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8/10/2019 Monthly MA Insider May 2014
1/35
A MERGERMARKET REPORT ON GLOBAL M&A ACTIVITY
MONTHLY M&A INSIDERMAY 2014
8/10/2019 Monthly MA Insider May 2014
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Monthly M&A Insider| May
INSIDE:
GLOBAL OVERVIEW
LATIN AMERICA
NORTH AMERICA
ASIAPACIFIC
EUROPE
MIDDLE EAST & AFRICA
ABOUT MERRILL DATASITE & MERRILL CORPORATION
MERRILL CORPORATION CONTACTS
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GLOBAL OVERVIEW
Monthly M&A Insider| May | 01
Jumbo deals reign
Financial 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 Santaders approximate
US$6.5bn acquisition of all of the shares of its Brazilian unit
Banco Santander Brasil.
Europes Construction sector also saw Holcims US$28.3bn
purchase of Lafarge in a landmark deal not only for its size
but because the combination resulted in the worlds 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
Aprils 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 AGs US$10.5bn acquisition
of the oncology division of GlaxoSmithKline, which was alsoannounced in April. The transaction happened simultaneously
with GlaxoSmithKlines purchase of Novartis AGs 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 ofApril 2013 (US$168.3bn). At the same time, the beginning of Q2 2014 is slightly behind in terms ofthe number of transactions at 1,022 compared to 1,110 deals at the same time last year. LeadingApril numbers were two transactions from the Asia-Pacifics Financial Services and EuropesConstruction sectors.
Head of Research: Elias Latsis
Editor:Laura Resetar
For advertising opportunities contact:Erik WickmanTel: + (1) 212 686 3329
erik.wickman@mergermarket.com
Global Overview:Karen Sibayan and Demis Memedoski
Latin America:Raquel Mozzer and Fabio Lopes
North America:Urna Chakraborty and Lana Vilner
Asia-Pacific:Brandon Taylor and Hiro Mak
Europe:Alan Nasrat and Damien Julliard
Middle East & Africa:Silvia Paparello and Andrea Putaturo
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TREND GRAPHS
GLOBAL OVERVIEW Monthly M&A Insider| May | 02
GLOBAL M&A QUARTERLY TREND GLOBAL M&A QUARTERLY PRIVATE EQUITY TREND
GLOBAL M&A ANNUAL TREND GLOBAL M&A ANNUAL PRIVATE EQUITY TREND
Value
(US$bn
)
Number
ofdeals
0
200
400
600
800
1,000
1,200
1,400
Q2
14*
Q1
14
Q4
13
Q3
13
Q2
13
Q1
13
Q4
12
Q3
12
Q2
12
Q1
12
Q4
11
Q3
11
Q2
11
Q1
11
Q4
10
Q3
10
Q2
10
Q1
10
Q4
09
Q3
09
Q2
09
Q1
09
Q4
08
Q3
08
Q2
08
Q1
08
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
Nu
mberofdeals
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
YTD 2014*201320122011201020092008
Total value Mid-market value Total volume Mid-market volume
Value
(US$b
n)
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
Nu
mberofdeals
0
100
200
300
400
500
600
700
800
900
YTD 2014*201320122011201020092008
Value
(US$b
n)
Buyout value Exit value Buyout volume Exit volume
0
500
1,000
1,500
2,000
2,500
3,000
3,500
Value
(US$bn
)
Number
ofdeals
0
50
100
150
200
250
300
350
400
Q2
14*
Q1
14
Q4
13
Q3
13
Q2
13
Q1
13
Q4
12
Q3
12
Q2
12
Q1
12
Q4
11
Q3
11
Q2
11
Q1
11
Q4
10
Q3
10
Q2
10
Q1
10
Q4
09
Q3
09
Q2
09
Q1
09
Q4
08
Q3
08
Q2
08
Q1
08
Buyout value Exit value Buyout volume Exit volume
0
100
200
300
400
500
600
700
800
900
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GLOBAL OVERVIEW Monthly M&A Insider| May | 03
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%
Industrials & Chemicals
Consumer
Technology
Business Services
Energy, Mining & Utilities
Financial Services
Pharma, Medical & Biotech
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
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GLOBAL OVERVIEW Monthly M&A Insider| May | 04
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
Percentage
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
Percentage
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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8/10/2019 Monthly MA Insider May 2014
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A MERGERMARKET M&A REPORT ON
LATIN AMERICA
Monthly M&A Insider| May | 06
Even though the first quarter saw an increase in M&A activity, the first month of the secondquarter witnessed a big slow down. During Q1 there were 121 deals valued at US$25.8bn, whilein April 2014 there were only 28 deals, valued at US$15.4bn. There has to be a 500% increase indeal 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 Santanders voluntary offer toacquire 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 Brasils closing price on 28-Apr-14.
