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Global and Regional M&A: 2014: Including League Tables of Legal Advisors
Global and Regional M&A: 2014: Including League Tables of Legal Advisors
Global
Europe
US
Asia-Pacific
Japan
Emerging Markets
League Tables
$901.4 bn 40.5%
$1,409.4 bn 56.6%
$29.3 bn -33.5%
Global M&A
$591.6 bn 43.4%
Sellers bask in US$ 3,230bn-worth of global M&A activity, only 11.8% less than 2007
uu A record value for private equity exits, the average price tag at an all uu The Consumer sector (US$ 80.9bn) was particularly active with regard uu There was an abundance of cross-border deal making overall in 2014,
time high, and soaring cross-border deal-making, proved 2014 to be to private equity exits, reaching the highest value and deal count on demonstrated by the highest deal count record and the second
a seller’s market. The year ended with US$ 3,230bn-worth of deals, record. Trade buyers swooped in for Consumer companies and took an highest value. The 5,501 deals worth US$ 1,399.7bn increased 82.6%
44.7% above 2013’s total (US$ 2,232.5bn), and down just 11.8% from 89.6% proportion of the sector’s total exits with 182 deals worth US$ by value compared to 2013 with 630 more announcements.
the last highest annual total in 2007 (US$ 3,660.4bn). 72.5bn, 154.3% higher than the last peak in 2012.
uu Global M&A value hit a post-crisis high at the end of Q3 2014 uu Energy, Mining & Utilities was the leading sector by value with 1,638 uu The size of cross-border transactions played a role in the deal value
and continued to climb towards the third highest annual total on deals totaling US$ 632.5bn, up 47.5% from 2013. TMT continued increase. The average deal size for cross-border deals jumped to US$
Mergermarket record (since 2001). This came in spite of a reversal of an upswing from 2013, seeing over 400 more announcements and 453.9m, up from US$ 291.4m in 2013 and above the 2007 peak (US$
quarterly increases from Q4 2013 to Q2 2014, after which totals fell an 18.9% increase by value reaching US$ 604.2bn. However, it was 437.7m).
quarter-on-quarter with Q4 dropping 7.5% from Q3 to US$ 787.8bn. Pharma, Medical & Biotech activity that stole the limelight in 2014.
uu 2014 saw private equity firms choosing to dispose of assets they had uu The Pharma, Medical & Biotech sector accounted for 52.3% of the uu The inflated deal size was in part due to the sudden attention to US
been holding onto, resulting in the year seeing record exits by both total value of lapsed deals during the year (US$ 224.1bn), but the companies from Europe. The total value of deals involving European
value at US$ 489.3bn (which soared to 21.4% above 2007's peak) resurgence in the sector still amounted to 1,215 deals reaching an companies targeting the US hit the highest on record at US$ 259.7bn
and number of deals (2,054). Trade buyers led with a record 1,484 all time high value at US$ 379.5bn during 2014. Tax inversions and with 421 announcements. For example, German corporations made
transactions worth US$ 367bn. The 271 more deals than in 2013 a global trend towards cross-border M&A resulted in deals in the three of their largest ever US-based acquisitions during 2014, with all
resulted in a 82.3% higher deal value than 2013's US$ 201.3bn. industry between different countries accounting for a majority share of three valued over US$ 12.7bn.
total deal value at 67.7% with US$ 257bn-worth of deals.
