An Acuris Company An Acuris report on global M&A activity FY 2018 Monthly M&A … · 2020-04-10 · Mergermarket.commergermarket.com Top Sector Energy, Mining & Utilities saw 1,477

An Acuris report on global M&A activity

FY 2018

Monthly M&A Insider

An Acuris Company

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An Acuris report on global M&A activity throughout 2018.

Middle East & Africa 33

Asia-Pacific (excluding Japan) 40

Japan 47

League Tables 54

About Merrill Corporation 56

Welcome from Merrill Corporation 03

Global Overview 04

US & Canada 12

Central & South America 19

Europe 26

Contents

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Mergermarket Monthly M&A Insider 2FY 2018ContentsFY 2018Contents


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Welcome from Merrill Corporation

John StallingsDirector Sales,Merrill DataSite Midwest

The Monthly M&A Insider explores the global M&A market with respect to the numbers, movements and trends, as well as revealing the top financial and legal advisors — globally and across six regions (US and Canada, Central and South America, Europe, Middle East and Africa, Asia-Pacific, and Japan).

As we close the books on 2018, the data shows it was another exceptional year for dealmaking. Global M&A value reached a three-year high at US$3.5trn, which is also the third-highest level on record. The number of deals fell by around 4% but still represented the second-highest total ever at 19,232 deals. Private equity (PE)activity hit the highest level in a decade.

The US and Canada contributed the most to last year’s value total, as strategic and financial buyers in the region took advantage of historically low interest rates and largely favorable macroeconomic conditions. In the US, legislation decreasing the corporate tax rate to 21% resulted in an influx of cash to many companies. The economy performed well, with US GDP rising 3.4% in the third quarter and 4.2% in Q2. A series of trade skirmishes started by the White House have caused anxiety in many corporate boardrooms but did not result in a slowdown in deal activity.

North America proved the exception rather than the rule for M&A last year, however. Deal value and count fell in Europe, Asia-Pacific

(excluding Japan), and Latin America, as political and economic troubles took their toll.

In Europe, an agreement regarding Brexit remains out of reach, even as the scheduled date of departure looms at the end of March. France and Italy have also faced political turmoil, and Italy’s economy is struggling, with corporate and consumer lending being curtailed and bond yields rising.

Meanwhile, the world is watching China’s economic performance closely given the ripple effects a slowdown could have on global growth and deal activity. Retail sales in China recently fell to their lowest level in 15 years, and manufacturing in the country has been on the decline since late 2017. Apple announced this month that sluggish sales figures could be attributed to weakness in China, triggering a stock selloff. Observers warn that other multinationals with exposure to the country could be vulnerable as well.

One area of the M&A market that seems certain to remain hot is PE. Financial sponsors are becoming increasingly creative as they seek to spend down their stockpiles of dry powder, looking both up-market and down-market for potential targets. The number of deals by PE firms valued at US$1bn or more is growing quickly, and buyers are readily joining forces on deals in order to distribute risk and afford more expensive valuations.

With 2019 now underway, M&A practitioners have reason to be optimistic about the year ahead, despite a few clouds on the horizon. After US stocks fell sharply in December, for instance, equities have already started to rebound, and Goldman Sachs strategists noted this month that conditions are ripe for further gains. The US Federal Reserve has also softened its tone regarding the possibility of further rate increases. Dealmakers will surely be cautious about political developments in major markets, as well as the risk of recession — but at the moment, there is every reason to believe the M&A environment will once again be highly favorable over the coming 12 months.

Sincerely,

John Stallings Director Sales — DataSite Midwest

Mergermarket Monthly M&A Insider 33FY 2018Welcome


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Global Overview

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Further informationGet in touch or read more

Global deal value in 2018 climbed to the second-highest level since the financial crisis, spurred by strong economic performance in North America and soaring demand for assets by both financial and strategic buyers worldwide. At the same time, deal count fell last year after the record high reached in 2017. Overall there were 19,232 deals globally with value of US$3.5trn in 2018, which is 742 fewer deals and a 11.5% increase in value compared to the previous year.

North America led the way among global regions in terms of deal value, while Europe had the highest number of transactions. Energy, Mining & Utilities (EMU) had the most M&A value of any sector, with four of the top ten deals of the year coming in the sector. Private equity (PE) buyout value hit an 11-year high, and the number of buyouts was the most ever recorded by Mergermarket.

In North America, there were 6,324 deals in 2018 with value of US$1.6trn, a value total that represented 46.5% of the global aggregate. Five of the top ten transactions of the year were for US targets, including telecommunications giant Sprint, whose US$60.8bn merger with T-Mobile gained approval from US national security authorities in mid-December. The combination of the country’s third- and fourth-largest telephone carriers now awaits approval from antitrust officials, who are expected to rule on the deal in H1 2019.

EMU, the leading sector by deal value in 2018, had 1,477 transactions valued at US$673bn, making up 19% of the overall M&A value worldwide. In one of the largest announced acquisitions in the sector, state-owned power company China Three Gorges agreed to purchase a 76.73% stake in Portuguese utility Energias de Portugal (EDP) in a deal valued at US$27.3bn. After the offer was made in May, the deal has been held up by regulatory reviews in several countries, and by a push for a higher sale price by EDP’s board.

PE buyout activity reached a new post-crisis peak with 3,599 buyouts valued at US$556.6bn, an increase of 69 deals and a 3.7% uptick in value compared to 2017. As the PE industry grows, more financial buyers are going up-market in order to find deals — for instance, last year there were 147 buyouts valued at US$1bn or more, which is 24 more than over the previous 12 months. The largest PE deal of 2018 was the US$17bn acquisition of a 55% stake in Thomson Reuters’ financial and risk business by a consortium made up of Blackstone Group, GIC Private Limited, and the Canada Pension Plan Investment Board.

Exits by PE firms also hit a post-crisis high in terms of transaction value at US$551.5, a 0.7% increase over the total in 2017, while the number of exits fell by 142 deals to a total of 2,450.

The level of cross-border dealmaking fluctuated throughout last year, but the value

total increased 6% to US$1.4trn by year’s end. This amount included the top deal of the year globally: Japanese pharmaceutical company Takeda’s US$79.7bn takeover of Ireland-based drugmaker Shire. Domestic M&A value also grew in 2018, rising 15% to reach US$2.2trn.

Global Overview

Elizabeth Lim

Ezekiel Pfeifer



mailto:elizabeth.lim%40acuris.com?subject=Monthly%20MnA%20Insider%20FY%202018%20Inquiry

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Top Sector

Energy, Mining & Utilities

saw 1,477 deals valued at US$673bn, up 26.9% by value with 200 fewer more deals compared

to 1,677 deals worth US$530.1bn in 2017.

Top Legal Advisor

Davis Polk & Wardwell ranked first with 138 deals worth US$507.1bn, up 24.6% in value with 3 more deals compared

to 135 deals worth US$407bn in 2017.

Top Financial Advisor

Goldman Sachs & Coranked first with 382 deals worth US$1.1trn, up 19.8% in value with 54 more deals compared

to 328 deals worth US$884.7bn in 2017.

19,232 deals valued at US$3.5trn, up 11.5% by value

with 742 fewer deals compared to 19,974 deals worth US$3.2trn in 2017.



Buyout volume

Exit volume

0

100

200

300

400

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201820172016201520142013

Valu

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Num

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eals

US$294.8

US$499.9

US$411.3

US$400.1

US$423.9

US$538.3

US$298

US$463

US$551.5

US$556.6US$

536.7US$547.7

0

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1,500

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3,000

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2,000

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6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

Valu

e (U

S$

bn)

Num

ber of d

eals

US$443.8

US$570.7

US$628.2

US$560.2

US$963.1

US$1,039.6

US$656.4

US$570.2

US$869.9

US$1,199.4

US$854 US$

715.2

US$741.8

US$825 US$

958.1

US$876.1

US$759.5

US$942

US$753.7

US$758.1

US$1,107.1

US$777.3

US$708.3

US$941.7

Q1 value

Q2 value

Q3 value

Q4 value

Buyout volume

Exit volume

Volume Buyout value

Exit value

Global private equity trendGlobal M&A trend

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Regional Trends

Energy, Mining & Utilities Value: US$673bn Number of deals: 1,477 Market share: 19%

Pharma, Medical & Biotech Value: US$310.3bn Number of deals: 1,631 Market share: 9%

Industrials & Chemicals Value: US$472.8bn Number of deals: 3,765 Market share: 13%

Financial Services Value: US$291.3bn Number of deals: 1,413 Market share: 8%

Technology Value: US$423.9bn Number of deals: 2,860 Market share: 12%

Europe US$989.2bn 7,437 deals

28%

North America US$1.6trn

6,324 deals46.5%

Central & South America

US$72.6bn 600 deals

2.1%

Asia-Pacific (excluding Japan)

