Upload
sunayangutta
View
212
Download
0
Embed Size (px)
Citation preview
8/11/2019 India M&a Trend Report 2013
http://slidepdf.com/reader/full/india-ma-trend-report-2013 1/4
India M&A Trend Report: 2013
Overview
M&A targeting India totalled US$ 20.8bn in 2013, 46.3% off the 2012’s
value (US$ 38.7bn). Volumes too, witnessed a slight slump, with the 267
deals this year, 13 fewer than in 2012
The final quarter of 2013 saw an aggregate US$ 3.4bn-worth of deals,
40.4% below the US$ 5.7bn posted in Q3 2013. A mere 50 deals were
announced in Q4 2013, the lowest number since Q1 2009 (39 deals)
Unilever’s US$ 3.5bn acquisition of a 14.8% stake in Hindustan Unilever
in April remains the largest deal in India this year and accounted for
16.8% of aggregate M&A value in the country
The Pharma, Medical & Biotech experienced transactions amounting to
US$ 4.2bn, making it the only sector to post a second successive increase
in annual M&A value or volume
Inbound M&A slid for the second year to US$ 14.3bn, a 19.7% decline
from 2012 (US$ 17.8bn). The number of deals involving overseas
acquirers however shot to a record high (since 2001) of 147. It appears
that smaller targets are being snapped up by foreign buyers while larger
deals are being stymied by concerns associated with the outcome of
next year’s general elections
Tighter access to credit is expected to result in several potential buying
opportunities. The Reserve Bank of India’s attempts to facilitate buyouts
of distressed companies may provide a fillip for private equity activity,
although onerous valuation restrictions announced this week will ensure
persistent uncertainty in this regard
Outbound bids in 2013 totalled US$ 7.7bn, a 22.2% increase from 2012
(US$ 6.3bn) largely due to two acquisitions worth US$ 5.1bn by state-run
ONGC and Oil India off the coast of Mozambique. The number of deals in
contrast, fell from 76 to 40 during the corresponding period
M&A Trend: India
Industry Analysis
Sector
2013 2012 Change
Value ($m)Mrk
shareDealcount
Value ($m)Mrk
shareDeal count Value (%)
Dealcount
Pharma, Medical & Biotech 4,169.8 20.1% 38 1,446.1 3.7% 30 188.4% 8
Construction 4,104.6 19.7% 16 670.7 1.7% 16 512.0% 0
Consumer 4,025.2 19.4% 24 6,760.3 17.5% 28 -40.5% -4
Industrials & Chemicals 2,356.8 11.3% 64 3,518.6 9.1% 67 -33% -3
Telecommunications 1,900.5 9.1% 7 791.8 2% 2 140.0% 5
Business Services 1,003.2 4.8% 32 4,308.6 11.1% 33 -76.7% -1
Energy, Mining & Utilities 1,001.7 4.8% 14 11,618.0 30% 16 -91.4% -2
Financial Services 784.1 3.8% 20 1,603.8 4.1% 18 -51.1% 2
Technology 769.4 3.7% 22 423.7 1.1% 14 81.6% 8
Transport 468.4 2.3% 7 4,782.5 12.4% 9 -90.2% -2
Media 166.3 0.8% 12 1,950.8 5% 18 -91.5% -6
Leisure 34.2 0.2% 4 549.8 1.4% 14 -93.8% -10
Agriculture 10 0.0% 3 149.9 0.4% 9 -93.3% -6
Defence - - - 13.8 0.0% 2 -100.0% -2
Real Estate - - 4 98.1 0.3% 4 -100.0% 0
Tot al 20,794.2 267 38,686.6 280 -46.2% -13
Cross-border analysis Deal size analysis
0
50
100
150
200
250
300
0
5
10
15
20
25
30
35
40
45
2007 2008 2009 2010 2011 2012 2013
N u m b e r o f d e a l s
V a l u e o f D e a l s ( $ b n )
Value
