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A mergermArket report on globAl m&A Activity

MONTHLY M&A INSIDERjune 2013

Monthly M&A Insider | June

INSIDE:

GLOBAL OVERVIEW

LATIN AMERICA

NORTH AMERICA

ASIA!PACIFIC

EUROPE

MIDDLE EAST & AFRICA

ABOUT MERRILL DATASITE & MERRILL CORPORATION

global overview

Two months into Q2 2013, M&A remains sluggish. When comparing April and May 2013 with the same period in 2012, deal volume has dropped by 28% to 1,571 deals, while value has declined 32% to US$269.4bn.

The story behind these depressed values is not a new one. Access to credit remains a major hurdle for small to mid-sized businesses, while many other companies continue to sit on stockpiles of cash or focus on organic growth until economic fundamentals improve. Despite the languid climate, a handful of sectors have not seen such stark drop-offs.

active emerging market acquirersSome of the biggest deals of the past quarter have been generated by APAC and MENA buyers, particularly those from China, Hong Kong, Saudi Arabia and the UAE. Bidders based in APAC emerging markets remain more active than those from MENA, with two APAC buyers featuring among the top ten deals in April and May 2013. But activity with APAC buyers declined slightly YoY over the last two months, while deals with MENA bidders have increased in both size and value by 13% and 76%, respectively. The majority of this activity remains intra-regional, but there are notable examples of buyers from both APAC and MENA looking abroad to take advantage of lower valuations of businesses affected by market sluggishness.

For instance, in early May, state-owned investment vehicle Qatar Foundation Endowment’s plans to purchase a 5% stake in Bharti Airtel, India’s biggest mobile service provider, were announced. Bharti hopes to improve its balance sheet with the US$1.3bn deal, as it posted a steep YoY loss in Q1 2013.

ConsumerIn terms of individual sectors, there were pockets of activity that defied the overall gloomy trend. While volume experienced declines across the majority of sectors, a small number saw value sustained by a few large-cap transactions. Consumer was one such sector, with deal value flat at US$51bn in both April

and May 2012 and 2013. Volume, however, dropped 21.2% over the same period to 241 deals. The robustness is even more surprising because Nestlé’s US$11.9bn purchase of Pfizer Nutrition – one of 2012’s biggest deals – was announced in April 2012.

In April and May 2013, there were a handful of blockbuster deals in the consumer sector, with a large proportion involving emerging market buyers and/or sellers. For instance, China’s Shuanghui International Holdings made public its plans to buy Smithfield Foods, the world’s largest pork producer, for US$6.9bn. If the deal completes, it will be the biggest Chinese takeover of a US-based company. The deal follows a series of scandals surrounding the pork industry in China. In 2011, a chemical banned in the US and China for its negative side-effects was found in some of Henan Shuanghui Investment & Development’s pork.

However, the US has famously struck down other state-owned Chinese companies’ attempts to buy majority stakes in US businesses. The China National Offshore Oil Corporation attempted the takeover of Unocal in 2005 amid mounting political pressure and strong signals from US regulators that they would not approve the deal. US regulators and politicians were concerned about granting a foreign government complete control of a US business, particularly in a strategically important sector. Since then, minority stake purchases have become much more popular. The success of Shuanghui’s takeover of Smithfield Foods could thus herald a significant shift in the way takeovers by state-owned enterprises are perceived in the US, at least of non-natural resource businesses.

Head of research: Elias Latsis

editor: Laura Resetar

For advertising opportunities contact: erik wickman Tel: + (1) 212 686 3329 [email protected]

global overview: Lana Vilner and Kristina Thompson

latin america: Evelyn Cortez and Ashley Klepach

North america: Urna Chakraborty and Dan Kim

asia-Pacific: Samuel Wong and Brandon Taylor

europe: Damien Julliard and Alan Nasrat

Middle east & africa: Marie-Laure Keyrouz

Monthly M&A Insider | June | 01

TREND GRAPHS

GLOBAL OVERVIEW Monthly M&A Insider | June | 02

GLOBAL M&A QUARTERLY TREND GLOBAL M&A QUARTERLY PRIVATE EQUITY TREND

GLOBAL M&A ANNUAL TREND GLOBAL M&A ANNUAL PRIVATE EQUITY TREND

Valu

e (U

S$bn

)

Num

ber of deals

0

200

400

600

800

1,000

1,200

1,400

Q213*

Q113

Q412

Q312

Q212

Q112

Q411

Q311

Q211

Q111

Q410

Q310

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Total value Mid-market value Total volume Mid-market volume

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

Num

ber of deals

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

YTD 2013*201220112010200920082007


Valu

e (U

S$bn

)

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

Num

ber of deals

0

100

200

300

400

500

600

700

800

900

YTD 2013*201220112010200920082007

Valu

e (U

S$bn

)

Buyout value Exit value Buyout volume Exit volume

0

500

1,000

1,500

2,000

2,500

3,000

3,500

Valu

e (U

S$bn

)

Num

ber of deals

0

50

100

150

200

250

300

350

400

Q213*

Q113

Q412

Q312

Q212

Q112

Q411

Q311

Q211

Q111

Q410

Q310

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107


0

100

200

300

400

500

600

700

800

900


TREND GRAPHS

20.2%

12.8%

0.4%

11.3%9.4%

9.3%

10.0%

7.0%

3.9%

3.8%

3.4%3.4%

2.0%1.7% 1.4%

Industrials & Chemicals

Consumer

Business Services

Technology

Energy, Mining & Utilities

Financial Services

Pharma, Medical & Biotech

Leisure

Media

Construction

Transportation

Real Estate

Telecommunications

Agriculture

Defence

15.7%

4.3%

9.1%

7.9%

20.5%

9.3%

9.3%

1.9%

7.7%

1.4%3.7%

4.0%4.2%

0.7%0.3%


Consumer

Business Services

Technology


Financial Services


Leisure

Media

Construction

Transportation

Real Estate

Telecommunications

Agriculture

Defence

20.1%

29.5%

44.4%

2.5% 3.6%Asia-Pacific

Europe

North America

Middle East & Africa

Central & South America

22.4%

40.3%

30.9%

2.3% 4.2%Asia-Pacific

Europe

North America

Middle East & Africa

Central & South America

GLOBAL M&A SECTOR BREAKDOWN YTD 2013

VALUE VOLUME

GLOBAL M&A GEOGRAPHIC BREAKDOWN YTD 2013

VALUE VOLUME


TREND GRAPHS

GLOBAL M&A DEAL SIZE BREAKDOWN YTD 2013

VALUE VOLUME

Return to contents

0

10

20

30

40

50

60

70

80

90

100

YTD 2013*201220112010200920082007

Perc

enta

ge

39.6% 42.0% 40.5%

27.4% 30.1% 29.8%

7.9% 8.9% 7.9% 9.7% 10.1% 9.6%

17.0% 15.3% 16.5%

20.4%19.0% 19.5%

23.0% 19.3% 20.5%27.5% 26.2% 27.4%

12.5% 14.5% 14.6% 15.0% 14.6% 13.7%

29.2%

9.6%

18.9%

28.0%

14.3%

US$0-US$250m

US$251m-US$500m

US$501m-US$2,000m

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

>US$5,001m

80

82

84

86

88

90

92

94

96

98

100

YTD 2013*201220112010200920082007

Perc

enta

ge

87.4%

90.1% 90.9%89.3% 88.8% 89.0%

1.3% 0.9% 1.0% 1.1% 1.1% 1.1%

5.1%

4.6%3.9%

4.5% 4.8% 4.7%

5.5%3.8% 3.7%

4.7% 4.8% 4.8%

0.7% 0.6% 0.5% 0.4% 0.5% 0.4% 0.4%

89.9%

0.9%

4.2%

4.6%

US$0-US$250m

US$251m-US$500m

US$501m-US$2,000m

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

>US$5,001m

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Lost in Transaction?

