A mergermArket report on globAl m&A Activity Monthly M&A ... › PDF › MMAI_Mar_11.pdf · hong Kong t: +852 2158 9700 f: +852 2158 9701 [email protected] ... the British

Monthly M&A InsIderA mergermArket report on globAl m&A Activity

mArcH 2011

Monthly M&A InsIdermergermarket

GlobAl overvIew 01

AmericAs:LAtinAmericA 06

northAmericA 11

AsiA-PAcific 16

euroPe 22

middLeeAst&AfricA 28

About MerrIll corporAtIon 33

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www.mergermarket.comPart of the mergermarket group

CONTENTS

Monthly M&A Insider

globAl overvieW

01

In the Energy industry, always a bulwark sector for big-ticket transactions, the large-cap deal terrain bustled as businesses in the oil and gas space brokered tie-ups and takeovers amid surging energy prices and fresh signs that the Gulf of Mexico may be back open for business. In the month, the US government granted the first deepwater drilling permit in the Gulf since the Deepwater Horizon disaster in April 2010 and although the moratorium on drilling was lifted in October 2010, the move comes as the most promising sign that deepwater production in the region will see a gradual recovery going forward.

Interestingly, it was Ensco, the British oil and gas drilling contractor that brought suit against the US government over the drilling moratorium in 2010, was on the buy-side of the biggest Energy deal in the month. In the deal, Ensco will pay US$8.74bn to acquire Pride International, the Houston-headquartered offshore drilling company. With the acquisition the British driller will gain access to the new markets off the coast of West Africa and Brazil and become the second largest offshore drilling operator in the world after Transocean. So things are clearly looking up for the firm that saw its financial results badly affected by the drilling moratorium in the Gulf.

While a handful of other large-cap Energy deals saw the sector account for over a fifth of US$500m plus transactions announced in the month, the top global M&A transaction by value actually came to market in the Spanish banking industry. In the transaction, the Barcelona-based savings bank La Caixa transferred banking assets to its listed investment holding company Criteria in a bid to isolate its troubled assets and to create a more attractive investment company for investors. Criteria will change its name to CaixaBank post-deal completion while keeping hold of its financial, insurance and other industrial investments. It is estimated that financial assets will represent some 75% of the CaixaBank’s total value.

Post-crisis activity in the Spanish banking sector has been driven by a wave of consolidation among the ailing savings banks, known as cajas. The cajas, which have hobbled along for more than two years hamstrung by bad loan books and the depressed property market, are facing tighter capital regulations which will come into effect for the savings banks in March next year. This may well kick off further dealmaking in the space looking forward as these lenders merge and reorganise to ward off possible nationalisations.

GLOBAL OvErvIEW

head of research – Elias Latsis

editor – rory McNeil

For advertising opportunities contact:

erik wickman

tel: + (1) 212 6863329 [email protected]

Global overview: Matthew Albert

latin America: Urna Chakraborty

north America: Jason Cozza

Asia-Pacific: Douglas robinson

europe: Samuel Tedjasukmana and Damien Julliard

Middle east & Africa: Otavio Machado, Yannis Papacostas & Marie-Laure Keyrouz

GlobAl overvIew

THIS YEAr IS KICKING OFF WITH HOPEFUL SIGNS AS INCrEASING NUMBErS OF COrPOrATE BUYErS PUT AMBITIOUS TrANSFOrMATIONAL M&A DEALS BACK ON THE COrPOrATE AGENDA. IN FEBrUArY, GLOBAL LArGE-CAP DEALMAKING CONTINUED TO SEE A BrISK STrIDE IN ACTIvITY WITH THE DEAL COUNT FOr US$500M PLUS TrANSACTIONS rISING BY ALMOST 50.0% YEAr ON YEAr TO 61 DEALS COLLECTIvELY vALUED AT US$153.03BN.

Monthly M&A Insider 02

globAl overvieW

TrEND GrAPHS

GlobAl M&A quArterly trend

0

00

4,00

600

800

1,000

1,200

1,400

Q111*

Q410

Q310

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Q104

Valu

e (U

S$bn

)

Total value Mid-market value

Num

ber of deals

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

Total volume Mid-market volume

0

50

100

150

200

250

300

350

400

Q111*

Q410

Q310

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Q104

Valu

e (U

S$bn

)

Buyout value Exit value

Num

ber of deals

Buyout volume Exit volume

0

100

200

300

400

500

600

700

800

900

GlobAl M&A AnnuAl trend GlobAl M&A AnnuAl PrIvAte equIty trend

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

YTD 2011*2010200920082007200620052004

Valu

e (U

S$bn

)


Num

ber of deals

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000


0

100

200

300

400

500

600

700

800

900

YTD 2011*2010200920082007200620052004

Valu

e (U

S$bn

)


Num

ber of deals


0

500

1,000

1,500

2,000

2,500

3,000

3,500

GlobAl M&A quArterly PrIvAte equIty trend


globAl overvieW

TrEND GrAPHS

GlobAl M&A sector breAkdown ytd 2011

GlobAl GeoGrAPhIc breAkdown ytd 2011

vALUE

vALUE

vOLUME

vOLUME

30.2%

6.5%

1.3%

0.4%

6.5%

0.3%

3.3%

8.6%

15.1%7.3%

1.2%

15.5%

3.7%Industrials & Chemicals

TMT

Business Services

Consumer

Energy, Mining & Utilities

Pharma, Medical & Biotech

Financial Services

Construction

Leisure

Transportation

Real Estate

Agriculture

Defence

6.1%1.7%

52.4%

26.3%

13.5%Asia-Pacific

Europe

North America

Middle East & Africa

Latin America

9.2%

12.7%

1.0%0.5%2.8%

2.9%

1.6%

8.5%

3.5%

9.1%

Industrials & Chemicals

TMT

Business Services

Consumer



Financial Services

Construction

Leisure

Transportation

Real Estate

Agriculture

Defence

19.2%

14.6%

14.3%

4.7%2.7%

36.4%

37.3%

19.0% Asia-Pacific

Europe

North America

Middle East & Africa

Latin America


globAl overvieW

TrEND GrAPHS

GlobAl M&A deAl sIze breAkdown

vALUE vOLUME

0

10

20

30

40

50

60

70

80

90

100

2011*2010200920082007200620052004

28.9%

18.6%

24.5%

9.8%

18.2%

38.8%

15.5%

22.0%

8.5%

15.1%

42.1%

16.7%

21.0%

7.5%

12.7%

39.8%

16.8%

23.0%

7.9%

12.5%

42.7%

15.0%

19.1%

8.8%

14.3%

40.8%

16.3%

20.4%

7.9%

14.6%

27.8%

20.7%

27.6%

9.3%

14.5%

43.7%

19.8%

18.9%

6.8%

10.7%

<US$250m or undisclosed value

US$251m-US$500m

US$501m-US$2,000m

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

>US$5,001m

Per

cent

age

80

82

84

86

88

90

92

94

96

98

100

2011*2010200920082007200620052004


US$251m-US$500m

US$501m-US$2,000m

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

>US$5,001m

0.3%

1.0%

4.2%

4.5%

90.0%

0.7%

1.0%

4.5%

4.7%

89.2%

0.7%

1.2%

5.0%

4.7%

88.4%

0.7%

1.3%

5.5%

5.1%

87.4%

0.6%

0.9%

3.9%

4.6%

90.1%

0.5%

0.9%

3.7%

3.9%

91.0%

89.0%

4.5%

4.9%

1.2%

0.5% 1.0%

1.4%

4.8%

4.4%

88.4%

Per

cent

age

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LATIN AM

ERICA

LATIN AMERICAA MERgERMARkET M&A REpoRT oN


The top Latin American deal for this quarter was pan American Energy’s acquisition of ESSo petrolera Argentina’s refinery and service stations, amounting to a US$650m deal, a rather low value for the energy sector. Yet another energy deal was present in the top ten of the quarter - Brazil’s Cosan SA Industria e Comercio’s acquisition of Brazilian Usina Zanin Acucar e Alcool Ltda, a sugar and ethanol plant, a transaction valued at US$198m. The Energy, Mining & Utilities sector comprised 24.8% of Latin American M&A by value and 16.4% by count with 12 deals worth US$ 5.9bn. China has been one of the top countries involved in Latin American deals in 2010. For 2011, China’s expected continuing expansion of its Latin American oil reserves can be expected to primarily fuel growth in market share for the energy sector through high value energy deals in the quarters to come.