US$717.4bn 4,036 deals

20.3%

Middle East & Africa US$65.3bn 391 deals

1.8%

Japan US$46.8bn 444 deals

1.3%

Domestic US$2.2trn +15%

Cross-border US$1.4trn +6%



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Top deals

Top 10 Announced Deals for FY 2018

Value (US$m) Deal details Advisor details

Announcement date

Target Bidder Dominant sector Sell-side Buy-side

79,744 8-May-18 Shire Plc Takeda Pharmaceutical Company Limited

Pharma, Medical & Biotech FA: Citi; Goldman Sachs & Co; and Morgan StanleyLA: Arthur Cox; Davis Polk & Wardwell; Mourant Ozannes; Nagashima Ohno & Tsunematsu; and Slaughter and May

FA: Evercore; JPMorgan; and Nomura HoldingsLA: A&L Goodbody; Lee & Ko; Linklaters; Nishimura & Asahi; and Ogier; Sullivan & Cromwell; (Advising FA: Anderson Mori & Tomotsune; Ashurst; Fried Frank Harris Shriver & Jacobson; Latham & Watkins; and Mori Hamada & Matsumoto) (Advising Debt Providers: White & Case)

67,601 8-Mar-18 Express Scripts Holding Company

Cigna Corporation Business Services FA: Centerview Partners; and Lazard LA: Skadden Arps Slate Meagher & Flom (Advising FA: Cravath, Swaine & Moore)

FA: Morgan Stanley LA: Paul Weiss Rifkind Wharton & Garrison; Pelister Atayilmaz Enkur; and Wachtell, Lipton, Rosen & Katz (Advising FA: Davis Polk & Wardwell)

60,806 29-Apr-18 Sprint Corporation T-Mobile USA Inc Telecommunications Centerview Partners; JPMorgan; Raine Group; Mizuho Financial Group; and Sumitomo Mitsui Financial Group LA: Goodwin Procter; Morrison & Foerster; and Skadden Arps Slate Meagher & Flom (Advising FA: Pillsbury Winthrop Shaw Pittman; Potter Anderson & Corroon; Sidley Austin; Simpson Thacher & Bartlett; and White & Case)

FA: Credit Suisse; Deutsche Bank; Evercore; Goldman Sachs & Co; Morgan Stanley; and PJT Partners LA: Allen & Overy; Cleary Gottlieb Steen & Hamilton; DLA Piper; Hogan Lovells International; K&L Gates; Latham & Watkins; and Wachtell, Lipton, Rosen & Katz (Advising FA: Cravath, Swaine & Moore; Fried Frank Harris Shriver & Jacobson; and Weil Gotshal & Manges)

59,612 1-Aug-18 Energy Transfer Partners (97.64% stake)

Energy Transfer Equity Energy, Mining & Utilities FA: Barclays LA: Richards Layton & Finger; and Vinson & Elkins (Advising FA: Cleary Gottlieb Steen & Hamilton)

FA: Citi LA: Latham & Watkins; and Potter Anderson & Corroon (Advising FA: White & Case)

51,494 25-Apr-18 Sky Plc Comcast Corporation Media FA: Barclays; Morgan Stanley; and PJT Partners LA: Allen & Overy; Herbert Smith Freehills; Matheson; and Skadden Arps Slate Meagher & Flom

FA: Bank of America Merrill Lynch; Evercore; and Robey Warshaw LA: Davis Polk & Wardwell; and Freshfields Bruckhaus Deringer (Advising FA: Travers Smith) (Advising Debt Providers: Shearman & Sterling)

46,646 12-Mar-18 innogy SE E.ON SE Energy, Mining & Utilities FA: Deutsche Bank; Goldman Sachs & Co; Lazard; Bank of America Merrill Lynch; Citi; and Rothschild & Co LA: Hengeler Mueller; Freshfields Bruckhaus Deringer (Advising FA: Gibson Dunn & Crutcher)

FA: BNP Paribas; and Perella Weinberg Partners LA: Linklaters (Advising FA: Allen & Overy; and Milbank Tweed Hadley & McCloy)

39,622 23-Mar-18 Abertis Infraestructuras SA Consortium formed by ACS SA, Atlantia SpA and Hochtief AG

Construction FA: AZ Capital; Citi; Deutsche Bank; and Morgan Stanley LA: Garrigues; Legance Avvocati Associati; and Uria Menendez; (Advising FA: Davis Polk & Wardwell; and Herbert Smith Freehills)

FA: Credit Suisse; EQUITA SIM; Goldman Sachs & Co; JPMorgan; Key Capital Partners; KPMG; Lazard; Mediobanca; Santander Global Corporate Banking; and Societe Generale LA: Allen & Overy; BonelliErede; DLA Piper; Freshfields Bruckhaus Deringer; Garrigues; Gianni Origoni Grippo Cappelli & Partners; Gleiss Lutz; Linklaters; and Perez-Llorca (Advising FA: Cleary Gottlieb Steen & Hamilton; and Clifford Chance)

32,556 28-Oct-18 Red Hat Inc IBM Corporation Technology FA: Guggenheim Partners; and Morgan Stanley LA: Blake, Cassels & Graydon; and Skadden Arps Slate Meagher & Flom (Advising FA: Debevoise & Plimpton)

FA: Goldman Sachs & Co; JPMorgan; and Lazard LA: Paul Weiss Rifkind Wharton & Garrison (Advising FA: Simpson Thacher & Bartlett)

31,327 30-Apr-18 Andeavor Corporation Marathon Petroleum Corporation

Energy, Mining & Utilities FA: Goldman Sachs & CoLA: Sullivan & Cromwell; Advising FA: Cleary Gottlieb Steen & Hamilton

FA: BarclaysLA: Jones Day (Advising FA: Shearman & Sterling)

27,378 11-May-18 Energias de Portugal SA (76.73% stake)

China Three Gorges Corporation

Energy, Mining & Utilities FA: Lazard; Millennium Investment Banking; Morgan Stanley; Rothschild & Co; and UBS Investment Bank LA: Allen & Overy; King & Wood Mallesons; and MLGTS Morais Leitao Galvao Teles Soares Da Silva & Associados

FA: Bank of America Merrill Lynch; and CitiLA: Linklaters; and Serra Lopes, Cortes Martins & Associados (SLCM)



Top 10 Legal Advisors - Value Top 10 Legal Advisors - Volume

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League tables

Top 10 Financial Advisors - Value Top 10 Financial Advisors - Volume

Ranking 2018 2017

2018 2017 Company name Value (USD m)

Deal count Value (USD m)

% Value change

1 7 Davis Polk & Wardwell 507,104 138 407,066 24.6%

2 1 Skadden Arps Slate Meagher & Flom 455,160 191 561,059 -18.9%

3 3 Sullivan & Cromwell 438,615 153 438,822 -

4 9 Latham & Watkins 408,457 360 305,614 33.7%

5 10 Freshfields Bruckhaus Deringer 395,937 208 295,178 34.1%

6 8 Simpson Thacher & Bartlett 385,151 154 399,407 -3.6%

7 6 White & Case 380,483 282 417,084 -8.8%

8 2 Cleary Gottlieb Steen & Hamilton 380,344 105 448,042 -15.1%

9 17 Wachtell, Lipton, Rosen & Katz 340,540 86 199,719 70.5%

10 15 Allen & Overy 325,788 301 212,740 53.1%

Ranking 2018 2017


Deal count Deal count Deal count change

1 1 DLA Piper 182,378 671 636 35

2 2 Kirkland & Ellis 295,552 568 512 56

3 4 Jones Day 167,081 420 403 17

4 3 Latham & Watkins 408,457 360 419 -59

5 6 Goodwin Procter 154,527 337 320 17

6 5 Baker McKenzie 144,758 325 374 -49

7 8 CMS 49,393 304 302 2

8 10 Allen & Overy 325,788 301 270 31

9 7 White & Case 380,483 282 315 -33

10 11 Weil Gotshal & Manges 245,644 231 255 -24

Ranking 2018 2017



1 3 Deloitte 61,943 468 390 78

2 2 PwC 33,876 447 438 9

3 1 KPMG 77,980 403 477 -74

4 6 Goldman Sachs & Co 1,059,779 382 328 54

5 4 EY 42,003 358 387 -29

6 5 Rothschild & Co 241,942 325 335 -10

7 7 JPMorgan 830,993 323 314 9

8 8 Morgan Stanley 959,204 277 271 6

9 11 Citi 683,684 246 209 37

10 10 Houlihan Lokey 39,540 229 230 -1

Ranking 2018 2017



% Value change

1 1 Goldman Sachs & Co 1,059,779 382 884,687 19.8%

2 3 Morgan Stanley 959,204 277 620,681 54.5%

3 2 JPMorgan 830,993 323 660,616 25.8%

4 4 Citi 683,684 246 469,554 45.6%

5 5 Bank of America Merrill Lynch 531,266 195 449,518 18.2%

6 6 Lazard 443,472 223 399,458 11.0%

7 8 Barclays 437,575 191 352,229 24.2%

8 12 Evercore 384,134 167 254,741 50.8%

9 10 Credit Suisse 361,741 180 290,401 24.6%

10 7 Deutsche Bank 346,544 130 358,009 -3.2%



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US & Canada

Mergermarket Monthly M&A Insider 12FY 2018US & Canada


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US & Canada

M&A value in North America reached a three-year high in 2018, as strategic and financial buyers alike put their ample capital to work amid economic growth in the region. There were 6,300 transactions for targets in the US and Canada last year with total value of US$1.6trn, which is 128 fewer deals and a 13.8% increase in value compared to 2017. Energy, Mining & Utilities (EMU) had the most transaction value of any sector, thanks in part to a series of megadeals by midstream operators to eliminate master limited partnership structures. Private equity (PE) buyout activity expanded for the fourth straight year in the region, both in terms of volume and value.

