Merger Market Greater China Q12011

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Greater China M&A Roundup Q1 2011

www.mergermarket.com1

Summary Overview

Despite a lack of mega deals this year, M&A activities in Q12011 totalled US$ 29.4bn, which is a slight increase of1.5% compared to Q1 2010. Most notably, there was a100% increase of deal worth in mid-cap transactions.

With only 32 outbound deals worth of US$ 8.7bn in value,this represents a decrease of 70.5% and 31.9% in value

and volume respectively compared to Q1 2010. But foreigninvestments had been the most bullish since Q4 2008,accounting for 48 deals worth of US$ 6.5bn.

Industrials & Chemicals continues to be the most activesector with 38 transactions. By value as well, out of the top5 announced deals in Greater China, 3 deals took place inthe Industrials & Chemicals sector.

Freshfields Bruckhaus Deringer retained its top spot forlegal advisor league tables for Greater China, while JunheLaw Offices came first when the data is limited to Chinaonly.

M&A Trend Q1 2011

GREATER CHINA (China, Hong Kong, Taiwan, Macau)Financial Adviser League Tables by Value Q1 2011Rank Q1

2010 2011 House Value ($m)Deal

count% Valuechange

7 1 Morgan Stanley 5,987 5 92.1%

2 2 China International Capital 5,457 6 -23.6%

1 3 Goldman Sachs 4,083 4 -53.0%

11 4 Citigroup 3,243 4 73.1%

- 5 Compass Advisers 2,423 1 -

- 6 Royal Bank of Scotland Group 2,000 2 -

73 7 Moelis & Company 2,000 1 N/A

- 8 Bank of America Merrill Lynch 1,701 1 -

42 9 Haitong Securities 1,696 5 1,053.7%

- 10 Kim Eng Securities 1,255 3 -

4 11 JPMorgan 1,105 2 -79.2%

5 12 GF Securities 1,073 2 -74.4%

34 13 Bank of China International 1,025 1 385.8 %

- 13= Guoyuan Securities 1,025 1 -

- 13= Huatai United Securities 1,025 1 -

Financial Adviser League Tables by Deal Count Q1 2011Rank Q1


countCount

change

2 1 China International Capital 5,457 6 0

1 2 Morgan Stanley 5,987 5 -2

51 3 Haitong Securities 1,696 5 4

7 4 Goldman Sachs 4,083 4 1

4 5 Citigroup 3,243 4 0

10 6 UBS Investment Bank 418 4 1

- 7 Kim Eng Securities 1,255 3 3

- 8 Standard Chartered 970 3 3

32 9 CITIC Securities 816 3 2

12 10 Access Capital 469 3 0

5 11 Somerley 384 3 -1

23 12 China eCapital 246 3 1

- 13 M&A International 142 3 3

- 14 Royal Bank of Scotland Group 2,000 2 3

9 15 JPMorgan 1,105 2 -1

Legal Adviser League Tables by Value Q1 2011

Rank Q12010 2011 House Value ($m)