No. of Deals
0
20
40
60
80
100
120
140
160
0
5
10
15
20
25
30
2007 2008 2009 2010 2011 2012 2013
N u m b e r o f d e a l s
V a l u e o f D e a l s ( $ b n )
Inbound Value Outbound Value
Inbound Volume Outbound Volume
7.0
8.6
9.4
3.3
1.7
1.6
4.5
10.2
6.9
6.0
7.9 10.3
12.7
0 5 10 15 20 25 30 35 40 45
2013
2012
2011
Value of Deals ($bn)
0m - 2 50m 251m - 5 00m 501m - 2 ,000m 2,001m - 5,000m > 5, 001m
Citi displaced Morgan Stanley atop the Financial Advisor League Table by value with seven dealstotalling US$ 9.3bn - three of which were among the
five largest deals so far this year. Ernst and Young retained its position as the most active Financial Advisor by deal count with 21 mandates
Amarchand & Mangaldas & Suresh A Shroff &Co led the Legal Advisor League Tables by valueafter advising on 38 deals worth US$ 10.1bn. AZB &Partners secured 45 mandates to pip its nemesisand round off 2013 as the most active legal advisorby volume
8/11/2019 India M&a Trend Report 2013
http://slidepdf.com/reader/full/india-ma-trend-report-2013 2/4
India M&A Trend Report: 2013
Spotlight on Pharma, Medical & Biotech (PMB) M&A
Overview
Pharma, Medical & Biotech (PMB) dealmaking hit US$ 4.2bn (38 deals), a
staggering 188.4% increase from 2012 (US$ 1.4bn, 30 deals) with eight more
deal announcements. This represents a second consecutive annual rise by
both value and volume
The rest of the Asia-Pacific region too witnessed an increase in PMB M&A,
rising 12.1% from US$ 11.5bn in 2012 to US$ 14.4bn (163 deals). China and
Hong Kong were stellar performers, recording four successive years of
growth in deal values to US$ 6.8bn and US$ 1.3bn respectively
Private equity buyers acquired 19 firms in transactions totalling US$ 0.7bn in
2013, representing the most deals and the highest value on Mergermarket
record (since 2001) for this activity
Exits too saw the most targets sold for the highest value on Mergermarket
record. Deal value soared 383.9% from 2012 (US$ 0.1bn) to US$ 0.5bn in
2013 with seven deals, three more than the previous peak of four in 2010
Mylan’s US$ 1.6bn purchase of Agila Specialties marked the largest
transaction in the PMB space this year. GlaxoSmithKline Plc dished out US$
1bn to increase its stake in GlaxoSmithKline Pharmaceuticals Ltd to the
maximum permissible 75%, a trend slated to continue among MNCs in the
country
Pharma, Medical & Biotech trend
Asian TargetCountry
2013 2012 2011
Value($m)
DealCount
Value($m)
DealCount
Value($m)
DealCount
China 6,816 81 6,061 67 3,611 51
Japan 1,960 24 416 24 2,051 19Australia 1,787 28 2,081 21 2,112 23
Hong Kong 1,333 7 408 3 213 3
South Korea 951 19 1,327 13 1,143 13
Singapore 918 6 630 6 1,028 6
Taiwan 246 4 60 1 1
Indonesia 226 3 1
Vietnam 119 2 8 2 78 2
Malaysia 35 2 300 3 1,302 7
New Zealand 32 5 87 3 58 4
Thailand 14 2 100 1 116 1
Bangladesh 10 1
Kazakhstan 67 1
Pakistan
Philippines 1 6 1 41 2
Sri Lanka 32 1
Tot al 14,437 184 11,515 147 11,832 134
India PMB buyouts and exits analysis Pharma, Medical & Biotech projections
Both primary and secondary private equity buyouts are expected to increase