Looking back at the 11 years since the start of the financial crisis, last year had the second-highest M&A value and the second-largest deal count of any year in that span. The only higher value total came in 2015 at US$1.9trn, and 128 more deals were announced in 2017. PE buyout value and deal count both reached 11-year highs in 2018 at 1,448 acquisitions valued at US$222.1bn.

EMU had by far the most M&A value of any sector in 2018 at US$388.5bn spread across 558 deals. Two of the ten largest deals in North America came in the sector: Energy Transfer Equity’s US$59.6bn simplification deal for MLP unit Energy Transfer Partners and the US$31.3bn merger between US downstream operators Marathon Petroleum and Andeavor.

The latter tie-up closed in October, creating the biggest US refiner by capacity, with 16 US-based refineries owned by the combined company and capacity of more than three million barrels per day.

Technology had the second-most deal value by sector at US$236bn but a far higher deal count than EMU at 1,205 transactions. Two tech deals also landed in the top ten of 2018: IBM’s US$32.6bn acquisition of enterprise software maker Red Hat in October and Broadcom’s US$18bn purchase of software company CA Technologies in July.

The top deal of the year came in the Business Services sector but was carried out by a healthcare giant: insurer Cigna’s US$67.6bn acquisition of Express Scripts, the largest pharmacy benefit manager in the US. After receiving final regulatory approvals late in the year, the deal closed on December 20.

The PE industry had another exceptional year, reaching a new post-crisis peak for both buyout count and value. The largest buyout of 2018 came early in the year — the US$17bn acquisition of a 55% stake in Thomson Reuters’ financial and risk business by the consortium of Blackstone Group, GIC Private Limited, and the Canadian Pension Plan Investment Board.

It was also a strong 12 months for PE exits, although the volume and value tallies fell short of last year’s totals. There were 1,173 exits of North American assets with value of

US$258.6bn in 2018, which is 34 fewer deals and a 6.6% decrease in value compared to the previous year.

Global trade tensions put pressure on cross-border activity in the region, as both inbound and outbound deal value fell, while domestic M&A value grew. Inbound transaction value totaled US$211.1bn in 2018, representing a 24.6% decline; outbound value fell 9% to US$340.3bn; and domestic value increased 23.3% to US$1.4trn.

Lana Vilner

Ezekiel Pfeifer



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Top Legal Advisor

Skadden Arps Slate Meagher & Flom

ranked first with 163 deals worth US$411.3bn, down 16.7% in value with 48 fewer deals compared



Goldman Sachs & Coranked first with 294 deals worth US$708.5bn,

down 0.9% in value with 45 more deals compared to 249 deals worth US$714.9bn in 2017.

6,300 deals valued at US$1.6trn, up 13.8% by value with 128 fewer deals compared to 6,428

deals worth US$1.4trn in 2017.

Top Sector

Energy, Mining and Utilities

saw 558 deals valued at US$388.5bn, up 26.4% by value with 47 fewer deals compared




Buyout volume

Exit volume

0

200

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800

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1,200

1,400

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1,800

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7,000

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bn)

Num

ber of d

ealsUS$196.4

US$235.5

US$366.5

US$192.8

US$414.9

US$511.9

US$343

US$338.4

US$457.1

US$375.5

US$441.3

US$514.9

US$474.1

US$526.6

US$250.1

US$356.9US$

271.3

US$310.5

US$332.6

US$401

US$445.8

US$432

US$435.2

US$312.8

0

50

100

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350

2018201720162015201420130

200

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bn)

Num

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eals

US$143.7

US$163.2

US$172.5

US$297.4

US$176.1

US$254.3

US$276.9

US$155.9

US$253.5

US$212.3

US$222.1

US$258.6

Q1 value

Q2 value

Q3 value

Q4 value

Volume Buyout value

Exit value

US & Canada Private equity trendUS & Canada M&A trend

Buyout volume

Exit volume

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Regional Trends

Energy, Mining & Utilities Value: US$388.5bn Number of deals: 558 Market share: 24.1%

Industrials & Chemicals Value: US$169.3bn Number of deals: 1,090 Market share: 10.5%

Technology Value: US$236bn Number of deals: 1,205 Market share: 14.6%

Consumer Value: US$122.9bn Number of deals: 513 Market share: 7.6%

Business Services Value: US$201.6bn Number of deals: 916 Market share: 12.5%

Domestic US$1.4trn +23.3%

Inbound US$211.1bn -24.6%

Outbound US$340.3bn -9%

Canada US$91.2bn 582 deals

5.7%

US US$1.5trn 5,718 deals

94.3%



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Top deals



Announcement date


67,601 8-Mar-18 Express Scripts Holding Company

Cigna Corporation Business Services FA: Centerview Partners; and Lazard LA: Skadden Arps Slate Meagher & Flom (Advising FA: Cravath, Swaine & Moore)

FA: Morgan Stanley LA: Paul Weiss Rifkind Wharton & Garrison; Pelister Atayilmaz Enkur; and Wachtell, Lipton, Rosen & Katz (Advising FA: Davis Polk & Wardwell)

60,806 29-Apr-18 Sprint Corporation T-Mobile USA Inc Telecommunications FA: Centerview Partners; JPMorgan; Raine Group; Mizuho Financial Group; and Sumitomo Mitsui Financial Group LA: Goodwin Procter; Morrison & Foerster; and Skadden Arps Slate Meagher & Flom (Advising FA: Pillsbury Winthrop Shaw Pittman; Potter Anderson & Corroon; Sidley Austin; Simpson Thacher & Bartlett; and White & Case)

FA: Credit Suisse; Deutsche Bank; Evercore; Goldman Sachs & Co; Morgan Stanley; and PJT Partners LA: Allen & Overy; Cleary Gottlieb Steen & Hamilton; DLA Piper; Hogan Lovells International; K&L Gates; Latham & Watkins; and Wachtell, Lipton, Rosen & Katz (Advising FA: Cravath, Swaine & Moore; Fried Frank Harris Shriver & Jacobson; and Weil Gotshal & Manges)

59,612 1-Aug-18 Energy Transfer Partners (97.64% stake)

Energy Transfer Equity Energy, Mining & Utilities FA: Barclays LA: Richards Layton & Finger; and Vinson & Elkins (Advising FA: Cleary Gottlieb Steen & Hamilton)

FA: Citi LA: Latham & Watkins; and Potter Anderson & Corroon (Advising FA: White & Case)

32,556 28-Oct-18 Red Hat Inc IBM Corporation Technology FA: Guggenheim Partners; and Morgan Stanley LA: Blake, Cassels & Graydon; and Skadden Arps Slate Meagher & Flom (Advising FA: Debevoise & Plimpton)

FA: Goldman Sachs & Co; JPMorgan; and Lazard LA: Paul Weiss Rifkind Wharton & Garrison (Advising FA: Simpson Thacher & Bartlett)

31,327 30-Apr-18 Andeavor Corporation Marathon Petroleum Corporation

Energy, Mining & Utilities FA: Goldman Sachs & Co LA: Sullivan & Cromwell (Advising FA: Cleary Gottlieb Steen & Hamilton)

FA: Barclays LA: Jones Day (Advising FA: Shearman & Sterling)

26,801 29-Jan-18 Dr Pepper Snapple Group Inc Keurig Green Mountain Inc Consumer FA: Credit Suisse; and Duff & Phelps LA: Morgan Lewis & Bockius; and Sidley Austin (Advising FA: White & Case)

FA: AFW; Bank of America Merrill Lynch; BDT & Company; Goldman Sachs & Co; and JPMorgan LA: Clifford Chance; McDermott Will & Emery; and Skadden Arps Slate Meagher & Flom (Advising Debt Providers: Weil Gotshal & Manges)

