: +1 212 229 6620

Bill PoleseRegional Director, New York +1 212 229 6612

John McElroneRegional Director, New York Tel: +1 212 229 6656

Joseph SolanoRegional Director, New York Tel: +1 212 229 6576

Hillary PryorRegional Director, New York Tel: +1 212 367 5924

Harry Poulos Regional Director, New York Tel: +1 212 367 5924

Meiken Castillo Regional Director, New York Tel: +1 212 229 6879 Steve PicconeVice President, New York Tel: +1 212 229 6883BJ BirtzRegional Director, Raleigh Tel: +1 919 996 9117Paul KleinkaufRegional Director, Southeast Tel: +1 404 602 3251Colin SchopbachRegional Director, Southeast Tel: +1 404 796 1478Michail SidorovRegional Director, Ohio & Michigan Tel: +1 216 333 1274Scott HaugenRegional Director, Minnesota & Wisconsin Tel: +1 651 632 4375Anthony CrosbyRegional Director, Chicago Tel: +1 312 674 6511Mark PlaehnRegional Director, Chicago Tel: +1 312 674 6527Kelly-Leigh KeefeRegional Director, Chicago Tel: +1 312 386 2229Ted SengpielRegional Director, Missouri, Kansas, Nebraska & Iowa Tel: +1 314 315 2909Nicholas RenterRegional Director, Texas Tel: +1 214 754 2100Angela PedersenAccount Executive, Greater Texas Region Tel: + 651 632 4394 Andrew BuonincontroRegional Director, Bay Area Tel: +1 650 493 1400Erik SandieRegional Director, Bay Area Tel: +1 650 493 1400

Jay LoyolaRegional Director, Bay Area Tel: +1 949 622 0663Dan PhelanRegional Director, Los Angeles Tel: +1 213 253 2139Aleshia HlivkaAccount Executive, California Tel: +1 651 632 4967David YearyVice President, DataSite Life Sciences Tel: +1 415 307 4414Jon BlueVice President, Clean Tech Tel: +1 206 696 916

The following notes pertain to data contained in this publication:

Deals are included where the deal value is greater than or equal to US$5m.

Where no deal value has been disclosed, deals are included if the turnover of the target is greater than or equal to US$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.

Mid-market is defined as US$10m - US$250m.

*Q2 2014 refers to the period 01-Apr-14 to 30-Apr-14. *YTD 2014 refers to the period 01-Jan-14 to 30-Apr-14.

For a full version of the mergermarket M&A deal database inclusion and league table criteria, go to http://www.mergermarket.com/pdf/deal_criteria.pdf.

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.

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 qualified professional adviser. While reasonable effort has been made to ensure the accuracy of the information contained in this publication, this cannot be guaranteed and neither Schulte Roth & Zabel nor Mergermarket nor any of its subsidiaries or 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.

Part of The Mergermarket Group

www.mergermarket.comUSA: 11 West 19th Street, 2nd floor, New York, NY 10011, USA

t: +1 212 686-5606 f: +1 212 686-2664 [email protected]

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t: +852 2158 9700 f: +852 2158 9701 [email protected]

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