Advisors on the deal include Goldman Sachs,UBS Investment
Bank, Davis Polk & Wardwell and Santander Global Bankingand 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 Santanders 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 Limiteds acquisitionof a 99.99% stake in Xstrata Las Bambas from Glencore
Queensland Limited and Xstrata South America Limited for
a cash consideration of US$5.9bn.
Brazil has been one of the most active countries in Energy
deals. In the year-to-date, Brazil saw eight deals in Q1 and
three additional transactions happened in April. From these
11 deals, four of them had targets operating in the alternative
energy subsector: Dobreve Energia, Rio Pardo Termoeletrica,Hidroeletrica de Candonga, and CLWP Brasil III. From the same
pool, eight transactions were domestic. The upward trend to
domestic deals in the Energy sector, especially in Brazil, has
been very clear throughout the years. During 2011, 65.5% of all
Energy deals were domestic transactions (20 transactions). In
2012 the number went up to 65.7% (23 transactions) and in 2013
increased again to 72.7% (24 deals).
The heat in the Energy sector and in domestic deals has
kept its steady growth so far, even with Law 12.783 that was
approved on January 2013. According to Oliver Hill, Deputy
Editor, Latin America and the Caribbean, at Mergermarket,the reform prompted major energy generators like Companhia
Energtica de Minas Gerais (Cemig) and Companhia Energtica
de So Paulo (CESP) to give up rather than renew generation
concessions expiring between 2015 and 2017 and accept lower
energy tarriffs imposed by the new law. The activity in the
sector can be explained by the necessity these companies have
to acquire energy assets in Brazil and regionally to compensate
for their losses or just to find alternative ways to generate
energy at a lower cost. As a result, the expectation is that the
Energy sector will continue its upward trend throughout 2014.
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Monthly M&A Insider| May | 07
TOP DEALS
LATIN AMERICA
TOP 10 LATIN AMERICAN ANNOUNCED DEALS OF THE MONTH (APR14)
Announced Bidder company Target company Target dominantsector
Seller company Exit multiples (x) Bid premia1-daybefore
Dealvalue
(US$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 AmericaManagement Company Limited
Xstrata Las Bambas SA(99.99% stake)
Energy, Mining& Utilities
Glencore QueenslandLimited; and XstrataSouth America Limited
- - - - 5,850
4-Apr-14 Empresa de Energia de BogotaSA ESP
Transportadora de GasInternacional SA ESP(31.92% stake)
Transportation Citi Venture CapitalInternational
- - - - 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 emCaptura e Processamentode Transacoes HUAH SA(88.5% stake)
Business Services - - - - - 495
15-Apr-14 The Mosaic Company Archer Daniels MidlandCompany (Fertilizerdistribution business inBrazil and Paraguay)
Business Services Archer DanielsMidland Company
- - - - 200
21-Apr-14 InterGen NV Energia Sierra Juarez(50% stake)
Energy, Mining& Utilities
InfraestructuraEnergetica Nova SABde CV
- - - - 150
08-Apr-14 International Paper Company Orsa International Paper
Embalagens SA (25% stake)
Industrials &
Chemicals
Jari Celulose SA 1.8 - - - 141
10-Apr-14 GAEC Anima Educacao SA Universidade SaoJudas Tadeu
Business Services Mesquita family(private investor)
1.8 10.3 - - 140
30-Apr-14 Alicorp SA Global Alimentos; andMolinos 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
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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 ANNUALPRIVATE EQUITY TREND
Value
(US$bn
)
Number
ofdeals
0
10
20
30
40
50
60
70
Q2
14*
Q1
14
Q4
13
Q3
13
Q2
13
Q1
13
Q4
12
Q3
12
Q2
12
Q1
12
Q4
11
Q3
11
Q2
11
Q1
11
Q4
10
Q3
10
Q2
10
Q1
10
Q4
09
Q3
09
Q2
09
Q1
09
Q4
08
Q3
08
Q2
08
Q1
08
Total value Mid-market value Total volume Mid-market volume
0
50
100
150
200
250
Nu
mberofdeals
0
20
40
60
80
100
120
140
160
180
YTD 2014*201320122011201020092008
Total value Mid-market value Total volume Mid-market volume
Value
(US$b
n)
0
100
200
300
400
500
600
700
800
Nu
mberofdeals
0
1,000
2,000
3,000
4000
5,000
6,000
7,000
8,000
YTD 2014*201320122011201020092008
Value
(US$m
)
Buyout value Exit value Buyout volume Exit volume
0
10
20
30
40
50
60
70
Value
(US$m
)Number
ofdeals
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
Q2
14*
Q1
14
Q4
13
Q3
13
Q2
13
Q1
13
Q4
12
Q3
12
Q2
12
Q1
12
Q4
11
Q3
11
Q2
11
Q1
11
Q4
10
Q3
10
Q2
10
Q1
10
Q4
09
Q3
09
Q2
09
Q1
09
Q4
08
Q3
08
Q2
08
Q1
08