A MERGERMARKET M&A REPORT ON

LATIN AMERICA

With less than a month left in Q2, M&A activity in Latin America continues to post disappointing numbers with 69 deals and a total of US$9.5bn so far for the quarter. This would mark a slowdown from Q1 2013 numbers of 115 deals worth US$15.8bn. The comparable period last year (Q2 2012) posted 197 deals worth US$46.7bn.

For the second straight month, the top deal in the Latin American region was in the Financial Services sector with Brazil’s Itau Unibanco Holding SA’s announcement to acquire Credicard Group from Citi for US$1.4bn.

In the year-to-date, private equity exits in Latin America have amounted to US$3bn, a noteworthy figure considering all exits in 2012 totalled only US$2.2bn. Even though the second quarter has not yet closed, private equity exits so far have not seen such high value activity in over five years when Q2 2008 saw US$4.1bn in exits.

Energy M&A in May totalled eight deals worth US$2bn, making it the most active sector in the region. Half of the top ten deals in Latin America were in the sector, with the largest transaction being OGX Petroleo e Gas Participacoes SA’s sale of a 40% stake in two offshore blocks in the Tubarao Martelo Field to Malaysia-based Petroliam Nasional Berhad for US$850m. One environmental concern that has been making headlines involves Ecuador’s oil spill in May which was caused by a broken upstream pipeline. This could potentially threaten communities in the country’s Amazon Basin. Ecuador’s government already apologised to Peru when the oil reached there and may soon find itself turning to Brazil next, should they be another country affected by the spill.



TOP DEALS

LATIN AMERICA

TOP 10 LATIN AMERICAN ANNOUNCED DEALS OF THE MONTH (MAY!13)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

14-May-13 Itau Unibanco Holding SA Credicard Group Financial Services Citi n/a n/a - - 1,374

08-May-13 Petroliam Nasional Berhad Tubarao Martelo Field (Blocks BM-C-39 and BM-C-40) (40% stake)


OGX Petroleo e Gas Participacoes SA

- - - - 850

21-May-13 Philip Morris International Inc Philip Morris Mexico SA de CV (20% stake)

Consumer Grupo Carso SA de CV - - - - 700

13-May-13 Mitsui & Co Ltd Energia Sustentavel do Brasil SA (20% stake)


GDF Suez SA - - - - 565

29-May-13 Teekay Offshore Partners LP Teekay Shipping Corporation (Cidade de Itajai unit) (50% stake)

Energy, Mining& Utilities

Teekay Shipping Corporation

- - - - 204

27-May-13 S.A.C.I. Falabella Dicico (50.1% stake) Consumer 1.0 - - - 191

15-May-13 GeoPark Holdings Limited Rio das Contas Produtora de Petroleo Ltda


Panoro Energy ASA - - - - 140

06-May-13 HRT Participacoes em Petroleo SA

BP Energy do Brasil Ltda (Polvo oil field) (60% stake)


BP Energy do Brasil Ltda - - - - 135

21-May-13 Empresas Publicas de Medellin ESP

Tecnologia Intercontinental SA de CV (80% stake)

Construction - - - - 113

12-May-13 Banco Bradesco SA; and BNDES Participacoes SA

Brennand Cimentos SA (19% stake)

Construction Grupo Ricardo Brennand - - - - 105

n/a=not applicable Based on announced deals, including lapsed and withdrawn bids Based on dominant geography of target company being Latin American Data correct as of 06-June-13

Source: mergermarket

TREND GRAPHS

LATIN AMERICA Monthly M&A Insider | June | 08

LATIN AMERICAN M&A QUARTERLY TREND

LATIN AMERICAN M&A ANNUAL TREND

LATIN AMERICAN M&A QUARTERLY PRIVATE EQUITY TREND

LATIN AMERICAN M&A ANNUAL PRIVATE EQUITY TREND

Valu

e (U

S$bn

)

Num

ber of deals

0

10

20

30

40

50

60

70

Q213*

Q113

Q412

Q312

Q212

Q112

Q411

Q311

Q211

Q111

Q410

Q310

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107


0

50

100

150

200

250

Num

ber of deals

0

20

40

60

80

100

120

140

160

180

YTD 2013*201220112010200920082007


Valu

e (U

S$bn

)

0

100

200

300

400

500

600

700

0

100

200

300

400

500

600

700

Num

ber of deals

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

YTD 2013*201220112010200920082007

Valu

e (U

S$m

)


0

10

20

30

40

50

60

Valu

e (U

S$m

)

Num

ber of deals

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

Q213*

Q113

Q412

Q312

Q212

Q112

Q411

Q311

Q211

Q111

Q410

Q310

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107


0

2

4

6

8

10

12

14

16

18

LATIN AMERICAN M&A GEOGRAPHIC BREAKDOWN YTD 2013

20.7%

19.4%

4.4%29.4%

0.5%

16.1%

3.3%0.9%

0.3%0.1%

0.5% 0.8%

3.5%0.1%

Consumer



Financial Services

Business Services

Technology

Transportation

Construction

Agriculture


Leisure

Media

Telecommunications

Real Estate

18.0%

17.5%

16.0%11.3%

11.3%

3.6%

3.6%3.1%

2.1%

1.5% 1.5%1.5%

4.1%

4.6%

Consumer



Financial Services

Business Services

Technology

Transportation

Construction

Agriculture


Leisure

Media

Telecommunications

Real Estate

18.7%

0.6%0.4%

2.0%

0.3%

0.3%

3.9%

8.6%

5.4%

47.8%

12.0%

Brazil

Chile

Colombia

Costa Rica

Dominican Republic

El Salvador

Mexico

Nicaragua

Panama

Peru

Argentina

LATIN AMERICAN M&A SECTOR BREAKDOWN YTD 2013

VALUE VOLUME

LATIN AMERICA Monthly M&A Insider | June | 09

TREND GRAPHS

VALUE VOLUME

0.5%

10.3%

2.1%

1.0%

4.1%4.1%1.0%

0.5%

60.4%

9.3%

3.1%

0.5%0.5%

2.6%

Brazil

Chile

Colombia

Costa Rica

Dominican Republic

El Salvador

Guatemala

Mexico

Nicaragua

Panama

Peru

Uruguay

Argentina

Bolivia

0

10

20

30

40

50

60

70

80

90

100

YTD 2013*201220112010200920082007

Perc

enta

ge

16.1%

30.5%

9.2%

39.3%28.9%

21.5%

15.8%

10.0% 10.1%

7.5%

9.6%13.3%

34.4%

24.5%36.5%

24.8%

27.9%

33.4%

12.9%

20.3%

29.3%

19.0%

18.4%

16.1%

20.8%14.7% 14.9%

9.4% 15.1% 15.7%

14.8%

33.8%

30.3%

21.1%

US$0-US$250m

US$251m-US$500m

US$501m-US$2,000m

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

>US$5,001m

20

30

40

50

60

70

80

90

100

YTD 2013*201220112010200920082007

Perc

enta

ge

84.5%88.2% 85.8%

82.0%87.0% 85.8%

6.7% 4.7% 6.8% 8.1%6.1% 6.2%

7.7%5.3%

5.3%6.7%

5.0% 6.8%

0.9% 1.2% 1.8% 2.0% 1.1% 0.9%0.2% 0.6% 0.3% 1.2% 0.8% 0.3% 1.6%

88.0%

5.4%

4.9%

US$0-US$250m

US$251m-US$500m

US$501m-US$2,000m

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

>US$5,001m

LATIN AMERICAN M&A DEAL SIZE BREAKDOWN YTD 2013

VALUE VOLUME

Return to contentsLATIN AMERICA Monthly M&A Insider | June | 10

TREND GRAPHS

North American M&A for April and May reached 424 deals worth US$107.4bn. Exits and buyouts came in at 59 and 68 totalling US$16.2bn and US$9.6bn respectively. Energy, Mining & Utilities took the largest market share by value for May at 25%, with 17 deals collectively worth US$16.5bn while Industrials & Chemicals took the largest market share by volume at 18.6%, with 41 deals worth US$1.5bn.