26,705 26-Mar-18 General Growth Properties Inc (66.2% stake)

Brookfield Property Partners Real Estate FA: Citi; and Goldman Sachs & Co LA: Simpson Thacher & Bartlett; and Sullivan & Cromwell (Advising FA: Fried Frank Harris Shriver & Jacobson)

FA: Bank of America Merrill Lynch; Deutsche Bank; HSBC; and Morgan Stanley LA: Goodwin Procter; Torys; and Weil Gotshal & Manges (Advising Debt Providers: White & Case)

18,362 14-Oct-18 L3 Technologies Inc Harris Corporation Defense FA: Goldman Sachs & Co LA: Simpson Thacher & Bartlett (Advising FA: Cravath, Swaine & Moore)

FA: Morgan Stanley LA: Paul Weiss Rifkind Wharton & Garrison; and Sullivan & Cromwell (Advising FA: Davis Polk & Wardwell)

17,987 11-Jul-18 CA Technologies Broadcom Inc Technology FA: Qatalyst Group LA: Wilson Sonsini Goodrich & Rosati (Advising FA: Morrison & Foerster)

FA: Bank of America Merrill Lynch; Barclays; Citi; Credit Suisse; Deutsche Bank; JPMorgan; and Morgan Stanley LA: Niederer Kraft Frey; and Wachtell, Lipton, Rosen & Katz (Advising FA: Ropes & Gray)

17,000 30-Jan-18 Refinitiv (55% stake) Blackstone Group; GIC Private Limited; and Canada Pension Plan Investment Board

Business Services FA: Centerview Partners; Guggenheim Partners; Lazard; and TD Securities LA: Allen & Overy; Clifford Chance; Norton Rose Fulbright; Torys; and Wachtell, Lipton, Rosen & Katz (Advising FA: Gibson, Dunn & Crutcher)

FA: Bank of America Merrill Lynch; Canson Capital Partners; Citi; Goldman Sachs & Co; JPMorgan; and Morgan Stanley LA: Dechert; Freshfields Bruckhaus Deringer; Gilbert + Tobin; Osler, Hoskin & Harcourt; Shardul Amarchand Mangaldas & Co; Simpson Thacher & Bartlett; and Weil Gotshal & Manges




mergermarket.com

League tables


Ranking 2018 2017



% Value change


2 12 Wachtell, Lipton, Rosen & Katz 342,091 84 197,708 73.0%

3 3 Simpson Thacher & Bartlett 340,845 140 393,480 -13.4%

4 7 Davis Polk & Wardwell 337,327 110 362,493 -6.9%

5 6 Sullivan & Cromwell 310,723 123 365,059 -14.9%

6 8 White & Case 302,265 127 357,308 -15.4%

7 9 Latham & Watkins 300,350 265 254,173 18.2%

8 5 Cleary Gottlieb Steen & Hamilton 294,576 69 368,401 -20.0%

9 4 Cravath, Swaine & Moore 278,797 63 381,830 -27.0%

10 2 Kirkland & Ellis 265,271 530 397,054 -33.2%

Ranking 2018 2017



1 1 Kirkland & Ellis 265,271 530 473 57

2 4 Jones Day 160,140 328 309 19

3 3 DLA Piper 113,724 293 311 -18

4 5 Goodwin Procter 143,394 292 267 25

5 2 Latham & Watkins 300,350 265 320 -55

6 7 Weil Gotshal & Manges 213,671 170 197 -27

7 8 Morgan Lewis & Bockius 76,811 166 197 -31

8 10 Cooley 43,442 165 154 11

9 6 Skadden Arps Slate Meagher & Flom 411,317 163 211 -48

10 15 Sidley Austin 169,344 148 134 14

Ranking 2018 2017



1 1 Goldman Sachs & Co 708,504 294 249 45

2 2 JPMorgan 546,526 219 221 -2

3 3 Houlihan Lokey 32,500 187 191 -4

4 4 Morgan Stanley 637,475 181 184 -3

5 5 Citi 385,953 167 147 20

6 8 Barclays 403,005 159 134 25

7 6 Jefferies 84,718 141 136 5

8 11 Evercore 289,805 138 125 13

9 19 Raymond James & Associates 21,402 137 95 42

10 9 Bank of America Merrill Lynch 373,465 132 132 0

Ranking 2018 2017



% Value change

1 1 Goldman Sachs & Co 708,504 294 714,919 -0.9%

2 3 Morgan Stanley 637,475 181 456,935 39.5%

3 2 JPMorgan 546,526 219 505,458 8.1%

4 7 Barclays 403,005 159 291,185 38.4%

5 4 Citi 385,953 167 327,550 17.8%


7 11 Evercore 289,805 138 229,868 26.1%

8 10 Credit Suisse 281,849 120 232,808 21.1%

9 6 Lazard 263,709 109 301,222 -12.5%

10 8 Centerview Partners 225,558 42 278,490 -19.0%



mergermarket.com



Mergermarket Monthly M&A Insider 19FY 2018Central & South America


mergermarket.com


Philip Segal

Ezekiel Pfeifer


In a year defined by political change in Brazil and Mexico and tepid economic growth across the region, M&A activity declined substantially in Latin America compared to 2017. There were 600 total deals valued at US$72.6bn, which is 54 fewer transactions and a 25.3% decrease in value year-on-year (YoY). Industrials & Chemicals had the most deal value of any sector, and Brazil had by far the highest value total of any country. Private equity (PE) buyout value fell for a third straight year, and cross-border deal value declined in both inbound and outbound directions.

The M&A value total of US$72.6bn is the lowest amount in 13 years in Central & South America. Meanwhile, the PE buyout value of US$5.4bn is the smallest total in a decade, even as the exit value of US$6.1bn represents a four-year high.

Industrials & Chemicals held the top spot for deal value among sectors in 2018 at US$23bn spread across 93 transactions. These included the largest deal of the year in Latin America: Brazil-based Suzano Papel e Celulose’s US$15.3bn acquisition of larger rival Fibria Celulose, creating the world’s largest wood pulp producer. Fibria was sold by industrial conglomerate Votorantim Participações and BNDESPar, the investment unit of Brazilian state development bank BNDES, making the sale one of several major divestments made by the Brazilian government last year.

The traditionally strong sector of Energy, Mining & Utilities (EMU) had the second-highest deal value among sectors at US$19.6bn and the largest deal tally at 96 acquisitions. Four of the top ten M&A deals in the region involved EMU targets, among them Brazilian grid operator AES Eletropaulo, which Italian energy company Enel purchased for US$3bn. With the deal, Enel gains exposure to customers in the sprawling São Paulo metropolitan area, adding to its existing presence in the states of Rio de Janeiro, Ceará and Goiás.

Brazil had the most M&A value of any country in 2018 at US$40.1bn, representing 55.3% of the overall market share in Latin America. Investors have displayed new confidence in the region’s largest market following the election of far-right politician Jair Bolsonaro to the presidency, pushing the Ibovespa stock index to a record high.

Chile had the second-most deal value in the region at US$12.4bn, making up 17.1% of the total value across Central & South America. The second and third largest deals of 2018 involved Chilean targets — in the second-largest, China’s Tianqi Lithium paid US$4bn for a 23.77% share in Sociedad Quimica y Minera, the biggest lithium producer in the world.

PE buyout activity declined markedly in 2018 with 63 deals valued at US$5.4bn, a decrease of 15 transactions and a 29.5% drop in value

YoY. Nonetheless, two of the top 10 deals of the year involved financial buyers, including the US$1.8bn acquisition of Brazilian data center operator Ascenty by Brookfield Asset Management and Digital Realty Trust.

Dealmaking into and out of Latin America fell by roughly half in both directions in 2018. Inbound M&A value decreased 49.5% to US$32.8bn; outbound value declined 54% to US$3.5bn.



mailto:philip.segal%40acuris.com?subject=Monthly%20MnA%20Insider%20FY%202018%20Inquiry




Bank of America Merrill Lynch

ranked first with 16 deals worth US$26.6bn, up 39.5% in value with 1 fewer deal compared

to 17 deals worth US$19bn in 2017.

600 deals valued at US$72.6bn, down 25.3% by value with 54 fewer deals compared to

654 deals worth US$97.1bn in 2017.

Top Sector

Industrials & Chemicalssaw 93 deals valued at US$23bn, up 141.4%

by value with 4 fewer deals compared to 97 deals worth US$9.6bn in 2017.

