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The comprehensive review of mergers and acquisitions in the EMEA region

Deal DriversEMEA

FY 2019

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Contents

3

Foreword 04

EMEA Heat Chart 05

All Sectors 06

Financial Services 18

Industrials & Chemicals 24

Energy, Mining & Utilities 30

Consumer 36

Telecoms, Media & Technology 42

Transportation 48

Pharma, Medical & Biotech 54

The Middle East & North Africa 60

About Merrill Corporation 67

The comprehensive review of mergers and acquisitions in the EMEA region throughout 2019.

Deal Drivers EMEA

mergermarket.com

FY 2019Contents


Mergermarket Deal Drivers EMEA 4

Foreword

mergermarket.com

Merlin Piscitelli Chief Revenue Officer, EMEA Merrill DatasiteOne

Welcome to the full-year 2019 edition of Deal Drivers EMEA, published by Mergermarket in association with Merrill DatasiteOne. This report provides an extensive review of M&A activity across Europe, the Middle East and North Africa, with detailed analyses of specific regions and sectors. It also identifies key trends set to develop over the course of the next six months.

The global M&A spree of the past few years was bound to slow down at some point. Looking back, while 2018 was still a blockbuster year for European M&A, recording 8,184 deals worth €828.2bn, the highest volume and value of the past decade, the second half of that year issued a clear warning sign that the good times were likely on their way out. 2H18 recorded only €292.1bn in value, the worst half-yearly figure since 2H13.

This drop in M&A activity is unsurprising given geopolitical and economic headwinds, including trade disputes between the US and China, and between the US and the EU, as well as a slowing economy in Europe. According to the IMF, GDP growth in Germany, the largest economy in the region, fell to a sluggish 0.5% annual rate in 2019, down from 1.5% in 2018. Overall in Europe, growth was 1.5% in 2019, compared to 2.2% the year before.

Against that backdrop, the 7,656 European deals recorded in 2019 worth €683.2bn was both a

disappointment and a reassurance. While this annual figure represented a 6.4% fall in volume and a 16% drop in value on 2018’s annual total, some sense of reassurance can be derived from the fact that dealmaking activity has not continued to fall apace with 2H18’s totals.

At the start of 2020, the challenges to dealmaking may appear formidable. Global growth is slowing, and while the US and China have signed a phase-one deal on trade, considerable work remains to be done in that arena. Meanwhile, the severity of the coronavirus outbreak in China is still unknown, but it has already put a dampener on demand, bringing down commodity and stock prices. Closer to home, the UK has entered a transitionary period in the process of leaving the EU, and while a no-deal scenario has been avoided, uncertainty remains surrounding the negotiation of trade terms with the EU.

Given these conditions, M&A in 2020 is unlikely to top the peaks of previous years, but neither does that mean that deal activity will cease entirely. Financing is still abundant and smart trade buyers will find ways to use M&A defensively in this more difficult business environment, while PEs will find ways to deploy the near-historic levels of dry powder they have accumulated.

Deal Drivers provides readers with an in-depth review of EMEA-based M&A during 2019 using sector-specific and geographical data – all filtered through the expert lens of Mergermarket journalists. We hope that this full-year edition is useful to you and we welcome your feedback.

Foreword

FY 2019Foreword


5Mergermarket

EMEA Heat Chart

Heat chart based on potential companies for sale

Note: The Intelligence Heat Charts are based on ‘companies for sale’ tracked by Mergermarket in the respective regions between 17/07/2019 and 16/01/2020. Opportunities are captured according to the dominant geography and sector of the potential target company.

Hot Warm Cold

100

80

60

50

40

30

20

10

1

Looking ahead to the next six months of EMEA dealmaking, the telecoms, media & technology (TMT) sector can be expected to see the greatest level of activity, according to Mergermarket’s Heat Chart, which tracks ‘companies for sale’ stories over the past six months.

There were 526 stories about companies in the TMT space coming to market on Mergermarket’s intelligence tool during this period, with the UK & Ireland being the region likely to see the greatest amount of activity: there were 104 stories about TMT companies coming to sale in that region.

Overall, across all sectors, the UK & Ireland is set to deliver the greatest volume of M&A, as in previous years, demonstrating that dealmaking in the region will continue despite ongoing uncertainty around trade negotiations with the European Union as the UK prepares to exit the bloc.

As in the last full-year edition of Deal Drivers, the Central & Eastern Europe (CEE) region again came in second in the number of potential transactions, as the region experiences far higher growth than the rest of Europe. Mergermarket is tracking 385 ‘companies for sale’ stories in CEE.

The industrials & chemicals (I&C) sector had the second greatest number of companies coming to market (411). The CEE and the DACH regions – with their traditionally strong I&C sector – in particular, are set to see the most M&A volume in that sector.

Elsewhere, the consumer industry is tracking just below I&C, with Italy projected to see the most transaction activity. M&A in food manufacturing has been especially active in Italy over the past year, as has fashion.

Sector UK & Ireland

CEE (excluding Russia)

DACH Italy Nordics Benelux France Iberia Russia MENA SEE Total

Telecoms, Media & Technology

104 77 77 35 42 36 36 33 27 38 21 526

Industrials & Chemicals

38 75 90 37 25 30 28 24 31 11 22 411

Consumer 61 61 43 84 22 28 23 29 18 15 23 407

Business Services 59 28 25 18 17 28 17 20 9 8 8 237

Pharma, Medical & Biotech

39 20 34 12 35 17 23 14 3 22 5 224

Financial Services 52 33 17 14 17 15 13 17 23 11 3 215

Energy, Mining & Utilities

50 30 22 10 14 7 10 7 12 11 10 183

Leisure 25 15 10 4 4 8 7 9 7 5 14 108

Transportation 5 20 6 4 5 9 8 1 13 1 9 81

Construction 9 10 11 4 7 5 3 9 7 2 6 73

Real Estate 9 7 4 3 4 4 3 7 6 3 3 53

Agriculture 2 7 2 5 11 4 31

Defence 1 1 1 2 1 6

Government 1 2 3

Total 453 385 340 225 194 193 171 170 169 133 125 2558

Mergermarket FY 2019 Heat Chart

Deal Drivers EMEA

mergermarket.com


Part of the Acuris reporton global M&A activity

All Sectors

Mergermarket 6Deal Drivers EMEA

mergermarket.com

FY 2019All Sectors


Further informationGet in touch

All sectors

The party may not be over, but it is clearly winding down. After a few years which saw M&A levels reach unprecedented heights, the balloon is starting to deflate, albeit slowly. Total M&A value in Europe fell 16% year on year to €695.7bn in 2019, while volume dropped 6% to 7,655 deals.

A fall in megadeal activity was undoubtedly responsible for the drop in total value. Whereas there were 10 deals with values in the double-digit billions in 2018, there were only three such transactions in 2019, two in the pharma industry and one in industrials. These were the €75.8bn acquisition of Dublin-based Allergan by US-based AbbVie, the €23.7bn spinoff of Switzerland-based Novartis’s eyecare business Alcon and the €19.1bn acquistion of France-based PSA Peugeot-Citroen by Fiat Chrysler Automobiles.

Despite this drop, this is still one of the highest annual volume and value totals on record, demonstrating just how extraordinary the M&A bull run of the past several years has been. Only three years registered a higher annual M&A total value in the past decade. By volume, 2019 was the third-best year for European M&A since the financial crisis.

Moreover, whereas 2018 was a lopsided year – registering over €536bn in M&A in the first half of the year, only for value to tumble to a total of €292.1bn in the second half of the year – deal value was more evenly paced

throughout 2019, suggesting that dealmakers have adjusted to an environment of lower growth and greater geopolitical uncertainty.

Even in the UK, which experienced considerable political uncertainty, deal value has remained high. The UK and Ireland region, in fact, took up 34% of total deal value across all regions.

Pharma’s unprecedented year The pharma, medical & biotech (PMB) sector in Europe had another extraordinary year, registering €145.4bn in total deal value. This was not only a 15% rise on 2018 but makes 2019 the first year that PMB topped the value chart this decade, taking up 21% of total M&A value across all sectors.

Much of this rise in PMB value was due to a few megadeals, as reflected in the fact that the sector’s deal count dropped by 11% on the previous year to 560 deals – the lowest annual total in three years.

Four of the top ten largest deals of the region were in the PMB sector. Aside from the aforementioned Allergan and Alcon transactions, Nestlé’s sale of its skin care unit, now known as Galderma, to a PE consortium for €9bn and Bayer’s €6.9bn divestment of its animal health unit to US-based Elanco were the fifth and ninth largest announced deals of the year across all sectors, respectively.

Private equity falters PE buyouts were down 5% by volume and 13% by value annually in 2019, although as with overall M&A, this was against a remarkable 2018, which registered the highest total volume and value of any year in the past decade. The 2,075 buyout deals in Europe in 2019 worth €225.9bn collectively would be considered a triumph any other year. With dry powder still at extraordinary levels, PE activity is certain to continue, even in a less favourable trading environment.

Yining Su


mergermarket.com

FY 2019All Sectors

mailto:yining.su%40acuris.com?subject=Deal%20Drivers%20EMEA%20HY%202019%20Enquiry


8Mergermarket

Top deals

Top 20 Announced Deals for Year Ending 31 December 2019 – European Targets All Sectors

AnnouncedDate

Status Bidder Company Target Company Sector Vendor Company Deal Value(€m)

25-Jun-19 P AbbVie Inc Allergan plc Pharma, Medical & Biotech 75,768

28-Feb-19 C Novartis AG (Shareholders) Alcon Inc Pharma, Medical & Biotech Novartis AG 23,672

18-Dec-19 P Fiat Chrysler Automobiles NV PSA Peugeot-Citroen SA Industrials & Chemicals 19,062

31-Jul-19 P EssilorLuxottica GrandVision NV Consumer HAL Trust 9,322

16-May-19 C A consortium led by EQT Partners AB and Abu Dhabi Investment Authority Galderma Pharma, Medical & Biotech Nestle SA 9,029

21-Jun-19 L EP Global Commerce AS Metro AG (89.09% stake) Consumer 8,759

29-Oct-19 P Digital Realty Trust Inc Interxion Holding NV Business Services 7,569

5-Aug-19 C Takeaway.com BV Just Eat Plc Telecoms, Media & Technology 7,376

20-Aug-19 P Elanco Animal Health Incorporated Bayer Animal Health GmbH Pharma, Medical & Biotech Bayer AG 6,854

23-Jan-19 L Apollo Global Management LLC RPC Group Plc Industrials & Chemicals 6,465

