Download - Monthly MA Insider June 2012
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Monthly M&A InsIder
A mergermArket report on globAl m&A Activity
JUne 2012
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Energy
The Energy, Mining and Utilities sector represents the largest
proportion of transactions by value, with 29.2% of global M&A
in 2012. This months top deals in the Europe, Latin America,
Asia-Pacic and the Middle East & Africa regions begin toexplain why the sector dominates. Four of the top 10 deals in
Europe were from this sector. The largest, was Cassa Depositi
e Prestitis acquisition of a 30% stake less one share in Snam
from Eni valued at 3.5bn, the largest Italian deal of the year so
far. The deal, announced on 30 May, will allow Eni, an energy
company involved in producing, and transporting oil and gas,
to free up funds to invest in other oil and gas projects in the
future. Over the next 12 months, Enis remaining 23.5% shares
in Snam, will be sold to other unidentied investors.
During May, Latin America M&A activity saw 50 deals worth
US$10.9bn, bringing the total year-to-date value to 221 dealsworth US$37bn. The Energy sector, a backbone of the M&A
market in the region, accounted for 37.7% of the market value.
In May, the largest announced deal was indeed from this sector
with Cosan SA Industria e Comercio announced acquisition of
Cia de Gas de Sao Paulo for US$4bn, in the hopes of focusing
their assets on developing key nds in Brazil and elsewhere.
Asia also had three of the top 10 deals from the Energy sector,
while year-to-date numbers consistently show that Energy,
Mining and Utilities is still the largest sector by value in Asia-
Pacic with 82 deals worth US$ 32.9bn. The largest deal in
the sector involved a consortium including the MacquarieGroup Limited and Abu Dhabi Investment Authority, acquiring
E. ON AG for US$3.7bn. Through this deal, E. ON AG, one of
the worlds largest power and gas companies, hopes to raise
cash to pay down debt and fund expansion. The second largest
Energy deal saw Japan Australia LNG (MIMI) Pty. Ltd. acquire a
14.7% stake interest in Woodside Petroleum Ltd., for US$2bn.
The Middle East & Africa region also saw three of the top deals
in the Energy, Mining and Utilities sector, although notably
smaller in size than those deals acquired in Europe.
Pharma
The Pharma, Medical & Biotech sector represents a modest
7.2% and 8.1% of global deal value and volume respectively,
but nonetheless is the lead sector in terms of top deals
in North America with three out of the top ten announced
deals in this sector. The second largest deal for the month
of May was US-based DaVitas Inc., US$4.4bn acquisition of
HealthCare Partners LLC. Through this acquisition DaVita
hopes to expand its business in California, Nevada, and
Florida; all locations where HealthCare Partners LLC has large
operations. The other two bulge bracket North American dealswere GlaxoSmithKline Plcs US$2.5bn acquisition of Human
Genome Sciences Inc., and Sandoz AGs US$1.5bn acquisition
of Fougera.
Outlook
Another notable trend in May was the attractiveness of the
Consumer sector in Latin America. US-based General Mills
and London-based Diageo acquired Brazilian-based Yoki
Alimentos SA and Ypioca Agroindustrial (Ypioca brand and
other production assets), respectively. With the growing
purchasing power of the middle class in emerging markets,domestic and foreign acquirers seek positioning in the markets
to best meet the needs. This, coupled with the slow growth in
the US and Europe, makes it likely to be a reoccurring theme in
the months ahead.
GLOBAL OVEVIEW
GLOBALLY, MAY SAW 782 DEALS WOTH US$171BN, AND WHILE THIS EPESENTS A NEALY 32%DECEASE IN OVEALL VOLUME COMPAED TO MAY 2011, DEAL VALUE IS ONLY DOWN 10% IN THESAME TIMEFAME. WHILE 2012 HAS BEEN COMPAATIVELY MUTED IN TEMS OF THE NUMBE OFTANSACTIONS, THEE WEE NOTABLE SECTOS THAT KEPT THESE VALUES BUOYANT.
Head of Research: Elias Latsis
Editor: Gwen Ceton
For advertising opportunities contact:
Erik Wickman
Tel: + (1) 212 [email protected]
Global overview: Laura esetar
Latin America: Jennifer uiz
North America: Urna Chakraborty
Asia-Pacic: Timothy Phillips
Europe: Peter Kruk, Yannis Papacostas and Darragh iordan
Middle East & Africa: Marie-Laure Keyrouz, Silvia Paparelloand Beatrice Bragho
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TREND GRAPHS
GLOBAL M&A QUARTERLY TREND
0
200
400
600
800
1,000
1,200
1,400
Q2
12*
Q1
12
Q4
11
Q3
11
Q2
11
Q1
11
Q4
10
Q3
10
Q2
10
Q1
10
Q4
09
Q3
09
Q2
09
Q1
09
Q4
08
Q3
08
Q2
08
Q1
08
Q4
07
Q3
07
Q2
07
Q1
07
Q4
06
Q3
06
Q2
06
Q1
06
Value
(US$bn
)
Total value Mid-market value
Numberofdeals
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
Total volume Mid-market volume
0
50
100
150
200
250
300
350
400
Q212*
Q112
Q411
Q311
Q211
Q111
Q410
Q310
Q210
Q110
Q409
Q309
Q209
Q109
Q408
Q308
Q208
Q108
Q407
Q307
Q207
Q107
Q406
Q306
Q206
Q106
Value
(US$bn
)
Buyout value Exit value
Numberofdeals
Buyout volume Exit volume
0
100
200
300
400
500
600
700
800
900
GLOBAL M&A ANNUAL TREND GLOBAL M&A ANNUAL PRIVATE EQUITY TREND
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
YTD 2012*201120102009200820072006
Va
lue
(US$bn
)
Total value Mid-market value
Numberofd
eals
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
Total volume Mid-market volume
0
100
200
300
400
500
600
700
800
900
YTD 2012*201120102009200820072006
Va
lue
(US$bn
)
Buyout value Exit value
Numberofd
eals
Buyout volume Exit volume
0
500
1,000
1,500
2,000
2,500
3,000
3,500
GLOBAL M&A QUARTERLY PRIVATE EQUITY TREND
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TREND GRAPHS
GLOBAL M&A SECTOR BREAKDOWN YTD 2012
GLOBAL GEOGRAPHIC BREAKDOWN YTD 2012
VALUE
VALUE
VOLUME
VOLUME
29.2%
8.8%
8.0%
3.4%
2.5%
2.2%1.3%
2.9%
8.1%
12.7%
9.1%
11.9%
Industrials & Chemicals
Financial Services
TMT
Consumer
Business Services
Energy, Mining & Utilities
Pharma, Medical & Biotech
Leisure
Construction
Transportation
Real Estate
Agriculture
2.1%5.0%
35.7%
38.7%
18.6% Asia-Pacific
Europe
North America
Middle East & Africa
Central & South America
11.2%
13.7%
1.0%
0.3%
3.1%
3.4%
2.1%
7.2%
3.6%
9.3%
21.2%
8.5%
15.5%
Industrials & Chemicals
Financial Services
TMT
Consumer
Business Services
Energy, Mining & Utilities
Pharma, Medical & Biotech
Leisure
Construction
Transportation
Real Estate
Agriculture
5.2%2.5%
34.0%
39.6%
18.6% Asia-Pacific
Europe
North America
Middle East & Africa
Central & South America
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TREND GRAPHS
GLOBAL M&A DEAL SIZE BREAKDOWN
VALUE VOLUME
0
10
20
30
40
50
60
70
80
90
100
YTD 2012*201120102009200820072006
42.1%
16.7%
21.0%
7.5%
12.7%
39.8%
16.8%
23.0%
7.9%
12.5%
42.0%
15.3%
19.3%
8.9%
14.5%
40.8%
16.3%
20.4%
7.9%
14.6%
27.3%
20.6%
27.6%
9.6%
14.9%
29.9%
19.3%
26.1%
10.2%
14.5%
26.2%
22.2%
28.3%
10.4%
12.9%
US$5,001m
Percen
tage
80
82
84
86
88
90
92
94
96
98
100
YTD 2012*201120102009200820072006
US$5,001m
1.2%
5.0%
4.7%
88.4%
1.3%
5.5%
5.1%
87.4%
0.6%
0.9%
3.9%
4.6%
90.0%
0.9%
3.7%
3.9%
91.0%
89.2%
4.5%
4.7%
1.1%
0.4%
1.1%
4.7%
4.9%
88.8%
0.7% 0.7% 0.5%
1.2%
5.1%
5.2%
88.0%
0.4%0.5%
Percen
tage
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M E R R I L L D A T A S I T E
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LATIN AMERICAA MERERMARkET M&A REpRT N
Monthly M&A Insider 06
In May, the largest Latin American deal to date was in the
Energy, Mining and Utilities sector when Cosan SA Industriae Comercio announced the acquisition o Cia de as de Sao
paulo or US$4bn. This deal, announced on 3 May hoes
to hel Cosan, a bioenergy leader ocused on roducing,
transorting and distributing renewable energy, develo their
sources in Brazil and elsewhere.
