An Acuris report on global M&A activity May 2018 An Acuris Company

57 Pages·2017·5.96 MB·English

An Acuris Company
An Acuris report
on global M&A activity
May 2018
Monthly
M&A Insider
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Contents
An Acuris report
on global M&A activity
Contents
Global Overview 4
US & Canada 12
Central & South America 19
Europe 26
Middle East & Africa 33
Asia-Pacific (excluding Japan) 40
Japan 47
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Welcome
Welcome from Merrill Corporation
The Monthly M&A Insider explores the global The decidedly less flashy Industrial & by the tax reform law; European businesses
M&A market with respect to the numbers, Chemicals sector also held its own in the are seeking deals to fuel inorganic growth;
movements and trends, as well as revealing the deal value column thanks to the third-largest and Asia-Pacific acquirers are expanding their
top financial and legal advisers — globally and transaction in April: the US$30.1bn merger presence on the world stage and diversifying
across six regions (North America, Central and of US refineries Marathon Petroleum and from domestic markets. Equity prices have
Mike Sabutis
South America, Europe, Middle East and Africa, Andeavor, creating the country’s biggest seen a modest retreat worldwide and an
Senior Vice President,
Asia-Pacific and Japan). refiner by capacity. increase in volatility, but the global economy
Merrill Corporation
remains stable and growing. Dealmakers are
This year has started with a spate of One area of M&A that finally cooled off last
likely to remain busy in the months ahead.
megadeals — and the pace of these mammoth month was private equity (PE). After a record-
combinations only quickened in April. Three of breaking first quarter for buyout value, PE
the six biggest deals by value since the start of deal activity came back down to earth with
Sincerely,
2018 were announced in the month, including a humdrum US$33.2bn in aggregate value
US-based telecommunications provider (compared to US$120.6bn in the first three Mike Sabutis
Sprint’s merger proposal with rival T-Mobile months of the year). None of the top 10 Senior Vice President
in a transaction valued at US$58.9bn. The transactions in April involved a financial buyer
deal would allow the companies to accelerate acquiring an asset. The tenth biggest deal did,
development of 5G wireless technology, they however, represent a PE exit — the US$5.5bn
say, even as consumer advocates warn that it sale of Sky Betting and Gaming by UK-based
could drive up prices for mobile service. CVC Capital Partners and Sky to Canadian
online gambling company Stars Group.
Consolidation ramped up further in the
global media industry as well in April with That sale was one of just three cross-border
the second-largest deal of the month: US deals in the top 10 for the month, as the
cable giant Comcast’s bid for a majority stake slowdown in international M&A continued.
in European pay-TV operator Sky valued at The rising tide of protectionism and trade
US$40.7bn. Separately, Comcast is reportedly barriers — and the uncertainty surrounding
considering a hostile bid for 21st Century potential future actions — appear to be
Fox assets that Disney won in December, in a taking their toll on cross-border activity.
deal that would allow Comcast to consolidate
Nonetheless, M&A value in 2018 remains on
100% control of Sky. (Incidentally, all this deal
track to nearly match the highest amount ever,
activity involving major media companies is
US$3.87tn, reached in 2015. US companies
injecting uncertainty into the upcoming TV
are still actively putting to work funds freed up
lineups for their networks.)
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Mergermarket Monthly M&A Insider May 2018 4
Global Overview
Part of the Acuris report
on global M&A activity
Global Overview
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Global Overview
Global Overview
Further information
Another month, another chasm between value as US$174.8bn worth of deals in the PE dealmaking was also strong as buyout
Get in touch or read more
value and volume in the global M&A market. region accounted for a 50.4% market share. houses seemed determined to keep pace
April saw 992 deals valued at US$346.9bn with their strategic rivals. So far this year, PE
Six of the top 10 deals had bidders from
— up 40.9% by value, but with 523 fewer has deployed US$153.9bn on 953 deals — an Nick Cheek
North America including the top deal of the
deals compared to 1,515 transactions worth increase of 33% on the same period last year.
month — the aforementioned acquisition
US$246.3bn in April 2017.
of Sprint by telecoms rival T-Mobile for As we head into May, the M&A market is
Aram Hovsepian
The dynamics behind the dealmaking an estimated US$58.9bn. The deal would buoyant, posting well over US$1tn worth of
market have remained similar for some time merge the third- and fourth-largest mobile deals with two months of Q2 still to go. And
now. On the buy side, confident cash-rich carriers in the US and create a company with a number of large transactions in the
corporates and private equity firms with with around 130 million customers. pipeline and continued economic stability
plenty of dry powder are being encouraged across most regions, we could well be
Europe, Asia-Pacific and even Central & South
by shareholders and activists alike to spend heading for a record year in the deal market.