Deal count
379.5 11.8%
2010 459.7 431.6 494.5 709.8 Total 2,095.6
Biotech 500 2,000
10.6%
Industrial & 235.5 400 1,500
2011 612.7 582.9 596.9 475.6 Total 2,268.1 345.6 10.7%
Chemicals 300
1,000
2012 462.2 565.0 521.4 754.4 Total 2,303.0 10.5%
Consumer 234.7 200
338.2 10.5% 500
2013 445.9 558.3 650.9 577.4 Total 2,232.5 100
Financial 238.5
0 10.7%
0 0
2014 633.8 957.2 851.3 787.8 Total 3,230.0 Services 226.8 7.0% 2007 2008 2009 2010 2011 2012 2013 2014
Top deals 13 32 Blake, Cassels & Graydon 237,464 109 60,030 295.6%
17 55 Paul Weiss Rifkind Wharton & Garrison 216,274 142 33,274 550.0%
68.5 13-Feb-14 Comcast Corporation Time Warner Cable Inc
18 17 Cravath, Swaine & Moore 209,307 70 144,444 44.9%
65.5 18-May-14 AT&T Inc DIRECTV 20 35 Baker Botts 191,148 70 53,994 254.0%
Europe's M&A makes a sudden rebound to a post-crisis high with deals worth US$ 901.4bn
uu After a rather subdued 2013, European M&A activity rebounded uu Private equity exits stood at US$ 165.5bn, a 94.5% surge on 2013 uu Europe’s 1,184 inbound deals totaled US$ 320.6bn and reached a
strongly in 2014, climbing to a post-crisis high at US$ 901.4bn. This and the highest figure since 2007. The average price paid for an exit record high by both deal value and deal count during 2014 (since
was a 40.5% increase from 2013 (US$ 641.4bn), making it the highest exceeded even the peak years at US$ 492.7m. Consumer (US$ 37.9bn) 2001). The proportion of total M&A accounted for by inbound activity
value since 2008 when it stood at US$ 1,003.8bn. Volume was up by a and Industrials & Chemicals (US$ 29.2bn) saw the highest values. climbed to a 35.6% peak.
modest 4.8% between 2013 and 2014 (5,816 versus 6,094).
uu The ongoing consolidation of Europe’s Telecommunication industry uu Most of the inbound investment came from US-based companies
uu There was a sense of confidence in global boardrooms during 2014 saw M&A in the TMT sector worth US$ 168.2bn account for the highest which accounted for 60.7% or US$ 194.6bn-worth of inbound deals.
and this filtered through to European targets where the average price share of Europe’s value, with domestic transactions accounting for This was a 80.6% increase from 2013 and also 8.5% above the previous
paid for a company was US$ 365.4m, the highest in seven years. most of it (US$ 120.2bn). One of the trends currently shaping the high in 2008 (US$ 179.3bn).
sector is the convergence towards the “quad” model, with operators
uu On a quarter-by-quarter basis, 2014’s M&A activity got off to a slow bundling together internet, TV, landline and mobile services. uu Mirroring the inbound deal flow, 71% of total outbound M&A was also
start in Q1 with deals valued at US$ 176.5bn, peaking at US$ 312.9bn directed towards the United States (US$ 259.7bn), the highest value on
in Q2, and seeing a decline thereafter to US$ 202.2bn in Q3, and a uu The Pharma, Medical & Biotech sector was the second most active Mergermarket record (2001). As a result, after one of the lowest years
slight increase in Q4 with US$ 209.9bn-worth of deals. in 2014 with US$ 114.9bn-worth of deals reaching the highest on for European outbound M&A in 2013, outbound activity surged to its
Mergermarket record after a 162.3% jump from 2013. highest level since 2007 during 2014 with US$ 365.8bn-worth of deals,
uu Some eurozone countries showed signs of recovery. In Spain for up 190% from the previous year.
example, the US$ 57.2bn-worth of deals increased 77.1% from 2013.
The country has a strong pipeline for 2015, although the second
half could be more complicated as attention will turn to the national
general election.
396.7
135.6 21.1%
TMT 168.2 18.7%
2007 265.3 583.4 384.8 286.3
339.4
Total 1,519.8 Pharma,
Medical & 43.8 6.8%
305.6
2008 295.7 203.6 287.4 217.1 Total 1,003.8
Biotech 114.9 12.8%
Energy, Mining
259.1
257.0
2009 121.6 77.8 79.0 188.3 Total 466.7 124.8 19.5%
237.9
& Utilities 104.6 11.6%
220.1
2010
211.5
127.5 114.6 155.1 242.9 Total 640.1
Consumer
190.2
61.6 9.6%
180.9
171.6
2011 184.3 242.0 165.8 133.2 Total 725.3 99.4 11.0%
151.0
136.8
2012 171.6 187.4 111.8 251.7 Total 722.5 Industrial & 11.4%
126.1
122.1
73.4
Chemicals 95.3 10.6%
96.7
2013 136.0 198.4 149.0 158.0 Total 641.4
Financial 96.6 15.1%
2014 176.5 312.9 202.2 209.9 Services
1001 deals
1070 deals
Total 901.4 72.2 8.0%
842 deals
990 deals
768 deals
873 deals
493 deals
540 deals
786 deals
757 deals
947 deals
837 deals
944 deals
813 deals
823 deals
847 deals
21.1 3.3%
Real Estate
72.0 8.0%
uu The top six legal advisors all achieved a higher ranking in 2014 compared to 2013. Freshfields Bruckhaus Deringer led the league 10 15 Allen & Overy 176,153 185 102,956 71.1%
table by value with 201 deals worth US$ 343.3bn even though it had four less mandates. After advising on three of the top ten
11 2 Davis Polk & Wardwell 153,378 45 181,836 -15.7%
global deals in 2014, Blake, Cassels & Graydon moved into the top 20 from 122nd place in 2013 with deals worth US$ 151.8bn.