Top Legal Advisor

Barbosa, Mussnich & Aragao

ranked first with 31 deals worth US$24.8bn, up 651.9% in value with 11 more deals compared




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US$17.8

US$24.8

US$11.9

US$14.9

US$21.4

US$39.9

US$12.2

US$11.2

US$22.4

US$25.6

US$38.1

US$24.2

US$29.4

US$14.1

US$14

US$25

US$28.6

US$19.6

US$30.2

US$27.8

US$43.9

US$14.6

US$21

US$9.2

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US$7.7

US$4.4

US$7.7

US$9.1

US$5.9

US$10.7

US$8.1

US$5.4

US$6.1

Q1 value

Q2 value

Q3 value

Q4 value

Volume Buyout value

Exit value

Buyout volume

Exit volume

C&S America Private equity trendC&S America M&A trend

mergermarket.com



mergermarket.com

Regional Trends

Industrials & Chemicals Value: US$23bn Number of deals: 93 Market share: 31.8%

Business Services Value: US$5.5bn Number of deals: 66 Market share: 7.6%


Financial Services Value: US$3.7bn Number of deals: 42 Market share: 5.1%


Domestic US$39.8bn +23.9%


Outbound US$3.5bn -54%

Chile US$12.4bn 55 deals

17.1%

Mexico US$3.4bn 66 deals

9.9%

Colombia US$2.1bn 30 deals

2.9%

PeruUS$4.3bn 50 deals

6%

BrazilUS$40.1bn 303 deals

55.3%

Panama US$2bn 7 deals2.7%

Bahamas US$883m

1 deal1.2%

Costa Rica US$800m

6 deals1.1%

ArgentinaUS$4.4bn 53 deals

6.1%



mergermarket.com

Top deals



Announcement date


15,326 16-Mar-18 Fibria Celulose SA Suzano Papel e Celulose SA Industrials & Chemicals FA: Bank of America Merrill Lynch; and Morgan Stanley LA: Davis Polk & Wardwell; Mattos Filho, Veiga Filho, Marrey Jr. e Quiroga Advogados; and Tozzini Freire Teixeira e Silva Advogados (Advising FA: Machado Meyer Sendacz e Opice; and White & Case)

FA: Banco Bradesco BBI; and Banco Itaú BBA LA: Barbosa, Mussnich & Aragao; Cescon, Barrieu, Flesch & Barreto Advogados; and Cleary Gottlieb Steen & Hamilton

4,066 17-May-18 Sociedad Quimica y Minera SA (23.77% stake)

Tianqi Lithium Industries Inc Industrials & Chemicals FA: Bank of America Merrill Lynch; CLSA; and Goldman Sachs & Co LA: Claro y Cia; Davies Ward Phillips & Vineberg; and Jones Day (Advising FA: Davis Polk & Wardwell)

FA: Morgan Stanley; and Sinolink Securities LA: Carey y Cia; Fasken Martineau Dumoulin; Weil Gotshal & Manges; and Zhong Lun Law Firm

3,266 16-Feb-18 Enel Generación Chile (40.02% stake) Enel Chile SA Energy, Mining & Utilities FA: -LA: -

FA: MediobancaLA: Carey y Cia; Winston & Strawn

3,064 17-Apr-18 AES Eletropaulo Enel SpA Energy, Mining & Utilities FA: Banco Bradesco BBI; and Banco Itaú BBA LA: Barbosa, Mussnich & Aragao; and Lefosse Advogados

FA: Banco BTG Pactual; and Morgan StanleyLA: Cescon, Barrieu, Flesch & Barreto Advogados

2,075 12-Jun-18 Biosev SA (78.47% stake) Louis Dreyfus Company BV Consumer FA: Banco BTG PactualLA: -

FA: -LA: -

1,800 24-Sep-18 Ascenty Data Centers e Telecomunicacoes SA

Brookfield Asset Management Inc; and Digital Realty Trust Inc

Business Services FA: DH CapitalLA: Choate Hall & Stewart

FA: Bank of America Merrill Lynch LA: Demarest Advogados; Latham & Watkins; and White & Case

1,710 23-Apr-18 SOMOS Educacao SA (73.35% stake) Kroton Educacional SA Business Services FA: Banco Itaú BBALA: -

FA: Banco BTG Pactual LA: Barbosa, Mussnich & Aragao; and Mattos Filho, Veiga Filho, Marrey Jr. e Quiroga Advogados

1,700 14-Feb-18 Wells Fargo & Company (Auto finance business in Puerto Rico)

Banco Popular de Puerto Rico Financial Services FA: -LA: Mayer Brown

FA: - LA: Sullivan & Cromwell

1,266 19-Oct-18 Companhia Energetica de Sao Paulo (Cesp) (97.75% stake)

Canada Pension Plan Investment Board; and Votorantim Energia Ltda

Energy, Mining & Utilities FA: Banco FatorLA: (Advising FA: Madrona Advogados)

FA: Banco Bradesco BBI; and Santander Global Corporate Banking LA: Stocche Forbes Advogados

1,200 4-Dec-18 Compania Minera Teck Quebrada Blanca SA (30% stake)

Sumitomo Corporation; and Sumitomo Metal Mining Co Ltd

Energy, Mining & Utilities FA: Rothschild & Co; and TD SecuritiesLA: Carey y Cia

FA: - LA: Philippi Prietocarrizosa, Ferrero DU & Uria




mergermarket.com

League tables


Ranking 2018 2017



% Value change

1 33 Barbosa, Mussnich & Aragao 24,835 31 3,303 651.9%

2 2 Mattos Filho, Veiga Filho, Marrey Jr. e Quiroga Advogados

23,606 46 15,287 54.4%


4 14 Cescon, Barrieu, Flesch & Barreto Advogados 21,230 41 6,000 253.8%

5 7 Machado Meyer Sendacz e Opice 20,764 25 7,763 167.5%

6 17 White & Case 20,358 14 4,910 314.6%

7 37 Cleary Gottlieb Steen & Hamilton 18,367 8 3,024 507.4%

8 24 Tozzini Freire Teixeira e Silva Advogados 16,682 17 4,248 292.7%

9 5 Carey y Cia 9,087 10 9,877 -8.0%

10 6 Lefosse Advogados 7,451 22 8,161 -8.7%

Ranking 2018 2017



1 2 Pinheiro Neto Advogados 4,747 48 36 12

2 1 Mattos Filho, Veiga Filho, Marrey Jr. e Quiroga Advogados

23,606 46 49 -3

3 8 Cescon, Barrieu, Flesch & Barreto Advogados 21,230 41 26 15

4 12 Barbosa, Mussnich & Aragao 24,835 31 20 11

5 7 Demarest Advogados 5,516 30 27 3

6 4 Machado Meyer Sendacz e Opice 20,764 25 30 -5

7 9 Philippi Prietocarrizosa, Ferrero DU & Uria 2,732 23 26 -3

8 15 Lefosse Advogados 7,451 22 17 5

9 16 DLA Piper 2,467 21 15 6

10 10 Veirano Advogados 3,412 20 25 -5

Ranking 2018 2017



1 2 Banco BTG Pactual 11,831 35 33 2

2 1 Banco Itau BBA 23,040 30 38 -8

3 3 Banco Bradesco BBI 24,060 20 20 0

4 13 Credit Suisse 3,222 19 10 9

5 4 Bank of America Merrill Lynch 26,550 16 17 -1

6 9 Goldman Sachs & Co 8,191 13 11 2

7 12 JPMorgan 6,899 13 10 3

8 5 Santander Global Corporate Banking 3,509 13 15 -2

9 6 Morgan Stanley 17,155 12 14 -2

10 27 Oaklins 484 12 6 6

Ranking 2018 2017



% Value change


2 15 Banco Bradesco BBI 24,060 20 4,653 417.1%

3 8 Banco Itau BBA 23,040 30 9,347 146.5%

4 7 Morgan Stanley 17,155 12 9,398 82.5%

5 3 Banco BTG Pactual 11,831 35 14,343 -17.5%

6 5 Goldman Sachs & Co 8,191 13 11,808 -30.6%

7 4 JPMorgan 6,899 13 12,851 -46.3%

8= - CLSA 4,066 1 - -

8= - Sinolink Securities Co 4,066 1 - -

10 19 BR Partners 3,615 10 2,548 41.9%



mergermarket.com


Europe

Mergermarket Monthly M&A Insider 26FY 2018Europe


mergermarket.com


Jonathan Klonowski

Europe

European M&A experienced a noticeable drop in the second half of the year, as geopolitical uncertainty continued to affect activity. Following almost US$675bn announced in the first half of the year, M&A fell 52.8% in comparison to US$317bn in H2. European M&A dropped to US$146.2bn in Q4, its lowest quarterly value since Q1 2013.

The lack of high-profile deals was key to the fall in activity. A total of 11 deals worth over US$10bn occurred in 2018, yet all were announced in the first five months of the year. Only ten deals worth over US$5bn were announced in the second half, including the US$9.4bn takeover of ABB’s power grids business. Despite all this, European M&A reached its highest value since the crisis at US$989.2bn, accounting for 28% of global M&A.