The top deal for the month of May was MidAmerican Energy Holdings Company’s US$10.4bn acquisition of NV Energy Inc in the Energy, Mining & Utilities sector, followed by DISH Network Corporation’s US$10.1bn acquisition of Clearwire Corporation. The latter transaction was an expected deal for almost four months before DISH made the higher offer, beating out Sprint Nextel’s bid. However, the company hasn’t changed its recommendation of Sprint’s offer to shareholders. This deal also helped bulk up the Telecommunications sector for May, securing the second highest sector by value spot with US$11.1bn and only six deals.

The third largest deal for May was China-based Shuanghui International Holdings Limited’s US$6.9bn acquisition of US-based Smithfield Foods Inc. If completed, this deal will be the largest Chinese takeover of a US-based company.

Not unsurprisingly, this deal has elicited criticism from prominent government agents who are calling to carefully review the proposed transaction. Specifically, there have been concerns expressed about potential repercussions the deal might have on food safety in the US, in the form of lapses in food quality.

Lastly, Yahoo’s US$1.1bn acquisition of Tumblr this month has created apprehension in the digital world. This move signifies Yahoo’s attempt at re-launching itself to capture a younger demographic in the midst of heavy competition in the space. Tumblr users are already wary of impending data mining but Yahoo CEO, Marissa Mayer, and Tumblr CEO, David Karp, have both stated that Yahoo will operate Tumblr separately, citing synergies between the two companies. All in all, time will tell if the results are worth the hefty price tag.



NORTH AMERICA


TOP DEALS

NORTH AMERICA

TOP 10 NORTH AMERICAN ANNOUNCED DEALS OF THE MONTH (MAY!13)Announced Bidder company Target company Target dominant


1-day before

Deal value

(US$m) Revenue EBITDA P/E

29-May-13 MidAmerican Energy Holdings Company

NV Energy Inc Energy, Mining & Utilities

3.5 8.9 17.6 20.3% 10,363

29-May-13 DISH Network Corporation Clearwire Corporation Telecommunications 8.0 (loss) (loss) 28.3% 10,101

29-May-13 Shuanghui International Holdings Limited

Smithfield Foods Inc Consumer - - - 30.9% 6,949

06-May-13 Bain Capital LLC; Golden Gate Capital; Insight Venture Partners; and GIC Special Investments Pte Ltd

BMC Software Inc Technology 3.1 3.6 19.6 1.8% 6,737

28-May-13 Fidelity National Financial Inc Lender Processing Services Inc

Business Services 1.9 11.5 40.1 0.8% 3,804

28-May-13 American Realty Capital Properties Inc

CapLease Inc Real Estate 11.6 29.5 (loss) 19.7% 1,877

06-May-13 Inergy Midstream LP Crestwood Midstream Partners LP


8.7 17.2 72.9 13.1% 1,869

15-May-13 Pamplona Capital Management LLP

Coinmach Service Corporation; and Air-Serv Group LLC

Business Services Macquarie Capital Alliance Group

- - - - 1,400

29-May-13 Service Corporation International

Stewart Enterprises Inc Consumer 2.7 13.2 30.8 36.0% 1,393

20-May-13 Yahoo! Inc Tumblr Inc Technology Greylock Partners; Sequoia Capital; Insight Venture Partners; Spark Capital; Union Square Ventures; Betaworks Studio LLC; CrunchFund; and DFJ Growth

84.6 - - - 1,100

Based on announced deals, including lapsed and withdrawn bids Based on dominant geography of target company being North American (US + Canada) Data correct as of 06-June-13


TREND GRAPHS

NORTH AMERICA Monthly M&A Insider | June | 13

NORTH AMERICAN M&A QUARTERLY TREND

NORTH AMERICAN M&A ANNUAL TREND

NORTH AMERICAN M&A QUARTERLY PRIVATE EQUITY TREND

NORTH AMERICAN M&A ANNUAL PRIVATE EQUITY TREND

Valu

e (U

S$bn

)

Num

ber of deals

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

YTD 2013*201220112010200920082007


0

1,000

2,000

3,000

4,000

5,000

6,000

Valu

e (U

S$bn

)

Num

ber of deals

0

50

100

150

200

250

300

350

400

450

500

YTD 2013*201220112010200920082007


0

200

400

600

800

1,000

1,200

Valu

e (U

S$bn

)

Num

ber of deals

0

100

200

300

400

500

600

Q213*

Q113

Q412

Q312

Q212

Q112

Q411

Q311

Q211

Q111

Q410

Q310

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107


0

200

400

600

800

1,000

1,200

1,400

1,600

Valu

e (U

S$bn

)

Num

ber of deals

0

50

100

150

200

250

Q213*

Q113

Q412

Q312

Q212

Q112

Q411

Q311

Q211

Q111

Q410

Q310

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107


0

50

100

150

200

250

300

350

Monthly M&A Insider | June | 14NORTH AMERICA

9.3%

12.9%

4.8%

19.0%

5.6%

10.8%

16.6%

0.2%4.7%

6.7%

1.1%

0.1%2.2%

0.2%


Technology

Business Services


Financial Services


Consumer

Media

Leisure

Transportation

Construction

Real Estate

Defence

Agriculture

17.3%

14.1%

12.5%

11.6%

10.3%

9.5%

8.9%

4.8%

2.8%

2.0%

2.0%

1.7% 1.3%

0.6%0.6%


Technology

Business Services


Financial Services


Consumer

Media

Leisure

Transportation

Construction

Real Estate

Defence

Agriculture

NORTH AMERICAN M&A SECTOR BREAKDOWN YTD 2013

VALUE VOLUME

NORTH AMERICAN M&A DEAL SIZE BREAKDOWN YTD 2013

VALUE VOLUME

0

10

20

30

40

50

60

70

80

90

100

YTD 2013*201220112010200920082007

Perc

enta

ge

43.5%49.1%

58.7%

32.0%37.5%

32.9%

6.5%7.3%

5.5%9.7% 8.9% 8.2%

21.5% 17.3%

13.2%

27.7%20.6% 27.2%

18.8%14.0%

13.3%

18.0%

21.2%21.1%

9.6% 12.3% 9.3% 12.6% 11.7% 10.6%

38.7%

7.9%

26.9%

16.2%

10.3%

US$0-US$250m

US$251m-US$500m

US$501m-US$2,000m

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

>US$5,001m

75

80

85

90

95

100

YTD 2013*201220112010200920082007

Perc

enta

ge

85.6%

90.5% 91.1%

87.5% 87.6% 86.8%

1.8%0.9% 1.0% 1.1% 1.4% 1.5%

5.3%

4.2% 3.8%

5.2% 5.4%5.1%

6.2%

3.7% 3.4%5.6% 4.9% 6.0%

1.1%

0.7% 0.7% 0.6% 0.6%0.7%

87.7%

1.0%

4.8%

5.9%

0.6%

US$0-US$250m

US$251m-US$500m

US$501m-US$2,000m

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

>US$5,001m

TREND GRAPHS

Return to contents



ASIA!PACIFIC

Asia-Pacific saw M&A activity for May slip from 194 deals worth close to US$33bn in April to 185 deals valued at US$30bn. This was a minor decrease compared to year-on-year figures which saw 222 deals worth US$50bn come to market in May 2012, declines in volume and value of 20% and 65%, respectively. Private equity activity, however, saw buyouts increase from 12 deals worth US$1.2bn in April 2013 to 14 worth US$1.3bn in May 2013.

China in the energy spaceThe Energy, Mining & Utilities sector took up an overwhelming portion of the value pie, accounting for close to 40% of deal value for the month. These deals were led by China Resources Power Holdings’, the Hong Kong listed energy company, merger with China Resources Gas Group Limited, it’s domestic listed affiliate under the umbrella of China Resources National Corporation. The transaction was valued at US$7bn. The tie up illustrates China’s efforts to consolidate its highly fragmented power and resources sectors, while also making a shift away from coal use to alternative energy or natural gas power.

That deal was followed in value by the US$1.9bn acquisition of certain interests of the Queensland Curtis LNG project by China National Offshore Oil Corporation and the US$800m acquisition of a minority stake in SP Aus Net by the State Grid Corporation of China. Overall, China accounted for 36% of deal volume and 34% of value.