Both Argentina and Mexico have been experiencing high deal count and deal value respectively in this quarter. Ten Argentinean deals worth US$818m have been recorded alongside Mexico’s mere four deals collectively worth a whopping US$2.3bn. owing to this large value was Mexico-based manufacturer of The Coca-Cola Company products, grupo Continental, S.A.B.’s binding merger agreement with Embotelladoras Arca SA de CV, a listed Mexico based producer, bottler, and distributor of carbonated beverages and purified water, in a US$2.1bn deal, announced early this quarter. According to mergermarket data, the new company will be renamed Arca Continental and will have estimated sales of 1.2bn unit cases. Shares of the new company will be traded on the Mexican Stock Exchange. The consolidation of these two companies will strengthen their position in the beverage market, expand client base as well as lead to significant synergies.

There were 14 deals in both the industrial & chemical sector and the consumer sector, together amounting to 38.4% of deal volume - an overwhelming majority. Looking ahead to future transactions, one of Brazil’s biggest banks, Bradesco, is looking to buy a stake in French retailer Carrefour’s finance branch, which would then fuel growth of the consumer sector. Additionally, Luxottica, a globally recognized premium eyeglass maker, is reportedly looking to buy small retail businesses in Latin America, having reported a record year for sales in 2010.

Although it has been an overall slow start to 2011, large expected deals in the Energy, Construction, and Consumer Services sector should spur Latin American M&A for the quarters to come, as well as boost economic growth in the region.

pREdICTIoNS FoR LATIN AMERICAN M&A IN 2011 hAVE CoNSISTENTLY BEEN poSITIVE IN oUTLook, wITh BRAZIL REpoRTEdLY BEINg ThE CoUNTRY ThAT wILL REACh RECoRd M&A VoLUMES ThIS YEAR, dUE To ITS pAST poSITIVE ECoNoMIC gRowTh ANd INCREASEd FoREIgN INVESTMENT. BRAZIL hAS BEEN FoRECASTEd To gRow AT A RATE oF 5.5% ThIS YEAR; So FAR IN ThE FIRST qUARTER, BRAZIL hAS dEFINITELY LEd IN TERMS oF BoTh dEAL VALUE ANd VoLUME wITh 36 dEALS woRTh US$17.3BN, CoMpRISINg ALMoST hALF oF ToTAL dEAL VoLUME IN LATIN AMERICA. IN ToTAL, ThE dEAL CoUNT FoR ThIS qUARTER IS AT 73 TRANSACTIoNS CoLLECTIVELY woRTh US$23.8BN.

07

LATIN AM

ERICA

Monthly M&A Insider

Top 10 LATIN AMERICAN ANNouNCEd dEALs of ThE MoNTh (fEb-11)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

15-Feb-11 pan American Energy LLC ESSo petrolera Argentina Srl (Campana refinery and 720 service stations)


Esso petrolera Argentina Srl

- 650

19-Feb-11 german Efromovich (private Investor); pC Capital partners SApI de CV; Ruben Vila garciasordo (private Investor); Alejandro Ampudia Marco (private Investor); Alejo peralta Teran (private Investor)

Compania Mexicana de Aviacion SA de CV Mexico

Transportation - 200

23-Feb-11 Cosan SA Industria e Comercio Usina Zanin Acucar e Alcool Ltda


- 198

01-Feb-11 Vale SA Biopalma da Amazonia SA (70.00% stake)

Agriculture - 174

28-Feb-11 grupo Essentium wTorre SA (engineering unit) (50.00% stake)

Business Services wTorre S.A. - 166

15-Feb-11 Equinix Inc and Riverwood Capital Lp

Alog Solucoes de Tecnologia Ltda (90.00% stake)

Business Services - 127

02-Feb-11 daewoo Engineering and Construction Company Limited and posco Engineering & Construction Co Ltd

Consorcio Santos CMI SA (70.00% stake)

Construction 0.6 - 72

23-Feb-11 Chongqing polycomp International Co Ltd

oCV Capivari Fibras de Vidro Ltdal


owens Corning 1.1 11.5 - 60

04-Feb-11 duratex SA Elizabeth Loucas Sanitarias Ltd SA

Construction - 48

20-Feb-11 grupo Nacional de Chocolates SA

helados Bon (73.11% stake)

Consumer - 39

Based on announced deals, including lapsed and withdrawn bids Based on dominant geography of target company being Latin Americadata correct as of 16-Mar-11

Source: mergermarket

Top dEALS

LATIN AM

ERICA

Monthly M&A Insider

TRENd gRAphS

LATIN AMERICAN M&A quARTERLy TRENd

0

10

20

30

40

50

60

70

Q111*

Q410

Q310

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Q104


Num

ber of dealsValu

e (U

S$bn

)

0

20

40

60

80

100

120

140

160

180


0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

Q111*

Q410

Q310

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Q104

Valu

e (U

S$m

)


Num

ber of deals


0

2

4

6

8

10

12

14

16

LATIN AMERICAN M&A ANNuAL TRENd LATIN AMERICAN M&A ANNuAL pRIvATE EquITy TRENd

0

20

40

60

80

100

120

140

160

180

YTD 2011*2010200920082007200620052004


Num

ber of dealsValu

e (U

S$bn

)

0

100

200

300

400

500

600


0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

YTD 2011*2010200920082007200620052004

Valu

e (U

S$m

)