Dealcount

% Valuechange

1 1 Freshfields Bruckhaus Deringer 4,724 7 -88.6%

- 2 Jun He Law Offices 2,740 2 -

43 3 Lee and Li Attorneys at Law 2,735 4 685.9%

5 4 S impson Thacher & Bartlett 2 ,703 2 -92.4%

17 5 Skadden Arps Slate Meagher & Flom 2,608 3 -28.7%

60 6 DLA Piper 2,562 3 1,797.8%

19 7 Allen & Overy 2,461 4 -0.7%

- 8= GKH Law Offices 2,423 1 -

- 8= Goldfarb, Levy, Eran, Meiri & Co 2,423 1 -

- 8= Herzog, Fox and Neeman 2,423 1 -

15 11 Bak er & McKenzie 2,396 3 -58.3%

9 12 Debevo ise & P limpton 2,160 1 -93.9%

- 13= Selmer 2,000 1 -

- 13= Thommessen 2,000 1 -

- 13= Wiersholm 2,000 1 -

Legal Adviser League Tables by Deal Count Q1 2011Rank Q1


countCount

change

1 1 Freshfields Bruckhaus Deringer 4,724 7 -9

2 2 Jones Day 302 5 -8

16 3 Lee and Li Attorneys at Law 2,735 4 0

13 4 Allen & Overy 2,461 4 0

49 5 LLinks Law Offices 1,961 4 3

20 6 Clifford Chance 1,726 4 1

7 7 Skadden Arps Slate Meagher & Flom 2,608 3 -3

3 8 DLA Piper 2,562 3 -9

4 9 Baker & McKenzie 2,396 3 -7

41 10 Sullivan & Cromwell 1,940 3 2

22 11 Fangda Partners 1,225 3 0

5 12 King & Wood 535 3 -4

15 13 Latham & Watkins 514 3 -1

29 14 Mallesons Stephen Jaques 414 3 1

12 15 Linklaters 335 3 -1

CHINAFinancial Adviser League Tables by Value Q1 2011


Dealcount

% Valuechange

2 1 China International Capital 4,957 5 -30.6%

1 2 Goldman Sachs 3,697 2 -55.1%

8 3 Morgan Stanley 2,901 2 9.1%

- 4 Compass Advisers 2,423 1 -

- 5= Moelis & Company 2,000 1 -

- 5= Royal Bank of Scotland Group 2,000 1 -

- 7 Bank of America Merrill Lynch 1,701 1 -

28 8 Haitong Securities 1,696 5 1,053.7%

10 9 Citigroup 1,083 3 -42.2%

5 10 GF Securities 1,073 2 -74.4%

Financial Adviser League Tables by Deal Count Q1 2011


Dealcount

Countchange

1 1 China International Capital 4,957 5 -1

33 2 Haitong Securities 1,696 5 4

3 3 Citigroup 1,083 3 -1

22 4 CITIC Securities 816 3 2

16 5 China eCapital 246 3 1


2 7 Morgan Stanley 2,901 2 -2

18 8 GF Securities 1,073 2 1

- 9 Kim Eng Securities 732 2 -



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Legal Adviser League Tables by Value Q1 2011Rank Q1


count% Valuechange


29 2 Simpson Thacher & Bartle tt 2,703 2 1,0 07.8 %

35 3 DLA Piper 2,562 3 2,071.2%




11 7 Allen & Overy 2,324 3 -6.2%

7 8 Skadden Arps Slate Meagher & Flom 2,280 2 -29.8%

- 9= Selmer 2,000 1 -- 9= Thommessen 2,000 1 -

- 9= Wiersholm 2,000 1 -



countCount

change


29 2 Simpson Thacher & Bartlett 2,703 2 10

35 3 DLA Piper 2,562 3 21




11 7 Allen & Overy 2,324 3 0

7 8 Skadden Arps Slate Meagher & Flom 2,280 2 0

- 9= Selmer 2,000 1 -- 9= Thommessen 2,000 1 -

- 9= Wiersholm 2,000 1 -

HKFinancial Adviser League Tables by Value Q1 2011


Dealcount

% Valuechange

8 1 China International Capital 2,997 2 608.5 %

2 2 Goldman Sachs 2,883 3 -0.8%

- 3 Standard Chartered 970 3 -

9 4 JPMorgan 925 1 126.7%

6 5= Deutsche Bank 523 1 7.6%

- 5= Kim Eng Securities 523 1 -

29 7 Access Capital 469 3 517.1%

- 8= Greenhill & Co 457 1 -

18 8= Macquarie Group 457 1 101.3%

1 8= Morgan Stanley 457 1 -85.3%

Financial Adviser League Tables by Deal Count Q1 2011Rank Q1


countCount

change


- 2 Standard Chartered 970 3 -


2 4 Somerley 384 3 -1

- 5 M&A International 142 3 -

6 6 China International Capital 2,997 2 0

- 7 Credit Suisse 454 2 -

- 8 Ample Capital 385 2 -

12 9 UBS Investment Bank 196 2 1

- 10 INCU Corporate Finance 54 2 -Legal Adviser League Tables by Value Q1 2011


Dealcount

% Valuechange

51 1= DLA Piper 2,497 1 9,148.1%

- 1= Jun He Law Offices 2,497 1 -

- 3 Zhong Lun Law Firm 925 1 -

3 4 Freshf ie lds Bruckhaus Deringer 863 5 -97.6%

12 5 Skadden Arps S late Meagher & Flom 608 2 -81.9%

- 6 Allen & Gledhill 523 1 -

23 7 Clifford Chance 500 2 -6.7%

21 8 Mallesons Stephen Jaques 41 4 1 -59.3%

- 9= Jincheng, Tongda & Neal 402 1 -

43 9= King & Wood 402 1 268.8%

- 9= Morrison & Foerster 402 1 -

17 9=Richards Butler in association withReed Smith 402 1 -72.1%



countCount

change

1 1 Freshfields Bruckhaus Deringer 863 5 -5

6 2 Skadden Arps Slate Meagher & Flom 608 2 -2

17 3 Clifford Chance 500 2 0

2 4 Slaughter and May 369 2 -3

16 5 Linklaters 196 2 0

19 6= DLA Piper 2,497 1 -1

- 6= Jun He Law Offices 2,497 1 -

- 8 Zhong Lun Law Firm 925 1 -

- 9 Allen & Gledhill 523 1 -

15 10 Mallesons Stephen Jaques 414 1 -1

Cross Border M&A Deal Value Breakdown Q1 2011

Deal Size ($m) Value ($m) Deal count

Change

% Value

Deal

count5 500m* 14,114 162 33.8% -23

501m 1,000m 7,059 10 99.6% 5

1,001m 5,000m 8,197 5 -9.6% 1

5,000m and over 0 0 -100.0% -1

Total 29,370 177 1.5% -18


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Industry Analysis

Top Announced Deals Q1 2011

Ann. Date Bidder company Target Company Seller company Buy-side Advisory Sell-side AdvisoryDeal Value

($m)

14-Mar-11 Dr Cheng Yu-Tung (PrivateInvestor)