The next largest transaction in the consumer sector or
the month is eneral Mills acquisition o Yoi Alimentos, a
rivately held ood comany based in Brazil, worth US$954m.
Through this acquisition, eneral Mills hoes to double its
annual sales in Latin America, as well as seed u their
growth in the region. eneral Mills has shown eorts tobuild u its international business, to include this deal, with
international sales exected to to US$4bn in fscal 2012,
while almost doubling their annual sales in Latin America
alone to almost US$1bn.
State rid Cororation o Chinas acquisition o ACS
Actividades de Construccion y Servicios SA came in third witha deal value o US$941m. This acquisition maes State rids
second investment in the Brazil region, and ourth major
investment overseas; urthermore, this investment should
oen u urther marets to hel State rid exand globally.
The above deals illustrate a mixture o domestic and
cross-border acquirers who targeted the region in May.
Foreign buyers are articularly interested in the Consumer
and Energy, Mining and Utilities sectors, the strongholds
o the region, as they loo to exand maret share and
ta resources.
DURIN TE MNT F MAY, LATIN AMERICA M&A ACTIITY SA 50 DEALS RT US$10.9BN, BRININTE TTAL YEAR-T-DATE T 221 DEALS RT US$37BN. INDUSTRIALS AND CEMICALS AS TEMST ACTIE SECTR IT 40 DEALS RT US$957M REpRESENTIN 18.1% F TE DEAL CUNT ITENERY, MININ, AND UTILITIES FLLIN IT IT 17.6% F TE MARkET. TE ENERY, MININ ANDUTILITIES SECTR AD TE IEST DEAL ALUE YEAR-T-DATE IT US$13.8BN, CApTURIN 37.3% FERALL M&A DEAL ALUE.
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TOP 10 LATIN AMERICAN ANNOUNCED DEALS OF THE MONTH (MAY-12)
Announced Bidder company Target company Target dominant
sector
Seller company Exit multiples (x) Bid premia
1-day
before
Deal
value
(US$m)Revenue EBITDA P/E
03-May-12 Cosan SA Industria eComercio
Cia de Gas de Sao Paulo Energy, Mining &Utilities
1.8 10.5 24.0 12.2% 3,983
24-May-12 General Mills Inc Yoki Alimentos SA Consumer 1.6 - - - 954
28-May-12 State Grid Corporationof China
ACS Actividades deConstruccion y ServiciosSA (seven electric powertransmission lines in Brazil)
Energy, Mining &Utilities
ACS Actividadesde Construccion yServicios SA
- - - - 941
25-May-12 MPX Energia SA
(shareholders)
CCX Carvao da Colombia SA Energy, Mining &
Utilities
MPX Energia SA - - - - 598
22-May-12 Glencore Internationalplc
Samref Congo Sprl(1.00% stake); and SamrefOverseas SA (24.49% stake)
Energy, Mining &Utilities
Groupe BazanoSprl; and HighGrade Minerals SA
- - - - 480
28-May-12 Diageo Plc Ypioca Agroindustrial(Ypioca brand and otherproduction assets)
Consumer YpiocaAgroindustrial
4.8 - - - 454
11-May-12 Banco GNB SudamerisSA
HSBC Colombia SA; HSBCBank Peru SA; HSBC BankParaguay SA; and HSBCBank (Uruguay) SA
Financial Services HSBC Holdings plc n/a n/a - - 400
28-May-12 M.F.R.S.P.E.Empreendimentos eParticipacoes
Leader Participacoes SA(42.30% stake)
Consumer 1.0 - - - 336
21-May-12 Cencosud SA Russi Supermercados Consumer - - - - 297
16-May-12 Straumann Holding AG Neodent (49.00% stake) Pharma, Medical &
Biotech
6.3 12.9 - - 279
Based on announced deals, including lapsed and withdrawn bids
Based on dominant geography of target company being Latin America
Data correct as of 08-Jun-12
Source: mergermarket
TOP DEALS
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TREND GRAPHS
0
10
20
30
40
50
60
70
Q2
12*
Q1
12
Q4
11
Q3
11
Q2
11
Q1
11
Q4
10
Q3
10
Q2
10
Q1
10
Q4
09
Q3
09
Q2
09
Q1
09
Q4
08
Q3
08
Q2
08
Q1
08
Q4
07
Q3
07
Q2
07
Q1
07
Q4
06
Q3
06
Q2
06
Q1
06
Total value Mid-market value
NumberofdealsV
alue
(US$bn
)
0
20
40
60
80
100
120
140
160
180
Total volume Mid-market volume
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
Q212*
Q112
Q411
Q311
Q211
Q111
Q410
Q310
Q210
Q110
Q409
Q309
Q209
Q109
Q408
Q308
Q208
Q108
Q407
Q307
Q207
Q107
Q406
Q306
Q206
Q106
Value
(US$m
)
Buyout value Exit value
Numberofdeals
Buyout volume Exit volume
0
2
4
6
8
10
12
14
16
18
0
20
40
60
80
100
120
140
160
180
YTD 2012*201120102009200820072006
Total value Mid-market value
Numberofd
ealsVa
lue
(US$bn
)
0
100
200
300
400
500
600
700
Total volume Mid-market volume
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
YTD 2012*201120102009200820072006
Value
(US$m
)
Buyout value Exit value
Numberofd
eals
Buyout volume Exit volume
0
5
10
15
20
25
30
35
40
45
50
08
LATIN AMERICAN M&A QUARTERLY TREND
LATIN AMERICAN M&A ANNUAL TREND LATIN AMERICAN M&A ANNUAL PRIVATEEQUITY TREND
LATIN AMERICAN M&A QUARTERLY PRIVATEEQUITY TREND
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TREND GRAPHS
LATIN AMERICAN M&A GEOGRAPHIC BREAKDOWN YTD 2012
VALUE VOLUME
3.6%
4.3%
2.7%
2.8%
5.1%
2.4% 0.1%
1.5%
75.9%
1.8%
Argentina
Brazil
Chile
Colombia
Costa Rica
Dominican Republic
Mexico
Panama
Peru
Uruguay59.3%
1.4%
8.1%
9.0%
0.5%
8.6%
0.9% 5.4%
0.9%
5.9%
Argentina
Brazil
Chile
Colombia
Costa Rica
Dominican Republic
Mexico
Panama
Peru
Uruguay
LATIN AMERICAN M&A SECTOR BREAKDOWN YTD 2012
VALUE VOLUME
37.3%
14.7%
10.2%
21.6%
2.6%
0.9% 2.9%
1.1%
1.7%
2.6%3.4%
0.8%
Industrials & Chemicals
Energy, Mining & Utilities
Consumer
Financial Services
Business Services
Pharma, Medical & Biotech
Technology
Transportation
Leisure
Real Estate
Construction
Media
18.1%
17.6%
15.4%10.9%
10.4%
5.9%
5.0%
2.3%
2.3%
0.5%
0.5%
4.1%
3.6%
3.6% Industrials & Chemicals
Energy, Mining & Utilities
Consumer
Financial Services
Business Services