Num

ber of deals


0

5

10

15

20

25

30

35

40

45

50

LATIN AMERICAN M&A quARTERLy pRIvATE EquITy TRENd

08

LATIN AM

ERICA

Monthly M&A Insider

TRENd gRAphS

LATIN AMERICAN M&A gEogRAphIC bREAkdowN yTd 2011

VALUE VoLUME

72.7%

2.3%

0.8%

4.1%3.4%

9.8%

3.1%

3.4%

0.3%

Brazil

Chile

Colombia

Dominican Republic

El Salvador

Ecuador

Mexico

Peru

Argentina

12.3%

4.1%

2.7%

13.7%

49.3%

8.2%

5.5%

2.7%1.4%

Brazil

Chile

Colombia

Dominican Republic

El Salvador

Ecuador

Mexico

Peru

Argentina

LATIN AMERICAN M&A sECToR bREAkdowN yTd 2011

VALUE VoLUME

11.0%0.5%

21.5%

0.5% 0.6%1.3%

2.2%

33.9%

25.5%

3.0%

Consumer



Business Services

TMT

Transportation

Financial Services

Construction

Agriculture


19.2%

19.2%

9.6%

8.2%

2.7%2.7%

1.4% 1.4%

4.1%

6.8%

8.2%

16.4%

Consumer



Business Services

TMT

Transportation

Financial Services

Construction

Agriculture


Leisure

Real Estate

09

10

LATIN AM

ERICA

Monthly M&A Insider

LATIN AMERICAN M&A dEAL sIzE bREAkdowN

VALUE VoLUME

0

10

20

30

40

50

60

70

80

90

100

2011*2010200920082007200620052004


US$251m-US$500m

US$501m-US$2,000m

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

>US$5,001m

38.5%

21.9%

14.7%

9.6%

15.4%

17.9%

7.2%

25.8%

21.3%

27.8%

46.9%

8.3%

21.8%

10.3%

12.7%

16.2%

10.8%

31.3%

16.2%

25.5%

30.5%

20.3%

24.5%

10.0%

14.7%

9.2%

29.6%

36.8%

9.6%

14.7%9.3%

6.5%

24.7%

20.2%

39.4%30.7%

43.1%

8.6%

6.8%

10.9%

Per

cent

age

20

30

40

50

60

70

80

90

100

2011*2010200920082007200620052004

0.8%

3.3%

6.1%

88.6%

0.3%

4.1%

7.1%

88.1%

1.0%

5.4%

7.4%

85.1%

0.2%

5.3%

6.4%

87.4%

0.6%

4.7%

5.3%

88.2%

0.3%

7.0%

5.2%

85.8%81.9%

6.2%

8.3%

1.2% 1.4%1.2% 0.3% 1.0% 0.7% 1.2% 1.8% 2.3%

4.1%4.1%

5.4%

85.1%

Per

cent

age


US$251m-US$500m

US$501m-US$2,000m

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

>US$5,001m

TRENd gRAphS

NORTH

AMERICA

A mergermArket m&A report on

11Monthly M&A Insider

nortH AmerICA

EnErgy, MInIng, & UtIlItIEs And FInAncIAl sErvIcEs lEAd north AMErIcA dEAl vAlUEs

DespIte A DeCreAseD DeAl Count, tHe yeAr to DAte Q1 2011 HAD An AverAge DeAl sIze vAlue of us$337m, wHICH wAs tHe lArgest AverAge DeAl vAlue for A QuArter sInCe Q1 2009. wItH only 586 DeAls AnnounCeD so fAr In Q1 2011, nortH AmerICA HAs seen An ImpressIve wAve of lArge DeAl vAlues DrIven by ConsolIDAtIon In tHe energy, mInIng & utIlItIes AnD fInAnCIAl servICes seCtors.

Deutsche boerse and us-based nyse euronext’s proposed merger this february was north America’s largest deal of the month for an equity consideration worth us$10.1bn. the securities and commodities brokers subsector was also a highlight in Canada where an all-share merger of equals was announced between the london stock exchange and tmX group.

these mega deals could pave a path for further consolidation among equals within the securities and commodities space, and may even stir up hostility as nAsDAQ omX aims to launch a rival hostile bid for nyse euronext. overall, the financial services sector has fared well this year with 60 deals valued at us$18.4bn.

energy, mining & utilities represented 37.0% of deal values in north America, with an aggregate deal value of us$74.8bn, while accounting for only 11.0% of total deal count (66 deals). four of the top 10 largest deals in february were in this space.

tMt leads deal countIn the year to date 2011, 111 deals were announced in the tmt sector, accounting for approximately 19.0% of total deal count valued at us$12.9bn. the sector did not make a particular impression on the top deals in february. Announced in march, western Digital’s bid for Hitachi’s us-based global storage technologies business is the largest tmt deal of the year so far for an approximate cash and equity consideration of us$4.25bn.

outside of the tmt space, north America has seen a fairly even spread of deals by volume across the Industrials & Chemicals, pharma, medical & biotech, business services, energy mining & utilities, financials services, and Consumer sectors, representing 15%, 13.7%, 13.1%, 11.3, 10.2% and 8.2% of deals, respectively.

looking ahead: canadaCanada’s rich natural resources has been a key deal driver in north America, and will continue to attract competitors and investors from abroad looking to leverage global demand for raw materials. In Canada, equinox’s unsolicited bid to acquire lundin mining marks the largest hostile deal so far in 2011, for a transaction value of approximately us$4.6bn. Canada was host to last year’s largest hostile deal when bHp attempted to takeover potash, the world’s largest fertilizer provider.

whether Canada will continue to host some of the hottest deals in 2011 remains to be seen, but it will continue to be a place to keep an eye on for investors and corporate buyers looking to take over key resources and establish global dominance.

12

NORTH

AMERICA

Monthly M&A Insider

top DeAls & eXpeCteD DeAls

top 10 north AMErIcAn AnnoUncEd dEAls oF thE Month (FEb-11) Announced bidder company target company target dominated

sectorseller company Exit multiples (x) bid premia

1-day before

deal value(Us$m)revenue EbItdA p/E

15-feb-11 Deutsche boerse Ag nyse euronext financial services 2.8 11.7 17.7 -1.5% 12,267

07-feb-11 ensCo International Inc

pride International Inc energy, mining & utilities

6.0 19.1 30.4 21.0% 8,735

28-feb-11 ventas Inc nationwide Health properties Inc

real estate n/a n/a 39.1 15.5% 7,159

07-feb-11 Danaher Corporation beckman Coulter Inc pharma, medical & biotech

1.8 8.8 25.7 11.1% 6,724

21-feb-11 bHp billiton ltd Chesapeake energy Corporation (fayetteville shale assets)

energy, mining & utilities

Chesapeake energy Corporation

4,750

28-feb-11 equinox minerals limited

lundin mining Corporation

energy, mining & utilities

15.0 25.7% 4,614

24-feb-11 warburg pincus llC; vestar Capital partners

triton Container International limited

transportation pritzker family 3,500

09-feb-11 london stock exchange (lse) plc

tmX group Inc financial services n/a n/a n/a 5.9% 3,118

14-feb-11 Clayton, Dubilier & rice llC

emergency medical services Corporation

pharma, medical & biotech

1.0 9.4 21.7 -9.4% 2,897

22-feb-11 Holly Corporation frontier oil Corporation energy, mining & utilities

0.5 14.8 75.0 -4.0% 2,789

based on announced deals, including lapsed and withdrawn bids based on dominant geography of target company being north America (us + Canada) Data correct as of 16-mar-11

source: mergermarket

13

NORTH

AMERICA

Monthly M&A Insider

situation target company sector potential bidder company

Financial advisor to bidder (b); target (t); seller (s)

seller company

Market cap/ est. value (Us$m)

comments

expected Deal family Dollar stores Inc.

Consumer trian group (t)morgan stanley 5,935 trian group has offered to acquire family Dollar stores Inc for a cash consideration of us$55 to us$60 per share. the transaction is subject to the family Dollar board approval before becoming definitive. trian currently owns approximately 8% of family Dollar, and its offer represents a 25%-36% premium as of 15-feb-2011. on 3-mar-2011, the board rejected trian's bid proposal saying that the offer undervalues the company. In addition, the company adopted a shareholder rights plan to make a potential takeover more difficult. trian continues to stand by its offer.

expected Deal bJ's wholesale Club Inc.