Takeda’s US$79.7bn acquisition of Shire remained the largest deal targeting Europe in 2018, becoming the largest Japanese outbound deal on Mergermarket record. Following a noticeable dip in 2017, Asian investment into Europe soared to its highest value on record, with a total US$214.5bn (348 deals), up 3.2x versus a year prior (US$67.6bn). Chinese activity in Europe saw an uptick in value to US$60.4bn (89 deals) despite a fall in the number of announced deals.

The second largest deal into the region saw Comcast acquire UK-based media giant Sky

for US$51.5bn, following a lengthy battle with 21st Century Fox. The deal pushed UK M&A to US$245.8bn (1,519 deals) — its second highest value since the crisis. However, figures in the second half of the year clearly demonstrate how the ongoing uncertainty surrounding the future direction of the UK is affecting M&A activity in the country.

The looming threat of a “no deal” scenario and uncertainty as to the future relationship between the UK and the rest of the EU saw UK M&A in Q4 2018 drop to its lowest quarterly value since the referendum. A total of US$34.1bn (333 deals) changed hands in the UK in the final three months of the year, and further uncertainty is likely to result in continued subdued activity in the opening months of 2019, according to Mergermarket intelligence.

With private equity (PE) firms holding extraordinary levels of dry-powder, buyout activity continues to reach record levels — hitting its highest value since the crash. A total of US$195.5bn across 1,458 buyouts were recorded in 2018. As the mid-market becomes increasingly more saturated, PE firms have looked towards higher-valued firms, including listed companies.

Take-private buyouts reached its highest annual value and joint-highest volume since the crisis following 22 such deals worth a combined US$26bn, representing 13.3% share of the total buyout value. This included

the proposed US$4bn takeover of Travelport Worldwide by a consortium including Siris Capital Group, Evergreen Coast Capital Corp and Elliott Management.

In line with global trends, the Energy, Mining & Utilities sector was the most targeted sector by value with a total of US$152.5bn (402 deals) announced in the last 12 months. This represented the highest value in the sector since 2012 as interest in North Sea assets, as well as an ongoing push towards cleaner energy drove investment.

While activity may appear to be strong, the clear drop-off in the second half of the year will be of grave concern to dealmakers. Whether M&A can recover to the high levels seen recently in the face of geopolitical and market uncertainty across the globe and growing protectionism remains to be seen.



mailto:jonathan.klonowski%40acuris.com?subject=Monthly%20MnA%20Insider%20FY%202018%20Inquiry


Top Legal Advisor

Freshfields Bruckhaus Deringer

ranked first with 177 deals worth US$343.5bn, up 47.1% in value with 7 fewer deals compared



Goldman Sachs & Coranked first with 153 deals worth US$458.3bn, up 17.6% in value with 32 more deals compared


7,437 deals valued at US$989.2bn, up 17.3% by value with 379 fewer deals compared to 7,816

deals worth US$843.2bn in 2017.

Top Sector


saw 402 deals valued at US$152.5bn, up 47.8% by value with 107 fewer deals compared




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US$262.6 US$

197.9

US$158.9

US$157.8

US$203.8

US$179.6

US$177.9

US$214

US$174.7

US$193.4

US$180.7

US$293.3

US$198.1

US$146.2

US$170.9

US$400

US$272.1

US$268

US$208.2US$

174.2

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US$136.3

US$167.4US$

151.1

US$96.9 US$

91.4

US$177.8 US$

167.3

US$130.6

US$145.6

US$188.8

US$195.5

US$158.2

Q2 value Q4 value Exit value

Q1 value Q3 value Volume Buyout value Buyout volume

Exit volume

Europe Private equity trendEurope M&A trend

mergermarket.com



mergermarket.com

Regional Trends



Pharma, Medical & Biotech Value: US$148bn Number of deals: 568 Market share: 15%

Media Value: US$70.3bn Number of deals: 226 Market share: 7.1%

Industrials & Chemicals Value: US$143.7bn Number of deals: 1,606 Market share: 14.5%


Inbound US$478.4bn +43.8%

Outbound US$207.3bn -17.6%

Germany US$122bn 908 deals

12.3%

SpainUS$113.5bn 500 deals

11.5%

United KingdomUS$245.8bn 1,519 deals

24.8%

France US$63.4bn 844 deals

6.4%

Republic of Ireland

US$89.8bn 159 deals

9.1%



mergermarket.com

Top deals



Announcement date


79,744 8-May-18 Shire Plc Takeda Pharmaceutical Company Limited

Pharma, Medical & Biotech FA: Citi; Goldman Sachs & Co; and Morgan StanleyLA: Arthur Cox; Davis Polk & Wardwell; Mourant Ozannes; Nagashima Ohno & Tsunematsu; and Slaughter and May

FA: Evercore; JPMorgan; and Nomura HoldingsLA: A&L Goodbody; Lee & Ko; Linklaters; Nishimura & Asahi; and Ogier; Sullivan & Cromwell; (Advising FA: Anderson Mori & Tomotsune; Ashurst; Fried Frank Harris Shriver & Jacobson; Latham & Watkins; and Mori Hamada & Matsumoto) (Advising Debt Providers: White & Case)

51,494 25-Apr-18 Sky Plc Comcast Corporation Media FA: Barclays; Morgan Stanley; and PJT Partners LA: Allen & Overy; Herbert Smith Freehills; Matheson; and Skadden Arps Slate Meagher & Flom

FA: Bank of America Merrill Lynch; Evercore; and Robey Warshaw LA: Davis Polk & Wardwell; and Freshfields Bruckhaus Deringer (Advising FA: Travers Smith) (Advising Debt Providers: Shearman & Sterling)

46,646 12-Mar-18 innogy SE E.ON SE Energy, Mining & Utilities FA: Deutsche Bank; Goldman Sachs & Co; Lazard; Bank of America Merrill Lynch; Citi; and Rothschild & Co LA: Hengeler Mueller; Freshfields Bruckhaus Deringer (Advising FA: Gibson Dunn & Crutcher)

FA: BNP Paribas; and Perella Weinberg Partners LA: Linklaters (Advising FA: Allen & Overy; and Milbank Tweed Hadley & McCloy)

39,622 23-Mar-18 Abertis Infraestructuras SA Consortium formed by ACS SA, Atlantia SpA and Hochtief AG

Construction FA: AZ Capital; Citi; Deutsche Bank; and Morgan Stanley LA: Garrigues; Legance Avvocati Associati; and Uria Menendez; (Advising FA: Davis Polk & Wardwell; and Herbert Smith Freehills)

FA: Credit Suisse; EQUITA SIM; Goldman Sachs & Co; JPMorgan; Key Capital Partners; KPMG; Lazard; Mediobanca; Santander Global Corporate Banking; and Societe Generale LA: Allen & Overy; BonelliErede; DLA Piper; Freshfields Bruckhaus Deringer; Garrigues; Gianni Origoni Grippo Cappelli & Partners; Gleiss Lutz; Linklaters; and Perez-Llorca (Advising FA: Cleary Gottlieb Steen & Hamilton; and Clifford Chance)

27,378 11-May-18 Energias de Portugal SA (76.73% stake)

China Three Gorges Corporation

Energy, Mining & Utilities FA: Lazard; Millennium Investment Banking; Morgan Stanley; Rothschild & Co; and UBS Investment Bank LA: Allen & Overy; King & Wood Mallesons; and MLGTS Morais Leitao Galvao Teles Soares Da Silva & Associados

FA: Bank of America Merrill Lynch; and CitiLA: Linklaters; and Serra Lopes, Cortes Martins & Associados (SLCM)

21,815 9-May-18 UPC Hungary; UPC Romania; Unitymedia GmbH; and UPC Czech Republic

Vodafone Group Plc Telecommunications FA: Goldman Sachs & Co; and LionTree AdvisorsLA: CMS; Freshfields Bruckhaus Deringer; and Shearman & Sterling

FA: Morgan Stanley; Robey Warshaw; and UBS Investment Bank LA: Hengeler Mueller; Lakatos, Koves and Partners; and Slaughter and May

13,039 27-Mar-18 GlaxoSmithKline Consumer Healthcare (36.5% stake)

GlaxoSmithKline Plc Pharma, Medical & Biotech FA: Goldman Sachs & Co LA: Freshfields Bruckhaus Deringer

FA: Citi; Greenhill & Co; and JPMorgan Cazenove LA: Kirkland & Ellis; and Slaughter and May (Advising FA: Herbert Smith Freehills)

12,626 24-Apr-18 Epiroc AB Atlas Copco AB (Shareholders)