12 11 Weil Gotshal & Manges 152,345 97 148,153 2.8%
Top deals 13 122 Blake, Cassels & Graydon 151,814 26 3,936 3,757%
39.6 07-Apr-14 Holcim Ltd Lafarge SA 20 26 Fried Frank Harris Shriver & Jacobson 119,264 26 45,828 160.2%
GlaxoSmithKline Plc
14.5 22-Apr-14 Novartis AG GlaxoSmithKline Plc
(Oncology division)
Record high US M&A worth US$ 1,409.4bn led by transatlantic drive and booming deal count
uu A surge from Europe toward US targets, record high deal valuations uu Energy, Mining & Utilities M&A more than doubled in value compared uu Foreign investors flocked towards US targets with a record number
and exit levels, and a deal count nearing 2007’s peak led US M&A to 2013 with 107 more announcements. The US$ 318.1bn-worth of of deals (820) that hit the highest value on record at US$ 373.5bn,
activity to reach a record high last year. Total deal value soared 56.6% deals came despite only two deals making it into the top ten deals of surpassing even pre-crisis levels. Most of the rebound was due to
from US$ 900.1bn in 2013 to US$ 1,409.4bn in 2014, while total deal the year: the re-structuring of Kinder Morgan, valued at US$ 58.8bn, interest coming from European buyers which took a 69.5% share of
count rose 21.5% from 3,937 transactions to 4,782. and Halliburton’s US$ 38bn acquisition of Baker Hughes. total inbound activity (US$ 259.7bn).
uu US firms commanded some of the highest deal valuations globally, uu Dominated by a burst of Technology activity, the most notable uu Inbound M&A from Europe more than tripled compared to 2013
with average deal values increasing 30.15% in the past year, reaching increase by deal count came in the TMT sector (1,022 deals worth US$ (US$ 69.9bn), to US$ 259.7bn in 2014. The US was a prime Industrials
a record high of US$ 616.3m in 2014. Premiums paid jumped to 29% in 302.2bn). The 787 Technology deals eclipsed every other year by deal & Chemicals target for German buyers with more than double the
2014, from 26% in 2013, with an EBITDA multiple of 14.5x. count and value at US$ 122.4bn, up 29.3% from 2013 (US$ 94.7bn). number of deals compared to 2013, and total values surpassing the
previous high of US$ 7.1bn (2006) by a colossal 442.3% at US$ 38.5bn.
uu US private equity exits reached an all-time high in 2014 with 958 uu Spurred on by inexpensive natural gas used as a raw material uu Although not quite at the same rate as inbound deals, outbound M&A
deals valued at US$ 262.1bn, up 70.6% by value compared to 2013 for chemicals, plastics, and packaging as well as for powering also saw an increase to the highest value and deal count on record, up
(US$ 153.6bn on 735 deals). Along with a general rise in Technology manufacturing across all industries, plus a favorable financing market, 65.9% from 2013 (US$ 174.9bn) at US$ 290.1bn. Tax inversions in the
transactions, the past year saw an upswing in exits in the space, the Industrials & Chemicals sector saw a revival in 2014 with 826 Pharma, Medical & Biotech sector were a strong driver as the number
reaching the highest deal count and value on record: 292 deals worth deals worth US$ 145.9bn, up 85.3% from last year (US$ 78.8bn) and of deals exceeded 100 for the first time and saw a total value of US$
US$ 49.6bn, more than double 2013's value (US$ 24.7bn). In the recovering the drop seen from 2012 to 2013. More activity is expected 75.4bn eclipse the last peak in 2011 of US$ 35.9bn.
Pharma, Medical & Biotech sector, the US$ 42.3bn worth of exits in within the auto industry, with asset disposals resulting from increased
2014 was 56.1% higher than the previous peak in 2007 (US$ 27.1bn). consumer demand for alternative fuel and safety technologies.