Buyout value Exit value Buyout volume Exit volume
0
5
10
15
20
25
30
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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%
Energy, Mining & Utilities
Industrials & Chemicals
Consumer
Business Services
Financial Services
Technology
Pharma, Medical & Biotech
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%
Energy, Mining & Utilities
Industrials & Chemicals
Consumer
Business Services
Financial Services
Technology
Pharma, Medical & Biotech
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
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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
Percentage
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
Percentage
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
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Monthly M&A Insider| May | 11
A MERGERMARKET M&A REPORT ON
NORTH AMERICA
April M&A activity in North America ended with 339 deals, worth US$103.2bn. Two transactionsover US$10bn in the Pharma, Medical & Biotech and Energy, Mining & Utilities sectors primarilyhelped boost Aprils total deal value and this quarter is already poised to overtake Q2 2013sdeal value of US$187.6bn if Aprils M&A activity continues to produce higher value transactions.This quarters private equity activity started off with 55 buyout deals worth US$12.1bn and 61exit 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 Holdingss acquisition of Biomet
Inc. for US$13.4bn, helped bring the sectors 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 Corporations
US$12.1bn acquisition of Pepco Holdings and Yamana Gold and
Agnico Eagle Mines Limiteds US$3.4bn acquisition of Osisko
Mining Corporation helped boost the sectors market share to
14% by value. The sector may be seeing increased activity as theyear 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 worthUS$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
Groups 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$1.2bn.
The first quarter has set a positive tone for 2014 and with Q2
starting strong with April numbers, North American M&A
seems to be back on the rise. The TMT, Pharma, Medical &
Biotech, and Energy, Mining & Utilities sectors will be in thespotlight for the upcoming months as the outcome of optimistic
predictions in these sectors remain to be seen.
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Monthly M&A Insider| May | 12
TOP DEALS
NORTH AMERICA
TOP 10 NORTH AMERICAN ANNOUNCED DEALS OF THE MONTH (APR14)
Announced Bidder company Target company Target dominantsector
Seller company Exit multiples (x) Bid premia1-daybefore
Dealvalue
(US$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 andAnnuity Association ofAmerica-College RetirementEquities Fund
Nuveen Investments Inc Financial Services Madison DearbornPartners 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; andCanada Pension PlanInvestment Board
1.8 10.0 - - 5,400
22-Apr-14 GlaxoSmithKline Plc Novartis AG(Global vaccines business)
Pharma, Medical& Biotech
Novartis AG - - - - 5,250
15-Apr-14 Zebra TechnologiesCorporation
Motorola Solutions Inc(Enterprise division)
Technology Motorola Solutions Inc 1.4 10.9 - - 3,450
16-Apr-14 Yamana Gold Inc; andAgnico 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 & GambleCompany
- - - - 2,900
17-Apr-14 Post Holdings Inc Michael Foods Inc Consumer Thomas H. LeePartners LP; andGS 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
Source: Mergermarket
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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
Percentage
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
Percentage
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
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Industrials & Chemicals
Technology
Business Services
Energy, Mining & Utilities
Consumer
Pharma, Medical & Biotech
Financial Services
Leisure
Media
Construction
Transportation
Telecommunications
Real Estate
Agriculture
Defence
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Agriculture
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Monthly M&A Insider| May | 15
A MERGERMARKET M&A REPORT ON
ASIAPACIFIC
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 dealsworth US$8.7bn, a 15% decrease in volume and a 34% decrease in value from the previousmonth. Highlighting deal activity for the month was the US$37bn merger of CITIC Group and itsHong-Kong-listed subsidiary CITIC Pacific, a deal that has helped make 2014 a record year forM&A in the region.