Retail in VietnamUS based private equity and venture capital firm Warburg Pincus is set to make its first investment in Vietnam with a US$200m, 20% stake acquisition in the retail business arm of Vingroup, Vietnam’s largest real estate company and owner-operator of shopping malls in the Southeast Asian nation. The investment will allow Vingroup and its retail division, Vincom Retail, to expand its retail property business and strengthen its recurring revenue streams by increasing the base of retail property assets.

Vincom Retail has seven properties across the country, including shopping centers in Ho Chi Minh City and Hanoi, as well as other projects under development, including Vincom Mega Mall Royal City and Vincom Mega Mall Times City due to be completed later this year. Vietnam, like other emerging markets across Southeast Asia, has a burgeoning middle class with increasing disposable incomes and growing demand for consumer goods. As such, the Consumer sector will benefit from economic growth in the subregion as people acquire higher purchasing power and start to spend more on luxury goods, according to Mergermarket intelligence.

Japan Inc works to deliver deal successAs Japanese firms embark on cross-border M&A forays, these companies must develop best practices to solidify deals and improve risk mitigation in three main areas: post-merger integration (PMI), deal execution, and the use of external advisors. This was the topic of a panel discussion organised by Deloitte Tohmatsu and Mergermarket in Tokyo to highlight trends in Japanese outbound M&A.

The panel of M&A industry professionals said that during PMI, Japanese buyers must set realistic goals and prioritise speed over perfecting minor details, according to a Mergermarket article on the event. Communication was also key to ensure that trust is developed between managers at the target and bidder companies. Japanese companies must also compete thorough due diligence, especially if the level of corruption in the target’s country is high, to avoid unnecessary risks or from becoming ensnared in reputation-tarnishing controversy.

TOP DEALS

Monthly M&A Insider | June | 16ASIA!PACIFIC

TOP 10 ASIA!PACIFIC ANNOUNCED DEALS OF THE MONTH (MAY!13)Announced Bidder company Target company Target dominant


1-day before

Deal value

(US$m)Revenue EBITDA P/E

10-May-13 China Resources Power Holdings Co Ltd

China Resources Gas Group Limited


2.78 14.57 30.05 12.8% 7,009

06-May-13 China National Offshore Oil Corporation Ltd

Queensland Curtis LNG project (certain interest)

Energy, Mining& Utilities

BG Group Plc - - - - 1,930

21-May-13 Hankook Tire Worldwide Co Ltd

Hankook Tire Co Ltd (25.83% stake)


- - - -0.9% 1,440

03-May-13 Qatar Foundation Endowment

Bharti Airtel Limited (5% stake)

Telecommunications 2.58 8.33 56.67 7.4% 1,271

08-May-13 Shanghai Greenland (Group) Co Ltd

SPG Land (Holdings) Limited (60% stake)

Real Estate 5.09 (loss) (loss) -50.3% 1,208

29-May-13 EBOS Group Ltd Symbion Health Limited Pharma, Medical & Biotech

The Zuellig Group Inc 0.24 8.48 - - 886

27-May-13 State Grid Corporation of China

SP AusNet (19.9% stake) Energy, Mining & Utilities

Singapore Power Limited

5.41 9.10 14.80 -3.6% 803

28-May-13 Dashang Co Ltd Dashang Group (Retailing business division)

Consumer Dashang Group Co Ltd; and Dalian Da Shang Investment Management Limited

- - - - 798

22-May-13 Cedar Strategic Holdings Ltd

Hua Cheng Group Real Estate Talented Creation International Limited

43.97 - 105.64 - 748

08-May-13 Sumitomo Mitsui Banking Corporation

Bank Tabungan Pensiunan Nasional (BTPN) PT (16.87% stake)

Financial Services TPG Capital LP n/a n/a 18.93 12.7% 662

n/a=not applicable Based on announced deals, including lapsed and withdrawn bids Based on dominant geography of target company being Asia-Pacific Data correct as of 05-June-13


TREND GRAPHS


ASIA!PACIFIC M&A QUARTERLY TREND

ASIA!PACIFIC M&A ANNUAL TREND

ASIA!PACIFIC M&A QUARTERLY PRIVATE EQUITY TREND

ASIA!PACIFIC M&A ANNUAL PRIVATE EQUITY TREND

Valu

e (US$

bn)

Num

ber of deals

0

20

40

60

80

100

120

140

160

180

Q213*

Q113

Q412

Q312

Q212

Q112

Q411

Q311

Q211

Q111

Q410

Q310

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107


0

100

200

300

400

500

600

700

800

900

Valu

e (U

S$bn

)

Num

ber of deals

0

100

200

300

400

500

YTD 2013*201220112010200920082007


0

500

1,000

1,500

2,000

2,500

3,000

Valu

e (U

S$bn

)

Num

ber of deals

0

10

20

30

40

50

60

70

YTD 2013*201220112010200920082007


0

50

100

150

200

250

300

350

Valu

e (U

S$bn

)

Num

ber of deals

0

5

10

15

20

25

30

Q213*

Q113

Q412

Q312

Q212

Q112

Q411

Q311

Q211

Q111

Q410

Q310

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

0

20

40

60

80

100

120

0

20

40

60

80

100

120


ASIA!PACIFIC

21.8%

14.3%

5.5%

3.1%7.6%

26.2%

3.9%

4.5%

3.6%

1.5%2.7%

1.4%2.9%

0.6%0.4%


Consumer

Technology

Business Services

Financial Services



Real Estate

Transport

Construction

Leisure

Media

Telecommunications

Agriculture

Defence

9.3%

22.7%

12.1%

9.2%8.9%

8.5%

6.9%

4.8%

4.0%

3.9%

3.8%2.8%

1.4%0.3%

1.4%


Consumer

Technology

Business Services

Financial Services



Real Estate

Transport

Construction

Leisure

Media

Telecommunications

Agriculture

Defence

10.3%

36.5%

8.9%

9.3%

7.7%

5.5%

6.0%

3.4%

2.0% 6.4%

4.0%

China

Japan

Australia

Hong Kong

India

South Korea

Thailand

Singapore

Kazakhstan

Indonesia

Other

28.7%

18.5%

13.1%

4.4%

8.5%

9.2%

2.8%1.5%

0.5%2.5%

10.3%China

Japan

Australia

Hong Kong

India

South Korea

Thailand

Singapore

Kazakhstan

Indonesia

Other

ASIA!PACIFIC M&A SECTOR BREAKDOWN YTD 2013

ASIA!PACIFIC M&A GEOGRAPHIC BREAKDOWN YTD 2013

VALUE VOLUME

VALUE VOLUME


TREND GRAPHS


ASIA!PACIFIC M&A DEAL SIZE BREAKDOWN YTD 2013

VALUE VOLUME

TREND GRAPHS

0

10

20

30

40

50

60

70

80

90

100

YTD 2013*201220112010200920082007

Perc

enta

ge

13.9%

38.1%

13.4%

10.9%

23.7%

15.5%

12.6%

30.5%

17.0%

24.4%

29.5%19.9%

13.5%24.5% 21.6%

12.0% 11.2% 11.1% 12.0% 11.5%

22.2%30.3% 26.3% 29.7% 27.7%

15.7%

17.0% 27.2%13.6% 18.2%

20.5% 21.6% 21.9% 20.2% 20.9%

US$0-US$250m

US$251m-US$500m

US$501m-US$2,000m

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

>US$5,001m

75

80

85

90

95

100

YTD 2013*201220112010200920082007

Perc

enta

ge

88.4% 88.4%

0.9% 0.9%

5.4% 5.8%

5.1% 4.5%

0.4%0.2% 0.3% 0.3%0.4%

87.9% 88.7% 87.5% 88.6%

1.0% 1.5% 0.8% 0.9%

5.3%5.1%

6.0%5.4%

5.4% 4.4% 5.3% 4.7%

0.4% 0.4%

88.1%

0.4%

5.4%

5.8%

US$0-US$250m

US$251m-US$500m

US$501m-US$2,000m

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

>US$5,001m

Return to contents


So far this year, M&A activity in Europe is valued at US$207.3bn, a decrease of 30.9% from the US$300.2bn registered for the same period in 2012 and follows a 17.2% decrease in the number of announced deals, 1,814 compared to 2,191 in the same period last year.