369.7
Energy, Mining 139.6 15.5%
373.5
& Utilities 318.1 22.6%
2007 351.7 501.1 255.2 229.1 Total 1,337.1
31.7%
284.9
TMT
290.1
2008 145.5 266.4 263.4 78.3 Total 753.7 302.2 21.4%
233.0
Pharma, 11.1%
2009 198.9 186.5 98.4 205.0 Total 688.8 Medical & 99.5
224.8
219.1
223.8
232.0 16.5%
Biotech
196.6
2010 145.1 179.7 154.4 244.7 Total 725.0
189.4
Consumer 83.3 9.3%
174.9
172.6
155.1 11%
161.6
2011 248.2 187.1 207.0 190.0 Total 832.3
144.5
Industrial & 8.8%
133.3
2012 Total 866.7 78.8
128.1 190.0 234.4 314.2 10.4%
Chemicals 145.9
105.5
93.6
2013 178.8 176.0 312.4 233.0 Total 900.1 Business 55.3 6.2%
Services 86.0 6.1%
2014
1,019 deals
1,081 deals
1,096 deals
1,125 deals
285.7 377.5 417.0 329.3 Total 1,409.4
1,279 deals
959 deals
Financial
809 deals
639 deals
902 deals
428 deals
612 deals
613 deals
634 deals
671 deals
597 deals
820 deals
70.8 7.9%
Services 64.9 4.6%
9.7%
Other 87.6
105.2 7.5% 2007 2008 2009 2010 2011 2012 2013 2014
* % indicates market share
14 46 Paul Weiss Rifkind Wharton & Garrison 187,721 121 27,175 590.8%
Deal
Ann. Bidder Bidder Target Target Target Seller 15 20 Fried Frank Harris Shriver & Jacobson 174,032 78 89,810 93.8%
value
date company country company country sector company
(US$bn) 16 54 Richards Layton & Finger 162,727 40 22,610 619.7%
65.5 18-May-14 AT&T Inc DIRECTV 20 32 Blake, Cassels & Graydon 147,943 50 47,760 209.8%
Baker Hughes
Halliburton Company
38.0 17-Nov-14 Incorporated
uu With 3,250 deals worth US$ 591.6bn, both the number of transactions u Private equity activity was another growth base in 2014, which saw uu The ongoing growth in the region’s Consumer sector saw 324 deals
and their total value reached the highest level on Mergermarket record records in buyouts and exits in terms of both value and volume of valued at US$ 55.2bn, an increase of 28.1% by value from 2013. The
in 2014, up 43.4% from 2013’s previous historic high (US$ 412.4bn). deals. A record US$ 68.8bn was invested by private equity firms, up industry saw a record value and deal count of inbound deals with 79
62.4% on 2013. Exits totaled US$ 35.4bn with 185 deals, up 21.1% on transactions worth US$ 18.7bn.
2013’s previous record value (US$ 29.2bn from 138 deals).
uu Inbound investment into the region increased for the second uu The Technology and Media sectors saw a strong level of private equity uu The 427 outbound deals (US$ 89.6bn) was the highest number on
consecutive year, making Asia-Pacific targets a steady driver of the exit activity during 2014. Technology exits had seen a steady rise but record by deal count. However, a tendency to lean toward smaller
overall surge in M&A. As in the previous two years, the bulk of this saw a dramatic increase in 2014, up to 33 exits worth US$ 3bn from investments continued with single digit growth year-on-year for the
investment came from European and American buyers, particularly the just seven in 2008. Since Media exits started in 2005, the level of past two years, running at just above 4%.
former, who spent a total of US$ 34.6bn in 2014, up 28.6% on 2013. activity has increased with 2014 seeing 10 deals worth US$ 4.5bn from
five deals worth US$ 331m in 2005.
uu
The price paid for Asian targets by European bidders increased to uu A total of 399 Technology deals amounted to US$ 53.7bn, 46.9% uu During the last three years, there has been a shift in the sectors of
US$ 254.7m during 2014, up from US$ 192.4m in 2013. Six deals from higher than the US$ 36.5bn from 248 deals in 2013, with tinterest from outbound targets. Outbound M&A has moved away from the Energy,
Western Europe were above US$ 1bn, with the largest seeing Belgium- foreign bidders peaking in 2014 (91 deals worth US$ 9.2bn). A huge Mining & Utilities sector - down 64.3% to US$ 24.6bn in 2014 from
based Anheuser-Busch InBev acquire Oriental Brewery for US$ 6.2bn. jump in buyouts in the sector saw 77 deals at US$ 11.7bn, compared to US$ 68.9bn in 2011 - and towards other sectors including Technology,
A draw to the region from foreign investors could be the EBITDA the 38 in 2013 valued at US$ 9.4bn. Leisure and Transportation, all of which have had a dramatic upsurge
valuation at 16.6x, much lower compared to the previous ten years' in 2014 with some of the highest levels on record.
average of 18.9x.