America (a region which has seen heavy falls
big on assets that will either increase market
in recent months) all posted large gains as
share, expand regional focus, or digitally
the global M&A market began to heat up
disrupt their sector. On the sell side, valuations
considerably after a somewhat quiet start to
continue to rise as fewer top-quality assets
the year.
make it into the marketplace.
The most high-profile transaction in Europe was
Digital disruption has been a major driver
the proposed merger between supermarket
as traditional sectors such as Automotive,
giants Sainsbury and Asda for US$10bn. The
Retail and Healthcare race to keep pace with
companies are such a staple part of UK life
a rapidly changing marketplace. However,
that the deal featured on the front pages of all
that said, it would seem that the biggest
the UK broadsheets and tabloids when it was
factor behind April’s value hike is market
announced at the tail end of the month.
consolidation. The much publicized mergers
between US mobile carriers T-Mobile and Sector-wise, the T-Mobile/Sprint deal, coupled
Sprint; oil refiners Marathon and Andeavor; with Comcast’s bid for UK broadcaster Sky,
and supermarket chains Sainsbury and Asda propelled the Telecommunications sector
were all predicated on challenging the number into top spot with US$60bn worth of deals.
one incumbents in their respective industries. This was followed by Industrials & Chemicals
(US$57.6bn) and Media (US$43bn). Indeed,
In terms of regions, every one bar Middle East
three of the top five deals came from the
& Africa posted a value increase in April. As
overarching TMT space.
usual, North America took the lion’s share of
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Global Overview
Top Financial Advisor
992 deals
Goldman Sachs & Co
valued at US$346.9bn, up 40.9% by value
ranked first with 30 deals worth US$132.6bn,
with 523 fewer deals compared to 1,515
up 91.2% in value with 6 more deals compared
deals worth US$246.3bn in April 2017.
to 24 deals worth US$69.4bn in April 2017.
Top Legal Advisor
Top Sector
Goodwin Procter
Telecommunications
ranked first with 9 deals worth US$69.7bn, up
saw 9 deals valued at US$60bn, up 3,453.8%
502.7% in value with 17 fewer deals compared
by value with 2 fewer deals compared to 11
to 26 deals worth US$11.6bn in April 2017.
deals worth US$1.7bn in April 2017.
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Global Overview
Global M&A trend Global Private Equity trend
4,000 20,000 600 3,500
18,000
3,500
3,000
US$ 500
1,201.3 16,000
3,000
US$
827.4 1,0U3S0$.5 US$ 14,000 2,500
892.5 400
2,500
12,000
bn) U8S74$ Num bn) 2,000 Num
$ b $ b
Value (US 2,000 5U7S1$.7 8U6S1$.3 8U7S0$.4 7U2S7$.7 10,000 er of deals Value (US 300 5U3S6$.4 US$ U52S1$.1 5U3S6$.7 1,500 er of deals
1,500 8,000 496.6 US$
U6S58$ US$ 200 4U0S7$.6 4U0S1$.4 4U1S6$.5 454.3
1,040.4 US$ 6,000
1,000 9U6S4$.9 7U3S9$.5 757.2 3U4S6$.9 2U9S8$.8 2U9S5$.4 1,000
4,000
US$
561.7 100
500 US$ 7U6S2$.4 US$ 7U5S2$.6 9U1S8$.6 2,000 1U5S3$.9 1U2S4$.8 500
US$ 568.5 626.5
446.7
0 0
0 0