in 2013. Companies in the PMB space are seeking capital for expansion, which
should provide an ideal window of opportunity for private equity firms as
other exit options such as a strategic sale and IPOs are expected to remain
slow until the outcome of the 2014 general elections
An impasse between different government ministries regarding restrictions
on FDI in generic drug makers resulted in diminished strategic investor
interest. We expect foreign acquirers to remain wary of acquiring Indiantargets in spite of the government’s decision to retain the 100% FDI limit until
after the general elections
Indian pharmaceutical giants Cipla and Sun Pharmaceutical Industries are
known suitors and have reportedly been eyeing generic drug manufacturers
in Japan, Europe and the US. High interest rates and difficulties in raising
funds for deals will however continue to pose problems for Indian firms on
the acquisition warpath
Top Pharma, Medical & Biotech deals involving Indian targets
Ann. Date Bidder company Target company Seller company Bidder advisors Target/Seller advisors Deal Value(US$m)
27-Feb-13 Mylan Inc Agila Specialties PrivateLimited; and AgilaSpecialties Asia Pte Limited
Strides Arcolab Limited FA: Morgan Stanley
LA: Barbosa, Mussnich & Aragao;Morgan Lewis & Bockius; Osler,Hoskin & Harcourt; PlatinumPartners; Skadden Arps SlateMeagher & Flom; Slaughter andMay
FA: Jefferies; Moelis &Company
LA: Borden Ladner Gervais;DSK Legal; Haynes andBoone; Herbert SmithFreehills; Jones Day;Pinheiro Neto Advogados
1,600
16-Dec-13 GlaxoSmithKline Plc GlaxoSmithKlinePharmaceuticals Ltd(24.3% Stake)
FA: HSBC
LA: Slaughter & May
FA: -
LA: -
1,035
13-Dec-13 Torrent Pharmaceuticals Ltd Elder PharmaceuticalsLimited (Branded DomesticFormulation Business)
Elder PharmaceuticalsLimited
FA: Deloitte
LA: -
FA: Nomura Holdings
LA: Khaitan & Co
323
23-Nov-13 Pfizer Ltd Wyeth Ltd FA: Bank of America MerrillLynch
LA: AZB & Partners
FA: Citi
LA: Advis ing FA: Davis Polk& Wardwell
294
27-Nov-13 Kohlberg Kravis Roberts &Co LP
Gland Pharma Limited Evolvence India LifeSciences Fund
FA: Citi
LA: Amarchand & Mangaldas &Suresh A Shroff & Co; SimpsonThacher & Bartlett
FA: -
LA: AZB & Partners
200
0
10
20
30
40
50
60
0
100
200
300
400
500
600
700
800
2010 2011 2012 2013
N u m b e r o f d e a l s
V a l u e o f D e a l s ( $ m )
Buyouts Value
Exits Value
No. of Buyouts
No. of Exits
8/11/2019 India M&a Trend Report 2013
http://slidepdf.com/reader/full/india-ma-trend-report-2013 3/4
India M&A Trend Report: 2013
Top Deals
Ann. Date Bidder company Target Company Seller company Buy-side Advisory Sell-side Advisory Deal Value ($m)
30-Apr-13 Unilever NV Hindustan Unilever Limited(14.8% Stake)
FA: HSBC; UBS Investment Bank
LA: Linklaters; Talwar Thakore &Associates
FA: Citi
LA: Advis ing FA : Davis Polk& Wardwell
3,549
25-Aug-13 ONGC Videsh Limited Rovuma Offshore Area 1Block (10% Stake)
Anadarko PetroleumCorporation
FA: Bank of America MerrillLynch
LA: Simmons & Simmons
FA: Citi
LA: -
2,640
25-Jun-13 ONGC Videsh Limited; andOil India Limited
Rovuma Offshore Area 1Block (10% Stake)
Videocon Mauritius EnergyLimited