126.4
Energy, Mining 20.7%
85.5
& Utilities 96.1 16.2%
108.3
2007 85.2 90.7 75.4 92.2 Total 343.5
Industrial & 58.1 14.1%
96.8
2008 74.5 125.8 56.7 90.2 Total 347.2
Chemicals
95.3
82.4 13.9%
89.6
89.7
85.3
12.7%
85.8
2009 45.8 76.8 65.9 105.8 Total 294.3
81.1
83.0
81.2
52.3
TMT 77.5 13.1%
72.1
71.2
2010 66.7 72.1 92.7 130.9 Total 362.4
Financial
66.0
49.5 12.0%
2011 87.3 79.4 115.8 73.9 Total 356.4 Services 56.8 9.6%
48.2
2012 82.0 81.3 105.0 84.0 Total 352.3 43.1 10.5%
Consumer
32.2
55.2 9.3%
2013 69.2 108.2 116.9 118.1 Total 412.4
19.2 4.7%
2014 118.3 171.3 140.8 161.2 Total 591.6 Transport 39.7 6.7%
591 deals
555 deals
372 deals
515 deals
295 deals
376 deals
202 deals
520 deals
316 deals
563 deals
341 deals
560 deals
337 deals
591 deals
349 deals
427 deals
11.4%
Real Estate 46.8
36.6 6.2%
uu South Korean companies were the target in two of the top ten deals which boosted the country’s annual total up to the highest on 3 12 Kim & Chang 56,795 85 20,319 179.5%
record at US$ 73.5bn. Furthermore, the value came from the highest ever deal count with 334 transactions, up from 280 in 2013. A 4 22 JiaYuan Law Offices 54,677 29 13,941 292.2%
strong deal flow is also expected for 2015 particularly in the TMT sector with investment in South Korea’s mobile industry being a
good testing ground for future investment in Southeast Asia, and also in the advertising digitalisation where emerging market coun- 5 3 Linklaters 54,180 59 48,289 12.2%
tries are expected to contribute to 62% of additional ad spend between the years 2013 and 2016, according to research by Publicis. 6 102 Haiwen & Partners 47,545 18 2,375 1,902%
uu Freshfields Bruckhaus Deringer jumped six positions to lead the legal advisor league table by value with 37 mandates accumulating 7 6 Clifford Chance 44,629 73 29,935 49.1%
US$ 89.9bn-worth of deals. The firm last led the rankings in 2010. A big mover was Morrison & Foerster and Haiwen & Partners both 8 1 Herbert Smith Freehills 41,576 105 63,444 -34.5%
entered into the top 20 rankings after being positioned above 50 in 2013.
9 38 Allen & Gledhill 36,699 36 8,732 320.3%
Deal 14 4 Skadden Arps Slate Meagher & Flom 24,822 36 38,135 -34.9%
Ann. Bidder Bidder Target Target Target Seller
value 15 10 Fangda Partners 24,114 59 22,539 7.0%
date company country company country sector company
(US$bn) 16 23 Sullivan & Cromwell 20,436 17 13,840 47.7%
Record low annual value at US$ 29.3bn despite a boost in private equity activity
uu The picture of M&A in Japan during 2014 was in stark contrast to the uu In line with the Asia-Pacific-wide boost in private equity activity, Japan uu Even though there was a large 52.9% drop in the value of inbound
global picture, and the rest of the Asia-Pacific region. Whereas the core saw a strong level of buyouts and exits in 2014. Japan’s 36 buyouts investment which hit a post-crisis low, there were actually 13 more
regions saw a boom in M&A and record peaks, Japan saw record lows. during 2014 were worth US$ 5.5bn, 39% higher than 2013’s value announcements in 2014 compared to 2013. With 46 deals in 2014,
In the second lowest annual total on record, the 376 Japanese M&A (US$ 4bn). The eight Consumer buyouts doubled from 2013 (four) and signs are that investors could be starting to show more interest in the
deals announced in 2014 added up to US$ 29.3bn, 33.5% down on the reached a value not seen since 2007 at US$ 892m. country albeit at a lower price range.