Private equity buyout deals registered so far in Q2 2013 are valued at US$15.5bn, a minor decrease of 9.7% when compared to Q1 2013 (US$17.2bn) but still has the potential to catch up by the end of June. This potential seems even more credible considering that the first two months of Q2 are already up 40.9% compared to the first two months of Q1 2013.

Record breaking Actavis-Warner Chilcott boosts sector and country valuesThe US$8.4bn acquisition of Warner Chilcott by Actavis was the largest Pharma, Medical & Biotech Deal so far this quarter. The transaction, which creates a stronger specialty pharmaceutical company and will enable greater competition in the sector, also counts for the largest Irish based Pharma, Medical & Biotech deal since mergermarket history (2001).

This large-cap deal has bolstered the Pharma, Medical & Biotech sector, now the fourth most active by value so far this year. With 94 deals valued at US$25.5bn in Q2, the sector soared with 363.6% in value compared to the US$5.5bn (55 deals) recorded in the whole of Q1. Ireland alone accounted for 80.5% of the total M&A deals targeted in the Pharma, Medical & Biotech sector (US$20.6bn).

Ireland’s M&A is strengthening its position in Europe’s M&A market and recorded an increase of 230.2% compared to the value registered in Q1 (US$5.3bn). The value of H1 so far this year in Ireland has chalked up US$22.4bn-worth of deals.

Europe’s main contender still reignsThe UK sustains its position as the top country in Europe, with 385 deals valued at US$48.1bn so far in 2013, which accounts for a 23.6% share of the total European M&A market. The most significant UK targeted deal in Q2 so far was PAI Partners’ acquisition of the UK based company R&R Ice Cream Plc, engaged in the production and sale of ice cream and frozen confectionery, for US$1.1bn. This deal has contributed to the maintenance of the UK’s role in Europe’s M&A.

The CEE region however, is quickly picking up the pace to catch up to the UK. Eastern countries are becoming favoured globally compared to their developed Western counterparts and it is no mistake that Europe is providing direct access to the same trend via the likes of Russia.

The top Turkish deal saw the local conglomerate Dogus Holding win a privatisation auction to acquire a Turkey based commercial port in the Transportation sector for US$0.7bn – the deal will be part of the long-term plan for more infrastructure projects in the area. Turkey in particular, had a strong start to 2013 with US$7.9bn-worth of deals compared to US$4.3bn in the same time last year, but protests could incur a twist in the opposite direction in H2.


EUROPE

TOP DEALS

Monthly M&A Insider | June | 21EUROPE

TOP 10 EUROPEAN ANNOUNCED DEALS OF THE MONTH (MAY!13)Announced Bidder company Target company Target dominant


1-day before

Deal value


20-May-13 Actavis Inc Warner Chilcott Plc Pharma, Medical & Biotech

3.3 5.9 12.5 4.5% 8,428

07-May-13 Public Sector Pension Investment Board

HOCHTIEF AirPort GmbH (Excluding Athens Airport)

Transportation Hochtief AG - 8.0 - - 1,441

03-May-13 BC Partners Limited Allflex Europe SAS Industrials & Chemicals

Electra Partners LLP; Electra Private Equity PLC; and Intermediate Capital Group Plc

4.8 12.7 - - 1,300

23-May-13 China Construction Bank Corporation; Onexim Group; and Norges Bank Investment Management AS

VTB Bank OAO (undisclosed stake)

Financial Services n/a n/a - - 1,200

30-May-13 Consortium for Club Mediterranee SA

Club Mediterranee SA Leisure 0.4 5.2 850.0 -3.3% 852

16-May-13 Dogus Holding AS Istanbul Salipazari Kruvaziyer Limani/Istanbul Salipazari Cruise Port (Galataport)

Transportation Republic of Turkey Prime Ministry Privatisation Administration

- - - - 702

21-May-13 Novo A/S Xellia Pharmaceuticals AS Pharma, Medical & Biotech

3i Group Plc 3.2 - - - 700

30-May-13 Encore Capital Group Inc Cabot Credit Management (50.1% stake)

Financial Services J.C. Flowers & Co LLC 3.4 8.9 16.6 - 649

08-May-13 OMERS Private Equity Inc Civica Group Limited TMT 3i Group Plc - - - - 607

03-May-13 Banco de Sabadell SA Mediterraneo Vida, Sa De Seguros Y Reaseguros (49.99% stake)

Financial Services Aegon NV n/a n/a - - 591

n/a=not applicable Based on announced deals, including lapsed and withdrawn bids Based on dominant geography of target company being European Data correct as of 05-June-13


TREND GRAPHS


Num

ber of deals

0

100

200

300

400

500

600

700

Q213*

Q113

Q412

Q312

Q212

Q112

Q411

Q311

Q211

Q111

Q410

Q310

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107


Valu

e (US$bn

)

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

Valu

e (US$bn

)

Num

ber of deals

0

20

40

60

80

100

120

140

Q213*

Q113

Q412

Q312

Q212

Q112

Q411

Q311

Q211

Q111

Q410

Q310

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

0

50

100

150

200

250

300

350

400

450


EUROPEAN M&A ANNUAL TREND EUROPEAN M&A ANNUAL PRIVATE EQUITY TREND

EUROPEAN M&A QUARTERLY PRIVATE EQUITY TREND

EUROPEAN M&A QUARTERLY TREND

Valu

e (US$

bn)

Num

ber of deals

0

200

400

600

800

1,000

1,200

1,400

1,600

YTD 2013*201220112010200920082007


0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

Num

ber of deals

0

50

100

150

200

250

300

350

YTD 2013*201220112010200920082007


Valu

e (US$

bn)

0

200

400

600

800

1,000

1,200

1,400

1,600

EUROPE


EUROPEAN M&A GEOGRAPHIC BREAKDOWN YTD 2013

EUROPEAN M&A SECTOR BREAKDOWN YTD 2013

5.2%

5.0%

3.7%

2.5%

10.7%

22.3%

15.2%

10.5%10.0%

8.4%

6.5%

UK

CEE

Republic of Ireland

Benelux

Germany

Northern Europe

France

Italy

Turkey

Iberia

Other

20.2%10.2%

10.6%

1.2%

7.3%

12.6%12.9%

11.9%

5.4%

2.7%

5.0%

UK

CEE

Republic of Ireland

Benelux

Germany

Northern Europe

France

Italy

Turkey

Iberia

Other

23.0%

3.6%

10.4%

14.3%

15.0%

12.5%

3.1%

6.7%

2.0%

1.7%2.1%

0.2%

5.4%Industrials & Chemicals

Consumer

TMT

Business Services

Financial Services



Leisure

Transportation

Construction

Agriculture

Real Estate

Defence

15.7%

13.9%

22.1%

12.0%

8.4%

6.9%

5.3%

4.9%

4.0%3.7%

1.7% 1.1%0.3%


Consumer

TMT

Business Services

Financial Services



Leisure

Transportation

Construction

Agriculture

Real Estate

Defence

VALUE VOLUME

TREND GRAPHS

VALUE VOLUME

EUROPE

Monthly M&A Insider | June | 24europe

trend graphs

european M&a deal size breakdown YTd 2013

value volume

0

10

20

30

40

50

60

70

80

90

100

YTD 2013*201220112010200920082007

Perc

enta

ge

45.0% 44.3%

7.3%8.3%

21.6% 19.2%

15.3% 15.2%

10.8% 13.0%

33.6%28.6% 25.2%

33.8%

8.5% 9.0% 9.9% 9.7%

21.0% 29.2% 29.5%25.7%

20.7%

18.6% 20.7%

17.9%

16.2% 14.6% 14.7% 12.9%

27.7%

8.8%

26.6%

23.5%

13.4%

US$0-US$250m

US$251m-US$500m

US$501m-US$2,000m

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

>US$5,001m

80

82

84

86

88

90

92

94

96

98

100

YTD 2013*201220112010200920082007

Perc

enta

ge

88.6%90.6%

93.1%91.9% 91.2% 91.9%

1.1% 0.9% 0.9% 0.7% 0.9% 0.7%

4.6%

4.2%

2.9%3.3%

3.5%3.6%

5.0%3.7%

2.7% 3.8%4.0%

3.5%

0.7% 0.6% 0.4% 0.4%

92.8%

0.9%

2.9%

3.1%

US$0-US$250m

US$251m-US$500m

US$501m-US$2,000m

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

>US$5,001m

0.3% 0.3% 0.3%

Return to contents

the bid for elan Corporation by royalty pharma lapsed as this publication went to press.