Standout sectors
Asias 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 Corporations acquisition of a 50% stake in Caspian
Investments Resource, based in Kazakhstan, from Russian
Lukoil for US$1.2bn. Highlighting consumer deals wasUnited Kingdom based Diageos 26% stake acquisition in
Indian United Spirits, a transaction valued at US$3.1bn.
Alibaba continues M&A forays
Chinese 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
Tudous 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$649m.
The ecommerce giant has been acquisitive as of late as
competition in the Chinese tech space escalates between
Alibaba and Tencent Holdings. Each company has turned to
M&A to buy potentially useful assets before the other has the
opportunity to acquire.
The acquisitions also come as Alibaba prepares for a much
anticipated public listing in the United States.
Japan PE upbeat on exit, buyout opportunities
Cultural shifts and economic changes could be setting the stage
for a wave of opportunities involving small to mid-cap exits and
buyouts in Japan. A solid pipeline comprising founder-backed
exits, renewed inbound acquisition interest, and potential non-
core divestitures are all contributing to an uptick in deal flow,
according to Mergermarket intelligence.
While Abenomics has certainly been recognised as a catalyst
for change, the current rise in mid-market deal flow can be
attributed to a shift in cultural attitudes and to the rise of a
new generation of entrepreneurs. This has been seen in the
emergence of a younger generation of founders in their 40s
looking to sell their companies. Many may not be looking topursue an IPO and are instead considering private equity buyers
as an exit strategy. According to Mergermarket intelligence,
some may consider the timing perfect to exit, given higher
benchmark valuations.
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TOP DEALS
Monthly M&A Insider| May | 16ASIAPACIFIC
TOP 10 ASIAPACIFIC ANNOUNCED DEALS OF THE MONTH (APR14)
Announced Bidder company Target company Target dominantsector
Seller company Exit multiples (x) Bid premia1-daybefore
Dealvalue
(US$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; andTawreed Investments Ltd
Queensland MotorwaysPty Limited
Business Services QIC Limited - - - - 6,195
13-Apr-14 MMG South AmericaManagement Company Limited
Xstrata Las Bambas SA(99.99% stake)
Energy, Mining& Utilities
Glencore QueenslandLimited; and XstrataSouth America Limited
- - - - 5,850
01-Apr-14 Oversea Chinese BankingCorporation 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 PharmaceuticalIndustries Limited
Ranbaxy LaboratoriesLimited
Pharma, Medical& Biotech
Daiichi Sankyo CompanyLimited
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 HotelProperties 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
Source: Mergermarket
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ASIAPACIFIC M&A GEOGRAPHIC BREAKDOWN YTD 2014
VALUE VOLUME
Monthly M&A Insider| May | 18ASIAPACIFIC
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%
Industrials & Chemicals
Technology
Consumer
Energy, Mining & Utilities
Financial Services
Business Services
LeisurePharma, Medical & Biotech
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%
Industrials & Chemicals
Technology
Consumer
Energy, Mining & Utilities
Financial Services
Business Services
LeisurePharma, Medical & Biotech
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
ASIAPACIFIC M&A SECTOR BREAKDOWN YTD 2014
VALUE VOLUME
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Monthly M&A Insider| May | 19ASIAPACIFIC
ASIAPACIFIC M&A DEAL SIZE BREAKDOWN YTD 2014
VALUE VOLUME
TREND GRAPHS
Return to contents
75
80
85
90
95
100
YTD 2014*201320122011201020092008
Percentage
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
Percentage
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%
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Monthly M&A Insider| May | 20
A MERGERMARKET M&A REPORT ON
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 to396. April 2013 marks the best month in value since the financial crisis, following the regionsrecord figure of US$197.9bn in April 2007.