28-Mar-19 P ZF Friedrichshafen AG WABCO Industrials & Chemicals 6,445

22-Oct-19 L Prosus Just Eat Plc Telecoms, Media & Technology 6,422

15-Feb-19 L Hellman & Friedman – Blackstone consortium Scout24 Holding AG Telecoms, Media & Technology 5,708

27-Feb-19 L Sunrise Communications AG UPC Switzerland LLC Telecoms, Media & Technology Liberty Global Plc 5,537

8-Mar-19 C Berry Global Group, Inc RPC Group Plc Industrials & Chemicals 5,293

19-Nov-19 P Aroundtown SA TLG Immobilien GmbH Real Estate 5,279

26-Jul-19 P Infrastrutture Wireless Italiane SpA Vodafone Group Plc (11,000 Italy Towers) Telecoms, Media & Technology Vodafone Group Plc 5,270

28-Jun-19 C Kirkbi – Blackstone – CPPIB consortium Merlin Entertainments Plc (71.08% stake) Leisure 5,108

24-Jun-19 P Capgemini SA Altran Technologies SA Business Services Altamir Amboise; and Apax Partners SAS 5,037

12-Jun-19 C Traviata I SARL Axel Springer SE (54.6% stake) Telecoms, Media & Technology 4,952

C= Completed; P= Pending; L= Lapsed

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Deal Drivers EMEA FY 2019All Sectors


Mergermarket 9

Num

ber

of d

eals

0

200

400

600

800

1,000

1,200

1,400

1,600

Agr

icul

ture

Def

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Real

Est

ate

Con

stru

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n

Pha

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Med

ical

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iote

ch

Tran

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n

Leis

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ls &

Che

mic

als

6 65121

335268

560

351448

955

1,413

1,521

1,170

444

Valu

e (€

bn)

0

25

50

75

100

125

150

Ag

ricul

ture

Def

ence

Rea

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ate

Co

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n

Pha

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Med

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2.64.717.419.8

145.3

29.837

81.7

96.2

54.247.4

40.3

108.4

Mix of deals by industry sectorValue

Based on announced deals, excluding those that lapsed or were withdrawn, where the dominant location of the target is in Europe. Industry sector is based on the dominant industry of the target.

Mix of deals by industry sectorDeal Count

Based on announced deals, excluding those that lapsed or were withdrawn, where the dominant location of the target is in Europe. Industry sector is based on the dominant industry of the target.

Deal Drivers EMEA

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FY 2019All Sectors


Mergermarket 10

Value

Value

Value

Value

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

2019201820172016201520142013

Num

ber

of d

eals

190189

13

181186

1937

51

137168

1235

195

41180

19191189

19

2,137

1,784

2,074

2,194

4,8535,430

5,6775,248

202161

2051

4922

188179

41

1,923

3,631

2,256

3,982

2,120

4,304

Value not disclosed

€501-€2000m

€5m-€250m

€2001m-€5000m

€251-500m

>€5001m

0

100

200

300

400

500

600

700

800

900

2019201820172016201520142013

Valu

e (€

bn)

92

69.8

109.3104.4

112.7

175.4

159.7

240.1

180.4

162.4

201.7

155.8

63.3

109 97.3

67.9

104.5

57.6

308.6

106.7

207.9

336.5

229.3

166.8

67.5

107.2

97.5

135.4

117.3

178.2

126.8

184.2

6067.4

185.4

€5m-€250m

€2001m-€5000m

€251m-€500m

>€5001m

€501m-€2000m

European M&A split by deal sizeValue

European M&A split by deal sizeDeal Count

Deal Drivers EMEA

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FY 2019All Sectors


Valu

e (€

m)

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q12013 2014 2015 2016 2017 2018 2019

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2,200

Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1

Num

ber

of d

eals

2013 2014 2015 2016 2017 2018 2019

European quarterly M&A activityValue

Based on announced deals, excluding those that lapsed or were withdrawn, where the dominant location of the target is in Europe.

European quarterly M&A activityDeal Count

Based on announced deals, excluding those that lapsed or were withdrawn, where the dominant location of the target is in Europe.

Moving average trend lineDeal Value Moving average trend lineDeal Count


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FY 2019All Sectors


0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000


Valu

e (€

m)

Num

ber of d

eals0

100

200

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2013 2014 2015 2016 2017 2018 2019

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000


Valu

e (€

m)

Num

ber of d

eals

0

50

100

150

200

250

300

2013 2014 2015 2016 2017 2018 2019

Deal count Deal countValue Value

European buyouts

Based on announced buyouts, excluding those that lapsed or were withdrawn, where the dominant location of the target is in Europe.

European exits

Based on announced exits, excluding those that lapsed or were withdrawn, where the dominant location of the target is in Europe.


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FY 2019All Sectors


Valu

e (€

m)

US$xxx

US$xxx

US$xxx

US$xxx

US$xxx

US$xxx US$

xxx

0

30,000

60,000

90,000

120,000

150,000


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ber

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eals

US$xxx

US$xxx

US$xxx

US$xxx

US$xxx

US$xxx US$

xxx

0

50

100

150

200

250

300

350


European bidder acquiring a North American target

North American bidder acquiring a European target

Total European/North American deals

Transatlantic dealsDeal Count

Based on dominant location of target and bidder and excludes all buyouts.

Transatlantic dealsValue

Based on dominant location of target and bidder and excludes all buyouts.

European bidder acquiring a North American target

North American bidder acquiring a European target

Total European/North American deals


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FY 2019All Sectors


Value

Value

Value

Value

Value

Value

Value

Value

Value

8.5%2%

20.6%

15.7%

11.7%

7.8%

7.7%

10.8%

15.2%

UK & Ireland

Italy

Nordic

DACH

Iberia

Central & Eastern Europe

France

Benelux

Other

1.2%

33.5%

9.5%

5.1%

6.2%

8.1%

11.2%

6.3%

18.9%

UK & Ireland

Italy

Nordic

DACH

Iberia


France

Benelux

Other

Mix of deals by geographic regionDeal Count

Based on announced deals, excluding those that lapsed or were withdrawn. Geographic region is determined with reference to the dominant location of the target.

Mix of deals by geographic regionValue



mergermarket.com

FY 2019All Sectors


15Mergermarket

Legal advisers by value Legal advisers by deal count

2019 2018 Company Name Value (€m)

Number of Deals

1 1 Goldman Sachs & Co 366,223 154

2 2 JPMorgan 284,105 132

3 3 Morgan Stanley 283,927 103

4 6 Bank of America 197,496 91

5 4 Citi 171,023 108

6 7 Evercore 140,121 59

7 5 Lazard 132,299 155

8 8 Rothschild & Co 123,526 251

9 9 Barclays 118,814 83

10 12 UBS Investment Bank 106,098 62


Number of Deals

1 1 Freshfields Bruckhaus Deringer 200,178 185

2 12 Kirkland & Ellis 197,741 162

3 9 Sullivan & Cromwell 166,034 58

4 32 Weil Gotshal & Manges 159,032 116

5 4 Davis Polk & Wardwell 141,196 46

6 8 Latham & Watkins 135,742 178

7 13 Cleary Gottlieb Steen & Hamilton 131,434 75

8 2 Linklaters 130,838 184

9 5 Slaughter and May 128,044 56

10 3 Allen & Overy 122,134 220


Number of Deals

1 2 PwC 26,387 386

2 1 Deloitte 16,074 356

3 4 KPMG 16,894 291

4 3 EY 15,679 266

5 5 Rothschild & Co 123,526 251

6 8 Lazard 132,299 155


8 9 JPMorgan 284,105 132

9 6 BDO 460 116

10 10 Oaklins 1,695 115


Number of Deals

1 1 DLA Piper 36,492 433

2 2 CMS 27,563 277

3 9 White & Case 92,034 225

4 3 Allen & Overy 122,134 220

5 5 Clifford Chance 105,530 192


7 8 Linklaters 130,838 184

8 12 Latham & Watkins 135,742 178

9 4 Baker McKenzie 32,975 176

10 14 Kirkland & Ellis 197,741 162

League tables

Financial advisers by deal countFinancial advisers by value

The legal adviser league tables by value and volume have been run from 01/01/2019 to 31/12/2019 and include lapsed and withdrawn deals.The tables are pan-European and cover all sectors.

The financial adviser league tables by value and volume have been run from 01/01/2019 to 31/12/2019 and exclude lapsed and withdrawn deals.The tables are pan-European and cover all sectors.

mergermarket.com

Deal Drivers EMEAMergermarket FY 2019All Sectors


16Mergermarket

Legal advisers by value – mid-market (€5m<deals<€250m) Legal advisers by deal count – mid-market (€5m<deals<€250m)


Number of Deals

1 1 Rothschild & Co 7,411 66

2 3 Deloitte 5,931 94

3 2 PwC 5,699 85

4 5 Lazard 4,854 37

5 6 KPMG 4,754 70

6 4 EY 3,933 57

7 10 ALANTRA 3,609 37

8 28 JPMorgan 2,537 17

9 9 Barclays 2,520 15

10 20 Citi 2,335 16


Number of Deals

1 2 DLA Piper 6,781 123

2 1 Allen & Overy 5,742 52

3 18 White & Case 5,136 51

4 3 CMS 4,799 65

5 15 Kirkland & Ellis 4,284 31



8 6 Jones Day 3,763 45

9 23 PwC legal 3,450 34



Number of Deals

1 1 Deloitte 5,931 94

2 2 PwC 5,699 85

3 5 KPMG 4,754 70


5 4 EY 3,933 57

6 6 Lazard 4,854 37

7 10 ALANTRA 3,609 37

8 8 Oaklins 1,038 25

9 17 Clearwater International 1,191 24

10 14 UniCredit Group 1,784 23


Number of Deals

1 1 DLA Piper 6,781 123

2 2 CMS 4,799 65


4 4 Allen & Overy 5,742 52

5 26 White & Case 5,136 51

6 10 Orrick Herrington & Sutcliffe 2,797 47

7 6 Jones Day 3,763 45

8 19 Cuatrecasas 1,733 43


10 8 Hogan Lovells International 2,453 36

League tables

Financial advisers by deal count – mid-market (€5m<deals<€250m)Financial advisers by value – mid-market (€5m<deals<€250m)

The legal adviser mid-market league tables by value and volume have been run from 01/01/2019 to 31/12/2019 and include lapsed and withdrawn deals.The tables are pan-European and cover all sectors.