Pharma, Medical & Biotech
Technology
Transportation
Leisure
Real Estate
Construction
Agriculture
Telecommunications
Media
09
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LATIN AMERICAN M&A DEAL SIZE BREAKDOWN
VALUE VOLUME
0
10
20
30
40
50
60
70
80
90
100
YTD 2012*201120102009200820072006
US$5,001m
46.9%
8.3%
21.8%
10.3%
12.7%
16.0%
10.6%
32.1%
16.0%
25.2%
30.5%
20.3%
24.5%
10.0%
14.7%
9.2%
29.3%
36.6%
10.1%
14.8%9.4%
6.9%
24.9%
19.2%
39.6%
29.0%
18.4%
27.4%
10.8%
14.4%
18.6%
10.8%
21.6%
32.6%
16.5%
Percentage
20
30
40
50
60
70
80
90
100
YTD 2012*201120102009200820072006
1.0%
5.4%
7.4%
85.1%
0.2%
5.5%
6.3%
87.3%
0.6%
4.7%
5.3%
88.2%
0.3%
6.9%
5.4%
85.7%82.3%
6.3%
8.1%
1.2%1.0% 0.7% 1.2% 1.8% 2.0%
6.0%
5.9%
86.2%
0.8% 0.5%
Perce
ntage
1.1%
10.0%
6.3%
82.8%
US$5,001m
0.5%
TREND GRAPHS
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14/3512Monthly M&A Insider
TOP DEALS
TOP 10 NORTH AMERICAN ANNOUNCED DEALS OF THE MONTH (MAY-12)
Announced Bidder company Target company Target dominated
sector
Seller company Exit multiples (x) Bid premia
1-day
before
Deal value
(US$m)Revenue EBITDA P/E
29-May-12 Marubeni Corporation Gavilon LLC Business Services General Atlantic LLC;Soros Fund ManagementLLC; and OspraieManagement LLC
0.3 - - - 5,300
20-May-12 DaVita Inc HealthCare PartnersLLC
Pharma, Medical& Biotech
1.8 8.4 10.8 - 4,418
22-May-12 SAP AG Ariba Inc Technology 9.7 - - 19.6% 4,311
20-May-12 Dalian Wanda Group
Corporation Ltd
AMC Entertainment Inc Leisure Marquee Holdings - - - - 2,600
09-May-12 GlaxoSmithKline Plc Human GenomeSciences Inc
Pharma, Medical& Biotech
19.3 - - -11.1% 2,522
06-May-12 American InternationalGroup Inc
American InternationalGroup Inc (3.66% stake)
Financial Services US Department of theTreasury
n/a n/a 3.2 -7.1% 2,000
01-May-12 Collective BrandsConsortium
Collective Brands Inc Consumer 0.5 16.7 - 4.7% 1,748
02-May-12 Sandoz AG FougeraPharmaceuticals Inc
Pharma, Medical& Biotech
Nordic Capital; DLJMerchant BankingPartners; and AvistaCapital Partners LP
3.5 8.8 - - 1,525
15-May-12 Blackstone Group LP Cheniere EnergyPartners LP (undisclosedeconomic interest)
Energy, Mining& Utilities
- - - - 1,500
16-May-12 Boyd GamingCorporation
Peninsula Gaming LLC Leisure 4.4 17.0 - - 1,450
Based on announced deals, including lapsed and withdrawn bids
Based on dominant geography of target company being North America (US + Canada)
Data correct as of 08-Jun-12
Source: mergermarket
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TREND GRAPHS
NORTH AMERICAN M&A QUARTERLY TREND
0
100
200
300
400
500
600
Q2
12*
Q1
12
Q4
11
Q3
11
Q2
11
Q1
11
Q4
10
Q3
10
Q2
10
Q1
10
Q4
09
Q3
09
Q2
09
Q1
09
Q4
08
Q3
08
Q2
08
Q1
08
Q4
07
Q3
07
Q2
07
Q1
07
Q4
06
Q3
06
Q2
06
Q1
06
V
alue
(US$bn
)
Total value Mid-market value
Numberofdeals
0
200
400
600
800
1,000
1,200
1,400
1,600
Total volume Mid-market volume
0
50
100
150
200
250
Q212*
Q112
Q411
Q311
Q211
Q111
Q410
Q310
Q210
Q110
Q409
Q309
Q209
Q109
Q408
Q308
Q208
Q108
Q407
Q307
Q207
Q107
Q406
Q306
Q206
Q106
V
alue
(US$bn
)
Buyout value Exit value
Numberofdeals
Buyout volume Exit volume
0
50
100
150
200
250
300
350
NORTH AMERICAN M&A ANNUAL TREND NORTH AMERICAN M&A ANNUAL PRIVATEEQUITY TREND
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
YTD 2012*201120102009200820072006
Total value Mid-market value
NumberofdealsV
alue
(US$bn
)
0
1,000
2,000
3,000
4,000
5,000
6,000
Total volume Mid-market volume
0
50
100
150
200
250
300
350
400
450
500
YTD 2012*201120102009200820072006
Value
(US$bn
)
Buyout value Exit value
Numberofdeals
Buyout volume Exit volume
0
200
400
600
800
1,000
1,200
NORTH AMERICAN M&A QUARTERLY PRIVATEEQUITY TREND
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TREND GRAPHS
NORTH AMERICAN M&A SECTOR BREAKDOWN YTD 2012
VALUE VOLUME
10.9%
8.7%
11.6%
26.4%
7.3%
12.9%
5.8%
4.6%
2.4%
0.4%3.4%
1.4%0.7% 3.4%
Industrials & Chemicals
Technology
Consumer
Energy, Mining & Utilities
Business Services
Pharma, Medical & Biotech
Financial Services
Leisure
Media
Construction
Transportation
Real Estate
Telecommunications
Agriculture
18.5%
15.6%
11.4%
11.0%
10.4%
10.3%
3.8%
3.3%2.2%
1.8%1.3%
8.9%
0.6%
0.4%
0.6%
Industrials & Chemicals
Technology
Consumer
Energy, Mining & Utilities
Business Services
Pharma, Medical & Biotech
Financial Services
Leisure
Media
Construction
Transportation
Real Estate
Telecommunications
Defence
Agriculture
NORTH AMERICAN M&A DEAL SIZE BREAKDOWN
VALUE VOLUME
0
10
20
30
40
50
60
70
80
90
100
YTD 2012*201120102009200820072006
US$5,001m
52.8%
14.7%
16.8%
6.2%
9.5%
43.5%
18.8%
21.5%
6.5%
9.6%
49.1%
14.0%
17.4%
7.3%
12.2%
58.8%
13.3%
13.2%
5.5%
9.2% 12.6%
9.7%
27.7%
18.0%
32.0%
37.0%
21.5%
20.9%
8.9%
11.7%
16.8%
23.4%
36.5%
10.4%
12.9%
Percentage
75
80
85
90
95
100
YTD 2012*201120102009200820072006
1.1%
1.5%
5.3%
5.3%
86.9%
1.1%
1.8%
6.2%
5.3%
85.6%
0.9%
3.7%
4.1%
90.6%
1.0%
3.5%
3.8%
91.0%
87.4%
5.3%
5.6%
1.1% 1.4%
4.9%
5.3%
87.6%
0.7% 0.7% 0.6% 0.7%
1.3%
6.8%
5.5%
85.9%
0.4%
US$5,001m
Percentage
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A MERGERMARKET M&A REPORT ON
Monthly M&A Insider 15
ASIA-PACIFIC
The region clocked up 304 deals worth a total US$56.7bn in
April and May, compared to a Q1 2012 total of 479 deals worth
US$79.7bn. Prospects for deal-making putatively improved;
Mays total witnessed 155 deals being announced for a
combined value of US$34.9bn, a significant improvement
over Aprils 143 deals worth US$21.8bn.