Aprils 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 years 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 sectors 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 Holcims 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$38.4bn), led the
market by share of transaction volume, logging 271 deals (15.7%).
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TOP DEALS
Monthly M&A Insider| May | 21EUROPE
TOP 10 EUROPEAN ANNOUNCED DEALS OF THE MONTH (APR14)
Announced Bidder company Target company Target dominantsector
Seller company Exit multiples (x) Bid premia1-daybefore
Dealvalue
(US$m)Revenue EBITDA P/E
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)
Pharma, Medical& Biotech
GlaxoSmithKline Plc - - - - 10,506
22-Apr-14 Eli Lilly andCompany 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; andThe Carlyle Group 4.8 11.2 53.1 12.5% 3,886
28-Apr-14 Cinven Limited Visma ASA Business Services HgCapital; Montagu PrivateEquity LLP; and KohlbergKravis Roberts & Co LP
3.3 15.9 - - 2,524
16-Apr-14 Rolls-Royce Plc Rolls-Royce PowerSystems AG (50% stake)
Industrial &Chemicals
Daimler AG - - - - 2,430
10-Apr-14 Goldman Sachs;and Koch EquityDevelopment LLC
Flint Group (Formed fromthe merged Flint InkCorporation and XSYSPrint Solutions)
Industrial &Chemicals
CVC Capital PartnersLimited
1.0 6.3 - - 2,200
18-Apr-14 IC Ictas Enerj i Yenikoy Yatagan ElectrikUretim ve Ticaret AS; andKemerkoy Elektrik UretimVe Tic AS
Energy, Mining& Utilities
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
Source: Mergermarket
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Monthly M&A Insider| May | 23
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
Energy, Mining & Utilities
Pharma, Medical & Biotech
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
Energy, Mining & Utilities
Pharma, Medical & Biotech
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
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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
Percentage
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
Percentage
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
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Monthly M&A Insider| May | 25
A MERGERMARKET M&A REPORT ON
THE MIDDLE EAST& AFRICA
After a lacklustre first quarter, deal activity in the Middle East and Africa (ME&A) offers a morerefreshing picture in April, with total value well ahead of the same period last year (US$4.5bnagainst 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 amore 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 lions 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 farthis 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 regions 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 singlehigh-ticket deal that is responsible for 84% of sectors total
contribution - the US$2.65bn acquisition by the Algerian Fonds
National dInvestissement 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, Nigerias 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$1.1bn in 2013).
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TOP DEALS
Monthly M&A Insider| May | 26MIDDLE EAST & AFRICA
TOP 10 MIDDLE EASTERN & AFRICAN ANNOUNCED DEALS OF THE MONTH (APR14)
Announced Bidder company Target company Target dominantsector
Seller company Exit multiples (x) Bid premia1-daybefore
Dealvalue
(US$m)Revenue EBITDA P/E
18-Apr-14 Fonds Nationald'Investissement
Orascom Telecom Algerie SPA(51% stake)
Telecommunications Global TelecomHolding SAE
2.9 4.9 - - 2,643
22-Apr-14 A consortium led byFajr 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; andFoschini 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 DeReassurances Atlanta SA(30% stake)
Financial Services Caisse de Depot etde Gestion
- - - - 147
03-Apr-14 The Cullinan Hotel (Pty) Ltd Garden Court Kings BeachHotel; Garden Court EastgateHotel; Garden Court HatfieldHotel; StayEasy Eastgate Hotel;and Southern Sun WaterfrontCape Town Hotel
Leisure Liberty GroupLimited; andSouthern Sun Hotels(Pty) Limited
- - - - 130
01-Apr-14 Arrowhead PropertiesLimited 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