The financial adviser mid-market league tables by value and volume have been run from 01/01/2019 to 31/12/2019 and exclude lapsed and withdrawn deals.The tables are pan-European and cover all sectors.

mergermarket.com

Deal Drivers EMEAMergermarket FY 2019All Sectors


17Mergermarket

PR advisers by deal count – mid-market (€5m<deals<€250m)PR advisers by value – mid-market (€5m<deals<€250m)

PR advisers by deal countPR advisers by value

League tables

The PR adviser mid-market league tables by value and volume have been run from 01/01/2019 to 31/12/2019 and exclude lapsed and withdrawn deals.The tables are pan-European and cover all sectors.

The PR adviser league tables by value and volume have been run from 01/01/2019 to 31/12/2019 and exclude lapsed and withdrawn deals.The tables are pan-European and cover all sectors.


Number of Deals

1 4 Sard Verbinnen & Co 157,458 59

2 1 Brunswick Group 139,486 120

3 2 Finsbury Hering Schuppener GPG 110,370 144

4 16 Kekst CNC (Publicis) 108,932 109

5 15 Abernathy MacGregor Group (AMO) 88,128 10

6 3 FTI Consulting 70,363 137

7 18 Greenbrook Communications 56,184 60

8 7 Maitland (AMO) 46,895 104

9 10 Community Group 43,722 49

10 25 Teneo 40,754 20


Number of Deals


2 3 Maitland (AMO) 3,003 29



5 14 Barabino & Partners 2,675 41


7 8 Instinctif Partners 2,119 26


9 7 Image Sept 1,636 18

10 33 Fogel & Partners 1,609 17


Number of Deals






6 4 Maitland (AMO) 46,895 104

7 5 Citigate Dewe Rogerson 11,347 76

8 8 Image Sept 40,046 75

9 29 Fogel & Partners 28,502 61



Number of Deals





5 5 Maitland (AMO) 3,003 29

6 8 Instinctif Partners 2,119 26

7 7 Tulchan Communications 1,083 22

8 4 MHP Communications 811 21

9 11 Powerscourt 1,264 20

10 3 Citigate Dewe Rogerson 1,117 20

Mergermarket

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Deal Drivers EMEA FY 2019All Sectors


Mergermarket 18


Financial Services

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Deal Drivers EMEA FY 2019Financial Services


Further informationGet in touchFurther informationGet in touch

Financial ServicesOverview

The European financial services sector experienced lower levels of M&A in 2019 versus the year before both in terms of volume and value. A total of 444 transactions involving European targets were announced in 2019, a 20% fall from the previous year. Value-wise, the deals amounted to some €40.3bn, down 45% from 2018.

PE activity in the sector dropped even more steeply than overall M&A. Value fell 57% year on year to €4.7bn in 2019, while volume dropped 47% over that same period.

Top deals The largest transaction of the year was Swiss Re’s sale of its ReAssure unit to Phoenix Group for €3.9bn after a failed IPO attempt. Insurance companies have been active in dealmaking, as they rethink capital efficiency and the strategic direction of their business in a tough rating environment.

The payments space also continued to see M&A, particularly in the area of merchant acquiring, which remains fairly fragmented in Europe. The second largest deal of the sector of the year, Nexi’s €1bn purchase of the merchant acquiring business of Intesa Sanpaolo, is a prime example.

Other headline-grabbing transactions in 2019 came from the stock exchange sub-sector, as globalisation pushes regional bourses to integrate with large multinational groups.

In November, Switzerland’s SIX announced a €2.6bn offer for Bolsas y Mercados Españoles (BME), only for news to emerge that Euronext was also considering a bid for the Spanish exchange.

What could have been At the larger end of the stock exchange space, Hong Kong Exchanges and Clearing (HKEX) backed away from a short-lived attempt to take over London Stock Exchange Group (LSEG) after failing to persuade its UK peer. The move came weeks after LSEG announced its own deal to acquire data giant Refinitiv for some €24.2bn.

Another significant deal that did not transpire in 2019 was the much-discussed combination of Deutsche Bank and Commerzbank. Talks between the two German lenders fell apart in April.

And while there is little regulatory and political appetite for consolidation of that scale in Europe’s banking sector, deal activity in that industry should not be entirely ruled out in 2020.

European governments have yet to exit investments from large banking assets such as Bankia in Spain, RBS in the UK, ABN Amro in the Netherlands and Austria’s Volksbank, and the circumstances for those privatisations could occur. Moreover, the current economic environment is proving

difficult for challenger banks, which could turn to larger institutions for security.

Sabzina Oshikova

Pablo Mayo Cerqueiro


mergermarket.com

FY 2019Financial Services

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Top deals

Top 15 Announced Deals for Year Ending 31 December 2019 – European Targets Financial Services Sector

AnnouncedDate

Status Bidder Company Target Company Vendor Company Deal Value(€m)

6-Dec-19 P Phoenix Group Holdings Limited ReAssure Group Plc Swiss Re Ltd; and MS&AD Insurance Group Holdings Inc 3,853

1-Apr-19 C BPCE Group Natixis SA (Consumer financing, Factoring, Leasing, Sureties & guarantees and Securities services businesses)

Natixis SA 2,700

18-Nov-19 P SIX Group AG Bolsas y Mercados Espanoles, SA 2,558

22-Feb-19 L Non-Standard Finance Plc Provident Financial Plc 1,490

19-Dec-19 P Nexi SpA Intesa Sanpaolo (Merchant banking operations) Intesa Sanpaolo SpA 1,000

24-Jun-19 P Banco Santander SA Allianz Popular SL (60% stake) Allianz SE 937

14-Mar-19 C OneSavings Bank plc Charter Court Financial Services Group plc 936

11-Nov-19 P Boels Rental BV Cramo Plc 922

28-Jan-19 C CVC Capital Partners Limited April Group SA Evolem SA 883

30-Apr-19 L BlackRock Inc; and Fondo Interbancario di Tutela dei Depositi (FITD) Banca Carige SpA (80% stake) 718

13-May-19 C SoftBank Group Corp Greensill Capital (UK) Limited 712

9-Aug-19 C Fondo Interbancario di Tutela dei Depositi (FITD); Cassa Centrale Banca – Credito Cooperativo Italiano SpA; and Societa Per La Gestione Di Attivita – SGA SpA

Banca Carige SpA 700

30-Jan-19 L Nasdaq Inc Oslo Bors VPS Holding ASA 687

14-Jan-19 C Euronext NV Oslo Bors VPS Holding ASA 684

31-May-19 C Allianz SE Liverpool Victoria Friendly Society Limited (General Insurance business) (30.1% Stake)

Liverpool Victoria Friendly Society Limited 654


Mergermarket

mergermarket.com

Deal Drivers EMEA FY 2019Financial Services


Value

Value

Value

Value

Value

Value

Value

Value

Value

11.5%

11.1%

3.8%

32.4%

8.4%5.9%

6.1%

10.2%

10.6%

UK & Ireland

Italy

Nordic

DACH

Iberia


France

Benelux

Other

12.9%

7.5%2.1%

38.3%

3.7%

10.9%7.2%

6.6%

10.8%

UK & Ireland

Italy

Nordic

DACH

Iberia


France

Benelux

Other

Mix of deals by geographic regionDeal count





mergermarket.com

FY 2019Financial Services


Valu

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0

5,000

10,000

15,000

20,000

25,000

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0

25

50

75

100

125

150

175


Quarterly M&A activityValue

Based on announced deals, excluding those that lapsed or were withdrawn, where the dominant location of the target is in Europe.Industry sector is based on the dominant industry of the target.

Quarterly M&A activityDeal Count



Deal Drivers EMEA

mergermarket.com

Mergermarket 22FY 2019Financial Services


23Mergermarket


League tables


The legal adviser league tables by value and count have been run from 01/01/2019 to 31/12/2019 and include lapsed and withdrawn deals.The tables are pan-European and are based on the following sector: Financial Services.

The financial adviser league tables by value and count have been run from 01/01/2019 to 31/12/2019 and exclude lapsed and withdrawn deals.The tables are pan-European and are based on the following sector: Financial Services.


Number of Deals



3 11 Barclays 11,004 11

4 14 Fenchurch Advisory Partners 9,269 11


6 8 Citi 7,770 9

7 25 Credit Suisse 6,726 8


9 1 JPMorgan 5,589 17

10 15 Lazard 5,252 13


Number of Deals



3 14 Allen & Overy 7,311 21


5 7 Linklaters 5,986 17

6 2 Skadden Arps Slate Meagher & Flom 5,846 7

7 93 Simpson Thacher & Bartlett 4,528 4



10 89 Garrigues 3,548 8


Number of Deals


2 3 KPMG 1,913 23

3 4 PwC 1,025 23

4 1 Deloitte 990 23

5 8 EY 1,498 19

6 7 JPMorgan 5,589 17


8 6 Lazard 5,252 13


10 15 Barclays 11,004 11


Number of Deals


2 4 DLA Piper 1,249 22

3 1 Allen & Overy 7,311 21

4 3 CMS 373 20



7 9 Eversheds Sutherland 1,798 14


9 6 White & Case 3,376 12

10 36 Gianni, Origoni, Grippo, Cappelli & Partners 1,233 12

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Deal Drivers EMEAMergermarket FY 2019Financial Services


Mergermarket 24


Industrials & Chemicals

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Deal Drivers EMEA FY 2019Industrials & Chemicals



Industrials & ChemicalsOverview

M&A value in Europe’s industrials & chemicals (I&C) sector fell 24% in 2019 to €96.2bn against a global backdrop that saw an increase in I&C dealmaking in every other region.

The plunge reflected dealmakers’ anxiety about a potential hard Brexit and trade war-related supply chain disruption. Based on deal volume, however, the sector witnessed a less steep drop, of 12%, to 1,521 deals.

Industrials stand strongI&C outperformed other sectors by winning 20% of all deal volume across Europe. It garnered 14% of all deal value, bested only by dealmakers in the pharma & healthcare and technology, media and telecoms (TMT) spaces.

PSA Peugeot Citroen’s €19.1bn megamerger with Fiat Chrysler was the sole European €10bn-plus deal. Five other I&C transactions made Europe’s top 10, including German car parts maker ZF Friedrichshafen’s takeover of WABCO.

Including that deal, DACH saw five billion-plus tickets. These were underpinned by the €3.6bn offer from Austrian sensor specialist ams for an 80% stake in German lighting manufacturer Osram, and the €3.2bn divestment of BASF Construction Chemicals to US-based private equity (PE) firm Lone Star Funds.

While industrials proved resilient, the days of chemicals megadeals seem long gone. In 2019

the space shed 46% year on year to book €16.3bn on 139 deals – down from €30.3bn on 174 deals in 2018 and €58.3bn on 175 in 2017.