previous year (US$ 44.1bn) and the third consecutive annual decrease
with a downward drift averaging 28.9% per year since 2011.
uu The average deal size was another historic low at US$ 134.4m, brought uu The value of private equity exits hit a three-year high as it increased uu Outbound M&A exceeded 2013 with 242 transactions worth US$
down by the scarcity of deals above US$ 500m. The 13 deals above US$ 33.6% above 2013 with deals valued at US$ 6.3bn. With nine exits, the 53.2bn (versus US$ 48.7bn), though with 13 fewer deals. The year
500m during 2014 amounted to US$ 13.8bn, the lowest in 12 years. Business Services sector was most active by deal count with a total of had seen solid quarterly activity above US$ 10bn but the quarter-on-
US$ 1.6bn making it the only sector to register deals above US$ 1bn. quarter drop throughout the year ended with Q4 seeing a 4.2% lower
deal value than Q3 at US$ 10.3bn.
uu For only the second year on record, 2014 saw every quarter post a
total deal value below US$ 10bn. The final quarter registered US$ uu The Industrial & Chemicals sector overtook TMT as the most active in uu The Consumer sector is one area where outbound activity increased,
7.4bn-worth of deals, up 7.6% from Q3 2014 (US$ 6.9bn) and by 0.6% 2014, with deals worth US$ 5.9bn. The sector increased 13.1% on 2013 with 33 deals valued at US$ 19.8bn being over eight times the value
compared to Q4 2013 (US$ 7.3bn). and accounted for 20.1% of total value, up from 11.8% in 2013. A large compared to 2013 (US$ 2.4bn) and with eleven more deals. This was
part of this was due to the largest deal this year: Mitsubishi Chemical the highest number of deals on record and the highest value since
Holdings Corporation’s US$ 3bn acquisition of Taiyo Nippon Sanso 2006 (US$ 20.1bn).
Corporation accounted for over half of the total value.
115.8
5.2 11.8%
Chemicals 5.9 20.1%
2007 26.1 18.0 11.9 32.2 Total 88.2
5.6 12.7%
2008 17.3 10.8 15.5 12.2 Total 55.8 Consumer 5.2 17.8%
71.8
4.0 13.8%
2010 13.9 7.3 33.2 6.8
61.5
Total 61.2
Financial 2.0 4.6%
3.0 10.4%
2011 Total 83.7 Services
53.2
12.3 17.2 32.7 21.5
48.7
2012 14.1 26.3 13.9 16.2 Total 70.5 Business 2.5 5.6%
Services 2.8
13.4
9.6%
2013 8.1 15.2 13.5 7.3
9.1
Total 44.1
28.8
9.3
8.8
6.3
0.8%
33 deals 7.0
31 deals 6.8
0.3
24.0
24.5
Transport
33 deals
121 deals 19.2
2014 5.6 9.5 6.9 7.4 Total 29.3 2.4 8.1%
48 deals
39 deals
57 deals
46 deals
151 deals
126 deals
125 deals
205 deals
254 deals
255 deals
242 deals
11.2%
Real Estate 5.0
48 deals
1.9 6.6%
10.3 23.3%
Other
4.0 13.5%
* % indicates market share 2007 2008 2009 2010 2011 2012 2013 2014
uu Nishimura & Asahi retained its leading position by deal value even though 20 fewer mandates led to a 25.1% lower deal value at US$ 3 2 Mori Hamada & Matsumoto 17,535 83 30,276 -42.1%
30.5bn. 4 96 Sidley Austin 16,437 3 250 6,475%
H2O Retailing
1.1 31-Jan-14 Izumiya Co Ltd
Corporation
uu Africa & Middle East (MEA) M&A activity in 2014 dropped 9.4% below uu According to Mergermarket intelligence, private equity deal sizes uu Total inbound activity declined in 2014 compared to the previous four
the post-crisis high seen in 2013 (US$ 63.9bn)to US$ 57.9bn. Despite have been creeping up as houses are raising more substantial funds years with deals valued at US$ 14.6bn decreasing 58.9% from 2013
the decrease, 2014 still represented the fourth highest annual value on and are looking to conduct larger deals. “It was common a few years (US$ 35.6bn). Asian companies were the main investors with 40 deals
Mergermarket record (2001). Quarterly values fluctuated throughout ago for some funds to go as low as US$ 20m-US$ 30m, now funds are worth US$ 5.8bn accounting for 40% of the total, a 70% decline by
the year, but ended on a high note in Q4 with a 158.6% increase to US$ indicating to us a minimum size of USD 50m." value as China pulled away from big ticket energy deals.