2013 2014 2015 2016 2017 YTD 2018 2013 2014 2015 2016 2017 YTD 2018
Q1 value Q3 value Volume Buyout value Buyout volume
Q2 value Q4 value Exit value Exit volume
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Global Overview
Regional Trends
Telecommunications
Value: US$60bn
Number of deals: 9
Market share: 17.3%
Industrials & Chemicals
C&S America
North America Asia-Pacific Value: US$57.7bn
US$9.3bn Number of deals: 204
(excluding Japan)
US$174.8bn Market share: 16.6%
29 deals
US$59.5bn
343 deals 2.7% Media
264 deals
Value: US$43bn
50.4% 17.2% Number of deals: 35
Market share: 12.4%
Energy, Mining & Utilities
Value: US$29.9bn
Number of deals: 66
Market share: 8.6%
Europe
Technology
Japan Value: US$27.9bn
US$97.3bn
Middle East US$4.9bn Number of deals: 143
& Africa 23 deals Market share: 8%
319 deals
US$1bn 1.4%
14 deals
28.1%
0.3%
Domestic US$236.2bn +61.5%
Cross-border US$100.7bn +10.7%
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Global Overview
Top deals
Top 10 Announced Deals for April 2018
Value (US$m) Deal details Advisor details
Announcement Target Bidder Dominant sector Sell-side Buy-side
date
58,945 29-Apr-18 Sprint Corporation T-Mobile USA Inc Telecommunications FA: Centerview Partners; JPMorgan; Mizuho Financial Group; Raine Group; FA: Deutsche Bank; Evercore; Goldman Sachs & Co; Morgan Stanley; and
and Sumitomo Mitsui Financial Group PJT Partners
LA: Goodwin Procter; Morrison & Foerster; Potter Anderson & Corroon; and LA: Latham & Watkins; and Wachtell Lipton, Rosen & Katz (Advising FA: Cravath
Skadden Arps Slate Meagher & Flom (Advising FA: Pillsbury Winthrop Shaw Swaine & Moore; and Weil Gotshal & Manges)
Pittman; and Sidley Austin)
40,726 25-Apr-18 Sky Plc Comcast Corporation Media FA: Barclays; Morgan Stanley; and PJT Partners FA: Bank of America Merrill Lynch; Evercore; and Robey Warshaw
LA: - LA: Davis Polk & Wardwell; Freshfields Bruckhaus Deringer; and Shearman
& Sterling
30,153 30-Apr-18 Andeavor Corporation Marathon Petroleum Industrials & Chemicals FA: Goldman Sachs & Co FA: Barclays
Corporation LA: Sullivan & Cromwell LA: Jones Day
10,648 25-Apr-18 Indus Towers Limited Bharti Infratel Limited Technology FA: Bank of America Merrill Lynch; and Morgan Stanley FA: JPMorgan
LA: Bharucha & Partners; S&R Associates; and Slaughter and May LA: AZB & Partners
10,048 30-Apr-18 ASDA Group Limited J Sainsbury Plc Consumer FA: Rothschild FA: Morgan Stanley; and UBS Investment Bank
LA: Gibson Dunn & Crutcher; and Slaughter and May LA: Linklaters
9,500 2-Apr-18 Ele.me Alibaba Group Holding Ltd; Business Services FA: Hina Group Inc FA: -
and Ant Financial Services LA: - LA: Fangda Partners
Group
8,053 23-Apr-18 Vectren Corporation CenterPoint Energy Inc Energy, Mining & Utilities FA: Bank of America Merrill Lynch FA: Goldman Sachs & Co
LA: Baker Botts; Cleary Gottlieb Steen & Hamilton; and Taft Stettinius LA: Akin Gump Strauss Hauer & Feld; and Bingham Greenebaum Doll (Advising
& Hollister FA: Sullivan & Cromwell; Advising Debt Provider: Weil Gotshal & Manges)
7,837 29-Apr-18 DCT Industrial Trust Inc Prologis Inc Real Estate FA: Bank of America Merrill Lynch FA: JPMorgan