Source: Mergermarket
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TREND GRAPHS
Monthly M&A Insider| May | 27MIDDLE EAST & AFRICA
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
Value
(US$b
n)
Nu
mberofdeals
0
2
4
6
8
10
12
14
YTD 2014*201320122011201020092008
Buyout value Exit value Buyout volume Exit volume
0
10
20
30
40
50
60
70
Value
(US$b
n)
Nu
mberofdeals
0
10
20
30
40
50
60
70
80
90
100
YTD 2014*201320122011201020092008
Total value Mid-market value Total volume Mid-market volume
0
100
200
300
400
500
600
Value
(US$m
)Number
ofdeals
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
Q2
14*
Q1
14
Q4
13
Q3
13
Q2
13
Q1
13
Q4
12
Q3
12
Q2
12
Q1
12
Q4
11
Q3
11
Q2
11
Q1
11
Q4
10
Q3
10
Q2
10
Q1
10
Q4
09
Q3
09
Q2
09
Q1
09
Q4
08
Q3
08
Q2
08
Q1
08
Buyout value Exit value Buyout volume Exit volume
0
5
10
15
20
25
Value
(US$m
)Number
ofdeals
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
Q2
14*
Q1
14
Q4
13
Q3
13
Q2
13
Q1
13
Q4
12
Q3
12
Q2
12
Q1
12
Q4
11
Q3
11
Q2
11
Q1
11
Q4
10
Q3
10
Q2
10
Q1
10
Q4
09
Q3
09
Q2
09
Q1
09
Q4
08
Q3
08
Q2
08
Q1
08
Total value Mid-market value Total volume Mid-market volume
0
20
40
60
80
100
120
140
160
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Monthly M&A Insider| May | 28MIDDLE EAST & AFRICA
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
NigeriaSaudi 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
NigeriaSaudi Arabia
Egypt
Algeria
Angola
Namibia
Botswana
Mozambique
Lebanon
Tanzania
Qatar
Morocco
Ghana
Oman
Tunisia
LiberiaEthiopia
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
Industrials & Chemicals
Financial ServicesEnergy, Mining & Utilities
Technology
Telecommunications
Real Estate
Leisure
Business Services
Pharma, Medical & Biotech
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
Industrials & Chemicals
Financial ServicesEnergy, Mining & Utilities
Technology
Telecommunications
Real Estate
Leisure
Business Services
Pharma, Medical & Biotech
Transportation
Media
Agriculture
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Monthly M&A Insider| May | 29MIDDLE EAST & AFRICA
MIDDLE EASTERN & AFRICAN M&A DEAL SIZE BREAKDOWN YTD 2014
VALUE VOLUME
TREND GRAPHS
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0
10
20
30
40
50
60
70
80
90
100
YTD 2014*201320122011201020092008
Percentage
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
Percentage
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%
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Monthly M&A Insider| May | 32
MERRILL CORPORATION CONTACTS
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EXECUTIVE MANAGEMENT
Ed BifulkPresidentTel: +1 212 229 6563
EXECUTIVE SALES
Will BrownRegional Director, FranceTel: +33 1 40 06 13 02
Anna ScottRegional Director, UKTel: +44 (0) 207 422 6263
Chris BeckmannRegional Director, Germany, Switzerland & PolandTel: +49 69 244 321 480
Martin AlamriRegional Director, GermanyTel: +49 69 244 321 471
Jrme PottierRegional Director, FranceTel: +33 (0) 1 40 06 13 12
Hakema El-HadadRegional Director, France & Northern AfricaTel: +33 (0) 1 40 06 13 10
Manuel BianchiRegional Director, EuropeTel: +44 (0) 207 422 6271
Mike HinchliffeRegional Director, EuropeTel: +44 (0) 207 422 6256
Bryan BrightonRegional Director, EuropeTel: +44 (0)207 422 6212
Adam PangRegional Director, EuropeTel: +44 (0) 207 422 6268
Merlin J. PiscitelliRegional Director, EuropeTel: +44 (0) 207 422 6266
Mary WalshRegional Director, Europe
Tel: +44 (0) 207 422 6270Jonathan HughesAccount Manager, EuropeTel: +44 (0) 207 422 6267
Malcolm NeateAccount Manager, EuropeTel: +44 (0) 207 422 6272
Alex GrossRegional Director, Eastern Europe & Middle EastTel: +49 69 7593 7148
Alvaro OrtegaRegional Director, Southern EuropeTel: +39 27 6362314Tel: +34 91 7691022
David Haynes
Regional Director, Asia-PacificTel: +852 2536 2288
Vincent LorkRegional Director, South East AsiaTel: +65 6248 4602
Patrick CabreraRegional Director, South East AsiaTel: +65 9834 4557
John PateRegional Director, Australia & New ZealandTel: +61 (0) 499 992 400
Manuel BentosinosRegional Director, Mexico,Columbia & CaribbeanTel: +52 55 9171 2237