The second quarter‘s year-to-date numbers saw a tremendous decline in overall M&A activity, with volume and value both plummeting. A mere US$5.4bn, the lowest figure since Q2 2009, was injected in 37 deals, down 71% from US$18.6bn compared to the previous quarter. Volume also weakened, coming in 43% lower than Q1’s figure of 65 deals and down 55% on the same period last year when 83 deals were recorded. Mid-market M&A activity has gone through similar drop-offs from Q2 2012 to the current quarter, with declines of 59% and 57% in value and volume respectively, representing 16 deals valued at US$994m.

Despite a vast number of obstacles facing private equity activity in the region, both buyout and exit figures witnessed an upward trend, with this quarter’s buyout (US$881m) up 73% from the previous quarter (US$510m) and an improvement of 354% compared to the same quarter last year (US$194m). Valued at US$887m so far this year, exits have increased by 95% since Q2 2012 (US$454m) recording their highest point since Q3 2011 (US$922m). Although the private equity industry is still a long way off its pre-crisis peaks, investors are regaining confidence and the general outlook for further improvement in the private equity domain remains positive. If one takes a medium to long-term view, the changing geo-political landscape triggered by the Arab spring will pave the way for a transparent investment environment, further exposure to international markets and stable economies.

The Energy, Mining & Utilities sector recorded 18 deals in total worth US$5.2bn (21.6% of the overall MEA M&A targeted activity) and has once again topped the table of the most active and strongest sectors of the region, both in terms of volume and value. Bolstered by this month’s top deal, Berkshire Hathaway’s US$2.1bn-acquisition of a 20% stake in IMC International Metalworking Companies B.V., the Industrials & Chemicals sector came in second with 10 deals worth US$2.7bn accounting for an 11.5% market share of total M&A transactions and an increase of 172% compared with 2012’s year-to-date figures. Ranked third and fourth, respectively, increased activity in the MEA Construction (US$2.3bn) and the Real Estate (US$2.1bn) sectors show signs of a rebound in the property market. Indeed, Dubai based property development firms such as Deyaar Development and Emaar Properties are picking up where they left off when the Emirate’s property bubble burst in late 2008. The former is targeting the city’s Business Bay area to develop two new projects, one of which is worth half a billion UAE dirham (US$137m); developments that had previously been put on hold are also set in the spotlight as a result of an economic recovery generated by trade and tourism.

Egypt’s set to offer potential in 2013 due to its dollar denominated and demographic dependent sectors such as Real Estate, Retail and Healthcare. It proved to be the most attractive MEA market in terms of value so far this year as it sealed 35.9% of total M&A transactions. Israel was in second place with 18.4% triggered by the top deal, followed by Mozambique (17.6%) and the UAE (12.1%), which is a benefactor of the second biggest deal of the entire region, namely, Majid Al Futtaim’s US$682m acquisition of the 25% minority stake in Majid Al Futtaim Hypermarkets owned by Carrefour. Indeed, the extended franchise partnership with the French multinational retailer which resulted on the back of this deal, benefits Majid Al Futtaim (MAF) in many ways. With new geographical regions being targeted, 50 Hypermarkets and 44 supermarkets are already operating under the Carrefour brand throughout MENA, and MAF is hoping to further strengthen its strategic position in the consumer industry.

Going forward, investors should not miss any opportunity in the Middle East and Africa. According to Arfi Naqvi’s, the founder of Abraaj Group, one of the world’s largest growth market investors, the growing uncertainty in the region takes the attention away from investment opportunities. Countries such as Turkey, Egypt and Saudi Arabia have always been ranked in the top ten growth markets. Even today, these countries are expected to grow at 5% per annum over the next five years. Also, there will be an important shift in global economic and, to some extent political, power from West to East. Seven out of ten of the world’s fastest-growing countries are in Africa where Abraaj has injected US$1.5bn across over fifty companies. McKinsey estimates that by 2060 there will be 600 million middle class consumers on the continent.


THE MIDDLE EAST & AFRICA

TOP DEALS

Monthly M&A Insider | June | 26MIDDLE EAST & AFRICA

TOP 10 MIDDLE EASTERN & AFRICAN ANNOUNCED DEALS OF THE MONTH (MAY!13)Announced Bidder company Target company Target dominant


1-day before

Deal value


01-May-13 Berkshire Hathaway Inc IMC International Metalworking Companies BV (20% stake)


Wertheimer family - - - - 2,050

22-May-13 Majid Al Futtaim Holding LLC

Majid Al Futtaim Hypermarkets (25% stake)

Consumer Carrefour SA - - - - 682

01-May-13 The Savola Group Azizia Panda United Inc (18.6% stake); Savola Foods Limited (10% stake)

Consumer A.K. Al-Muhaidib & Sons

- - - - 358

23-May-13 San Miguel Corporation Northern Cement Company (35% stake)

Construction Eduardo Cojuangco (Private Investor)

- - - - 73

29-May-13 Sumitomo Rubber Industries Ltd

Apollo Tyres South Africa (Pty) Limited


Apollo Tyres Ltd - - - - 60

06-May-13 Dimension Data Holdings Plc

AccessKenya Group Limited TMT 2.0 5.3 20.7 41.8% 44

20-May-13 Elan Corporation Plc NewBridge Pharmaceuticals FZ-LLC (48% stake)


Burrill & Company; Kuwait Life Sciences Company

- - - - 40

12-May-13 Mubadala Development Company PJSC; and Dubai Aluminium Company Limited (DUBAL)

Guinea Alumina Corporation Limited


BHP Billiton Ltd; Global Alumina Corporation

- - - - 38

13-May-13 Imperial Mobility International BV

MDS Logistics Plc (49% stake) Transportation UAC of Nigeria 2.1 - - - 27

03-May-13 Nedbank Group Limited Banco Unico (36.4% stake) Financial Services - - - - 24

Based on announced deals, including lapsed and withdrawn bids Based on dominant geography of target company being Middle East or Africa Data correct as of 05-June-13


TREND GRAPHS


MIDDLE EASTERN & AFRICAN M&A QUARTERLY TREND

MIDDLE EASTERN & AFRICAN M&A QUARTERLY PRIVATE EQUITY TREND

MIDDLE EASTERN & AFRICAN M&A ANNUAL TREND

MIDDLE EASTERN & AFRICAN M&A ANNUAL PRIVATE EQUITY TREND

Valu

e (U

S$m

)

Num

ber of deals

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

Q213*

Q113

Q412

Q312

Q212

Q112

Q411

Q311

Q211

Q111

Q410

Q310

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107


0

20

40

60

80

100

120

140

160

Valu

e (U

S$bn

)

Num

ber of deals

0

10

20

30

40

50

60

70

80

90

100

YTD 2013*201220112010200920082007


0

100

200

300

400

500

600

Valu

e (U

S$bn

)

Num

ber of deals

0

2

4

6

8

10

12

14

YTD 2013*201220112010200920082007


0

10

20

30

40

50

60

70

Valu

e (U

S$m

)