However, premature optimism should be tempered. Mays
largest deal saw a significant share buyback from the China-
based online platform Alibaba, which struck a deal with
Yahoo! to buy back a 20% stake in itself for US$7.1bn. The
importance of foodstuffs also came to the fore. Japanese
trading house Marubenis US$3.6bn bid for US-based grain
merchant Gavilon was the second-largest deal in May.
Year-to-date numbers show that Energy, Mining & Utilities
is still the biggest sector by value in Asia-Pacific, with 82deals worth US$32.9bn, representing nearly a quarter of the
total deal value. Industrials & Chemicals remains the biggest
by deal volume, notching up an impressive 174 deals. With
US$28.9bn worth of deals, it was the second biggest sector in
terms of deal value and was the only sector to register over
100 deals in the period.
China continues to power Asian M&A, accounting for nearly a
third of total year-to-date deal value. Japan followed with 17.5%.
Asia-Pacific private equity has suffered disproportionately.
Buyouts in April and May have been sluggish, with 26 dealsworth US$2.8bn. This compares to a Q1 2012 total of 39 deals
worth US$5.3bn. Exits have slowed to a trickle in comparison.
Possibly on the back of depressed prices or the uncertainty
surrounding the eurozone crisis PE exits by value in April
and May saw a significant drop, from US$2.1bn in Q1 2012,
to US$600m. Exits by volume in April and May were at 21,
compared to a Q1 2012 total of 24.
Embers of hope still flicker in Asia as Europe crumbles.
Going into June though there could be repercussions from
the vertiginous drop in equity markets in the last weeks of
May/early June. Plenty of cash is sitting on balance sheetsbut buyers from America or Europe will be dealing with
more pressing issues. Expect to see more domestic deals
within Asia and intra-regional acquisitions. The element
of uncertainty, ever-present in the global economy at the
moment, is unlikely to dissipate any time soon.
AS WE ENTER JUNE, FEARS OF A GLOBAL RECESSION ARE MOUNTING ON THE BACK OF THE EUROZONECRISIS. AGAINST THIS UNCERTAIN FISCAL AND POLITICAL BACKDROP THOUGH, ASIA-PACIFIC M&A HASHELD UP SURPRISINGLY WELL. AFTER SEEING TWO CONSECUTIVE QUARTERS OF DECLINE IN BOTH VALUEAND VOLUME STARTING IN Q3 2011, THIS QUARTER MAY SEE A BOUNCE.
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TOP DEALS
TOP 10 ASIA-PACIFIC ANNOUNCED DEALS OF THE MONTH (MAY-12)
Announced Bidder company Target company Target dominant
sector
Seller company Exit multiples (x) Bid premia
1-day before
Deal
value
(US$m)Revenue EBITDA P/E
20-May-12 Alibaba Group Holding Ltd Alibaba Group HoldingLtd (20.00% stake)
Technology Yahoo! Inc 14.9 - 130.6 n/a 7,100
29-May-12 Marubeni Corporation Gavilon LLC BusinessServices
General AtlanticLLC; Soros FundManagementLLC; and OspraieManagement, LLC
0.3 - - n/a 5,300
18-May-12 Beijing Shougang Co Ltd Hebei Shougang Qian'anIron and Steel Co Ltd
Industrials &Chemicals
Shougang GroupCorporation
0.9 9.8 23.5 n/a 4,180
21-May-12 Nuclear DamageCompensation FacilitationCorporation
Tokyo Electric PowerCo Inc (UndisclosedEconomic Interest)
BusinessServices
- - - - 4,032
16-May-12 Macquarie Group Limited;Abu Dhabi InvestmentAuthority; Meag MunichErgo AssetManagementGmbH; and British ColumbiaInvestment ManagementCorporation
Open Grid Europe GmbH Energy, Mining& Utilities
E.ON AG 2.4 7.2 - n/a 3,696
20-May-12 Dalian Wanda GroupCorporation Ltd
AMC Entertainment Inc Leisure Marquee Holdings - - - n/a 2,600
10-May-12 JFE Holdings Inc JFE Shoji Holdings Inc(61.44% stake)
Industrials &Chemicals
0.1 8.7 7.1 -3.2% 2,417
01-May-12 Japan Australia LNG (MIMI)Pty Ltd
Woodside Petroleum(Western Australianassets) (14.70% stake)
Energy, Mining& Utilities
WoodsidePetroleum Limited
- - - n/a 2,000
23-May-12 PTT Exploration andProduction PCL
Cove Energy Plc Energy, Mining& Utilities
- (loss) (loss) 7.1% 1,769
15-May-12 North Pacific Bank Ltd Sapporo HokuyoHoldings Inc
FinancialServices
n/a n/a 5.0 19.5% 1,516
Based on announced deals, including lapsed and withdrawn bids
Based on dominant geography of target company being Asia-Pacific
Data correct as of 06-Jun-12
Source: mergermarket
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TREND GRAPHS
ASIA-PACIFIC M&A QUARTERLY TREND
0
20
40
60
80
100
120
140
160
180
Q2
12*
Q1
12
Q4
11
Q3
11
Q2
11
Q1
11
Q4
10
Q3
10
Q2
10
Q1
10
Q4
09
Q3
09
Q2
09
Q1
09
Q4
08
Q3
08
Q2
08
Q1
08
Q4
07
Q3
07
Q2
07
Q1
07
Q4
06
Q3
06
Q2
06
Q1
06
V
alue
(US$bn
)
Total value Mid-market value
Numberofdeals
0
100
200
300
400
500
600
700
800
900
Total volume Mid-market volume
0
5
10
15
20
25
Q212*
Q112
Q411
Q311
Q211
Q111
Q410
Q310
Q210
Q110
Q409
Q309
Q209
Q109
Q408
Q308
Q208
Q108
Q407
Q307
Q207
Q107
Q406
Q306
Q206
Q106
V
alue
(US$bn
)
Buyout value Exit value
Numberofdeals
Buyout volume Exit volume
0
10
20
30
40
50
60
70
80
90
100
ASIA-PACIFIC M&A ANNUAL TREND ASIA PACIFIC M&A ANNUAL PRIVATEEQUITY TREND
0
50
100
150
200
250
300
350
400
450
500
YTD 2012*201120102009200820072006
Total value Mid-market value
NumberofdealsV
alue
(US$bn
)
0
500
1,000
1,500
2,000
2,500
3,000
Total volume Mid-market volume
0
10
20
30
40
50
60
70
YTD 2012*201120102009200820072006
Value
(US$bn
)
Buyout value Exit value
Numberofdeals
Buyout volume Exit volume
0
50
100
150
200
250
300
350
ASIA-PACIFIC M&A QUARTERLY PRIVATEEQUITY TREND
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20/3518Monthly M&A Insider
TREND GRAPHS
ASIA-PACIFIC M&A GEOGRAPHIC BREAKDOWN YTD 2012
VALUE VOLUME
China
Japan