FA: Bank of America MerrillLynch; Morgan Stanley
LA: Kochhar & Co; PLMJ -Sociedade de Advogados;Simmons & Simmons
FA: Credit Suisse; StandardChartered; UBS InvestmentBank
LA: Amarchand &Mangaldas & Suresh AShroff & Co
2,475
24-Jul-13 Ambuja Cements Limited ACC Limited (50.01% Stake) Holcim Ltd FA: Axis Capital
LA: Amarchand & Mangaldas &Suresh A Shroff & Co
FA: Citi
LA: Homburger
2,433
27-Feb-13 Mylan Inc Agila Specialties PrivateLimited; and AgilaSpecialties Asia Pte Limited
Strides Arcolab Limited FA: Morgan Stanley
LA: Barbosa, Mussnich & Aragao;
Morgan Lewis & Bockius; Osler,Hoskin & Harcourt; PlatinumPartners; Skadden Arps SlateMeagher & Flom; Slaughter andMay
FA: Jefferies; Moelis &Company
LA: Borden Ladner Gervais;
DSK Legal; Haynes andBoone; Herbert SmithFreehills; Jones Day;Pinheiro Neto Advogados
1,600
League Tables to M&A Activity Involving India
Financial advisor league table by value – 2013
Legal advisor league table by value – 2013
Rank2012 2013
House Value ($m)Deal
count% Value change
2 1 Citi 9,277 7 -49.7%
9 2 UBS Investment Bank 6,024 2 57.3%
3 3 Bank of America Merrill Lynch 5,327 5 -61%16 4 HSBC 4,993 4 234%
1 5 Morgan Stanley 4,168 8 -79.5%
10 6 Standard Chartered 3,762 4 12.2%
11 7 Axis Capital 3,508 9 20.1%
5 8 Credit Suisse 3,240 3 -69.3%
- 9 Moelis & Company 2,129 3 -
6 10 Goldman Sachs 2,056 5 -79.7%
32 11 Jefferies 1,600 1 306.1%
15 12 Barclays 1,551 5 -0.5%
12 13 Kotak Investment Banking 1,072 10 -52.6%
13 14 Rothschild 1,062 8 -43.3%
- 15 Macquarie Group 1,043 3 -
Rank2012 2013
House Value ($m)Deal
count% Value change
1 1Amarchand & Mangaldas &Suresh A Shroff & Co 10,149 38 -51.2%
25 2 Simmons & Simmons 5,115 2 411.5%
16 3 Jones Day 4,009 4 248.3%
46 4 Davis Polk & Wardwell 3,886 4 1,070.5%
39 5 Linklaters 3,648 3 825.9%
134 6 Talwar Thakore & Associates 3,601 5 -
7 7 Slaughter and May 3,350 5 -31.4%
89 8 White & Case 3,333 5 9,158.3%
6 9 AZB & Partners 3,305 45 -36.4%
- 10PLMJ - Sociedade deAdvogados 2,475 1 -
122 11 Bowman Gilfillan Africa Group 2,436 2 -
- 12 Homburger 2,433 1 -
- 13= CMS 2,331 1 -
- 13= Sullivan & Cromwell 2,331 1 -
10 15 Khaitan & Co 2,246 27 -37.5%
Financial advisor league table by deal count – 2013
Legal advisor league table by deal count – 2013
Rank2012 2013
House Value ($m)Deal
countCount change
1 1 EY 534 21 4
19 2 PwC 656 11 6
7 3 Kotak Investment Banking 1,072 10 011 4 ICICI Securities 809 10 1
2 5 KPMG 555 10 -2
3 6 BMR Advisors 208 10 -1
13 7 Axis Capital 3,508 9 1
5 8 Morgan Stanley 4,168 8 -2
17 9 Rothschild 1,062 8 3
65 10 o3 Capital Advisors 99 8 7
9 11 Citi 9,277 7 -2
62 12 Translink 84 6 5
28 13 Bank of America Merrill Lynch 5,327 5 3
16 14 Goldman Sachs 2,056 5 0
20 15 Barclays 1,551 5 1
Rank
2012 2013
House Value ($m)Deal
count
Count change
4 1 AZB & Partners 3,305 45 15
1 2Amarchand & Mangaldas &Suresh A Shroff & Co 10,149 38 -6
3 3 Khaitan & Co 2,246 27 -10
2 4 Desai & Diwanji 617 24 -16
5 5 Trilegal 697 22 2
7 6 J Sagar Associates 693 17 2
19 7 DLA Piper 1,573 13 8
9 8 Tatva Legal 219 13 2
10 9 Nishith Desai Associates 115 8 -2
11 10 Rajani, Singhania & Partners 298 7 -3