Ana Paula Macdo Tvora de CastroVice President, South AmericaTel: +55 11 9908 0858
Luis Felipe Salles CunhaRegional Director, BrazilTel: +55 11 3568 2429
Brian GilbreathVice President, Midwest & Latin AmericaTel: +1 404 934 8085
Hank GregorySVP, Western Canada & Pacific NorthwestTel: + 604 603 4360
Todd CaveNorthern California, Pacific Northwest &Western CanadaTel: +1 651 632 4369
Ryan MacMillanRegional Director, CanadaTel: +1 416 214 2448
Michael KennedyRegional Director, New EnglandTel: +1 207 829 4369
Ross WhittakerRegional Director, New EnglandTel: +1 617.535.1516
Jon LenihanRegional Director, BostonTel: +1 617 535 1618
Scott RedikerRegional Director, Mid AtlanticTel: +1 443 690 3122
Forrest R. DoaneRegional Director, New YorkTel: +1 212 229 6620
Bill PoleseRegional Director, New York+1 212 229 6612
John McElroneRegional Director, New YorkTel: +1 212 229 6656
Joseph SolanoRegional Director, New YorkTel: +1 212 229 6576
Hillary PryorRegional Director, New York
Tel: +1 212 367 5924
Harry PoulosRegional Director, New YorkTel: +1 212 367 5924
Meiken CastilloRegional Director, New YorkTel: +1 212 229 6879
Steve PicconeVice President, New YorkTel: +1 212 229 6883
BJ BirtzRegional Director, RaleighTel: +1 919 996 9117
Paul KleinkaufRegional Director, SoutheastTel: +1 404 602 3251
Colin Schopbach
Regional Director, SoutheastTel: +1 404 796 1478
Michail SidorovRegional Director, Ohio & MichiganTel: +1 216 333 1274
Scott HaugenRegional Director, Minnesota & WisconsinTel: +1 651 632 4375
Anthony CrosbyRegional Director, ChicagoTel: +1 312 674 6511
Mark PlaehnRegional Director, ChicagoTel: +1 312 674 6527
Kelly-Leigh KeefeRegional Director, ChicagoTel: +1 312 386 2229
Ted SengpielRegional Director, Missouri, Kansas, Nebraska& IowaTel: +1 314 315 2909
Nicholas RenterRegional Director, TexasTel: +1 214 754 2100
Angela PedersenAccount Executive, Greater Texas RegionTel: + 651 632 4394
Andrew BuonincontroRegional Director, Bay AreaTel: +1 650 493 1400
Erik SandieRegional Director, Bay AreaTel: +1 650 493 1400
Jay LoyolaRegional Director, Bay AreaTel: +1 949 622 0663
Dan PhelanRegional Director, Los AngelesTel: +1 213 253 2139
Aleshia HlivkaAccount Executive, CaliforniaTel: +1 651 632 4967
David YearyVice President, DataSite Life SciencesTel: +1 415 307 4414
Jon BlueVice President, Clean TechTel: +1 206 696 916
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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 thetarget is greater than or equal to US$10m.
Deals are included in the graphs and Top Deals in each section based on thedominant geography and dominant sector of the target company. Data underlyingthe League Tables are based on deals where the bidder, target or parent geographyof 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 leaguetable criteria, go to http://www.mergermarket.com/pdf/deal_criteria.pdf.
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 suchprofessional advice or services, and it should not be acted on or relied upon or used as a basis for any investmentor other decision or action that may affect you or your business. Before taking any such decision, you should consulta qualified professional adviser. While reasonable effort has been made to ensure the accuracy of the informationcontained in this publication, this cannot be guaranteed and neither Schulte Roth & Zabel nor Mergermarket nor anyof its subsidiaries or any affiliate thereof or other related entity shall have any liability to any person or entity whichrelies on the information contained in this publication, including incidental or consequential damages arising fromerrors or omissions. Any such reliance is solely at the users 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 sales.us@mergermarket.com
United Kingdom: 80 Strand, London WC2R 0RL, United Kingdom
t: +44 (0)20 7059 6100 f: +44 (0)20 7059 6101 sales@mergermarket.com
Hong Kong: Suite 2401-3, Grand Millennium Plaza, 181 Queens Road, Central, Hong Kong
t: +852 2158 9700 f: +852 2158 9701 sales.asia@mergermarket.com
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