Industrials & Chemicals FA: Deutsche Bank; and SEB LA: Roschier

FA: - LA: Shearman & Sterling

12,545 27-Mar-18 Nouryon The Carlyle Group; and GIC Private Limited

Industrials & Chemicals FA: HSBC; Jamieson Corporate Finance; JPMorgan; and Lazard LA: De Brauw Blackstone Westbroek; Kirkland & Ellis; Van Doorne; and Vinge

FA: Evercore; and The Valence Group LA: ENSafrica; Latham & Watkins; Loyens & Loeff; Mannheimer Swartling; and Proskauer

12,101 17-Jan-18 GKN Plc Melrose Plc Industrials & Chemicals FA: Gleacher Shacklock; JPMorgan Cazenove; and UBS Investment Bank LA: Cravath, Swaine & Moore; and Slaughter and May

FA: RBC Capital Markets; and Rothschild & Co LA: Clifford Chance; Herbert Smith Freehills; and Simpson Thacher & Bartlett (Advising FA: Linklaters; and Norton Rose Fulbright)




mergermarket.com

League tables


Ranking 2018 2017



% Value change


2 2 Linklaters 288,368 169 213,764 34.9%

3 13 Allen & Overy 241,127 250 111,999 115.3%


5 20 Slaughter and May 204,674 56 86,473 136.7%

6 5 Clifford Chance 200,509 189 176,344 13.7%

7 10 Herbert Smith Freehills 164,205 87 138,279 18.7%

8 9 Latham & Watkins 151,141 145 142,188 6.3%

9 8 Sullivan & Cromwell 146,723 39 149,629 -1.9%


Ranking 2018 2017



1 1 DLA Piper 81,542 411 394 17

2 2 CMS 47,763 292 296 -4

3 4 Allen & Overy 241,127 250 223 27

4 3 Baker McKenzie 81,134 229 246 -17

5 5 Clifford Chance 200,509 189 222 -33

6 9 Freshfields Bruckhaus Deringer 343,510 177 184 -7

7 7 Eversheds Sutherland 12,597 175 200 -25

8 8 White & Case 63,226 173 189 -16

9 6 Linklaters 288,368 169 219 -50

10 22 PwC legal 16,468 152 98 54

Ranking 2018 2017



1 5 Deloitte 32,088 329 257 72

2 2 PwC 22,634 325 310 15

3 3 Rothschild & Co 212,891 279 285 -6

4 4 EY 16,558 258 277 -19

5 1 KPMG 51,907 249 331 -82

6 9 Goldman Sachs & Co 458,259 153 121 32

7 8 BDO 4,611 151 127 24

8 7 JPMorgan 372,916 142 139 3

9 6 Lazard 229,765 139 161 -22

10 12 Oaklins 3,440 108 97 11

Ranking 2018 2017



% Value change

1 1 Goldman Sachs & Co 458,259 153 389,757 17.6%

2 2 Morgan Stanley 406,440 102 284,781 42.7%

3 4 JPMorgan 372,916 142 268,745 38.8%

4 6 Citi 333,826 90 207,595 60.8%

5 5 Lazard 229,765 139 233,455 -1.6%

6 3 Bank of America Merrill Lynch 224,759 81 283,066 -20.6%

7 9 Rothschild & Co 212,891 279 196,358 8.4%

8 27 Evercore 179,362 58 26,356 580.5%

9 13 Barclays 147,756 68 97,506 51.5%

10 8 UBS Investment Bank 137,147 84 200,747 -31.7%



mergermarket.com


Middle East & Africa

Mergermarket Monthly M&A Insider 33FY 2018Middle East & Africa


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Mohamed Rais

Middle East & Africa

Middle Eastern and African M&A has kept pace with previous years, closing 2018 with US$65.3bn and 391 deals. This has been achieved despite a tumultuous year both regionally and abroad, with uncertainty revolving around many factors directly affecting the region, such as oil price, interest rates and trade tariffs.

Compared to the three-year average of US$66.1bn, value figures are in line. However, deal count posted a significant drop compared to 2017, mainly due to a decrease in activity in Africa, which has fallen from 272 qualifying deals in 2017 to 188 in the last 12 months. While deal count has decreased 30.9% in the continent, deal value has experienced a relatively smaller fall (22.5%) from US$22bn in 2017 to US$17bn in 2018, following five deals worth over US$1bn announced.

Middle East (excluding Israel) experienced a steep increase in deal value from the US$15bn (106 deals) recorded in 2017 to US$22.6bn (103 deals). Stable oil prices throughout the first half of the year and a push for diversification prompted a number of divestments by ADNOC, selling minority stakes in several of its offshore assets. Last year also saw the US$4.7bn tie-up by the Saudi British and Alawwal banks, the second highest transaction in the Middle East Financial Services space on Mergermarket record.

Israel closed 2018 boasting its strongest value figure to date on Mergermarket record with 100 deals worth a total of US$25.6bn. This was driven by several high-profile deals, led by US-based International Flavours US$7bn acquisition of Frutarom, the top deal in 2018 for the region, as well as a series of transactions (26) targeting the Israeli tech market, which amounted to a total of US$4.4bn.

As for private equity (PE), buyouts stand at US$4.8bn spread across 59 transactions, higher in value from the figure recorded last year (US$3.1bn) despite a dip in volume (76). Most of these transactions were conducted by local PE firms, with 31 deals worth a total of US$924m. In comparison, European-based PE firms undertook 11 buyouts (US$331m in 2018), down from 2017’s total of 16 and US$1.7bn. A very active sell-side market abroad and the sudden collapse of UAE-based Abraaj Capital, one of the most prominent PE firms in the region, which held stakes in companies such as Careem Networks, an Uber-like firm operating in MEA, may have influenced the poor performance.

The UAE was the second most active country in terms of dealmaking in the region, after Israel. The GCC country recorded 57 deals worth a total US$10.4bn, the third highest full-year value figure on Mergermarket record, with the majority attributable to the Energy, Mining & Utilities sector (US$6.8bn, 11 deals).

The aforementioned ADNOC divestments drove this activity, with the firm conducting seven transactions for a total US$6.2bn, all announced in the first half of the year. Real Estate, which has been booming in the UAE until recently, also saw a high-profile deal with Aldar Properties, a mostly state-owned, publicly traded company, striking a US$1bn deal for a portfolio of 14 assets in the city of Abu Dhabi. This is the third largest deal targeting the UAE Real Estate sector to date on Mergermarket record.

Moving forward, the region will closely follow the US Federal Reserve’s decisions regarding interest rates, which affect everything from local currencies and bond yields to corporate loans and property prices. For now, and after the recent increases, MEA markets will face a period of stability on this front. However, further rate hikes are expected later in 2019, which could prove challenging for inbound investment notably. To face this, and in a bid to raise capital, countries such as Saudi Arabia, Egypt or Oman are expected to continue with their privatization efforts throughout 2019, according to Mergermarket intelligence. The pipeline for such deals includes companies such as Saudi ACWA Power, an energy and utility provider, or Nama Holdings, Oman’s electricity transmission system operator.



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Top Legal Advisor

Clifford Chance ranked first with 21 deals worth US$16.3bn,

up 103% in value with 1 more deal compared to 20 deals worth US$8bn in 2017.


Goldman Sachs & Coranked first with 12 deals worth US$21.9bn, down 45.1% in value compared to the same number of deals worth US$39.8bn in 2017.

391 deals valued at US$65.3bn, up 4.7% by value with 101 fewer deals compared to 492


Top Sector


saw 70 deals valued at US$19.1bn, up 37.7% by value with 9 fewer deals compared to

79 deals worth US$13.9bn in 2017.



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Middle East & Africa Private equity trendMiddle East & Africa M&A trend

mergermarket.com



mergermarket.com

Regional Trends



Outbound US$26bn -34%



Industrials & Chemicals Value: US$13.9bn Number of deals: 50 Market share: 21.3%

Technology Value: US$5.3bn Number of deals: 49 Market share: 8.2%


United Arab Emirates

US$10.4bn 57 deals

16%

Saudi ArabiaUS$8.4bn 19 deals 12.9%

IsraelUS$25.6bn 100 deals

39.3%

South AfricaUS$6.5bn 71 deals

10%

Nigeria US$2.7bn 9 deals4.2%



mergermarket.com

Top deals



Announcement date


7,036 7-May-18 Frutarom Industries Ltd International Flavors & Fragrances Inc

Industrials & Chemicals FA: Bank of America Merrill Lynch LA: Naschitz Brandes Amir & Co; Wachtell, Lipton, Rosen & Katz; and King & Spalding (Advising FA: Weil Gotshal & Manges)

FA: Greenhill & Co; and Morgan Stanley LA: Cleary Gottlieb Steen & Hamilton; and Gornitzky & Co (Advising FA: Davis Polk & Wardwell; and Fried Frank Harris Shriver & Jacobson)