6 11 DSK Legal 1,674 6 -11
26 12 Vaish Associates 627 6 2
16 13 Luthra & Luthra Law Offices 325 6 1
134 14 Talwar Thakore & Associates 3,601 5 4
28 15 Slaughter and May 3,350 5 2
8/11/2019 India M&a Trend Report 2013
http://slidepdf.com/reader/full/india-ma-trend-report-2013 4/4
India M&A Trend Report: 2013
Notes
All data is based on announced transactions over US$ 5m. Deals with undisclosed deal values are included where the target’s turnover exceedsUS$ 10m. Deals where the stake acquired is less than 10% will only be included if their value is greater than US$ 100m. Activities excluded includeproperty transactions and restructurings where the ultimate shareholders’ interests are not changed. All data excludes minority stake deals (10% -30%) where the dominant target geography is Asia-Pacific and the deal value is less than US$ 100m
M&A Trend: Based on the dominant geography of the target company being India. Excludes lapsed and withdrawn bids
Cross-border M&A: Inbound refers to cross-border M&A where the dominant geography of the target company is India. Outbound refersto cross-border M&A where the dominant geography of the bidder company is India. Excludes lapsed and withdrawn bids
Top Announced Deals: Based on the dominant geography of the target, bidder or seller company being India. Excludes lapsed andwithdrawn bids. FA refers to Financial Advisor and LA refers to Legal Advisor
Industry Analysis: Based on the dominant geography of the target company being India. Industry sectors represent the primary industrysector of the target company only. Excludes lapsed and withdrawn bids. The Buyout Sector breakdown includes Other which refers toBusiness Services, Leisure, Agriculture, Defence and Real Estate and. The Exit sector breakdown includes Other which refers to. Buyoutand Exit sector breakdown include TMT which refers to Technology, Media & Telecommunications
League Tables for Total India M&A: Based on the dominant geography of the target, bidder or seller company being India. The Financial Advisor tables exclude lapsed and withdrawn bids, and the legal advisor tables include lapsed and withdrawn bids
League Tables for Indian M&A Advisors: Based on the dominant geography of the target, bidder or seller company being India and the
advisor being an entity which is headquartered in India. The Financial Advisor tables exclude lapsed and withdrawn bids, and the legaladvisor tables include lapsed and withdrawn bids
All values are in US$
All data correct as of 09 January 2014
Criteria
PR contacts
Europe Flora Wilke +44 207 010 6438
Americas Chrissy Carney +1 646 378 3118
Asia Flora Wilke +44 207 010 6438
Commercial contacts
Europe Ben Rumble +44 207 010 6100
Americas Lauren Peterson +1 212 500 7537
Asia Ajay Narang +852 2158 9764
Research contacts
Editor Kirsty Wilson +44 207 010 6271
Analyst Raza Hussain +852 2158 9726
Deal submission contacts
Europe EMEA
Nancy Honsinger
CEE
Zaynab Dost
+44 207 010 6227
+44 207 010 6129
Americas Raquel Mozzer +1 212 574 7866
Asia Asia-Pacific
Miran Lim
Japan
Sophie Kim
+852 2158 9709
+81 3 3597 2055