Australia
India
Indonesia
Malaysia
Hong Kong
South Korea
Taiwan
Philippines
Other
30.1%
17.5%
14.0%
7.3%
4.3%
4.0%
3.4%
3.4%
1.2%
1.8%
12.9%
22.5%
15.1%
3.6%
11.5%
2.2%
5.1%
9.5%
1.1%
1.7%10.2%
17.6%
China
Japan
Australia
India
Indonesia
Malaysia
Hong Kong
South Korea
Taiwan
Philippines
Other
ASIA-PACIFIC M&A SECTOR BREAKDOWN YTD 2012
VALUE VOLUME
24.1%5.2%
9.8%
1.6%
1.0%1.0% 4.0%
0.2%
1.1%
21.2%
9.1%
17.4%
3.0%Industrials & Chemicals
Business Services
Energy, Mining & Utilities
Consumer
Technology
Financial Services
Pharma, Medical & Biotech
Construction
Transportation
Leisure
Real Estate
Media
Agriculture
22.2%
12.3%
10.5%
9.7%
8.9%
8.6%
5.9%
4.3%
4.3%
4.1%
3.8%2.8%
1.3%
Industrials & Chemicals
Business Services
Energy, Mining & Utilities
Consumer
Technology
Financial Services
Pharma, Medical & Biotech
Construction
Transportation
Leisure
Real Estate
Media
Agriculture
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ASIA-PACIFIC M&A DEAL SIZE BREAKDOWN
VALUE VOLUME
0
10
20
30
40
50
60
70
80
90
100
YTD 2012*201120102009200820072006
US$5,001m
17.6%
22.8%
27.4%
11.3%
21.0%
15.6%
17.0%
30.4%
12.6%
24.5%
29.5%
15.8%
22.2%
12.0%
20.4%
19.8%
16.9%
30.7%
11.2%
21.4% 21.7%
11.0%
26.4%
27.4%
13.5%
24.3%
13.8%
29.9%
12.5%
19.5%
18.1%
26.9%
24.9%
10.3%
19.7%
Percentage
75
80
85
90
95
100
YTD 2012*201120102009200820072006
1.2%
4.8%
4.9%
88.9%
0.9%
5.1%
5.4%
88.3%
0.9%
4.5%
5.8%
88.4%
1.0%
5.5%
5.3%
87.8% 88.7%
5.1%
4.4%
1.5% 0.8%
5.4%
6.2%
87.1%
0.3% 0.3% 0.3% 0.5%0.4%
1.3%
4.2%
5.2%
88.8%
0.4% 0.4%
US$5,001m
Percentage
TREND GRAPHS
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22/3520Monthly M&A Insider
A Ak &A po o
Uop
Industrials and Chemicals, and nergy, ining and Utilities
have seen the mst actin this mnth. he Industrials and
Chemicals sectr came in with 63 deals at 10.73bn, whilst
nergy, ining and Utilities registered 20 deals ttalling
11.02bn. Fr the year-t-date, nergy, ining and Utilities
transactins have accunted fr 35% f ttal deal value, but
just 5.9% by vlume. Industrials and Chemicals accunt fr
almst ne in fur deals, at 12.5% f ttal value.
egrahically, the Uk has vertaen Switzerland as the
mst active regin by deal value, with the gures beginning
t revert t the mean fllwing Februarys lencre Xstrata
megadeal. By vlume the Uk is ut in frnt again with 22.2%,
fllwed by ermany with 13.6% and the rdics with 12.4%.
atn Crratins 9.34bn acquisitin f Cer Industrieswas the standut deal f ay. atn, a diversied wer
management sulier and energy cmnent manufacturer,
aid a 29% remium n the revius days trading fr the
Ireland-based cmany. A cmany ress release nted the
synergies with Cers electrical equiment fferings, and
states that the cmbined gru wuld have had histrical
revenues f US$21.5bn in 2011. he deal is als thught t
save atn smewhere in the regin f US$160m er year
in tax and management csts, as it becmes the latest US
crratin t change its dmicile t Ireland and benet frm
its 12.5% crrate tax rate. rgan Stanley and Citi advised
and rvided atn with a US$6.75 bridge nancing facility,
whilst Cer turned t ldman Sachs. A cunter bid is
thught t be unliely, with the 13x BIDA multile valuatin
described as retty aggressive by an industry surce in a
mergermaret rert.
other ntable deals included Cassa Desiti e prestitis
acquisitin f a 30% stae less ne share in Snam frm
ni valued at 3.5bn, the largest Italian deal f the year s
far. n t a ste twards reducing its debt burden by
divesting oen rid ure t a cnsrtium led by acquarie
ru fr a cnsideratin f 2.9bn. kninlije, the Dutch
telecmmunicatins rm, attracted a 2.7bn ffer frm
exican layer America vl fr a 28% stae.
Spain Focus
Sains baning wes were the main stry f the mnth,
with Bania requesting 19bn fr recaitalisatin. he furrsals ut frward by the trubled lender, which are
currently being reviewed by the state, are liely t see it
disse f many f its nn-cre assets, including staes in the
htel chain H Hteles, sftware cmany Indra Sistemas,
energy gru Iberdrla and Internatinal Airlines ru.
he effect Sains wea nancial sectr has had n &A
activity in the cuntry is clear. Fr the year-t-date, Sain has
seen 72 deals wrth 2.98bn. In cntrast, the same erid
last year saw 135 deals at a value f 34.11bn. his equates
t a 47% dr in deal vlume and a staggering 91% reductin
in deal value.
adrid has mved t rtect esl frm a lw hstile
taever bid with new legislatin that requires a fair valuatin
in the case f excetinal circumstances in the revius
tw years, including exrriatin. his intends t limit the
damage dne by Argentinas unilateral natinalisatin f YpF,
which saw esls share rice mre than halved.
lsewhere, Cyrus ls t be the next cuntry in danger
f a nancial meltdwn. It is estimated that the cuntry
has already received 4bn frm the CB in undeclared
emergency liquidity assistance, and Cyrus pular Ban
was recaitalised t the tune f 1.8bn this mnth. Accrding
t a mergermaret rert, the ban culd be ling t sell
u t a 50% stae after the next ree electins n 17th June.
Infrmal interest has been attracted frm layers in Cyrus,
Brazil, China, ussia and Israel, with ussias VB Ban
reviusly rumured as a tential bidder.
In the Uk, the Lndn etal xchange ls t be
n the verge f a taever by either the US-based
InterCntinentalxchange r Hng kng xchanges
and Clearing. hrughut the mnth f ay bidders
were whittled dwn, and the tw remaining arties will
nw resubmit rsals. With reliminary ffers f arund
1.2bn already n the table, the rice culd increase
maredly as the tw bidders square ff against each ther
ver the 135 year-ld exchange.