Public market bargainsIn what would have been one of the largest deal of the year, US PE Apollo attempted to take over packaging group RPC for €6.5bn, though ultimately RPC agreed a merger with strategic player Berry Global for €5.2bn. Nor was this the only bidding war which saw a PE lose. A consortium made up of Bain and Carlyle attempted to take over German lighting firm Osram for €3.8bn, before the latter agreed a deal with Austrian sensormaker ams.

With so much dry powder available to them, PEs are increasingly turning to the public markets for targets like the publicly listed Osram and RPC. Competition between PEs for privately held assets is fierce, and valuations are high, especially for firms already held by PE houses. In comparison, public market valuations are beginning to look more attractive – even with a take-private premium factored in.

Safe-haven sectorAll that dry powder should fuel I&C interest, with PE houses examining take-private opportunities to capitalise on further expansion in takeout multiples.

PE firms are likely to enjoy a plethora of possible targets. The number of carve-outs

across European I&C was a key feature in 2019, with KPS Capital Partners’ €1.6bn buyout of air and gas handling products and services company Howden and the Lone Star-BASF deal standing out.

The permeation of automation will remain a key driver for I&C M&A, with strategic players further realising the value in positioning their offering as a solution-as-a-service model that can often attract more lucrative contract terms.

For as long as demand for high-quality engineering and manufacturing is sustained, companies and sponsors will be able to exploit M&A as a vehicle for profitable growth and consolidation.

Olivier Gilkinet

Ryan Gould


mergermarket.com

FY 2019Industrials & Chemicals

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Top deals

Top 15 Announced Deals for Year Ending 31 December 2019 – European Targets Industrials & Chemicals Sector

AnnouncedDate


18-Dec-19 P Fiat Chrysler Automobiles N.V. PSA Peugeot-Citroen SA 19,062

23-Jan-19 L Apollo Global Management LLC RPC Group Plc 6,465

28-Mar-19 P ZF Friedrichshafen AG WABCO 6,445

8-Mar-19 C Berry Global Group, Inc RPC Group Plc 5,293

11-Aug-19 L ams AG Osram GmbH 4,395

4-Jul-19 L Bain – Carlyle consortium Osram GmbH 3,814

18-Oct-19 P ams AG Osram GmbH (80.01% stake) 3,601

4-Jul-19 P Outotec Oyj Metso Minerals Oy Metso Oyj 3,324

21-Dec-19 P Lone Star Funds BASF SE (Construction Chemicals business) BASF SE 3,170

31-Mar-19 C Sakthi Global Holdings Limited Sakthi Global Holdings Limited (50.01% stake) Lalit Kumar Verma (Private investor); and Manickam Mahalingam (Private investor) 3,147

4-Mar-19 C Advent International Corporation Roehm GmbH Evonik Industries AG 3,000

8-Jan-19 C Sika AG ParexGroup SA CVC Capital Partners Limited 2,226

15-Jul-19 C Exal Corporation Trivium Packaging Ardagh Group SA 2,219

25-Feb-19 C Triton Partners; Abu Dhabi Investment Authority IFCO Systems Gmbh Brambles Limited 2,211

23-Sep-19 P Hyundai Motor Co Aptiv PLC (autonomous driving technology) (50% stake) Aptiv PLC 1,819


Mergermarket

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Deal Drivers EMEA FY 2019Industrials & Chemicals


12.9%

1.8%

1.2%

18%

30.4%

23%

5.6%

1.5%

5.6%

Value

Value

Value

Value

Value

Value

Value

Value

Value

2.2%

15.8%

23.8%

10.2%11.2%

6.1%

9%

15.4%

6.3%

UK & Ireland

Italy

Nordic

DACH

Iberia


France France

Benelux Benelux

Other Other

UK & Ireland

Italy

Nordic

DACH

Iberia






Deal Drivers EMEA

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Mergermarket 27FY 2019Industrials & Chemicals


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m)

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10,000

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30,000

40,000

50,000

60,000

70,000


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50

100

150

200

250

300

350

400

450

500







Deal Drivers EMEA

mergermarket.com

Mergermarket 28FY 2019Industrials & Chemicals


29Mergermarket


League tables


The financial adviser league tables by value and count have been run from 01/01/2019 to 31/12/2019 and exclude lapsed and withdrawn deals.The tables are pan-European and are based on the following sectors: Automotive; Chemicals & Materials; Industrials – electronics; automation, and products and services; and Manufacturing – other.

The legal adviser league tables by value and count have been run from 01/01/2019 to 31/12/2019 and include lapsed and withdrawn deals.The tables are pan-European and are based on the following sectors: Automotive; Chemicals & Materials; Industrials – electronics; automation, and products and services; and Manufacturing – other.


Number of Deals


2 9 Citi 38,737 16

3 1 JPMorgan 36,812 14

4 8 Lazard 35,586 32




8 22 Barclays 27,103 17

9 31 Mediobanca 19,765 7

10 140 Perella Weinberg Partners 19,062 3


Number of Deals




4 56 Stibbe 26,763 14



7 7 Cravath, Swaine & Moore 22,925 5

8 25 Loyens & Loeff 21,959 11

9 157 Bredin Prat 20,687 8

10 41 Legance Avvocati Associati 19,698 8


Number of Deals

1 1 PwC 1,428 92

2 2 Deloitte 4,295 82

3 4 KPMG 888 65

4 3 EY 2,434 55

5 5 Lincoln International 1,263 39

6 10 Lazard 35,586 32

7 11 ALANTRA 1,916 32


9 7 BDO 115 25



Number of Deals

1 1 DLA Piper 3,581 88

2 2 CMS 2,979 56

3 6 White & Case 12,487 48

4 7 Allen & Overy 11,958 38




8 4 Jones Day 5,748 28


10 10 Eversheds Sutherland 1,231 27

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Deal Drivers EMEAMergermarket FY 2019Industrials & Chemicals


Mergermarket 30


Energy, Mining & Utilities

mergermarket.com

Deal Drivers EMEA FY 2019Energy, Mining & Utilities



Energy, Mining & UtilitiesOverview

The energy, mining & utilities sector is uniquely exposed to geopolitical instability. While this creates fertile ground for smart dealmaking, it also disrupts the natural flow of transactions, and contributed to 2019 being one of the least active years since 2013.

European deal values across energy and natural resources saw a 25% decrease from €109.3bn in 2018 to €81.7bn in 2019. Deal volume likewise saw a decline, though somewhat less precipitous: down 5% annually to 448 deals.

Cooking with (oil and) gasIn the wake of growing investor concern about climate change, several oil and gas related deals in the year’s top 10 had an energy transition angle.

The €4.4bn sale of Dutch power and utility company Eneco – the largest deal for the year, and ultimately won by Mitsubishi Corps – is the best example of the ongoing transition and change in mindset among sector participants. The auction of the primarily renewables-focused business saw the participation of both Shell and Total, which would have represented a most significant step out into power generation and supply for any European oil major.

Denmark-based AP Moller – Maersk’s spinoff of Maersk Drilling, creatively renamed The Drilling Company of 1972, was a step in the shipping giant’s detachment from upstream oil and gas. In another Danish deal, Orsted sold

its power distribution business Radius and two other subsidiaries to local strategic SEAS-NVE for €2.9bn. Just a few years ago, Orsted (formerly Dong Energy) was an integrated energy player and a major producer of oil and gas. It is now a pure-play renewable power generation company.

Meanwhile, gas, as the cleanest fossil fuel, becomes ever more the focus of energy players. This is reflected in the level of LNG project-finance related M&A activity, most notably the sale by Russia’s Novatek of a 10% stake in the Arctic LNG project to the Japan Arctic LNG consortium, comprised of Mitsui and Jogmec.

Power and utilities under the microscopeIn the UK, the utilities market has been difficult, with the traditional Big Six suppliers suffering losses and price caps. New players have seemed keen to consolidate the space and improve its economics. Mitsubishi, for example, acquired a 20% stake in energy supplier OVO for €246m, and through it, SSE’s retail business for €561m later in the year.

Further deals in the energy retail space are likely to occur in 2020, as the Big Six – EDF Energy, E.ON UK, Npower, SSE, Centrica, and Scottish Power – no longer hold the same market position they used to. Npower has been folded up, SSE is replaced by OVO, Centrica is on the ropes, and neither EDF or E.ON seem overly enthusiastic about the UK market.

How 2020 will shake out for EMU M&A will depend heavily again on factors outside of dealmakers’ control: commodity prices, climate change policy, and geopolitical shifts.

Andrea Putaturo

Thorsten Louie Pedersen

Patrick Harris


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FY 2019Energy, Mining & Utilities

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Top deals

Top 15 Announced Deals for Year Ending 31 December 2019 – European Targets Energy, Mining & Utilities Sector

AnnouncedDate


25-Nov-19 P Mitsubishi Corporation; Chubu Electric Power Co., Inc. Eneco Group BV 4,383

26-Sep-19 C Var Energi AS Exxon Mobil Corporation (Norwegian oil and gas assets) Exxon Mobil Corporation 4,113

8-Oct-19 P Fortum Oyj AB Uniper SE (20.5% stake) Knight Vinke Asset Management LLC; and Elliott Management Corporation 4,100

6-Aug-19 C Macquarie Infrastructure and Real Assets Currenta GmbH & Co OHG Bayer AG; and Lanxess AG 3,500

21-Feb-19 C AP Moller – Maersk AS (Shareholders) The Drilling Company of 1972 AS AP Moller – Maersk AS 3,172

19-Jun-19 C Hafslund E-CO AS Eidsiva Energi AS (50% stake) 3,009

18-Sep-19 C SEAS-NVE AmbA Orsted AS (Power distribution business); Orsted AS (City light business); and Orsted AS (Residential customer business)

Orsted AS 2,853

8-Apr-19 C The Carlyle Group Compania Espanola de Petroleos SAU (37% stake) Mubadala Investment Company PJSC 2,805

29-Jun-19 C Japan Arctic LNG BV OOO Arctic LNG 2 (10% stake) Novatek OAO 2,639

18-Apr-19 C Chrysaor Holdings Limited ConocoPhillips Company (UK oil and gas business) ConocoPhillips Company 2,376

13-Feb-19 C KGAL GmbH & Co KG; Ingka Holding BV; Commerz Real AG; and wpd invest GmbH Veja Mate Offshore Project GmbH (80% stake) Siemens Financial Services GmbH; Copenhagen Infrastructure Partners K/S; and Highland Group Holdings

2,300

19-Dec-19 P ENGIE; Credit Agricole Assurances; and Mirova Energias de Portugal (1.7 GW hydroelectric portfolio in Portugal) Energias de Portugal 2,200

28-Jun-19 C A consortium led by Macquarie Infrastructure and Real Assets Cadent Gas Ltd (39% stake) National Grid Plc 2,199

22-Feb-19 C RWE AG innogy Grid Holding AS (50.04% stake) innogy SE 1,850

29-Apr-19 C A consortium led by Macquarie Infrastructure and Real Assets innogy Grid Holding AS (50.04% stake) RWE AG 1,800


Mergermarket

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Deal Drivers EMEA FY 2019Energy, Mining & Utilities


Value

Value

Value

Value

Value

Value

Value

Value

Value

Value

Value

Value

Value

Value

Value

Value

Value

Value

14.7%

2.9%

16.3%

16.9%

19.5%

7.6%

4.7%

11.6%5.8%

13.6%

0.2%

16.5%

16.9%

2.7%

5.8%

12.9%

7.4%

24%

UK & Ireland UK & Ireland

Italy Italy

Nordic Nordic

DACH DACH

Iberia Iberia

Central & Eastern Europe Central & Eastern Europe

France France

Benelux Benelux

Other Other





Deal Drivers EMEA

mergermarket.com

Mergermarket 33FY 2019Energy, Mining & Utilities


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Mergermarket 34FY 2019Energy, Mining & Utilities


35Mergermarket


League tables


The financial adviser league tables by value and count have been run from 01/01/2019 to 31/12/2019 and exclude lapsed and withdrawn deals.The tables are pan-European and are based on the following sectors: Energy; Mining; and Utilities.