Consumer leonard green & partners lp

(t)morgan stanley 2,620 bJ's wholesale Club Inc has hired morgan stanley in order to explore strategic alternatives, such as the potential sale of the company. so far, leonard green & partners lp is the only party that has consistently shown interest in bJ's wholesale Club in the past. At the end of 2010, it was reported that leonard green may launch a hostile takeover offer by mid-January 2011, but as of 17-mar-2011 the offer has not been launched yet.

expected Deal lawson software Inc

Computer software

Infor and golden gate Capital

1,900 lawson software Inc has received an unsolicited, non-binding proposal from Infor and golden gate Capital to acquire the company for us$11.25 per share in cash, valuing the company at us$1.8bn. Carl Icahn, who owns an 11% stake in lawson, is fully supporting the sale of the company. It has been reported, nonetheless, that lawson may see higher bids from other companies in the near future.

expected Deal mentor graphics Corp

Computer software

Icahn enterprises lp

1,633 Icahn enterprises has approached the board of mentor graphics Corp with a non-binding takeover proposal of us$17 per share. the board has not decided on the proposal yet, but Icahn is aware of the fact that mentor graphics may receive higher bids from strategic investors.

expected Deal 99 Cents only stores

Consumer leonard green & partners lp and schiffer/gold family

1,370 99 Cents only stores has received an acquisition proposal from the schiffer/gold family and leonard green & partners lp. the consideration in the proposal is us$19.09 per share in cash. the offer was received on 11-mar-2011. outside analysts have concluded, however, that 99 Cent only stores could receive a higher offer.

expected deals based on confirmed announcements by companies involved

pIpElInE oF north AMErIcAn ExpEctEd dEAls

top DeAls & eXpeCteD DeAls

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AMERICA

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Monthly M&A Insider

Trend graphs

North AMerIcAN M&A Sector BreAkdowN Ytd 2011

value volume

6.5%

16.4%

9.3%

0.2%

3.2%

1.6%

9.5%

0.5%

37.9%

12.1%

0.9%1.8% TMT



Business Services


Financial Services

Consumer

Construction

Leisure

Transportation

Real Estate

Defence

18.9%

15.0%

13.7%

3.6%

13.1%

8.2%

10.2%

0.2%

11.3%

1.2%1.2%

1.9%

1.5%

TMT



Business Services


Financial Services

Consumer

Construction

Leisure

Transportation

Real Estate

Defence

Agriculture

North AMerIcAN M&A deAl SIze BreAkdowN

value volume

0

10

20

30

40

50

60

70

80

90

100

2011*2010200920082007200620052004


US$251m-US$500m

US$501m-US$2,000m

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

>US$5,001m

32.9%

18.2%

23.2%

9.1%

16.6%

46.6%

15.8%

18.0%

7.0%

12.6%

51.6%

15.0%

17.3%

6.4%

9.7%

43.1%

18.8%

21.9%

6.6%

9.7%

49.3%

13.8%

17.5%

7.2%

12.2%

58.9%

13.3%

13.2%

5.4%

9.2% 12.4%

9.6%

24.1%

17.9%

33.0%

54.4%

19.6%

13.7%

4.7%

7.6%

Per

cent

age

75

80

85

90

95

100

2011*2010200920082007200620052004

1.2%

4.5%

4.9%

89.1%

0.9%1.3%

4.5%

4.9%

88.5%

1.0%

1.5%

5.4%

5.3%

86.8%

1.1%

1.8%

6.3%

5.3%

85.5%

0.9%

3.7%

4.1%

90.6%

1.0%

3.5%

3.8%

91.0%

87.3%

5.3%

5.6%

1.1% 1.5%

1.9%

5.1%

4.4%

87.0%

0.4% 0.7% 0.7% 0.6%


US$251m-US$500m

US$501m-US$2,000m

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

>US$5,001m

Per

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age

ASIA-PAcIfIc



ASIA-pAcIfIc

the deal in question saw Bp, the beleaguered Uk-based petroleum and petrochemicals group, acquire a 30.0% stake in twenty three different oil & gas production sharing contracts belonging to reliance Industries, the Indian conglomerate, for a total of US$7.2bn. the transaction, by far the largest Indian inbound energy acquisition to be announced, will allow reliance to utilise the technical expertise of Bp to explore and subsequently develop the offshore exploration blocks, which cover some 270,000 square kilometres and are located in the Bay of Bengal.

the deal is transformational in many respects, with both parties standing to benefit from the transaction. for its part, reliance will undoubtedly profit from the blocks’ development as it looks to strengthen its already-vice-like grip on the rapidly-expanding Indian natural gas market - according to forecasts from the International energy Agency, Indian demand for gas is expected to triple between 2007-2030.

Bp also stands to gain from the deal as it looks to put the Deepwater Horizon disaster last year behind it. the transaction, which came just days after Bp completed a controversial US$16bn share swap with rosneft, the russian state oil company, is potentially worth around US$20bn, and will give the company access to a new and potentially lucrative market, with one industry analyst quipping that, “If Bp’s exploration in India is successful, it certainly won’t be stranded gas”.

Intriguingly, for a region known for its insatiable appetite for energy & mining assets, the Bp/reliance tie-up was the only Asian energy & mining play worth more than US$500m to be announced over the month, although more deals took place in this particular space over the period compared to the same time last year. perhaps less surprisingly, the bulk of these transactions saw foreign bidders snapping up Australian resources assets, with such deals accounting for around 40.0% of all energy & mining purchases.

Another sector which saw a comparative rise in deal flow over february was the consumer space, which accounted for over 10.0% of all Asian acquisitions over the period – over february 2010, such buys made up just 9.0% of all regional m&A. Deal flow in this regard was led by the US$526m 20.0% stake buy of Zhejiang Supor, the chinese cookery and electrical appliance manufacturer, by SeB Internationale, a subsidiary of french household goods producer groupe SeB. the transaction, which was undertaken at a modest 13.6% premium to the target’s share price one day prior to the deal announcement, means that SeB now controls a 71.0% stake holding in Zhejiang Supor.

meanwhile, february deal-making across Asia’s financial Services sector softened slightly comprising less than 10.0% of all transactions over the period - less than the 10.5% it accounted for over the same period last year. AXA’s US$1.2bn divestment of its 16.5% stake in china’s taikang Life Insurance was the most notable transaction in this regard, ultimately allowing the debt-laden french insurer to reduce its debt gearing by one percentage point over H1 2011. the stake was sold to a consortium of investors including guardian Auction, the chinese auction company, goldman Sachs and Xinzheng taida, the Singaporean investment company.

Looking forward, financial Services deals are increasingly likely to come into play, with macquarie, the Australian diversified financial Services provider, reportedly examining brokerage joint venture (JV) opportunities in china, as well as bolt-on acquisitions in Vietnam and Japan as part of its Asia expansion plan. the bank has been in talks with chinese JV partners for a long time but is finding it difficult to wrap up such discussions.

At the same time, macquarie is attempting to move into Vietnam as upcoming regulatory changes make it increasingly likely that foreign investors will be allowed to own 100% of the chartered capital of non-banking finance businesses there from 2012 onwards. Saigonbank Berjaya Securities, thang Long Securities and Ho chi minh city Securities corporation have all being cited as potential targets.

oVer feBrUAry 2011, ASIAn DeALmAkIng BroADLy mIrroreD A fIckLe AnD VoLAtILe gLoBAL economy, wItH oVerALL m&A ActIVIty Down on 2010 LeVeLS In termS of VoLUme, BUt Up In termS of VALUAtIonS – tHe LAtter of wHIcH wAS cHIefLy DrIVen By A SIngLe LArge-cAp energy & mInIng AcqUISItIon In InDIA.