Ping An Insurance (Group)Company of China Ltd(3.44% Stake)

FA: China InternationalCapital; Goldman SachsLA: DLA Piper; Jun He LawOffices

2,497

11-Jan-11 China National ChemicalCorporation

Makhteshim Agan IndustriesLimited (60% Stake)

FA: Compass AdvisersLA: GKH Law Offices;Simpson Thacher & Bartlett

LA: Goldfarb, Levy, Eran,Meiri & Co.; Herzog, Fox andNeeman; Kirkland & Ellis

2,423

12-Jan-11 Ruentex Group; and PouChen Corporation

Nan Shan Life InsuranceCompany Ltd

American InternationalGroup Inc

FA: CitigroupLA: Baker & McKenzie;Freshfields BruckhausDeringer

FA: Morgan StanleyLA: Debevoise & Plimpton;Lee and Li Attorneys at Law

2,160

11-Jan-11 China National Bluestar(Group) Co Ltd

Elkem AS Orkla ASA FA: Royal Bank of ScotlandGroupLA: Selmer; Skadden ArpsSlate Meagher & Flom

FA: Moelis & CompanyLA: Thommessen;Wiersholm

2,000

1-Feb-11 Wanhua Industrial Group CoLtd

BorsodChem Zrt (58% Stake) VCP Vienna; and Permira FA: Bank of America MerrillLynchLA: Allen & Overy

FA: Morgan StanleyLA: Freshfields BruckhausDeringer; Clifford Chance

1,701

Sector

2011Q1 2010Q1 change

Value ($m) market share Deal count Value ($m) market share Deal count Value (%) Deal count

Financial Services 8,665 29.5% 16 8,199 28.3% 16 5.7% 0

Industrials & Chemicals 5,839 19.9% 38 1,973 6.8% 37 195.9% 1

Energy, Mining & Utilities 3,953 13.5% 21 6,435 22.2% 27 -38.6% -6

Media 1,958 6.7% 5 47 0.2% 5 4,066.0% 0

Consumer 1,804 6.1% 21 2,011 7.0% 27 -10.3% -6

Real Estate 1,378 4.7% 8 3,916 13.5% 19 -64.8% -11

Technology 1,231 4.2% 18 1,284 4.4% 19 -4.1% -1

Pharma, Medical & Biotech 1,054 3.6% 14 431 1.5% 12 144.5% 2

Transport 911 3.1% 7 2,333 8.1% 10 -61.0% -3

Construction 796 2.7% 8 677 2.3% 8 17.6% 0

Telecommunications 637 2.2% 2 630 2.2% 2 1.1% 0

Business Services 573 2.0% 11 692 2.4% 7 -17.2% 4

Leisure 469 1.6% 6 111 0.4% 4 322.5% 2

Agriculture 103 0.4% 2 194 0.7% 2 -46.9% 0

Total 29,371 177 28,933 195 1.5% -18

NotesAll data is based on announced transactions over US$ 5m. Deals with undisclosed deal values are included where the targets turnover exceeds US$ 10m. Deals where thestake acquired is less than 30% will only be included if their value is greater than US$ 100m. Activities excluded include property transactions and restructurings where theultimate shareholders interests are not changed. All data excludes minority stake deals (10% - 30%) where the dominant target geography is Asia-Pacific and the deal valueis less than US$ 100m.

M&A Trend: Basedon the dominant geography of the target company being China, Hong Kong, Taiwan or Macau. Excludes lapsed and withdrawn bids; League Tables: Basedon the dominant geography of the target, bidder or seller company being China, Hong Kong, Taiwan or Macau for Greater China tables, and

China/Hong Kong for their respective tables. The financial adviser tables exclude lapsed and withdrawn bids and the legal adviser tables include lapsed andwithdrawn bids. Previous period changes refer to the time period Q1 2010;

Cross Border M&A: Inbound refers to cross border M&A where the dominant geography of the target company is China, Hong Kong, Taiwan & Macau. Outboundrefers to cross border M&A where the dominant geography of the bidder company is China, Hong Kong, Taiwan & Macau. Excludes lapsed and withdrawn bids;

Deal Value Breakdown: Excludes lapsed and withdrawn bids. Previous period changes refer to the time period Q1 2010. $5m to $500m range includes undiscloseddeals;

Industry Analysis: Basedon the dominant geography of the target company being China, Hong Kong, Taiwan or Macau. Industry sectors represent the primaryindustry sector of the target company only. Excludes lapsed and withdrawn bids;

Top Announced Deals: Basedon the dominant geography of the target, bidder or seller company being China, Hong Kong, Taiwan or Macau. Excludes lapsed andwithdrawn bids. FA refers to Financial Adviser and LA refers to Legal Adviser.

Criteria: http://www.mergermarket.com/pdf/deal_criteria.pdf All data correct as of 13 April 2011.

ContactsPR:Michel [email protected]: +852 2158 9706

Deal Submissions:Terre [email protected]: +852 2158 9733

Documents

Merger Market Greater China Q12011