AY SAW 258 &A ASACIoS WoH 41.36B. HIS AkS A DCAS I DAL CoU oF 11%AD DAL VALU oF 15% Fo ApIL, CoIUI H DoWWAD D VID SIC Q2 2011.CopAD o AY 2011, H UB oF AoUCD DALS DoppD BY 47% AD H VALU BY33%. So FA Fo 2012, 27% FW DALS HAV B AoUCD A A 17% LoW VALU HA FoH SA pIoD LAS YA.
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TOP DEALS
TOP 10 EUROPEAN ANNOUNCED DEALS OF THE MONTH (MAY-12)
Announced Bidder company Target company Target dominated
sector
Seller company Exit multiples (x) Bid premia
1-day
before
Deal value
(m)Revenue EBITDA P/E
21-May-12 Eaton Corporation Cooper Industries Plc Industrials &Chemicals
2.2 15.5 14.2 28.9% 9,342
30-May-12 Cassa depositi e prestitispa
Snam SpA (30.00% stake) Energy, Mining& Utilities
Eni SpA 6.4 8.7 15.1 9.6% 3,517
16-May-12 Macquarie Group Limited;Abu Dhabi InvestmentAuthority; Meag MunichErgo AssetManagementGmbH; and BritishColumbia InvestmentManagement Corporation
Open Grid Europe GmbH Energy, Mining& Utilities
E ON AG 2.4 7.2 - - 2,900
8-May-12 America Movil SAB de CV Koninklijke KPN NV(23.20% stake)
TMT 1.8 4.5 7.5 23.5% 2,657
31-May-12 CGI Group Inc Logica Plc Business Services 0.5 11.8 61.8 75.6% 2,557
6-May-12 Electricite de France SA Edison International SpA Energy, Mining& Utilities
0.6 7.7 - 6.0% 1,767
17-May-12 Agilent Technologies Inc Dako AS Pharma, Medical& Biotech
EQT Partners AB - - - - 1,723
22-May-12 Blackstone Group LP Accor SA (United StatesEconomy Hotel division)
Leisure Accor SA 3.6 11.6 - - 1,492
23-May-12 PTT Exploration andProduction PCL
Cove Energy Plc Energy, Mining& Utilities
- - - 7.1% 1,388
22-May-12 Waddell & Reed FinancialInc; BlackRock Inc; and
Norges Bank
Formula One Group(21.00% stake)
Leisure CVC CapitalPartners Limited
- - - - 1,256
Based on announced deals, including lapsed and withdrawn bids
Based on dominant geography of target company being Europe
Data correct as of 08-Jun-12
Source: mergermarket
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TREND GRAPHS
EUROPEAN M&A QUARTERLY TREND
0
100
200
300
400
500
Q2
12*
Q1
12
Q4
11
Q3
11
Q2
11
Q1
11
Q4
10
Q3
10
Q2
10
Q1
10
Q4
09
Q3
09
Q2
09
Q1
09
Q4
08
Q3
08
Q2
08
Q1
08
Q4
07
Q3
07
Q2
07
Q1
07
Q4
06
Q3
06
Q2
06
Q1
06
Value
(bn
)
Total value Mid-market value
Numberofdeals
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
Total volume Mid-market volume
0
10
20
30
40
50
60
70
80
90
100
110
120
130
140
Q212*
Q112
Q411
Q311
Q211
Q111
Q410
Q310
Q210
Q110
Q409
Q309
Q209
Q109
Q408
Q308
Q208
Q108
Q407
Q307
Q207
Q107
Q406
Q306
Q206
Q106
Buyout value Exi t value Buyout volume Exi t volume
Value
(bn
)
Numberofdeals
0
50
100
150
200
250
300
350
400
450
EUROPEAN M&A ANNUAL TREND EUROPEAN M&A ANNUAL PRIVATE EQUITY TREND
0
200
400
600
800
1,000
1,200
YTD 2012*201120102009200820072006
Total value Mid-market value
Numberofd
ealsValue
(bn
)
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
Total volume Mid-market volume
0
50
100
150
200
250
300
YTD 2012*201120102009200820072006
Value
(bn
)
Buyout value Exit value
Numberofd
eals
Buyout volume Exit volume
0
200
400
600
800
1,000
1,200
1,400
1,600
EUROPEAN M&A QUARTERLY PRIVATEEQUITY TREND
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25/35Monthly M&A Insider 23
TREND GRAPHS
EUROPEAN M&A GEOGRAPHIC BREAKDOWN YTD 2012
VALUE VOLUME
UK
CEE
Iberia
France
Nordic
Germany
Benelux
Italy
Switzerland
Others6.0%
10.3%
19.7%
6.3%
20.1%
9.1%
2.8%
10.6%
5.9%
9.2%
13.6%
9.1%
3.1%
7.3%
5.6%
22.2%
10.9%
10.9%
5.1%
12.4%
UK
CEE
Iberia
France
Nordic
Germany
Benelux
Italy
Switzerland
Others
EUROPEAN M&A SECTOR BREAKDOWN YTD 2012
VALUE VOLUME
7.0%
12.4%
3.8%
7.2%
1.7%
5.7%
1.8% 3.5%4.9%
0.2%
4.0%
5.3%
34.6%
7.9%
Industrials & Chemicals
Consumer
Business Services
Technology
Financial Services
Energy, Mining & Utilities
Pharma, Medical & Biotech
Construction
Media
Transportation
Leisure
Real Estate
Telecommunications
Agriculture
4.0%
24.4%
3.3%
5.9%
3.6%
5.7%
3.9%
1.9%1.5%
1.0%
0.2%
17.0%
11.3%9.3%
6.9%
Industrials & Chemicals
Consumer
Business Services
Technology
Financial Services
Pharma, Medical & Biotech
Energy, Mining & Utilities
Construction
Transportation
Media
Leisure
Real Estate
Telecommunications
Agriculture
Defence
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26/35Monthly M&A Insider 24
TREND GRAPHS
EUROPEAN M&A DEAL SIZE BREAKDOWN
VALUE VOLUME
0
10
20
30
40
50
60
70
80
90
100
YTD 2012*201120102009200820072006
5,001m
17.6%
23.5%
8.4%
15.9%
34.6%
16.4%
22.3%
8.4%
13.7%
39.2%
14.8%
20.2%
9.1%
17.1%
38.8%
20.0%
24.1%
9.2%
20.3%17.6%
9.4%
29.7%
20.8%
26.4% 22.5%17.2%
21.8%
30.8%
11.3%
18.8%
31.6%
21.3%
25.8%
9.2%
12.2%
Percentage
88
90
92
94
96
98
100
YTD 2012*201120102009200820072006
3.8%
0.9%
3.5%
91.4%
4.0%
0.9%
3.9%
90.8%
2.7%
0.6%
3.2%
93.2%
2.1%
0.6%
2.3%
94.8%
93.1%
2.7%
3.3%
0.7% 0.7%
3.1%
3.0%
93.0%
0.4%0.4% 0.4% 0.3%0.2% 0.2% 0.2%
0.9%
3.3%
3.3%
92.2%
5,001m
Percentage
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27/3525
THE MIDDLE EAST& AFRICA
A MERGERMARKET M&A REPORT ON
Monthly M&A Insider
M&A activity during the month of May in the region was again
mainly driven by a series of large deals in the Energy, Mining
& Utilities sector which accounted for the largest percentage
of deal value in the region, with 37.4% of the market share,
closely followed by the Financial Services sector accounting
for 28.9% of the M&A activity in the region this month. The
top ME&A energy deals announced, includes the acquisition
of the NPS Energy, the United Arab Emirates-based company
offering well intervention services, including coil tubing, wire-
line services, cementing, pressure pumping, well logging
and testing and onshore drilling services, by Aker Solutions
ASA for a consideration of US$350m. The top mining deal
in the region announced in May was the acquisition of the
South Africa based gold mine Evander Gold Mines Ltd by the
listed South Africa based Pan African Resources Plc fromHarmony Gold Mining Company Limited for a consideration
of US$180m. The top financial services deal of the month is
the acquisition of 49.9% stake in the listed Israel based Clal
Industries and Investments Ltd by Access Industries, the
listed Israel based holding company having interests in the
oil, aluminium, coal and telecommunications sectors, from
IDB Development Corporation Ltd for a consideration
of US$332m.