Num

ber of deals

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

Q213*

Q113

Q412

Q312

Q212

Q112

Q411

Q311

Q211

Q111

Q410

Q310

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107


0

5

10

15

20

25


MIDDLE EASTERN & AFRICAN M&A SECTOR BREAKDOWN YTD 2013

MIDDLE EASTERN & AFRICAN M&A GEOGRAPHIC BREAKDOWN YTD 2013

VALUE VOLUME

VALUE VOLUME

TREND GRAPHS

35.8%

18.4%

17.6%

5.4%

3.3%

1.9%

0.4%1.1%

12.1%

2.2%

0.8%0.6%

0.4%

Egypt

Israel

Mozambique

United Arab Emirates

South Africa

Morocco

Qatar

Saudi Arabia

Nigeria

Mauritius

Oman

Jordan

Other

3.9%

20.6%

2.0%

2.0%2.9%

15.7%

5.9%

4.9%

1.0%

2.0%

4.9%

23.4%

10.8%

Egypt

Israel

Mozambique

United Arab Emirates

South Africa

Morocco

Qatar

Saudi Arabia

Nigeria

Mauritius

Oman

Jordan

Other

21.6%

0.3%

11.6%

30.5%

9.9%

0.2%

0.3%

6.2%

5.8%

4.6%

0.2%Energy, Mining & Utilities

Financial Services

Consumer



TMT

Business Services

Construction

Leisure

Transportation

Real Estate

Agriculture

8.8%

13.7%

12.7%

17.7%

9.8%

11.8%

8.8%

7.8%

6.9%

3.9%

2.9%2.0%

2.0%Energy, Mining & Utilities

Financial Services

Consumer



TMT

Business Services

Construction

Leisure

Transportation

Real Estate

Agriculture


MIDDLE EASTERN & AFRICAN M&A DEAL SIZE BREAKDOWN YTD 2013

VALUE VOLUME

TREND GRAPHS

Return to contents

0

10

20

30

40

50

60

70

80

90

100

YTD 2013*201220112010200920082007

Perc

enta

ge

67.1%

47.5%53.3%

68.1%59.5%

66.7%

7.5%13.6% 12.7%

8.9% 8.7% 8.3%

11.3%

19.0%13.2%

12.6%

13.5% 13.7%13.2%

18.2% 19.2%

9.4%

17.0%10.4%

0.9% 1.6% 1.0% 1.3%

80.2%

4.9%4.7%

9.5%

0.7%

US$0-US$14.9m

US$15m-US$100m

US$101m-US$250m

US$251m-US$500m

>US$501m

1.7% 0.9% 0

10

20

30

40

50

60

70

80

90

100

YTD 2013*201220112010200920082007

Perc

enta

ge

39.3% 42.7%48.9% 44.4% 47.8% 45.7%

5.6%5.7% 4.0%

5.7% 6.1% 4.3%

15.4%11.5% 13.0%

10.2% 10.8% 12.8%

32.5%36.3%

30.8%33.7% 27.7% 29.3%

7.2% 3.8% 3.3% 6.0% 7.6% 7.9%

50.0%

5.9%5.9%

29.4%

8.8%

US$0-US$14.9m

US$15m-US$100m

US$101m-US$250m

US$251m-US$500m

>US$501m

Drive Deals with Merrill DataSite

A Merrill DataSite virtual data room can help you drive deals forwardMerrill DataSite is established as the market-leader for virtual data rooms (VDRs) in Europe and across the world. As first to market, we have many years of experience to bring to your transaction and have had time to develop and refine our technology, leading to a peerless Project Management and systems infrastructure that operates 24/7/365. This is why many thousands of companies trust us to manage their online due diligence processes.

DataSite’s Smart, Simple and Secure solution drives your deal forward with:

Speed: Your data room can be live in 15 minutes and an average sized project can be up and running in less than 12 hours.

Unrivalled Project Management: Our multilingual project managers between them speak 27 languages, and a dedicated project management team will be assigned to your deal right from the start – giving you peace of mind that the right person is always on hand to address any issue you might have.

Fair, transparent pricing: Our unique all-inclusive pricing package allows you to budget with confidence. All your support and training is included; you won’t need to acquire any third-party software and you won’t have to pay extra to include more participants in your data room.

Our Experience and Track Record: Our award-winning platform provides advanced technology and in-depth functionality. We are trusted by dealmakers around the world to optimise due diligence.

Ease of Use: The user interface in a Merrill DataSite VDR is completely intuitive, replicating the file structure of Microsoft® Windows® Explorer®, which means that users and reviewers can work on their deal without having to learn how to use new software or struggling to get to grips with complex navigation.

The Highest Levels of Security: Security lies at the heart of everything we do. We have handled over 25,000 projects, supporting thousands of confidential deals, so our clients have complete trust in all aspects of our technology and processes. Access and security for all participants in the VDR is controlled by the client administrator and/or a Merrill DataSite project manager.

Your dedicated Merrill DataSite project manager will be there to assist you 24/7/365, no matter where in the world you are located.

To find out why many thousands of companies trust us to manage their online due diligence, call +44 (0)845 602 6916, email [email protected], or visit www.datasite.com

2012 WINNERAcquisitions

International UK VDR Provider of

the Year

2012 WINNERGlobal M&A Advisor M&A

Product/Service of the Year Award

2011 WINNERM&A Advisor International




2010 WINNERM&A Advisor Mid-Market Financing




About Merrill DataSite

Merrill DataSite was created to meet our clients’ needs. Since 2002, we have consistently leveraged the experiences of our clients to add value and leading-edge functionality to the toolset available within our virtual data rooms.

Merrill DataSite enhances transaction successMerrill DataSite is the industry’s acknowledged leader with more than 25,000 projects completed. Private and public companies across the globe have leveraged Merrill DataSite to increase the value of the following types of transactions:

Mergers, acquisitions and divestitures Private placement transactions Leveraged buyout transactions Bankruptcy and reorganisation transactions Financial restructuring transactions Initial public offerings and dual-track processes Asset purchases and liquidations Post-merger integration

Examine documents immediately Patented technology ensures that you never have to wait for a document to be downloaded. Since the data resides on Merrill’s servers, you can simultaneously view an unlimited number of documents in multiple windows without having to close out or save to your “temp” file. When faced with hundreds of documents to review, this feature saves significant time and expense.

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

Search every word in every documentWith large document collections, sophisticated search features are key to finding critical information and accelerating the due diligence process. Merrill DataSite performs Optical Character Recognition (OCR) on each and every letter in each and every document. Our search capabilities allow users to search potentially hundreds of thousands of pages to find what’s relevant to them. Merrill DataSite’s search capabilities ensure nothing is missed in any of the posted documents - regardless of where they may be organised within the index (e.g. find every instance of “contract” and “termination” within 5 words of each other, etc.). Search results are returned much faster and are unlimited in terms of document results and hits within a document. 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.

Protect confidential information”View-only” documents are never downloaded. Merrill DataSite, not the computer’s browser, controls the caching process providing unmatched security levels. Unlike other VDR providers, images are never viewable on the PC’s cache after the conclusion of a session. All activity can be tracked accurately. Auditing and reporting tools provide a verifiable account of each individual’s time spent viewing both documents and specific pages – information that adds negotiating leverage.

Need to work remotely?No problem. Whether you’re working in Beijing or Berlin, you can view your documents online without having to navigate through internal firewalls and email restrictions that often exist for outside company connections and which delay the due diligence process.

Security is our highest priorityMerrill has been a trusted provider of secure information to the financial and legal industries for more than 40 years. Our employees execute letters of confidentiality and we are audited annually (internal and third-party) to make certain our IT infrastructure and processes remain sound. Merrill DataSite was the first VDR provider to be fully accredited with ISO 27001:5000, the industry gold-standard for security certification. In addition, documents are 256-bit SSL encrypted, watermarks are tamperproof and can be customised,

and data can be viewed, printed and downloaded only by the users you designate. Your information is only ever shared with the right people.

The best tool in the industryMerrill DataSite technology allows for the fastest conversion of soft and hard copy documents to the electronic viewing platform. As a result, designated administrators are able to review documents the moment they are available. Through secure, simultaneous access, full text search capabilities and robust reporting tools, both archival and transactional due diligence processes are streamlined. As a result, Merrill DataSite gives you more insight and control, and dramatically reduces transaction time and costs.