22.5bn from US$ 8.7bn in Q3 - accounting for 38.9% of the total.
uu A sudden rush for large deals during Q4 saw four transactions each uu The TMT sector saw 74 transactions in 2014 with a total value of US$ uu Outbound activity in 2014 witnessed a 73.5% increase in total value
valued in excess of US$ 2bn, accounting for 23.7% of 2014's total 12.3bn, accounting for 21.2% of the region's total and representing a to US$ 26.2bn from US$ 15.1bn in 2013. European targets represented
value. The final dash for larger deals was in stark contrast to deal sizes 12.5% increase by value. The region’s Technology space was a highlight the largest portion of MEA investments with 77 deals worth US$ 8.8bn
throughout the rest of the year, underlined by the average price paid and saw the most deals on record with 44 transactions worth US$ accounting for 33.5% of total outbound value. MEA companies honed
dropping 15.9% to US$ 202.6m from US$ 241m in 2013. 3.8bn, up from just 24 in 2013. in on Italy with a record 11 deals worth US$ 2.1b, with the country’s
Consumer and Industrials & Chemicals companies the primary targets.
uu Private equity activity was a key deal driver in 2014, accounting for uu A drop in inbound investments resulted in the Energy, Mining &
10.5% of total M&A, up from just 4.2% in 2013 and the second highest Utilities sector being knocked from the top position in 2014. The 59 uu The allure of flourishing new African markets with less competition is
proportion on record. The value of buyouts more than doubled from deals targeting the sector totaled US$ 11.1bn, representing a 19.2% causing a number of South African corporates to cast their lines further
US$ 2.7bn in 2013 to US$ 6.1bn in 2014. The year saw the most exits market share – this marked a 52.2% drop by value and 14 fewer deals afield to other African countries, especially in the face of difficult
within a single year on record at 38 deals worth US$ 5.5bn, up 48.3% than 2013 (73 deals worth US$ 23.2bn). Inbound investments in the conditions at home. The most common deals in 2015 are expected to
by value compared to US$ 3.7bn on 29 deals in 2013. This will come as sector were down 84.1% to just US$ 3.3bn from US$ 20.7bn in 2013. be intraregional, outbound from family businesses, and an increase in
a welcome boost for those investors yet to register any returns from inbound activity from strategic players.
investments in Africa, as well as those looking to invest dry powder.
71.1
17.1%
TMT 10.9
21.2%
12.1
2007 19.9 12.6 20.0 34.7 Total 87.2
Energy, Mining
23.2 36.4%
& Utilities
53.9
2008 13.1 12.9 11.2 14.6 Total 51.8 11.1 19.2%
3.0 4.6%
2009 5.3 4.0 15.4 7.8 Total 32.5 Real Estate 18.4%
43.0
10.6
2010 25.4 8.0 8.2 12.8 Total 54.3
35.6
2.6 4.0%
Consumer 9.8 16.9%
2011 19.8 6.5 11.4 7.2 Total 44.9
30.1
31.3
Financial 5.3%
24.5
24.3
2012 Total 53.2
94 deals
8.8 13.5 10.2 20.6 3.4
23.0
26.2
Services 4.8 8.3%
18.8
2013 12.7 21.6 13.9 15.7 Total 63.9
15.8
129 deals
151 deals
144 deals
100 deals
101 deals
118 deals
145 deals
164 deals
149 deals
139 deals
169 deals
68 deals
7.6
Industrials & 12.3 19.3%
Chemicals 2.3 4.0%
5.4 8.4%
Other 2007 2008 2009 2010 2011 2012 2013 2014
4.0 6.9%
* % indicates market share
uu Despite political hostilities in Russia as well as a drawing back from uu China’s domestic activity helped boost overall values for the country uu The share of inbound M&A values to total M&A increased to
investment in African countries; China’s dash for domestic deals and to the highest value on record. With deal activity surpassing the 1,000 32.1% during 2014, from 24.7% in 2013 - representing the largest
higher price tags demanded by Western European and Latin American deal mark for the first time (1,119 deals) total values peaked at US$ contribution since 2008 (36.4%). A total of US$ 207.5bn-worth of
companies boosted 2014 deal activity in the Emerging Markets. Total 227bn, up 55.3% from US$ 146.2bn in 2013. Overall, domestic deals foreign investment was up 64.7% from US$ 126bn in 2013, evidenced
M&A value increased by 26.5% to US$ 646.5bn, from US$ 511.2bn in accounted for 74.7% of total activity in the region - while Chinese by activity in the TMT sector which saw over a third of its value come
2013, representing the highest annual value on Mergermarket record. targets accounted for half of the top ten Emerging Market deals. from foreign bidders.