17

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Monthly M&A Insider

ASIA-pAcIfIc

moving over the energy & mining space, renewable energy plays are likely to increase over the next couple of months, a trend which has only been strengthened by the recent incident at the fukushima nuclear power plant in Japan. to this end, one such company, fujian mindong electric power, is looking to spend around US$56m to acquire a northeastern china-based wind power business which it could subsequently integrate with its wind power subsidiary, yingkou wind power, which it purchased for US$11m in December 2010. At the same time, Hanwha Solarone the chinese integrated solar cell manufacturer, is reportedly examining domestic and foreign, especially korean, acquisition opportunities as it looks to beef up its core operations.

An upcoming glut of renewable energy listings will also hit the Hong kong Ipo market over the foreseeable future, with Huaneng renewables, the chinese wind power business recently announcing that it will try to raise US$1.5bn in the territory sometime this year. Beijing Jingneng clean energy is in the same boat as Huaneng renewables, lately revealing that it is looking to raise US$500m via a Hong kong listing.

prospective large-cap consumer sector transactions are also on the cards, with Indian watchmarker titan Industries, reportedly looking for watch distributor partnership opportunities in china. titan could be looking to tie-up with either Hengdeli, the chinese watch retailer, or Shenzhen Harmony world watch centre, a subsidiary of fiyta, a direct competitor of Hengdeli’s. the latter has been cited as an especially good fit due to the fact that it is continuing to open new retail outlets across the country, as well as seeking ways to increase its product portfolio.


ASIA-PAcIfIc

top DeALS

Top 10 AsIA-pAcIfIc Announced deAls of The MonTh (feb-11)Announced bidder company Target company Target dominant

sectorseller company exit multiples (x) bid premia

1-day beforedeal value

(us$m)Revenue ebITdA p/e

21-feb-11 Bp plc reliance Industries Limited (23 oil and gas production sharing contracts) (30.00% stake)

energy, mining & Utilities

reliance Industries Limited

- 7,200

25-feb-11 ptt chemical public company Limited

ptt Aromatics and refining public company Ltd

Industrials & chemicals

-1.1% 5,704

21-feb-11 west Australian newspapers Holdings Limited

Seven media group tmt kohlberg kravis roberts & co; and Seven group Holdings Limited

3.2 13.1 - 4,123

03-feb-11 mm Holdings culture convenience club co Ltd (60.20% stake)

Leisure 0.9 10.7 14.1 32.7% 1,253

24-feb-11 Sumisho computer Systems corporation

cSk corporation Business Services

0.6 8.4 (loss) -48.3% 1,009

28-feb-11 Sony corporation nagasaki Semiconductor manufacturing corporation (60.00% stake)

tmt toshiba corporation

- 641

10-feb-11 American International group Inc

fuji fire and marine Insurance co Ltd (45.34% stake)

financial Services

n/a n/a 19.0 25.9% 556

17-feb-11 groupe SeB SA Zhejiang Supor co Ltd (20.00% stake)

consumer Supor group co Ltd; and Su Zengfu (private Investor)

13.6% 526

12-feb-11 cathay Asset management company Limited

Jaya Holdings Ltd transportation Affinity equity partners

2.0 4.9 3.9 -27.4% 523

09-feb-11 Independence group nL Jabiru metals Limited energy, mining & Utilities

5.6 23.5 36.1 44.5% 510

Based on announced deals, including lapsed and withdrawn bids Based on dominant geography of target company being Asia-pacific Data correct as of 15-mar-11


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ASIA-PAcIfIc

Monthly M&A Insider

trenD grApHS

AsIA-pAcIfIc M&A GeoGRAphIc bReAKdoWn yTd 2011

VALUe VoLUme

Australia

China

Hong Kong

India

Indonesia

Japan

Malaysia

Singapore

South Korea

Taiwan

Other

16.4%

7.5%

0.4%20.1%

4.4%

15.0%

0.4%

1.8%

4.8%

14.3%

14.7%

Australia

China

Hong Kong

India

Indonesia

Japan

Malaysia

Singapore

South Korea

Taiwan

Other

16.3%

5.3%1.6% 9.4%

3.1%

20.4%

2.2%

7.8%

1.3% 7.5%

25.1%

AsIA-pAcIfIc M&A secToR bReAKdoWn yTd 2011

VALUe VoLUme

22.4%

18.0%

7.5%4.5%

18.8%

1.3%

16.9%

3.2%3.4%

1.2% 1.2%1.6%


TMT

Business Services

Consumer


Financial Services


Leisure

Transportation

Agriculture

Construction

Real Estate

22.9%

13.5%

11.6%11.6%

8.8%

7.8%

8.5%

3.4%

3.4%3.1%

2.8%

2.5%


TMT

Business Services

Consumer


Financial Services


Leisure

Transportation

Agriculture

Construction

Real Estate

21

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Monthly M&A Insider

AsIA-pAcIfIc M&A deAl sIze bReAKdoWn

VALUe VoLUme

0

10

20

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2011*2010200920082007200620052004


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US$501m-US$2,000m

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>US$5,001m

5.1%

25.7%

28.1%

14.4%

26.7%

21.5%

18.9%

29.3%

9.6%

20.7%

17.2%

21.3%

28.9%

11.3%

21.3%

15.7%

16.7%

30.7%

12.5%

24.3%

29.7%

15.3%

22.5%

12.1%

20.4%

20.2%

16.3%

30.5%

11.1%

21.9% 19.9%

10.2%

27.4%

27.3%

15.3%

24.7%

12.0%

29.3%

14.6%

19.4%

Per

cent

age

75

80

85

90

95

100

2011*2010200920082007200620052004

1.2%

3.9%

4.9%

90.0%

1.0%

5.0%

4.6%

89.1%

1.0%

4.9%

4.8%

89.0%

0.9%

5.1%

5.4%

88.4%

0.9%

4.5%

5.8%

88.4%

0.9%

5.4%

5.2%

88.1% 88.2%

5.1%

4.8%

1.6% 0.6%

5.6%

6.9%

86.2%

0.1% 0.3% 0.3% 0.3%0.3% 0.6%0.4% 0.4%


US$251m-US$500m

US$501m-US$2,000m

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

>US$5,001m

Per

cent

age

trenD grApHS


europe


eUrope

Since the beginning of the year, about €97.8bn has already been invested in m&A transactions in europe, which is a 20.5% increased compared to the last year figures. energy, mining & Utilities itself accounted for 25.1% of this value.

In the same time, non-european investment in the european territory increases 25.2% compare to the same period last year, up to €30.9bn, and representing 31.6% of all european m&A transaction value. the market share of the energy, mining & Utilities in this foreign trend stands at 43.7%, for a total cumulated value of €13.5bn, representing 13.8% all european m&A value so far this year.

With disposals of companies such as galp group and Snam rete gas by Italian enI SpA for about €13bn and €4bn in the pipeline of expected deals, and groups such as petroleo Brasileiro listed as potential bidder, the non-european companies investing in the european energy, mining & Utilities sector in on the track to become the fashionable trend in 2011.