The most active country in the ME&A is Israel, leading with
a deal flow volume of 29 and deal value of US$4.4bn (28.68%
market share), followed by Egypt with a deal flow volume of 4and a deal value of US$3.9bn (25.11% market share).
Finance sector activity boosting
Egyptian economy
One of the top financial services deals for the month of May
has been the acquisition of a 60% stake in EFG Hermes
Holding S.A.E, the Egyptian operations of EFG Hermes
Holding S.A.E, by QInvest LLC, the Qatar based investment
bank. The deal value for the transaction is 155 m. There
were various bids for this target, including the $1.1 billion bid
from a group backed by billionaire Naguib Sawiris which was
rejected. The newly formed company, EFG Hermes Qatar will
be 60% owned by QInvest and 40% owned by EFG Hermes.
This transaction is of very high importance as, according
to Mona Zulficar, EFG Hermes Holding Chairperson, it will
attract foreign direct investment of US$250m. It is also
believed to restore investors confidence and strongly boost
the Egyptian economy.
Expected joint venture deals
The month of May has presented a vast number of expected
deals including two recently discussed potential jointventures. Ginco General Contracting, a private United Arab
Emirates-based building materials company is seeking a joint
venture in order to enter Brazil. If this does not prove feasible
however, the company will attempt entering Brazil through
the setting up of a partnership with Brazilian companies such
as Bertolini, Inca and Aguia which offer similar products.
Companies such as Riri Baby Food, the private Egyptian
manufacturer and distributor of baby food are planning to
expand nationally. This is due to Egypts population of over
85 million people, and therefore an active consumer sector
which allows for the companys growth. The company plans
to expand through forming a joint venture with a target that
manufactures and distributes similar baby products so that
the two companies can set up a baby product manufacturing
facility in Egypt.
THE M&A ACTIVITY IN THE MIDDLE EAST & AFRICA REGION HAS SEEN A SLOWDOWN IN THE MONTH OF MAYTHIS YEAR, WITH A TOTAL OF US$2.01BN WORTH-DEALS, REPRESENTING A 59% DECREASE COMPARED TO THEMONTH OF APRIL THIS YEAR (US$4.9BN) BUT UP 11.2% COMPARED TO THE SAME PERIOD LAST YEAR ($1.8BN).THIS SHOWS SIGNS OF A VERY SLOW RECOVERY, ALTHOUGH POLITICAL INSTABILITY CONTINUES TO SHAPE THEUP-AND-DOWN TREND OF THE M&A ACTIVITY IN THE ME&A REGION.
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TOP DEALS
TOP 10 MIDDLE EASTERN & AFRICAN ANNOUNCED DEALS OF THE MONTH (MAY-12)
Announced Bidder company Target company Target dominated
sector
Seller company Exit multiples (x) Bid premia
1-day
before
Deal value
(US$m)Revenue EBITDA P/E
10-May-12 EMC Corporation XtremIO Ltd. TMT Battery Ventures;Giza Venture Capital;Jerusalem VenturePartners (JVP);Lightspeed VenturePartners
- - - - 430
21-May-12 Aker Solutions ASA NPS Energy Energy, Mining& Utilities
National PetroleumServices
4.0 11.4 - - 350
20-May-12 Access Industries Clal Industries andInvestments Ltd.(49.90% stake)
Financial Services IDB DevelopmentCorporation Ltd.
1.1 9.2 4.3 41.5% 332
4-May-12 QInvest LLC EFG Hermes HoldingS.A.E (Brokerage,Research, AssetManagement,Investment Bankingand InfrastructureFund businesses)(60.00% stake)
Financial Services EFG-Hermes HoldingSAE
n/a n/a - - 250
30-May-12 Pan AfricanResources Plc
Evander Gold Mines Ltd. Energy, Mining& Utilities
Harmony Gold MiningCompany Limited
1.8 - 13.9 - 180
30-May-12 Barloworld Limited Caterpillar Inc. (Bucyrusequipment distributionand support businessSouth Africa)
Industrials &Chemicals
Caterpillar Inc. - - - - 115
3-May-12 Malakoff CorporationBerhad
Hidd Power Company(40.00% stake)
Energy, Mining& Utilities
International Power Plc - - - - 113
17-May-12 AVI Limited Green Cross Consumer 1.3 - 7.5 - 51
17-May-12 AOS Orwell Limited Scomi Oiltools (Africa)Ltd.; Titan TubularsNigeria Limited(51.00% stake)
Industrials &Chemicals
Scomi Group Berhad - - - - 40
14-May-12 Jain IrrigationSystems Ltd
NaanDanJain IrrigationLtd. (50.00% stake)
Agriculture - - - - 35
Based on announced deals, including lapsed and withdrawn bids
Based on dominant geography of target being Middle East or Africa
Data correct as of 06-Jun-12
Source: mergermarket
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TREND GRAPHS
MIDDLE EASTERN & AFRICAN M&AQUARTERLY TREND
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
Q2
12*
Q1
12
Q4
11
Q3
11
Q2
11
Q1
11
Q4
10
Q3
10
Q2
10
Q1
10
Q4
09
Q3
09
Q2
09
Q1
09
Q4
08
Q3
08
Q2
08
Q1
08
Q4
07
Q3
07
Q2
07
Q1
07
Q4
06
Q3
06
Q2
06
Q1
06
V
alue
(US$m
)
Total value Mid-market value
Numberofdeals
0
20
40
60
80
100
120
140
160
Total volume Mid-market volume
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
Q212*
Q112
Q411
Q311
Q211
Q111
Q410
Q310
Q210
Q110
Q409
Q309
Q209
Q109
Q408
Q308
Q208
Q108
Q407
Q307
Q207
Q107
Q406
Q306
Q206
Q106
Buyout value Exi t value Buyout volume Exi t volume
NumberofdealsV
alue
(US$m
)
0
5
10
15
20
25
MIDDLE EASTERN & AFRICAN M&AANNUAL TREND
MIDDLE EASTERN & AFRICAN M&A ANNUALPRIVATE EQUITY TREND
0
10
20
30
40
50
60
70
80
90
100
YTD 2012*201120102009200820072006
Total value Mid-market value
Value
(U
S$bn
)
Numb
erofdeals
0
50
100
150
200
250
300
350
400
450
500
Total volume Mid-market volume
0
2
4
6
8
10
12
14
YTD 2012*201120102009200820072006
Buyout value Exi t value Buyout volume Exi t volume
Value
(U
S$bn
)
0
10
20
30
40
50
60
70
Numb
erofdeals
MIDDLE EASTERN & AFRICAN M&A QUARTERLYPRIVATE EQUITY TREND
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TREND GRAPHS
MIDDLE EASTERN & AFRICAN M&A GEOGRAPHIC BREAKDOWN YTD 2012
MIDDLE EASTERN & AFRICAN M&A SECTOR BREAKDOWN YTD 2012
VALUE
VALUE
VOLUME
VOLUME
0.5%4.5%
3.0% 0.3%
6.6%
15.4%
4.6%
15.4%
19.0%
30.8%
Industrials & Chemicals
Financial Services
Business Services
Consumer
TMT
Transportation
Pharma, Medical & Biotech
Construction
Agriculture
Energy, Mining & Utilites
28.8%
9.6%
27.9%
5.8%
3.8%
3.8%
1.9%
1.9%
1.9%1.9%
1.9%
1.0% each
South Africa
Israel
United Arab Emirates
Saudi Arabia
Egypt
Nigeria
Democratic Republicof Congo
Ethiopia
Qatar
Kuwait
Tanzania
Angola
Ghana
Iraq
Libya
Mali
Mauritius
Morocco
Mozambique
Oman
Zimbabwe
7.4%
13.9%
17.6%
16.7%
16.7%
13.9%
1.9%
2.8%
3.7%2.8% 2.8%
Industrials & Chemicals
Financial Services
Business Services
Consumer
Energy, Mining & Utilites
TMT
Leisure
Transportation
Pharma, Medical & Biotech
Construction
Agriculture
18.3%
28.7%
1.4%
8.2%
2.2%
1.1%
0.9%0.4%
0.7%0.1%
0.9%
25.1%
8.9%
2.6%
South Africa
Israel
United Arab Emirates