The legal adviser league tables by value and count have been run from 01/01/2019 to 31/12/2019 and include lapsed and withdrawn deals.The tables are pan-European and are based on the following sectors: Energy; Mining; and Utilities.


Number of Deals

1 1 Citi 26,523 17




5 6 BNP Paribas 15,344 16


7 10 Barclays 12,938 12

8 22 Santander Corporate Investment Banking (SCIB) 11,358 9

9 5 Lazard 11,051 9

10 25 JPMorgan 10,394 11


Number of Deals




4 61 White & Case 13,043 25



7 46 BAHR 8,901 15

8 139 Machado Meyer Sendacz e Opice 8,749 4

9 84 Jones Day 8,638 8

10 3 Allen & Overy 8,321 17


Number of Deals

1 2 PwC 1,946 34

2 4 KPMG 2,085 30


4 3 EY 4,056 19

5 6 Citi 26,523 17

6 8 Macquarie Group 6,197 17

7 13 BNP Paribas 15,344 16

8 5 Deloitte 294 16

9 10 Evercore 3,024 14



Number of Deals


2 4 CMS 6,685 27

3 14 White & Case 13,043 25

4 5 Herbert Smith Freehills 6,917 24

5 7 DLA Piper 1,329 24

6 17 Watson, Farley & Williams 3,573 20


8 10 Cuatrecasas 4,209 18


10 3 Allen & Overy 8,321 17

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Deal Drivers EMEAMergermarket FY 2019Energy, Mining & Utilities


Mergermarket 36


Consumer

mergermarket.com

Deal Drivers EMEA FY 2019Consumer



ConsumerOverview

Bucking global trends, European consumer sector M&A activity enjoyed a lavish 2019. The region booked consumer deals worth €47.4bn, up 26% from 2018, even though deal volume fell slightly to 955 from 959.

Strategic buyers propelled Europe’s increase in deal value, while private equity (PE) activity was comparatively muted. At €8.1bn on 175 deals, 2019 recorded the lowest buyout values and volumes of the last five years.

Financial players’ main contribution to Europe’s M&A windfall was on the exit front. There were 117 exits worth €14.9bn in 2019, against 97 exits for €7.7bn the year before.

Treat yourselfEight of Europe’s ten largest consumer sector deals were in the retail and personal care segments. The largest was EssilorLuxottica’s proposed €9.3bn takeover of GrandVision to form the world’s biggest eyewear retailer.

The sector’s need to adapt to profound change is continuing to drive activity. Disrupters that have shown the ability to make a profit while winning market share from incumbents have attracted the most attention. One example is Marks & Spencer’s €657m acquisition-in-all-but-name (structured as a joint venture) of online grocer Ocado’s UK business.

Iconic brands remain among the most attractive targets. PE firms Permira and

Advent are competing to acquire Italian luxury sneaker company Golden Goose, valued in excess of €1bn, from Carlyle. Meanwhile, Carlyle has eyes for British boot company Dr Martens, which Permira is reportedly looking to exit for a valuation also exceeding €1bn.

The sector’s totals were boosted by a number of notable personal care and cosmetics deals. The €4.4bn sale of UK-based Avon Products by Cerberus Capital to Brazil’s Natura Cosméticos was the consumer sector’s third largest deal in Europe, as well as 2019’s largest PE exit. Two months later in July, US-based Colgate-Palmolive agreed to buy French skincare company Filorga for nearly €1.5bn.

Investor appetite for this space seems set to carry into 2020. The reported sale by US cosmetics company Coty of its professional beauty brands, including German Wella and UK-based GHD, worth €6.3bn, should be among 2020’s top deals.

Investors scrutinising next wave of disruptersReflecting market enthusiasm for all things new and glittering, companies at the vanguard of consumer tech, in the alternative food segment and in the premium space will be high on investors’ agendas. The pipeline already features UK-based pet-food supplier Lily’s Kitchen, which has hired Houlihan Lokey for a sale. Add to that UK-based vegan-food manufacturer Gosh!, which has reportedly attracted interest from PE firms LDC and Ambienta.

Ample dry powder in PE hands means sponsors are well placed to acquire assets resulting from strategic carve-outs as some consumer firms streamline their portfolios, as well as targets operating in attractive and innovative niches of the consumer sector.

Barbara Pianese

Deane McRobie



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FY 2019Consumer

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Top deals

Top 15 Announced Deals for Year Ending 31 December 2019 – European Targets Consumer Sector

AnnouncedDate


31-Jul-19 P EssilorLuxottica GrandVision NV HAL Trust 9,322

21-Jun-19 L EP Global Commerce AS Metro AG (89.09% stake) 8,759

22-May-19 C Natura Cosmeticos SA Avon Products Inc Cerberus Capital Management LP 4,408

01-Apr-19 C Severgroup OOO OOO Lenta (78.36% stake) TPG Capital LP; and VTB Capital Private Equity 2,415

5-Feb-19 C L1 Retail DIA Distribuidora Internacional de Alimentacion SA (29.36% stake) 1,572

11-Jul-19 C Colgate-Palmolive Company Laboratoires Filorga Cosmetiques Groupe HLD; and Didier Tabary (Private investor) 1,496

22-Feb-19 C Saputo Inc Dairy Crest Group Plc 1,403

15-Dec-19 P Ardian Audiotonix Limited Astorg Partners 1,000

10-Jun-19 C Signa Holding GmbH European Department Store Holdings SARL (49.99% stake) Hudson's Bay Company 1,000

14-May-19 C Conad Consorzio Nazionale Dettaglianti - Societa Cooperativa a r.l. Auchan SpA Auchan Retail SA 1,000

22-May-19 C af Jochnick family Oriflame Holding AG (69.18% stake) 987

10-Apr-19 C Consortium led by PAI Partners Royal Wessanen NV 928

24-May-19 C The GBfoods SA Continental Foods Belgium NV CVC Capital Partners Limited 900

28-Jan-19 C Margarita Louis-Dreyfus (Private Investor) Louis Dreyfus Company BV (16.6% stake) 900

19-Dec-19 C Ardian Cerelia SA IK Investment Partners Limited 810


Mergermarket

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Deal Drivers EMEA FY 2019Consumer


Value

Value

Value

Value

Value

Value

Value

Value

Value

Value

Value

Value

Value

Value

Value

Value

Value

Value

10.4%

10%

1.9%

15.6%

12.8%

15.4%

13.7%

7.8%

12.4%

8.7%

4.8%

8.3%

21.8%

6.5%

10.6%

9.8%

1.8%

27.7%


Italy Italy

Nordic Nordic

DACH DACH

Iberia Iberia


France France

Benelux Benelux

Other Other





Deal Drivers EMEA

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Mergermarket 39FY 2019Consumer


Valu

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Deal Drivers EMEA

mergermarket.com

Mergermarket 40FY 2019Consumer


41Mergermarket


League tables


The financial adviser league tables by value and count have been run from 01/01/2019 to 31/12/2019 and exclude lapsed and withdrawn deals.The tables are pan-European and are based on the following sector: Consumer – retail, food and other.

The legal adviser league tables by value and count have been run from 01/01/2019 to 31/12/2019 and include lapsed and withdrawn deals.The tables are pan-European and are based on the following sector: Consumer – retail, food and other.


Number of Deals

1 2 Citi 31,044 13


3 30 Centerview Partners 23,443 4

4 3 Lazard 21,645 24

5 5 JPMorgan 20,413 14


7 32 BNP Paribas 17,976 10

8 10 Nomura Holdings 12,039 6


10 37 ING 10,522 8


Number of Deals



3 12 White & Case 24,967 18





8 29 Cravath, Swaine & Moore 13,480 4

9 10 Allen & Overy 12,904 27



Number of Deals

1 3 PwC 4,335 57

2 1 Deloitte 4,262 49


4 4 KPMG 685 31

5 6 Oaklins 57 28

6 5 EY 2,186 26

7 7 Lazard 21,645 24

8 33 Credit Agricole 8,331 20

9 17 UniCredit Group 497 17



Number of Deals

1 1 DLA Piper 6,964 49

2 4 CMS 2,018 28

3 2 Allen & Overy 12,904 27




7 15 PwC legal 1,657 21


9 12 White & Case 24,967 18

10 11 Garrigues 850 17

mergermarket.com

Deal Drivers EMEAMergermarket FY 2019Consumer


Mergermarket 42


Telecoms, Media & Technology

mergermarket.com

Deal Drivers EMEA FY 2019Telecoms, Media & Technology



Telecoms, Media & TechnologyOverview

A lack of megadeals compared to the year prior caused European telecoms, media & technology (TMT) M&A activity to decline by 36% in value in 2019 to €108.4bn. Based on deal volume, however, the region hit a record high notching up a total of 1,413 deals in 2019, up 6% on 2018.

The UK took the largest share of TMT M&A in Europe, making up 30% of the total European deal value thanks to deals such as Just Eat’s €7.4bn merger with Takeaway.com, the largest TMT transaction of 2019.

The deal aims to create one of the biggest players in the online food delivery market to rival Uber Eats and Amazon-backed Deliveroo, and saw Takeaway.com claim victory over Naspers-owned Prosus in one of last year’s fiercest takeover battles.

Terrific tech The Just Eat deal helped ensure the technology sub-sector to achieve its most valuable year since 2016, with a total of €62.4bn in 2019, a 21% year-on-year increase in value.