Yoplaitgeneral mills Inc, the listed US manufacturer and marketer of branded consumer foods, is understood to have won the hotly contested auction for the 50% in Yoplait France SAS, the French dairy producer, sold by pAI partners, the French private equity firm.

the battle to acquire the number two yoghurt maker was tremendous, with bidders including Swiss nestle; Chinese Bright Dairy & Food; mexican grupo Lala, French groupe Lactalis and Fromageries Bel, as well as numerous private equity bidders.

the transaction, which values the French yoghurt at about €1.6bn, is higher than expected and sharply above the €1.4bn bid from dairy company Lactalis, which was rejected earlier as being too low.

the complex ownership structure meant several interests had to be taken into account: the remaining 50% stake is held by Sodiaal, the French farmers’ co-operative. pAI had to find a buyer that met the approval of Sodiaal, as the cooperative wil retain a 30% shareholding in Yoplait. not the least, the French government kept a keen eye on proceedings. An earlier effort by a US company to enter the French yogurt market, when pepsiCo was eyeing Danone, prompted France to label

yoghurt a strategic asset.

pAI had held Yoplait’s stake for about nine years, after buying into the yoghurt maker when its brand and sales were faltering, at an estimated €1bn enterprise value. general mills’ interest in the French company was stressed by the fact that Yoplait held its US franchise. Yoplait, stirred into action by the low level of royalties the business generated, had sought to renegotiate the contract, sparking a legal battle.

the deal has not been inked yet, so it is not clear whether or not general mills will also buy out its licence as part of the deal.

ForeIgn InvestMent In the energY, MInIng & UtIlItIes In eUrope LArger eUropeAn InBoUnD DeAL So FAr thIS YeAr WAS the 53% StAke ACqUISItIon oF CompAnIA eSpAnoLA De petroLeoS BY the UAe BASeD InternAtIonAL petroLeUm InveStment CompAnY, In A trAnSACtIon vALUeD €5.6Bn. the €28 per ShAre oFFer vALUeS the LISteD SpAnISh petroLeUm CompAnY, WhICh IS ALreADY 47% oWneD BY IpIC, At €9.16Bn. the DeAL reFLeCtS WhAt CoULD Be the mAIn trenD In the regIon thIS YeAr: non-eUropeAn CompAnIeS InveStIng In the eUropeAn energY, mInIng & UtILItIeS SeCtor.

23

europe

Monthly M&A Insider

top DeALS & expeCteD DeALS

top 10 eUropeAn AnnoUnced deAls oF the Month (Feb-11) Announced bidder company target company target dominated


1-day before

deal value(€m)revenue ebItdA p/e

25-Feb-11 Criteria CaixaCorp, S.A. la Caixa (banking business)

Financial Services la Caixa 9,471

16-Feb-11 International petroleum Investment Company

Compania espanola de petroleos, S.A. (52.94% stake)


total S.A. 22.8% 5,634

07-Feb-11 Banco Santander, S.A. Bank Zachodni WBk SA (BZ WBk)

Financial Services Allied Irish Banks plc 5.5% 4,290

24-Feb-11 Allied Irish Banks plc Anglo Irish Bank Corporation (International) pLC; and Anglo Irish Bank Corporation Limited (deposits in Ireland and Uk)

Financial Services Anglo Irish Bank Corporation Limited

3,500

22-Feb-11 vtB Bank oAo oAo Bank of moscow (46.48% stake); and oAo Capital Insurance group (25.00% stake)

Financial Services the moscow City government

2,590

13-Feb-11 general electric Company

John Wood group plc (well support division)


John Wood group plc 2.9 16.7 2,066

16-Feb-11 Clariant Ag Sued-Chemie Ag (96.40% stake)


one equity partners LLC; and Sued Chemie family (private individuals)

1.6 10.5 -3.2% 1,948

18-Feb-11 Anglo American/ Lafarge Joint venture

tarmac Limited; Lafarge Cement Uk; and Lafarge SA (Aggregates and Concrete Uk division)

Construction Lafarge S.A.; and Anglo American plc

1.8 15.5 1,935

21-Feb-11 Diageo plc mey Icki Sanayii ve tic AS

Consumer tpg Capital, L.p.; and Actera group

4.1 1,539

25-Feb-11 eqt partners AB Dometic International AB

Consumer DhAB I S.A. 1.5 9.1 1,363

Based on announced deals, including lapsed and withdrawn bids Based on dominant geography of target company being europe Data correct as of 17-mar-11


24

europe

Monthly M&A Insider

pIpelIne oF eUropeAn expected deAlssituation target

companysector potential bidder

companyFinancial adviser to bidder (b); target (t); seller (s)

seller company Market cap/est.

value (€m)

comments

potential stake acquisition

Snam rete gas

Utilities eni SpA 13,960 enI SpA could decide to sell its listed gas distribution subsidiary, Snam rete gas, if a potential buyer would receive the green light from the Italian government and if the price was topped up by a premium. With thi sale enI would go a long way to meet Italian and eU energy regulatory requirements towards unbundling and reforming of the country's energy sector and it would also relieve its pressure to separate its oil and gas businesses.

potential stake sale

galp group energy petroleo Brasileiro S.A

eni SpA 4,000 eni SpA Chief executive paolo Scaroni said its would want a premium for its 33.33% stake in liste portuguese energy group galp. eni has received interest from many parties and was very close to a deal with Brazil's petrobras.

expected deal

Fidea retail insurance business

Financial Services

Credit mutuel Arkea; and mercato

morgan Stanley (v);kBC Securities nv (t)

kBC group 200 kBC group is expecting to receive around €200m for its Fidea retail insurance business, a source close to the sales process said. Fidea was placed for sale initially as part of a package that included kBC’s Centea retail banking business. this was itself part of an eC-approved asset divestment programme formed in november 2009. the two businesses were initially offered for sale together with a target of €1bn.

note: expected deals based on confirmed announcements by companies involved Source: mergermarket

top DeALS & expeCteD DeALS

europe


trenD grAphS

eUropeAn M&A qUArterlY trend

0

100

200

300

400

500

Q111*

Q410

Q310

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Q104

Valu

e (€

bn)


Num

ber of deals

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000


0

10

20

30

40

50

60

70

80

90

100

Q111*

Q410

Q310

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Q104

Buyout value Exit value Buyout volume Exit volume

Valu

e (€

bn)

Num

ber of deals

0

50

100

150

200

250

300

350

400

450

eUropeAn M&A AnnUAl trend eUropeAn M&A AnnUAl prIvAte eqUItY trend

0

200

400

600

800

1,000

1,200

YTD 2011*2010200920082007200620052004


Num

ber of deals

Valu

e (€

bn)

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000


0

50

100

150

200

250

300

YTD 2011*2010200920082007200620052004

Valu

e (€

bn)