uu 2014 marked the first year that every single quarter registered more uu Political tensions in Russia affected M&A activity in the region, with uu Emerging Market companies have also been seeking opportunities
than US$ 100bn-worth of deals. The year got off to a modest start US$ 42.2bn-worth of deals in 2014 representing a 52.1% decline outside of domestic markets with the value of outbound investments
with Q1 registering a total value of US$ 112.1bn. The the middle part compared to 2013 (US$ 88.1bn). Despite these numbers, there remains reaching the second highest total on record at US$ 120.2bn, a 36%
of the year saw things heating up, with Q2 (US$190.2bn) and Q3 cautious optimism for 2015 deal activity, with dealmakers telling increase compared to 2013 (US$ 88.4bn). The majority of this increase
(US$175.7bn) representing the second and fourth highest quarterly Mergermarket that “Russia remains a fundamentally attractive market was the expansion of investments into Europe, with the region
deal values on record. Things cooled off in Q4 (US$168.5bn) with and a pipeline of suspended deals could spark a healthy recovery in accounting for 46.3% of total outbound values in 2014 (US$55.6bn).
values dipping 4.1% compared to Q3. the first half of 2015 – if the geopolitical standoff with the West eases."
uu Leading this expansion were Chinese buyers, which accounted for the
uu The average price paid for companies based in Emerging Markets highest share of emerging Asia investing in Europe with US$ 20.8bn-
increased slightly to US$ 237.3m from US$ 218m with six mega- deals worth of deals (76.2%). Chinese companies focused their investments
(over US$ 10bn) announced in the region in 2014, compared to only on Italy (11 deals, US$ 3.5bn), Germany (24 deals, US$ 2.6bn) and Iberia
one in 2013. In Chile alone there were three deals valued over $3bn in (five deals, US$ 2.2bn) – registering the highest deal count on record
2014, where there had been none in 2013. for all three target locations.
207.5
Energy, Mining 129.7 25.4%
& Utilities 133.4 20.6%
178.3
2007 86.5 124.3 89.8 151.2 Total 451.8
77.7 15.2%
2008 104.8 110.4 50.4 123.5 Total 389.1 TMT
151.9
146.6
102.5 15.9%
141.5
138.2
2009 57.1 86.0 75.7 110.5 Total 329.3 Industrial & 65.9 12.9%
126.0
122.3
Chemicals 83.5 12.9%
120.2
2010 130.8 92.8 101.5 177.7 Total 502.7
107.6
104.3
Financial 55.6 10.9%
93.2
2011 140.0 108.5 139.0 93.4 Total 480.9 Services 61.5 9.5%
88.4
85.7
2012
70.7
105.7 138.8 85.7 195.1 Total 525.3
Consumer 57.0 11.1%
63.2
54.2 8.4%
2013 87.7 133.5 136.1 153.8 Total 511.2
Transport 19.0
0 3.7%
2014 112.1 190.2 175.7 168.5
1,027 deals
38.3 5.9%
414 deals
947 deals
388 deals
663 deals
284 deals
857 deals
402 deals
997 deals
431 deals
956 deals
454 deals
990 deals
443 deals
993 deals
545 deals
Total 646.5
33.0 6.5%
Real Estate 34.7 5.4%
Emerging markets: based on dominant geography of target company being Brazil, Chile, China, Colombia, Energy, Transport Hong Qatar US
Czech Republic, Egypt, Hungary, India, Indonesia, Malaysia, Mexico, Morocco, Peru, Philippines, Poland, Mining & Kong
Russia, South Africa, South Korea, Taiwan, Thailand, Turkey. Utilities
Ireland South
Africa