As a leading provider of VDR solutions worldwide, Merrill DataSite has empowered over two million unique visitors to perform electronic due diligence on thousands of transactions totalling trillions of dollars in asset value.

www.datasite.com

About Merrill Corporation

Founded in 1968 and headquartered in St. Paul, Minnesota, Merrill Corporation is a leading provider of outsourced solutions for complex business communication and information management. Merrill’s services include document and data management, litigation support, language translation services, fulfilment, imaging and printing. Merrill serves the corporate, legal, financial services, insurance and real estate markets. With more than 5,000 people in over 40 domestic and 22 international locations, Merrill empowers the communications of the world’s leading organisations.

Merrill Transaction and Compliance ServicesThrough 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, reorganisations, 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.

Merrill Legal Solutions Legal Solutions provide both on-demand and on-site litigation support, information management and electronic and print document management services for law firms, corporate legal departments and professional services firms. Examples of our expertise include the creation of searchable litigation document repositories, management of electronic data discovery and the delivery of real-time court reporting and deposition videography services.

Merrill’s Marketing and Communication Solutions MCS supply brand identity management, customer communication and packaged direct marketing programmes for sales professionals in industries, such as real estate, mutual funds and insurance. Examples of our services include customisable corporate identity materials, direct mail marketing pieces and promotional programmes supported by web-based technologies.

Merrill’s Translations Services (Merrill Brink)Merrill Brink provides a range of translation options to help clients achieve the most efficient and cost effective approach to their translation projects. We offer extensive legal translation services for international litigation, intellectual property, patents, contractual matters, antitrust matters, mergers and acquisitions, arbitration and more.

www.merrillcorp.com


MERRILL CORPORATION CONTACTs

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EXECUTIVE MANAGEMENT

Ed BifulkPresident Tel: +1 212 229 6563

EXECUTIVE sALEs

Will BrownRegional Director, Life Science Tel: +33 1 40 06 13 02

Anna scottRegional Director, UK Tel: +44 (0)207 422 6263

Chris BeckmannRegional Director, Germany, Switzerland & Poland Tel: +49 69 244 321 480

Martin AlamriRegional Director, Germany Tel: +49 69 244 321 471

Jérôme PottierRegional Director, France Tel: +33 (0) 1 40 06 13 12

Hakema El-HadadRegional Director, France & Northern Africa Tel: +33 (0) 1 40 06 13 10

Manuel BianchiRegional Director, Europe Tel: +44 (0)207 422 6271

Mike HinchliffeRegional Director, Europe Tel: +44 (0)207 422 6256

Adam PangRegional Director, Europe Tel: +44 (0)207 422 6268

Merlin J. PiscitelliRegional Director, Europe Tel: +44 (0)207 422 6266

Colin schopbachRegional Director, Europe Tel: +44 (0)207 422 6221

Jonathan HughesAccount Manager, Europe Tel: +44 (0)207 422 6267

Malcolm NeateAccount Manager, Europe Tel: +44 (0)207 422 6272

Alex GrossRegional Director, Eastern Europe & Middle East Tel: +49 69 7593 7148

Alvaro OrtegaRegional Director, Southern Europe Tel: +34 610 909 353

Ari LeeRegional Director, North Asia Tel: +852 9855 3758

Vincent LorkRegional Director, South East Asia Tel: +65 6248 4602

John PateRegional Director, Australia & New Zealand Tel: +612 8667 3064

Manuel BentosinosRegional Director, Mexico, Columbia & Caribbean Tel: +52 55 9171 2237

Ana Paula Macêdo Távora de CastroVice President, South America Tel: +55 11 9908 0858

Luis Felipe salles CunhaRegional Director, Brazil Tel: +55 11 3568 2429

Brian GilbreathVice President, Midwest & Latin America Tel: +1 404 934 8085

Hank GregorySVP, Western Canada & Pacific Northwest Tel: + 604 603 4360

Todd CavenNorthern California, Pacific Northwest & Western Canada Tel: +1 651 632 4369

Ryan MacMillanRegional Director, Canada Tel: +1 416 214 2448

Jason HedgesRegional Director, Canada Tel: +1 416-878-3260

Michael KennedyRegional Director, New England Tel: +1 207 829 4369

Ross WhittakerRegional Director, New England Tel: +1 617.535.1516

Jon LenihanRegional Director, Boston Tel: +1 617-535-1618

scott RedikerRegional Director, Mid Atlantic Tel: +1 443-690-3122

Forrest R. DoaneRegional Director, New York Tel: +1 212 229 6620

Adam KuritzkyRegional Director, New York Tel: +1 917 232 9569

John McElroneRegional Director, New York Tel: +1 212 229 6656

Ken LongerneckerRegional Director, New York Tel: +1 212 229 6882

Will WilkesRegional Director, New York Tel: +1 212 229 6588

Joseph solanoRegional Director, New York Tel: +1 212 229 6576

Hillary PryorRegional Director, New York Tel: +1 212 367 5924

Matthew MezzancelloRegional Director, NY, NJ & PA Tel: +1 212 229 6618

steve PicconeVice President, New York Tel: +1 212 229 6883

BJ BirtzRegional Director, Raleigh Tel: +1 919 996 9117

Paul KleinkaufRegional Director, Southeast Tel: +1 404 602 3251

Michail sidorovRegional Director, Ohio & Michigan Tel: +1 216 333 1274

Jessie sainiRegional Director, Midwest Tel: +1 312-386-2293

scott HaugenRegional Director, Minnesota & Wisconsin Tel: +1 651 632 4375

Anthony CrosbyRegional Director, Chicago Tel: +1 312 674 6511

Mark PlaehnRegional Director, Chicago Tel: +1 312 674 6527

Kelly-Leigh KeefeRegional Director, Chicago Tel: +1 312 386 2229

Ted sengpielRegional Director, Missouri, Kansas, Nebraska & Iowa Tel: +1 314 315 2909

Nicholas RenterRegional Director, Texas Tel: +1 214 754 2100

Bryan BrightonRegional Director, Austin Tel: +1 512 551 2986

Andrew BuonincontroRegional Director, Bay Area Tel: +1 650 493 1400

Erik sandieRegional Director, Bay Area Tel: +1 650 493 1400

Jay LoyolaRegional Director, Bay Area Tel: +1 949 622 0663

Dan PhelanRegional Director, Los Angeles Tel: +1 213 253 2139

Hans schumannRegional Director, San Diego Tel: +1 760 635 0830

David YearyVice President, DataSite Life Sciences Tel: +1 415 307 4414

James snazaDirector of Life Sciences Tel: +1 651 632 4585

Jon BlueVice President, Clean Tech Tel: +1 206 696 9169

The following notes pertain to data contained in this publication:

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

Where no deal value has been disclosed, deals are included if the turnover of the target is greater than or equal to US$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.

Mid-market is defined as US$10m - US$250m.

Q2 2013* refers to the period 01-Apr-13 to 31-May-13. YTD 2013* refers to the period 01-Jan-13 to 31-May-13.

For a full version of the mergermarket M&A deal database inclusion and league table criteria, go to http://www.mergermarket.com/pdf/deal_criteria.pdf.

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.

Disclaimer

This publication contains general information and is not intended to be comprehensive nor to provide financial, investment, legal, tax or other professional advice or services. This publication is not a substitute for 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 June affect you or your business. Before taking any such decision, you should consult a qualified professional adviser. While reasonable effort has been made to ensure the accuracy of the information contained in this publication, this cannot be guaranteed and neither Schulte Roth & Zabel nor mergermarket nor any of its subsidiaries or 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.

Part of The Mergermarket Group

www.mergermarket.comUSA: 11 West 19th Street, 2nd floor, New York, NY 10011, USA

t: +1 212 686-5606 f: +1 212 686-2664 [email protected]

United Kingdom: 80 Strand, London WC2R 0RL, United Kingdom

t: +44 (0)20 7059 6100 f: +44 (0)20 7059 6101 [email protected]

Hong Kong: Suite 2401-3, Grand Millennium Plaza, 181 Queen’s Road, Central, Hong Kong

t: +852 2158 9700 f: +852 2158 9701 [email protected]

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