In another high-profile tech transaction, German online classifieds group Scout24 sold its car trading platform AutoScout24 to private equity firm Hellman & Friedman (H&F) for €2.9bn. The deal followed a failed attempt by H&F and Blackstone, Scout24’s previous owners, to take over the asset as a whole.

T is for TowerCo Overall deal value in the telecoms sub-sector dipped 56.3% in 2019 to €26bn across 86 deals compared to €59.6bn across 78 deals in 2018. Still, total deal value in 2019 came higher than in both 2017 (€16.1bn) and 2016 (€15.5bn) thanks in part to some notable take-private deals including the €4.9bn acquisition of UK-satellite company Inmarsat by a PE consortium consisting of Apax, Warburg Pincus, CPPIB and OTPPB.

The largest telecoms deal of the year was Vodafone’s €5.3bn sale of its Italian tower assets to Infrastrutture Wireless Italiane SpA, a deal that is emblematic of a trend towards splitting tower assets from telco operators. Vodafone is looking to offload other tower assets, while France’s Orange and Spain’s Telefonica are also considering IPOs for some of their tower assets.

Media slumps Media deal value in Europe also saw a drop in 2019, down to €20bn – a near two-thirds drop on the €59.1bn recorded in 2018 – as the sub-sector continues to struggle under the pressure from technological threat.

As Facebook and Google continue to disrupt the traditional agency model, the Big Four ad agencies have turned to M&A to withstand the tech giants’ onslaught. WPP sold a 60% stake in market research business Kantar for €3.6bn

last year, while Publicis acquired US-based data aggregator Epsilon for €3.5bn.

Charlie Taylor-Kroll

Amy-Jo Crowley



mergermarket.com

FY 2019Telecoms, Media & Technology

mailto:charlie.taylor-kroll%40acuris.com?subject=Deal%20Drivers%20EMEA%20FY%202019%20Enquiry

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Top deals

Top 15 Announced Deals for Year Ending 31 December 2019 – European Targets Telecoms, Media & Technology Sector

AnnouncedDate


5-Aug-19 C Takeaway.com BV Just Eat Plc 7,376

22-Oct-19 L Prosus Just Eat Plc 6,422

15-Feb-19 L Hellman & Friedman – Blackstone consortium Scout24 Holding AG 5,708

27-Feb-19 L Sunrise Communications AG UPC Switzerland LLC Liberty Global Plc 5,537

26-Jul-19 P Infrastrutture Wireless Italiane SpA Vodafone Group Plc (11,000 Italy Towers) Vodafone Group Plc 5,270

12-Jun-19 C Traviata I SARL Axel Springer SE (54.6% stake) 4,952

25-Mar-19 C Apax – Warburg Pincus – CPPIB and OTPP consortium Inmarsat Plc 4,896

9-Apr-19 C Telenor ASA DNA Plc PHP Holding Oy; Finda Telecoms Oy 3,141

17-Dec-19 P Hellman & Friedman AutoScout24 Scout24 Holding AG 2,900

6-Aug-19 P MasterCard Incorporated Nets AS (Majority of corporate services businesses) Nets AS 2,850

8-Oct-19 P Cellnex Telecom SA Arqiva Limited (Telecoms division) Arqiva Limited 2,233

12-Aug-19 C BC Partners Limited Advanced Computer Software Group Ltd (50% stake) Vista Equity Partners Management LLC 2,154

26-Oct-19 C Banijay Group SAS Endemol Shine Group BV The Walt Disney Company; Apollo Global Management LLC 2,000

23-Dec-19 C HgCapital LLP Personal & Informatik AG Permira Advisors LLP 2,00

13-Dec-19 P Morgan Stanley Infrastructure Inc Altice Portugal FTTH (49.99% stake) MEO Servicos de Comunicacoes e Multimedia SA 1,940


Mergermarket

mergermarket.com

Deal Drivers EMEA FY 2019Telecoms, Media & Technology


Value

Value

Value

Value

Value

Value

Value

Value

Value

Value

Value

Value

Value

Value

Value

Value

Value

Value

8.7%1.2%

16.8%

22.5%

16.1%

5.8%

12.3%4.2%

12.4%

17.1%

9.7%

30.3%

7.3%

8.3%

5.9%

7.3%

13.6%

0.5%


Italy Italy

Nordic Nordic

DACH DACH

Iberia Iberia


France France

Benelux Benelux

Other Other





Deal Drivers EMEA

mergermarket.com

Mergermarket 45FY 2019Telecoms, Media & Technology


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m)

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mergermarket.com

Mergermarket 46FY 2019Telecoms, Media & Technology


47Mergermarket


League tables


The legal adviser league tables by value and count have been run from 01/01/2019 to 31/12/2019 and include lapsed and withdrawn deals.The tables are pan-European and are based on the following sectors: Computer – software, hardware and semiconductors; Telecoms – hardware and carriers; Internet/e–Commerce; and Media.

The financial adviser league tables by value and count have been run from 01/01/2019 to 31/12/2019 and exclude lapsed and withdrawn deals.The tables are pan-European and are based on the following sectors: Computer – software, hardware and semiconductors; Telecoms – hardware and carriers; Internet/e–Commerce; and Media.


Number of Deals

1 9 JPMorgan 56,790 29





6 15 Lazard 23,699 32


8 18 Deutsche Bank 20,117 11

9 11 Citi 19,545 26

10 12 Rothschild & Co 10,880 24


Number of Deals



3 2 Allen & Overy 33,682 41



6 90 Simpson Thacher & Bartlett 26,618 9



9 17 White & Case 18,792 52



Number of Deals

1 1 Deloitte 4,077 65

2 2 EY 1,715 51

3 3 KPMG 6,894 46

4 4 PwC 3,313 44


6 7 Lazard 23,699 32

7 9 JPMorgan 56,790 29


9 35 Citi 19,545 26



Number of Deals

1 1 DLA Piper 9,704 103

2 6 White & Case 18,792 52


4 2 CMS 3,264 50


6 4 Allen & Overy 33,682 41




10 5 Jones Day 3,172 37

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Deal Drivers EMEAMergermarket FY 2019Telecoms, Media & Technology


Mergermarket 48


Transportation

mergermarket.com

Deal Drivers EMEA FY 2019Transportation



TransportationOverview

Uncertainty stirred by the US-China trade war precipitated a hard landing for Europe’s transportation sector in the second half of 2019.

Though transactions were plentiful last year – matching 2018’s figure of 268 – they proved considerably smaller in size. Total deal value was €19.8bn, an almost 31% fall against the €28.6bn recorded in 2018. Of that €19.8bn, more than 20% derived from one deal, the €4.2bn acquisition of Switzerland-based Panalpina WeltTransport by Danish logistics firm DSV.

Despite the gloomy headline values, average EV/EBITDA multiples on deals in the sector grew to 16.3x, higher than in any of the last six years. Consolidations are moving apace and low-cost opportunities are rising, revealing pockets of opportunity for 2020.

Making a splashThree of 2019’s largest European transportation deals were in the ports sub-sector, including the €1.4bn acquisition of DCT Gdansk, Poland’s largest container terminal, by a consortium comprising port operator PSA International, the Polish Development Fund and the IFM Global Infrastructure Fund.

In Western Europe, Marseille-headquartered CMA CGM agreed in December to sell a portfolio of stakes in 10 international ports to Terminal Link, its joint venture set up in 2013 with China Merchants Port. The ports sector is set for more deal activity in 2020,

as Greece looks to launch privatisation processes for a slew of its port assets.

Besides European and US-based players, China has expressed interest in the EMEA region’s larger ports. But its ability to invest further depends on the severity of regulatory restrictions. The EU, for its part, is developing a new foreign direct investment regulation, effective from October 2020.

Airport M&A preparing for take-offEurope’s second largest transport deal in 2019, after DSV’s acquisition of Panalpina, concerned a consortium’s €2.2bn purchase of a 36% stake in Brussels airport.

The deal was one of several transactions in airport infrastructure. In December, French construction and concessions group Eiffage acquired a 49.99% stake in Toulouse airport from Chinese consortium Casil Europe for almost €500m.

In the coming year, M&A in the airport space could see more substantial activity, as passenger air travel in Europe and elsewhere continues to increase. According to Eurostat data, 2018 saw a 6% year-on-year rise in passenger traffic. A similar, if not larger, rate of growth is expected to be reported for 2019.

Turkish airport management company TAV Havalimanlari and Germany’s Fraport are preparing a joint bid for Antalya airport and Atlantia, the Italian infrastructure group, has

already attracted interest in its 49% stake in Aeroporti di Roma, which operates both of the Italian capital’s international airports. The stake is valued as high as €2.6bn.

Jax Jacobsen

Elaine Green



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FY 2019Transportation

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Top deals

Top 15 Announced Deals for Year Ending 31 December 2019 – European Targets Transportation Sector

AnnouncedDate


1-Apr-19 C DSV AS Panalpina WeltTransport Holding AG 4,224

15-Mar-19 C Swiss Life AG; QIC Limited; and APG Group NV Brussels Airport Company NV (36% stake) Macquarie Infrastructure and Real Assets 2,196

27-Nov-19 P Delo Group Transcontainer OAO United Transport and Logistics Company JSC 1,736

19-Mar-19 C PSA International Pte Ltd; IFM Investors; and Polski Fundusz Rozwoju SA (PFR) DCT Gdansk SA AustralianSuper; Motor Trades Association of Australia Superannuation Fund Pty Limited; Macquarie Infrastructure and Real Assets; and Statewide Superannuation Pty Ltd

1,300

13-Jun-19 C ASTM SpA SIAS – Societa Iniziative Autostradali e Servizi SpA (38.31% stake) 1,082

4-Nov-19 P International Consolidated Airlines Group SA Air Europa Lineas Aereas SA Globalia Corporacion Empresarial SA 1,000

20-Dec-19 P Terminal Link SAS Terminal Link Holding (Singapore) Pte. Ltd.; CMA CGM Port Terminals CMA-CGM SA 861

5-Apr-19 C First State Investments (UK) Limited Vopak Terminal Amsterdam Westpoort BV; Vopak Terminal Algeciras SA (80% stake); and Vopak Dupeg Terminal Hamburg GmbH

Vopak NV 710

26-Nov-19 P Hermes Infrastructure Iridium (Six shadow toll concessions in Spain) (74% stake) Iridium Concesiones de Infraestructuras SA 703

26-Feb-19 C Government of the Netherlands Air France-KLM SA (12.68% stake) 680

22-Jul-19 C Eiffage SA Aeroport Toulouse-Blagnac (49.99% stake) China Shandong Hi-Speed Financial Group Limited; Friedmann Pacific Asset Management Limited