LA: Goodwin Procter LA: Mayer Brown
7,702 9-Apr-18 AveXis Inc Novartis AG Pharma, Medical & FA: Centerview Partners; and Goldman Sachs & Co FA: Dyal Co
Biotech LA: Cooley; and Cravath Swaine & Moore (Advising FA: Kirkland & Ellis; and LA: Freshfields Bruckhaus Deringer; and Hogan Lovells International
Sullivan & Cromwell)
5,587 21-Apr-18 Sky Betting and Gaming Stars Group Inc Leisure FA: Goldman Sachs & Co; Lazard; and Rothschild FA: Morgan Stanley; PJT Partners; and Deutsche Bank
LA: Freshfields Bruckhaus Deringer; and Stikeman Elliott LA: Blake, Cassels & Graydon; Gibson Dunn & Crutcher; and Osler, Hoskin
& Harcourt
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Global Overview
League tables
Top 10 Financial Advisors - Value Top 10 Financial Advisors - Volume
Ranking April 2018 April 2017 Ranking April 2018 April 2017
April 2018 April 2017 Company name Value Deal count Value % Value April 2018 April 2017 Company name Value Deal count Deal count Deal count
(USD m) (USD m) change (USD m) change
1 1 Goldman Sachs & Co 132,596 30 69,345 91.2% 1 6 Goldman Sachs & Co 132,596 30 24 6
2 20 Evercore 107,150 15 6,891 1,454.9% 2 7 Rothschild 23,594 19 23 -4
3 4 Morgan Stanley 90,493 17 36,316 149.2% 3 10 Morgan Stanley 90,493 17 20 -3
4 2 JPMorgan 80,024 14 45,362 76.4% 4 20 Evercore 107,150 15 12 3
5 15 Centerview Partners 66,647 3 11,778 465.9% 5 3 JPMorgan 80,024 14 31 -17
6 392 PJT Partners 64,532 3 0 - 6 24 Barclays 51,276 14 9 5
7 3 Bank of America Merrill Lynch 62,590 10 36,860 69.8% 7 1 PwC 1,833 14 35 -21
8 34 Sumitomo Mitsui Financial Group 62,403 4 2,971 2,000.4% 8 9 Houlihan Lokey 1,027 14 21 -7
9 18 Deutsche Bank 62,327 9 8,452 637.4% 9 13 Lazard 16,477 13 15 -2
10 89 Mizuho Financial Group 59,889 4 606 9,782.7% 10 18 Citi 13,097 12 13 -1
Top 10 Legal Advisors - Value Top 10 Legal Advisors - Volume
Ranking April 2018 April 2017 Ranking April 2018 April 2017
April 2018 April 2017 Company name Value Deal count Value % Value April 2018 April 2017 Company name Value Deal count Deal count Deal count
(USD m) (USD m) change (USD m) change
1 22 Goodwin Procter 69,649 9 11,556 502.7% 1 1 Kirkland & Ellis 29,792 34 50 -16
2 11 Cravath, Swaine & Moore 67,035 3 17,695 278.8% 2 4 Jones Day 31,655 17 33 -16
3 3 Wachtell, Lipton, Rosen & Katz 65,020 8 35,904 81.1% 3 25 Sullivan & Cromwell 54,667 16 17 -1
4 2 Latham & Watkins 63,613 11 36,485 74.4% 4 3 DLA Piper 1,241 14 39 -25
5 43 Sidley Austin 61,679 6 4,894 1,160.3% 5 2 Latham & Watkins 63,613 11 40 -29
6 12 Weil Gotshal & Manges 61,491 6 15,855 287.8% 6 7 Linklaters 8,081 11 28 -17
7 1 Skadden Arps Slate Meagher & Flom 61,446 10 61,442 0% 7 24 Skadden Arps Slate Meagher & Flom 61,446 10 17 -7
8 30 Morrison & Foerster 59,376 6 7,592 682.1% 8 8 Morgan Lewis & Bockius 2,510 10 28 -18
9 375 Pillsbury Winthrop Shaw Pittman 59,038 2 18 327,888.9% 9 10 Goodwin Procter 69,649 9 26 -17
10 64 Potter Anderson & Corroon 58,945 1 2,543 2,217.9% 10 39 Stikeman Elliott 11,011 9 11 -2
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