Num

ber of deals


0

200

400

600

800

1,000

1,200

1,400

1,600

eUropeAn M&A qUArterlY prIvAte eqUItY trend

europe


trenD grAphS

eUropeAn M&A geogrAphIc breAkdown Ytd 2011

vALUe voLUme

CEE

Iberia

UK

Nordic

Germany

France

Benelux

Italy

Others

3.9%

2.6% 5.2%1.8%

24.9%

23.4%

11.3%

21.2%

5.6%

CEE

Iberia

UK

Nordic

Germany

France

Benelux

Italy

Others

11.3%

9.7%

9.8%

6.0%

11.9%

6.7%

12.4%

20.8%

11.6%

eUropeAn M&A sector breAkdown Ytd 2011

vALUe voLUme

0.2%

11.3%

0.5%

4.4%

3.3%1.7%

1.1% 1.2%

1.8%

16.5%

4.6%

30.5%

22.9%


Business Services

Consumer

TMT

Financial Services



Leisure

Construction

Transportation

Real Estate

Agriculture

Defence

0.6%

21.6%

0.2%

5.9%

4.1%

4.1%

1.1%

3.0%

17.6%

16.6%

12.0%

6.7%

6.5%


Business Services

Consumer

TMT

Financial Services



Leisure

Construction

Transportation

Real Estate

Agriculture

Defence

europe


trenD grAphS

eUropeAn M&A deAl sIze breAkdown

vALUe voLUme

0

10

20

30

40

50

60

70

80

90

100

2011*2010200920082007200620052004

<€250m or undisclosed value

€251m-€500m

€501m-€2,000m

€2,001m-€5,000m

>€5,001m

26.0%

14.3%

27.6%

10.9%

21.2%

33.0%

15.1%

23.9%

10.1%

17.9%

35.1%

17.7%

23.2%

8.4%

15.7%

39.2%

16.4%

22.4%

8.3%

13.7%

40.3%

14.5%

19.9%

8.8%

16.6%

26.7%

20.3%

23.7%

9.0%

20.3% 17.2%

9.4%

30.5%

20.6%

22.3%28.2%

23.0%

24.6%

9.1%

15.1%

Per

cent

age

88

90

92

94

96

98

100

2011*2010200920082007200620052004

0.2%

3.3%

0.6%

3.5%

92.4%

3.4%

0.7%

3.9%

91.6%

3.8%

0.9%

3.5%

91.4%

4.0%

0.9%

3.9%

90.8%

2.7%

0.6%

3.2%

93.1%

2.1%

0.6%

2.2%

94.9%

92.9%

2.8%

3.4%

0.7% 0.8%

2.7%

2.9%

93.2%

0.5% 0.5%0.5% 0.4% 0.4% 0.2% 0.2%

<€250m or undisclosed value

€251m-€500m

€501m-€2,000m

€2,001m-€5,000m

>€5,001m

Per

cent

age

28

Mid

dle east &

africa

THE MIDDLE EAST & AFRICA

A MERgERMARkET M&A REpoRT on

Monthly M&A Insider

It is fair to say that business has not been as usual in the MEA region, however, there has been some recent developments in the region’s capital markets. In the period going from 1-Jan to 28-Feb of 2011, the region has seen a smaller quantity of M&A transactions, however, in terms of the value of these transactions, when compared to the same period last year the region has seen an increase in the value being moved by these fewer deals. In the period, there were 37 deals which amounted to a total of US$8.33bn, compared to 52 deals amounting to US$6.2bn in the same period in 2010. In 2011, the most active sector for M&A transaction in the region was Chemicals and Materials, while in 2010 the sector that saw the most activities was the Leisure industry.

In 2011, we expect to see M&A deals in the MEA region in the telecoms and Financial Services industries. An example is the joint venture between Bahrain’s Batelco the telecommunications company, and kingdom Holding Company, the Saudi Arabian investment holding company that made an offer, which was duly accepted, to acquire a 25% stake in the Saudi Arabian operations of kuwait based Zain kSA for US$950m. Considering this transaction does not fall through, it would paint an interesting picture for the Middle Eastern telecom industry, as it may spark an offer from the UAE operator Etisalat to buy a large stake in Zain worth up to US$12bn. Another possible deal to keep an eye out is between the Qatari Al khalij Commercial Bank QSC and the International Bank of Qatar.

2011 has been, so far, an interesting year in the MEnA region; not only due to the political changes that are occurring in the region, but also because of energy prices. In a small space of time since the disturbances in north Africa had begun, oil prices had started to stabilize around the US$100 mark until disaster struck Japan. The nuclear issues currently being tackled by Japanese authorities has set the market betting against nuclear energy, therefore pushing up prices for gas, oil and coal. As such, with the current scenario of overvalued energy assets as a consequence of the price hike of energy commodities, we can expect to see fewer energy deals in the MEA region in 2011 compared with previous years, until there is a general stabilization of prices of energy commodities.

THE MEA REgIon HAS ExpERIEnCED A LoT oF ACTIvITy In THE LAST CoUpLE oF MonTHS. EgypT’S pREvIoUS pRESIDEnT MUBARACk wAS ToppLED By pUBLIC DEMonSTRATIonS AnD, AFTER A SURgE In ACTIvITy In LIByA, IT SEEMS LIkE THE pRo-gADDAHFI ARMy IS gAInIng THE UppER HAnD ovER THE pRoTESToRS. BAHRAIn, onE oF THE kIngDoM oF SAUDI ARABIA’S STRongEST ALLIES HAS In THE LAST wEEk SEEn An InCREASE In vIoLEnCE AS THE pEopLE pRoTEST AgAInST THE CURREnT poLITICAL LEADERSHIp. AS A ConSEQUEnCE, onE woULD ExpECT THAT THE M&A ACTIvITy In THE REgIon woULD BE HALTED To A MInIMUM, BUT THIngS ARE QUITE wHAT THEy SEEM.

29

Mid

dle east &

africa

Monthly M&A Insider

Top DEALS

Top 10 MIddle eAsTern & AfrIcAn Announced deAls of The MonTh (feb-11) Announced bidder company Target company Target dominated


1-day before

deal value(us$m)revenue ebITdA p/e

14-Feb-11 growthpoint properties Ltd; and public Investment Corporation Ltd

v&A waterfront Holdings (pty) Ltd

Real Estate London & Regional properties Ltd; Istithmar world Capital

1,341

19-Feb-11 vitol Holding B.v.; and Helios Investment partners LLp

Royal Dutch Shell plc (Downstream Businesses In Africa) (80.00% stake)


Royal Dutch Shell plc 1,000

15-Feb-11 Tiger Brands Limited Davita Trading (proprietary) Limited

Consumer Corvest 6 (proprietary) Limited; RZT Zelpy 4976 (proprietary) Limited; and David Desilets (private Investor)

3.0 225

22-Feb-11 Elbit Systems Ltd Elisra Electronic Systems Ltd. (30.00% stake)

Defence Elta Electronics Industries Ltd

68

08-Feb-11 Undisclosed bidder Hayovel Lines Ltd (75.00% stake)

Business Services Danya Cebus 54

08-Feb-11 northam platinum Ltd Mvelaphanda Resources Limited


0.1 0.3 7.4 -88.0% 46

07-Feb-11 Hosken Consolidated Investments Limited

kwv Holdings Limited (33.90% stake)

Consumer Zeder Investments Limited; and RootStock Capital (proprietary) Limited

38

10-Feb-11 DS Apex Holding Index Sal Ltd (55.00% stake)

Financial Services Brack Capital Real Estate Bv; and Uri Ben Dov (private Investor)

n/a n/a 12

14-Feb-11 keaton Energy Leeuw Mining and Explorations pty Ltd (64.00% stake)


JpI Leeuw and Associates (pty) Limited; and Anglo American Zimele Limited

10

08-Feb-11 kentz Corporation Limited

RnE Engineering and projects (pty) Ltd

Business Services 10

Based on announced deals, including lapsed and withdrawn bids Based on dominant geography of target being Middle East or Africa Data correct as of 17-Mar-11


30

Mid

dle east &

africa

Monthly M&A Insider

TREnD gRApHS

MIddle eAsTern & AfrIcAn M&A quArTerly Trend

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

Q111*

Q410

Q310

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Q104

Valu

e (U

S$m

)


Num

ber of deals

0

20

40

60

80

100

120

140


0

1,000

Valu

e (U

S$m

)