507

18-Jul-19 C Permira Advisers LLP; Holtzbrinck Ventures GmbH; Baillie Gifford & Co Ltd; Silver Lake Partners; European Investment Bank; Technology Crossover Ventures; Luxor Capital Group LP; BlackRock Capital Investment Corporation; and Odyssey 44 AS

FlixMobility GmbH (Undisclosed stake) 500

14-Feb-19 C VTB Bank OAO Novorossiysk Grain Terminal LLC Novorossiysk Commercial Sea Port PJSC 478

03-Jun-19 C VTB Bank OAO Group of Companies RTC (50% stake) 403

27-Sep-19 P Sinotrans Limited KLG Europe Eersel BV KLG Europe Rotterdam BV; KLG Europe Venlo BV; KLG Europe Logistics SRL; KLG Europe Bradford Limited; KLG Invest Europe SRL; and KLG Trucking SRL

KLG Europe Holding BV 386


Mergermarket

mergermarket.com

Deal Drivers EMEA FY 2019Transportation


Value

Value

Value

Value

Value

Value

Value

Value

Value

Value

Value

Value

Value

Value

Value

Value

Value

Value

2.6%

16.4%

13.8%

15.3%

4.5%8.6%

15.3%

12.3%

11.2%18.6%

17.3%

2.6%

0.1%

11.4%

4.7%

13.6%

24.9%

6.8%


Italy Italy

Nordic Nordic

DACH DACH

Iberia Iberia


France France

Benelux Benelux

Other Other





Deal Drivers EMEA

mergermarket.com

Mergermarket 51FY 2019Transportation


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Mergermarket 52FY 2019Transportation


53Mergermarket


League tables


The legal adviser league tables by value and count have been run from 01/01/2019 to 31/12/2019 and include lapsed and withdrawn deals.The tables are pan-European and are based on the following sector: Transportation.

The financial adviser league tables by value and count have been run from 01/01/2019 to 31/12/2019 and exclude lapsed and withdrawn deals.The tables are pan-European and are based on the following sector: Transportation.


Number of Deals

1 11 JPMorgan 8,617 9


3 7 Citi 4,224 3

4 38 KPMG 2,374 11


6 19 EY 1,772 7


8 - VTB Capital 1,761 3

9 30 Lazard 1,629 6



Number of Deals

1 115 Jones Day 4,908 8

2 40 Allen & Overy 4,875 15


4 18 Baer & Karrer 4,224 2

5= 125 Moalem Weitemeyer Bendtsen 4,224 1

5= - Schellenberg Wittmer 4,224 1

5= 37 Skadden Arps Slate Meagher & Flom 4,224 1



10 16 White & Case 2,649 5


Number of Deals

1 7 KPMG 2,374 11

2 16 JPMorgan 8,617 9


4 6 Deloitte 67 9

5 5 EY 1,772 7

6 1 PwC 142 7

7 34 Lazard 1,629 6

8 22 Oaklins 40 6

9 3 BDO - 6

10 49 BNP Paribas 1,201 5


Number of Deals

1 6 Allen & Overy 4,875 15



4 1 DLA Piper 116 9

5 38 Jones Day 4,908 8


7 11 Latham & Watkins 886 6

8 4 CMS 880 6

9 12 White & Case 2,649 5


mergermarket.com

Deal Drivers EMEAMergermarket FY 2019Transportation


Mergermarket 54


Pharma, Medical & Biotech

mergermarket.com

Deal Drivers EMEA FY 2019Pharma, Medical & Biotech



Pharma, Medical & BiotechOverview

The pharma, medical & biotech (PMB) sector has seen a significant rise in the value of deals in 2019, despite a slowdown in M&A activity. The total value of PMB in Europe was the highest of any sector, standing at €145.4bn, a 15% rise on 2018. The volume of deals, however, declined 11% to 560 in 2019 – the lowest annual total in three years.

Despite a decline in the volume of transactions, the PMB space has seen several blockbuster deals, mainly in the UK, Ireland and the DACH region. The UK and Ireland took up a whopping 60.1% of PMB value in 2019, largely due to AbbVie’s acquisition of Dublin-based Allergan for €75.8bn, the largest European deal of the year across all sectors.

DACH, however, was the most active region by deal count, with 22% of PMB deals. The largest DACH transaction was Swiss pharmaceutical company Novartis’ spinoff of its eyecare division Alcon at a valuation of €23.7bn.

In contrast with the annual rise in overall M&A value, private equity activity in PMB dropped by both value and volume in 2019. The number of exits dropped to 75, from 84 in 2018 – already the lowest annual figure in five years. Value similarly fell by 10% to the lowest yearly total since 2014, €10.8bn. Buyouts similarly declined 9% and 10% by volume and value, respectively, to 140 deals worth €18.7bn.

Pharma challenges sink multiplesAlthough megadeals have boosted the overall value of PMB transactions, a sharp decline in multiples is an indication of a market slowdown. Pharmaceutical companies globally have seen their median EBITDA multiple dropping from 28x in 2018 to 14.2x in 2019, while multiples in the medical sector fell from 22.6x EBITDA in 2018 to 18.1x in 2019.

A general market slowdown is one cause of a fall in multiples, but pharma firms are also facing challenges from patent expirations as more generic drugs enter the market. Drugs such as Pfizer’s Lyrica, Novartis’ topical corticosteroid Durezol and Roche’s Rituxan all lost exclusivity between 2018 and 2019.

In contrast, median EBITDA multiples in the biotech industry have risen sharply and stood at 29.8x in 2019, significantly higher than 23.4x in 2018. Pharma companies looking to foster innovation have sought to deepen their partnerships with biotech firms. For example, US drugmaker Gilead Sciences invested €976m for a 11.28% stake in Belgian firm Galapagos.

A brighter future?Despite a slowdown in the volume of deals, the PMB space is expected to show some resilience in 2020. The recession-proof healthcare sector could provide positive returns for investors with several high-profile transactions anticipated this year.

Davide Salvi

Sabzina Oshikova


mergermarket.com

FY 2019Pharma, Medical & Biotech

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Top deals

AnnouncedDate


25-Jun-19 P AbbVie Inc Allergan plc 75,768

28-Feb-19 C Novartis AG (Shareholders) Alcon Inc. Novartis AG 23,672

16-May-19 C A consortium led by EQT Partners AB and Abu Dhabi Investment Authority Galderma Nestle SA 9,029

20-Aug-19 P Elanco Animal Health Incorporated Bayer Animal Health GmbH Bayer AG 6,854

4-Nov-19 P Stryker Corporation Wright Medical Group NV 4,404

21-Nov-19 P Investor consortium led by Cinven Partners LLP and Astorg Partners LGC Limited Kohlberg Kravis Roberts & Co LP 3,503

05-Jul-19 C I Squared Capital Domidep SAS BNP Paribas Developpement SA, SCR; Carvest SAS; UI Gestion SA; and Bpifrance SA 1,150

8-Apr-19 C Intermediate Capital Group Plc; Merieux Equity Partners SAS DOC Generici SRL CVC Capital Partners Limited 1,100

14-Jul-19 C Gilead Sciences Inc Galapagos NV (11.28% stake) 976

25-Nov-19 C Asahi Kasei Corporation Veloxis Pharmaceuticals AS (81.22% stake) Lundbeckfond Invest A/S; and Novo A/S 960

31-Oct-19 C Sumitomo Dainippon Pharma Co Ltd Roivant Sciences Ltd (11% stake) 896

29-Oct-19 C Dentressangle Initiatives SAS Marle International SAS (Undisclosed Majority Stake) IK Investment Partners Limited; The Carlyle Group 800

12-Mar-19 C Fujifilm Corporation Biogen (Denmark) Manufacturing ApS Biogen Inc 789

4-Mar-19 C Biogen Inc Nightstar Therapeutics Plc 749

18-Nov-19 P Recipharm AB Consort Medical Plc 734


Top 15 Announced Deals for Year Ending 31 December 2019 – European Targets Pharma, Medical & Biotech Sector

Mergermarket

mergermarket.com

Deal Drivers EMEA FY 2019Pharma, Medical & Biotech


Value

Value

Value

Value

Value

Value

Value

Value

Value

Value

Value

Value

Value

Value

Value

Value

Value

Value

7.3%1.2%

17.6%

22%

11.4%7.7%

11.8%

7.8%

13.2%

0.7%

0.2%1.3%

1.6%

60.1%

29.4%

2.7%

0.9%3.1%


Italy Italy

Nordic Nordic

DACH DACH

Iberia Iberia


France France

Benelux Benelux

Other Other





Deal Drivers EMEA

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Mergermarket 57FY 2019Pharma, Medical & Biotech


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Mergermarket 58FY 2019Pharma, Medical & Biotech


59Mergermarket


League tables


The legal adviser league tables by value and count have been run from 01/01/2019 to 31/12/2019 and include lapsed and withdrawn deals.The tables are pan-European and are based on the following sectors: Pharmaceuticals; Medical; and Biotechnology.

The financial adviser league tables by value and count have been run from 01/01/2019 to 31/12/2019 and exclude lapsed and withdrawn deals.The tables are pan-European and are based on the following sectors: Pharmaceuticals; Medical; and Biotechnology.


Number of Deals

1 1 JPMorgan 98,618 12


3 5 Evercore 90,293 8


5 11 PJT Partners 77,887 5





10 32 Jamieson Corporate Finance 12,962 8


Number of Deals



3 25 Debevoise & Plimpton 82,412 3


5 8 A&L Goodbody 81,777 4

6= 7 Arthur Cox 75,858 3

6= 1 Slaughter and May 75,858 3

8 90 McCann FitzGerald 75,795 2

9 202 Matheson 75,768 3

10= 333 Lee and Li Attorneys at Law 75,768 1

10= 371 Wachtell, Lipton, Rosen & Katz 75,768 1


Number of Deals

1 1 PwC 11,571 36

2 2 Deloitte 238 31

3 3 EY 645 27

4 6 KPMG 365 27


6 13 Jefferies 7,092 19


8 12 Lazard 6,898 13

9 5 JPMorgan 98,618 12

10 22 Clearwater International 327 12


Number of Deals

1 7 White & Case 5,662 22



4 3 DLA Piper 1,837 20


6 2 CMS 1,269 19


8 11 Goodwin Procter 6,011 17



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Deal Drivers EMEAMergermarket FY 2019Pharma, Medical & Biotech


Mergermarket 60


The Middle East & North Africa MENA

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Deal Drivers EMEA FY 2019The Middle East & North Africa



The Middle East & North AfricaOverview

Siddesh Mayenkar

A few bumper deals punctuated Middle East & North Africa (MENA) M&A activity in 2019, albeit that the overall deal count fell sharply against the year before – just 107 versus 161 in 2018.