Saudi Arabia
Egypt
Nigeria
Democratic Republicof Congo
Ethiopia
Qatar
Iraq
Morocco
Mozambique
Bahrain
Mali
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TREND GRAPHS
MIDDLE EASTERN & AFRICAN M&A DEAL SIZE BREAKDOWN
VALUE VOLUME
0
10
20
30
40
50
60
70
80
90
100
YTD 2012201120102009200820072006
12.7%
12.8%
65.7%
13.2%
11.3%
67.0%
18.0%
19.0%
47.6%
19.2%
13.2%
53.2%
68.0%
12.6%
9.4%
17.8%
7.8% 7.5%13.7% 12.9%
8.9%
13.7%
9.1%
58.0%
27.1%
16.4%
7.8%
47.6%
1.0% 0.9% 1.7% 1.6% 1.0% 1.3% 1.0%
US$501m
Percentage
0
10
20
30
40
50
60
70
80
90
100
YTD 2012*201120102009200820072006
33.9%
14.5%
6.2%
9.1%
32.5%
15.4%
5.6%
7.2%
36.3%
11.3%
5.7%
3.8%
32.6%
13.1%
4.0%3.4% 6.0%
5.7%
33.7%
10.2%10.8%
6.3%
36.3% 39.3%42.9%
47.0% 44.4%47.7%
27.9%
7.2%
14.8%
10.2%
47.2%
23.1%
4.6%
US$501m
Percentage
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ABOUT MERRILL CORPORATION
Merrill Transaction and Compliance Services
Through 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 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
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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
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options to help clients achieve the most efficient and cost
effective approach to their translation projects. Merrill Brink
offers extensive legal translation services for international
litigation, intellectual property, patents, contractual matters,
antitrust matters, mergers and acquisitions, arbitration
and more.
www.datasite.com
About Merrill DataSite
Revolutionising the due diligence process
Merrill DataSite is designed for rapid deployment and can be
up and running within two hours of a clients need. Our team
can scan, upload and organise thousands of pages of content
from any source in 24 hours or less. Every aspect of the
process, from document scanning to VDR hosting and project
management is delivered by Merrills multilingual team,
available around the clock worldwide.
With Merrill DataSite, all documents are captured and indexed
to an online database and because all rights are designated
by the client, security and control are guaranteed. Each users
ability to view, print or access source documents is set up
by the client administrator and can be changed at any time.
Merrill DataSite provides useful tools, including full search,
viewer audit capability, Q&A, bulk uploads and detailed user
activity tracking that help clients maintain tighter control and
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Merrill DataSite enhances transaction success
Merrill DataSite is the industrys acknowledged leader. More
than 61,000 different private and public companies across theglobe have leveraged Merrill DataSite to increase the value of
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FOUNDED IN 1968 AND HEADQUARTERED IN ST. PAUL, MINNESOTA, MERRILL CORPORATION ISA LEADING PROVIDER OF OUTSOURCED SOLUTIONS FOR COMPLEX BUSINESS COMMUNICATIONAND INFORMATION MANAGEMENT. MERRILLS SERVICES INCLUDE DOCUMENT AND DATAMANAGEMENT, LITIGATION SUPPORT, LANGUAGE TRANSLATION SERVICES, FULFILLMENT, IMAGINGAND PRINTING. MERRILL SERVES THE CORPORATE, LEGAL, FINANCIAL SERVICES, INSURANCEAND REAL ESTATE MARKETS. WITH MORE THAN 5,000 PEOPLE IN OVER 40 DOMESTIC AND 22INTERNATIONAL LOCATIONS, MERRILL EMPOWERS THE COMMUNICATIONS OF THE WORLDSLEADING ORGANISATIONS.
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ABOUT MERRILL DATASITE
Merrill DataSite built with the client in mind
Merrill DataSite was created to meet its clients needs and
built to their specifications. Since 2002 we have consistently
leveraged the experiences of our clients to add leading-edge
functionality to the available toolset. Merrill DataSite allows its
users and administrators to:
Examine documents immediately. Patented technology
ensures you never have to wait for a document to be
downloaded. Because the data resides on Merrills 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 permissions. Team 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 document. With 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)
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search capabilities allow users to search tens if not hundreds
of thousands of pages to find whats relevant to them. Merrill
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Using wildcard, fuzzy, proximity, boosting, Boolean and
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will enjoy increased confidence knowing theyve received and
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Protect confidential information. View-only documents
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Security is our highest priority
Merrill 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
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The ISO 27001 standard, developed by the International
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The best tool in the industry
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ABOUT MERRILL CORPORATION
EXECUTIVE MANAGEMENT
Ed BifulkPresidentTel: +1 212 229 6563
Paul HartzellSenior Vice PresidentTel: +1 212 367 5950
EXECUTIVE SALES
Chris Beckmann
Regional Director, Germany, Switzerlandand PolandTel: +49 69 25617 110
Alex GrossRegional Director, Eastern Europe &Middle EastTel: +49 69 7593 7148
Michael HinchliffeRegional Director, U. K.Tel: +44 20 7422 6100
Jonathan HughesAccount Manager, Northern EuropeTel: +44 20 7422 6100
Shashank JainAccount Manager, United Arab EmiratesTel: +971 (0)50 252 3025
Alvaro OrtegaRegional Director, Southern EuropeTel: +44 20 7422 6100
Adam PangAccount Manager, EuropeTel: +44 20 7422 6268
Merlin J. PiscitelliRegional Director, EuropeTel: +44 20 7422 6100
Jrme PottierRegional Director, FranceTel: +33 (0) 1 40 06 13 12
Colin SchopbachRegional Director, U. K.Tel: +44 20 7422 6100
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Hakema El-HadadRegional Director, Northern AfricaTel: +33 (0) 1 40 06 13 10
Mark FinnieRegional Director, North AsiaTel: +852 2536 2534
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SVP, Western Canada & Pacific NorthwestTel: + 604 603 4360
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Tel: +1 312-386-2293Scott HaugenRegional Director, Minnesota & WisconsinTel: +1 651 632 4375
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Erik SandieRegional Director, Bay AreaTel: +1 650 493 1400
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Director of Life SciencesTel: +1 651 632 4585
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