2,000

3,000

4,000

5,000

6,000

7,000

Q111*

Q410

Q310

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Q104


Num

ber of deals

0

2

4

6

8

10

12

14

16

18

20

MIddle eAsTern & AfrIcAn M&A AnnuAl Trend

MIddle eAsTern & AfrIcAn M&A AnnuAl prIvATe equITy Trend

0

10

20

30

40

50

60

70

80

90

100

YTD 2011*2010200920082007200620052004


Valu

e (U

S$bn

)

Num

ber of deals

0

50

100

150

200

250

300

350

400

450

500


0

2

4

6

8

10

12

14

YTD 2011*2010200920082007200620052004


Valu

e (U

S$bn

)

0

10

20

30

40

50

60

Num

ber of deals

MIddle eAsTern & AfrIcAn M&A quArTerly prIvATe equITy Trend

31

Mid

dle east &

africa

Monthly M&A Insider

Trend graphs

MIddle eAsteRN & AfRIcAN M&A GeOGRAPHIc BReAKdOWN Ytd 2011

MIddle eAsteRN & AfRIcAN M&A sectOR BReAKdOWN Ytd 2011

value

value

volume

volume

0.8%

31.4%

0.2%

1.0%

3.6%

22.5%

0.6%

25.0% 14.9%


Business Services


Energy, Mining & Utilites

Financial Services

Consumer

TMT

Real Estate

Defence

5.4%

5.4%

5.4%

2.7%

8.1%

2.7%

2.7%

2.7%

2.7%

2.7%

29.7%

29.7%

Israel

Jordan

Kenya

Kuwait

Morocco

Nigeria

Qatar

Saudi Arabia

South Africa

Tunisia

United Arab Emirates

Egypt

4.7%4.7%

14.0%

14.0%

16.3%

9.3%

9.3%

9.3%

7.0%

11.6%


Business Services


Energy, Mining & Utilites

Financial Services

Consumer

TMT

Real Estate

Transportation

Defence

32.0%

9.6%

0.1%

0.1%

12.0%

6.1%

25.9%

1.1%

13.1% Israel

Jordan

Kenya

Kuwait

Morocco

South Africa

Tunisia

United Arab Emirates

Egypt

32

Mid

dle east &

africa

Monthly M&A Insider

Trend graphs

MIddle eAsteRN & AfRIcAN M&A deAl sIZe BReAKdOWN

value volume

0

10

20

30

40

50

60

70

80

90

100

2011*2010200920082007200620052004

19.8%

12.5%

52.7%

12.1%

21.5%

54.8%

12.5%

12.2%

66.7%

13.3%

11.3%

67.2%

17.8%

17.5%

50.4%

19.1%

14.5%

53.1%

68.4%

10.3%

10.9%

6.6%13.0%10.3% 7.7% 7.3%

12.7% 11.9% 9.3% 5.3%

87.2%

2.0% 1.3% 1.0% 0.9% 1.6% 1.5% 1.1% 0.9%

<US$14.9m or undisclosed value

US$15m-US$100m

US$101m-US$250m

US$251m-US$500m

>US$501m

Per

cent

age

0

10

20

30

40

50

60

70

80

90

100

2011*2010200920082007200620052004

11.1%

3.4%6.0%

34.8%

10.7%

8.6%

5.6%

33.1%

14.0%

6.0%

9.3%

31.9%

15.5%

5.7%

7.2%

35.0%

11.8%

5.3%4.2%

31.3%

13.7%

4.6%3.5% 5.8%

4.5%

33.4%

11.0%8.1%

35.0%

44.4% 40.3% 37.6%39.7%

43.8% 46.8% 45.1%51.4%

24.3%

16.2%

<US$14.9m or undisclosed value

US$15m-US$100m

US$101m-US$250m

US$251m-US$500m

>US$501m

Per

cent

age


ABO

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ABOUT MERRILL CORPORATION

Merrill Transaction and Compliance Services Through a broad range of tools and services, Merrill Corporation streamlines document composition, filing, printing, distribution and electronic access to the transaction and regulatory compliance activities of its clients engaged in securities offerings, reorganizations, mergers and acquisitions, SEC and other regulatory filings. As a registered, third-party service provider offering public companies expert EDGARization and XBRL filing services, Merrill professionals can compose, edit, electronically file, manage and distribute data in printed or electronic format.

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Merrill DataSite is designed for rapid deployment and can be up and running within two hours of a client’s need. Our team can scan, upload and organize thousands of pages of content from any source in 24 hours or less. Every aspect of the process, from document scanning to VDR hosting and project management is delivered by Merrill’s multilingual team, available around the clock worldwide.

With Merrill DataSite, all documents are captured and indexed to an online database and because all rights are designated by the client, security and control are guaranteed. Each user’s ability to view, print or access source documents is set up by the client administrator and can be changed at any time. Merrill DataSite provides useful tools including full search, viewer audit capability, Q&A, bulk uploads and detailed user activity tracking that help clients maintain tighter control and have greater insight into reviewer behavior.

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Merrill DataSite is the industry’s acknowledged leader. More than 61,000 different private and public companies across the globe have leveraged Merrill DataSite to increase the value of the following types of transactions:

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ABOUT MERRILL DATASITE®

Merrill DataSite – built with the client in mindMerrill DataSite was created to meet its clients’ needs and built to their specifications. Since 2002 we have consistently leveraged the experiences of our clients to add leading-edge functionality to the available toolset. Merrill DataSite allows its users and administrators to:

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Designate user permissions. Team administrators can control which users will be able to view, print or download specific documents, folders or projects – simply and quickly.

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Using wildcard, fuzzy, proximity, boosting, Boolean and grouping modifiers, you can search and find exact matches and near-matches, including misspelled words. Potential buyers will enjoy increased confidence knowing they’ve received and seen all materials and documents that are relevant to their decision-making.

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ABoUT MERRILL CoRpoRATIon

execuTIve MAnAGeMenT

ed bifulk president Tel: +1 212 229 6563

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execuTIve sAles

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This publication contains general information and is not intended to be comprehensive nor to provide financial, investment, legal, tax or other professional advice or services. This publication is not a substitute for such professional advice or services, and it should not be acted on or relied upon or used as a basis for any investment or other decision or action that may affect you or your business. Before taking any such decision you should consult a suitably qualified professional adviser. whilst reasonable effort has been made to ensure the accuracy of the information contained in this publication, this cannot be guaranteed and neither Mergermarket nor any of its subsidiaries nor any affiliate thereof or other related entity shall have any liability to any person or entity which relies on the information contained in this publication, including incidental or consequential damages arising from errors or omissions. Any such reliance is solely at the user’s risk.

Remark, the events and publications arm of The Mergermarket group, offers a range of publishing, research and events services that enable clients to enhance their own profile, and to develop new business opportunities with their target audience.

The following notes pertain to data contained in this publication:

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

• where no deal value has been disclosed, deals are included if the turnover of the target is greater than or equal to €10m.

• Deals are included in the graphs and Top Deals in each section based on the dominant geography and dominant sector of the target company. Data underlying the League Tables are based on deals where the bidder, target or parent geography of either is that of the geography in focus.

• H2 2010 refers to the period 1-Jan-11 to 28-Feb-11.

Documents

A mergermArket report on globAl m&A Activity Monthly M&A ... › PDF › MMAI_Mar_11.pdf · hong Kong t: +852 2158 9700 f: +852 2158 9701 [email protected] ... the British