One transaction eclipsed all others. In March 2019, oil behemoth Saudi Aramco bought 70% of petrochemicals group SABIC valued at €62.5bn. It was the largest deal in the global chemical space.

Total M&A deal value in the region (excluding Israel) was €107.2bn, equivalent to the cumulative total of the preceding four years. Even deducting the SABIC deal – something of a Saudi sovereign portfolio shuffle – the remaining €44.7bn is on par with 2018’s figure.

The UAE saw several major cross-border transactions. The largest included: a €3.5bn deal in which a 40% stake in ADNOC Oil Pipelines went to KKR and BlackRock; Union National Bank’s €3.5bn takeover by Abu Dhabi Commercial Bank; the offloading of a 20% stake in Abu Dhabi Oil Refining Company to Italy’s Eni in a €2.8bn deal; and the €2.7bn purchase of Dubai-based ride-hailing group Careem by US giant Uber.

Demurring from bumper deals2020 is likely to see a step back from the bumper deals that characterised 2019. The market might instead find support in smaller deals in the facilities management and utilities space, particularly in the run-up to EXPO 2020 world fair, to be hosted by Dubai.

Emrill Services, a Dubai-based facilities management company, is talking to several specialist services companies in the Middle East as it eyes one or more acquisitions. Real estate developer Emaar Properties is also reportedly in talks with potential buyers for sale of its district cooling business.

Among other potential M&A activity, BR Life, an Indian healthcare company owned by Abu Dhabi-based billionaire Bavaguthu Raghuram Shetty, is planning to acquire as many as eight hospital firms in India.

Majid Al Futtaim, the Dubai-based holding company that manages shopping and leisure centres in MENA and which operates the Middle East franchise of French retailer Carrefour, is reportedly exploring options for the sale of its credit card business.

In the financial sector, transactions that could materialise in 2020 include construction group Arabtec’s potential merger with the construction arm of Trojan Holdings, as well as Dubai Islamic Bank’s possible acquisition of Noor Bank, a young institution founded only in 2008.

Government spur to activityGulf countries that depend on oil for revenue have witnessed a sharp decline in income due to the falling price of crude, triggering consolidation in state-owned oil and gas companies. February 2019’s ADNOC deal – which in July saw GIC, Singapore’s SWF

fund, join KKR and BlackRock with a €535m investment – is indicative of this kind of move.

Strategic economic initiatives such as Saudi Vision 2030 and governments’ plans to monetise their infrastructure assets could spur activity. The dissipation of political uncertainty, especially in Iran, could be a similar boon for the region.


mergermarket.com

FY 2019The Middle East & North Africa

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Top deals

Top 15 Announced Deals for Year Ending 31 December 2019 – The Middle East & North Africa All Sectors (Based On Target, Excludes Israel)

AnnouncedDate

Status Bidder Company Target Company Sector Vendor Company Deal Value(€m)

27-Mar-19 P Saudi Arabian Oil Co Saudi Basic Industries Corporation (70% stake) Industrials & Chemicals Public Investment Fund 62,496

24-Feb-19 C Kohlberg Kravis Roberts & Co LP; and BlackRock Inc ADNOC Oil Pipelines LLC (40% stake) Energy, Mining & Utilities Abu Dhabi National Oil Company 3,531

29-Jan-19 C Abu Dhabi Commercial Bank Union National Bank Financial Services 3,488

27-Jan-19 C Eni SpA Abu Dhabi Oil Refining Company (20% stake) Energy, Mining & Utilities Abu Dhabi National Oil Company 2,841

26-Mar-19 C Uber Technologies Inc Careem Networks FZ LLC Telecoms, Media & Technology Doll Capital Management; Lumia Capital; BECO Capital; STC Ventures; Wamda Capital; SQM Frontier Management LP; Endure Capital; and Saudi Technology Ventures

2,744

27-Jan-19 C OMV AG Abu Dhabi Oil Refining Company (15% stake) Energy, Mining & Utilities Abu Dhabi National Oil Company 2,131

17-Jun-19 C Fertiglobe ADNOC Fertilizers; OCI N.V. (Nitrogen fertilizers production platform in the Middle East and North Africa)

Industrials & Chemicals Abu Dhabi National Oil Company; OCI N.V. 1,871

25-Dec-19 P Saudi Arabian Fertilizers Company Gulf Petrochemical Industries Company (33% Stake); National Chemical Fertilizers Company (50% stake); Al-Jubail Fertilizer Company (50% stake)

Industrials & Chemicals Saudi Basic Industries Corporation 1,104

1-Jul-19 C DP World Limited Topaz Energy and Marine Limited Transportation Renaissance Services SAOG; and Affirma Capital 953

15-Dec-19 P State Grid Corporation of China Oman Electricity Transmission Company SAOC (49% stake) Energy, Mining & Utilities Electricity Holding Company SAOC 901

15-Apr-19 C Twelve Seas Investment Company Brooge Petroleum and Gas Investment Company FZC Energy, Mining & Utilities 890

21-Nov-19 C Dubai Islamic Bank Noor Bank Financial Services Noor Financial Investment Company 850

16-Jun-19 C Emirates Investment Authority Emirates Integrated Telecommunications Company PJSC (10.22% stake) Telecoms, Media & Technology Mamoura Diversified Global Holding PJSC; General Investments FZE

648

21-Apr-19 C Saudi Arabian Oil Co Saudi Aramco Shell Refinery Co (50% stake) Energy, Mining & Utilities Royal Dutch Shell Plc 561

30-Jul-19 C GIC Private Limited ADNOC Oil Pipelines LLC (6% stake) Energy, Mining & Utilities Abu Dhabi National Oil Company 538

C= Completed; P= Pending

Mergermarket

mergermarket.com

Deal Drivers EMEA FY 2019The Middle East & North Africa


Num

ber

of d

eals

0

10

20

30

40

50

60

70

Agr

icul

ture

Def

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Real

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Con

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& B

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Tran

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Leis

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com

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& T

echn

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Ener

gy, M

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Con

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s S

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Fina

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l Ser

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Indu

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ls &

Che

mic

als

42

4

9 10

26

20

26

17

27

8

32

70

Mergermarket 63

Valu

e (€

m)

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

Agr

icul

ture

Def

ence

Real

Est

ate

Con

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n

Pha

rma,

Med

ical

& B

iote

ch

Tran

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n

Leis

ure

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com

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edia

& T

echn

olog

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ities

Con

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s S

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als

42081,935

470 9351,359 531 7371,701

64,178

7,201

14,535 13,446

Mix of deals by industry sectorValue

Based on announced deals in 2019, excluding those that lapsed or were withdrawn, where the dominant location of the target is in the Middle East (excl. Israel) or North Africa. Industry sector is based on the dominant industry of the target.

Mix of deals by industry sectorDeal Count

Based on announced deals in 2019, excluding those that lapsed or were withdrawn, where the dominant location of the target is in the Middle East (excl. Israel) or North Africa. Industry sector is based on the dominant industry of the target.

Deal Drivers EMEA

mergermarket.com



Valu

e (€

m)

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000


Num

ber

of d

eals

0

10

20

30

40

50

60

70

80

90



Based on announced deals, excluding those that lapsed or were withdrawn, where the dominant location of the target is in the Middle East (excl. Israel) or North Africa.


Based on announced deals, excluding those that lapsed or were withdrawn, where the dominant location of the target is the the Middle East (excl. Israel) or North Africa.



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65Mergermarket


League tables


The legal adviser league tables by value and count have been run from 01/01/2019 to 31/12/2019 and include lapsed and withdrawn deals.The tables are based on dominant target, bidder or seller company geography being the Middle East and North Africa excluding Israel, and cover all sectors.

The financial adviser league tables by value and count have been run from 01/01/2019 to 31/12/2019 and exclude lapsed and withdrawn deals. The tables are based on dominant target, bidder or seller company geography being the Middle East and North Africa excluding Israel, and cover all sectors.


Number of Deals

1 3 JPMorgan 83,707 23


3 6 Citi 76,434 18

4 4 HSBC 73,526 13



7 - Klein and Company 62,496 1

8 28 Moelis & Company 11,289 9

9 15 Lazard 10,799 13

10 12 EY 4,920 20


Number of Deals

1 6 Allen & Overy 80,988 28


3 8 White & Case 69,847 29

4 4 AS&H 63,522 4

5 9 Khoshaim & Associates 63,057 4

6 - Lee and Li Attorneys at Law 62,496 1



9 80 Ashurst 12,513 7

10 - Cravath, Swaine & Moore 9,730 3


Number of Deals

1 5 JPMorgan 83,707 23

2 2 EY 4,920 20

3 8 Citi 76,434 18

4 3 PwC 861 14

5 9 HSBC 73,526 13

6 13 Lazard 10,799 13




10 14 Deloitte 1,488 10


Number of Deals

1 2 Webber Wentzel 3,255 31


3 6 White & Case 69,847 29

4 3 Allen & Overy 80,988 28

5 1 DLA Piper 1,426 28



8 5 Bowmans 2,766 19


10 55 Werksmans 845 16

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Deal Drivers EMEAMergermarket FY 2019The Middle East & North Africa


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Energy, Mining & UtilitiesPatrick Harris Analytics: Andrea Putaturo, Thorsten Louie Pedersen

ConsumerDeane McRobie, Barbara Pianese Analytics: Thorsten Louie Pedersen

Telecoms, Media & TechnologyAmy-Jo Crowley, Charlie Taylor-Kroll Analytics: Thorsten Louie Pedersen

TransportationElaine Green, Jax Jacobsen Analytics: Thorsten Louie Pedersen

Pharma, Medical & BiotechDavide Salvi Analytics: Sabzina Oshikova

The Middle East & North AfricaSiddesh Mayenkar

Criteria Contacts

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 where the effective stake acquired is less than 30% will only be included if the value is greater than US$100m.

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 seller geography of either is that of the geography in focus.

Mid-market is defined as €5-€250m.

All data included is correct as of 06 January 2020.

League Tables correct as of 27 January 2020.

Top deals correct as of 06 January 2020.

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

Head of Research Giovanni Amodeo

AmericasPhilip Segal

Asia-PacificGerry Tee

EMEAAndrea Putaturo

All SectorsYining Su

Financial ServicesPablo Mayo Cerqueiro Analytics: Sabzina Oshikova

Industrials & ChemicalsRyan Gould Analytics: Olivier Gilkinet

Advertising Opportunities Simon Elliott [email protected] +44 20 3741 1060

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