4,721 3-Oct-18 Alawwal Bank Saudi British Bank Financial Services FA: JPMorgan LA: Baker McKenzie (Advising FA: White & Case)

FA: Goldman Sachs & Co; and HSBC LA: AS&H; Clifford Chance; and Freshfields Bruckhaus Deringer (Advising FA: Shearman & Sterling)

3,174 20-Aug-18 SodaStream International Ltd PepsiCo Inc Consumer FA: Perella Weinberg Partners LA: Meitar Liquornik Geva Leshem Tal; and White & Case (Advising FA: Shearman & Sterling)

FA: Centerview Partners; and Goldman Sachs & Co LA: Davis Polk & Wardwell; Gibson, Dunn & Crutcher; and Herzog, Fox and Neeman (Advising FA: Paul Weiss Rifkind Wharton & Garrison)

3,101 19-Mar-18 Orbotech Ltd KLA-Tencor Corporation Technology FA: Barclays; and Goldman Sachs & Co LA: Cravath, Swaine & Moore; and Tulchinsky Stern & Company (Advising FA: Sullivan & Cromwell)

FA: JPMorgan LA: Meitar Liquornik Geva Leshem Tal; and Wilson Sonsini Goodrich & Rosati

2,663 1-Nov-18 JOEL Jerusalem Oil Exploration Ltd (62.93% stake)

Equital LTD Energy, Mining & Utilities FA: -LA: GKH Law Offices

FA: - LA: Agmon & Co, Rosenberg Hacohen & Co Law Offices

2,028 6-Dec-18 Sahara Petrochemical Co Saudi International Petrochemical Company

Industrials & Chemicals FA: Morgan Stanley LA: AS&H; and Clifford Chance

FA: HSBC LA: Allen & Overy; and Khoshaim & Associates

1,498 18-Feb-18 Abu Dhabi National Oil Company (Umm Lulu concession) (20% stake); and Abu Dhabi National Oil Company (Sateh Al Razboot concession) (20% stake)

Compania Espanola de Petroleos SAU

Energy, Mining & Utilities FA: -LA: Shearman & Sterling

FA: - LA: Allen & Overy

1,450 18-Mar-18 Abu Dhabi National Oil Company (Lower Zakum Off Shore Concession) (5% stake); and Abu Dhabi National Oil Company (Umm Shaif and Nasr fields) (20% stake)

Total SA Energy, Mining & Utilities FA: -LA: Shearman & Sterling

FA: -LA: -

1,407 31-Oct-18 Petrobras Oil & Gas BV (50% stake) Africa Oil Corporation; Vitol Group; and Delonex Energy Limited

Energy, Mining & Utilities FA: Banco BTG Pactual; BR Partners; and Scotiabank LA: Linklaters

FA: Rand Merchant Bank; and Standard Bank Group Limited LA: Mattos Filho, Veiga Filho, Marrey Jr. e Quiroga Advogados; and Vinson & Elkins

1,372 21-Jun-18 Motus Corporation Imperial Holdings Limited (Shareholders)

Industrials & Chemicals FA: JPMorgan; and Standard Bank Group Limited LA: Bowmans; TWB — Tugendhaft Wapnick Banchetti & Partners

FA: -LA: -




mergermarket.com

League tables


Ranking 2018 2017



% Value change

1 15 Clifford Chance 16,309 21 8,033 103.0%

2 12 Shearman & Sterling 14,468 16 10,981 31.8%


4 27 Cleary Gottlieb Steen & Hamilton 12,271 7 3,181 285.8%

5 1 White & Case 12,124 19 29,192 -58.5%

6 62 Weil Gotshal & Manges 10,530 2 692 1,421.7%

7 16 Allen & Overy 10,476 30 6,665 57.2%

8 231 AS&H 10,338 9 - -


10 227 King & Spalding 8,360 8 - -

Ranking 2018 2017



1 9 DLA Piper 1,897 42 19 23

2 3 Allen & Overy 10,476 30 32 -2

3 2 Bowmans 3,376 25 38 -13

4 10 Freshfields Bruckhaus Deringer 12,625 22 18 4

5 16 Meitar Liquornik Geva Leshem Tal 8,176 22 14 8

6 7 Clifford Chance 16,309 21 20 1

7 1 Webber Wentzel 1,065 20 48 -28

8 8 White & Case 12,124 19 19 0

9 5 Herzog, Fox and Neeman 6,326 19 25 -6

10 4 ENSafrica 3,161 17 28 -11

Ranking 2018 2017



1 1 EY 2,410 22 27 -5

2 2 Rothschild & Co 6,105 20 25 -5

3 3 PwC 906 18 17 1

4 8 JPMorgan 16,679 16 12 4

5 15 Morgan Stanley 15,630 13 7 6

6 12 Standard Bank Group 3,098 13 9 4

7 9 KPMG 384 13 12 1

8 7 Goldman Sachs & Co 21,857 12 12 0

9 6 Rand Merchant Bank 2,410 8 14 -6

10 10 Citi 2,558 7 11 -4

Ranking 2018 2017



% Value change

1 1 Goldman Sachs & Co 21,857 12 39,832 -45.1%

2 5 JPMorgan 16,679 16 17,086 -2.4%

3 4 Morgan Stanley 15,630 13 18,236 -14.3%


5 44 Greenhill & Co 7,036 1 471 1,393.8%

6 10 HSBC 6,920 5 5,343 29.5%

7 3 Rothschild & Co 6,105 20 19,609 -68.9%

8 18 Barclays 5,500 5 2,193 150.8%

9 46 Perella Weinberg Partners 5,278 5 443 1,091.4%

10 8 Centerview Partners 4,036 2 10,214 -60.5%



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Asia-Pacific(excluding Japan)

Mergermarket Monthly M&A Insider 40FY 2018Asia-Pacific (excluding Japan)


mergermarket.com


Jasmine Wu

Lucy Shen

Asia-Pacific (excluding Japan)

Asia-Pacific (excl. Japan) M&A experienced a robust 2018, reaching its second highest annual value on Mergermarket record, highlighting an increasingly dealmaking friendly region. The region recorded 4,036 deals for a combined US$717.4bn, signifying a 2.6% increase in value and a drop of 42 by deal count compared to 2017 (US$699.6bn, 4,078 deals).

Despite the volume decrease, an uptick in big-ticket deals ensured the overall M&A value varied only slightly. Five megadeals (>US$10bn) were announced in 2018, one more than in 2017, however just one such deal was recorded in the second half of the year. The largest deal to target the region was the US$16bn acquisition of Indian online retailer Flipkart by retail giant Walmart. This transaction along with the new Indian bankruptcy code pushed Indian M&A to reach the highest annual value (US$100bn) on Mergermarket record, becoming the second most targeted country behind China.

Industrials & Chemicals became the most attractive sector in 2018 by both value and volume, posting US$115.2bn across 832 deals, an increase of 23.5% in value compared to 2017 (US$93.3bn, 825 deals). This was largely due to one blockbuster tie-up involving Chinese chemical product manufacturers Yantai Wanhua and Wanhua Chemical worth US$12.7bn.

Another notable sector was Pharma, Medical & Biotech, which saw a dramatic uptick in Q4 2018,

posting a value of US$14.5bn whilst reaching its largest quarterly value on Mergermarket record. Thanks to the strong Q4 as well as large financing in pre-IPO companies, the sector reached an annual value of US$41.3bn, a 63.8% increase compared to 2017. However, the absence of strategic planning and rising competition globally may lead to a cool down in biotech activity, according to Mergermarket intelligence.

Regarding cross-border activity, outbound M&A was buoyant while inbound M&A experienced mild growth. The value of outbound transactions reached US$160bn in 2018, hitting its second highest on Mergermarket record and posting a 52.4% increase compared to 2017. Despite increased scrutiny by overseas regulatory regimes, China remained the most active investor outside the region following an acceleration of M&A approvals by Chinese authorities together with more attention being paid on target selection and deal structures.

Meanwhile, foreign investment into Asia-Pacific (excl. Japan) reached US$122.5bn, equivalent to a 4.4% increase compared to 2017. The downturn in Australian activity, long the most attractive destination for foreign investors in recent years, put a drag on the growth. Concerns over compliance and uncertainty on future policy in the energy market are starting to cast a shadow on Australia, according to Mergermarket intelligence.

Private equity firms remained active, despite buyout activity experiencing a dip, with 514 deals worth US$124.1bn announced in 2018, a 3.4% decrease by value compared to 2017. This was largely due to a weak fourth quarter when value and deal count both shrunk. In spite of this, the annual value still hit its second highest point on Mergermarket record, only behind 2017.

The US$14bn acquisition of Chinese payment company Ant Financial by a consortium led by GIC was the largest buyout deal in 2018. Alibaba’s rivals Baidu and JD were also targeted amongst the top ten buyout deals, following the introduction of a substantial regulatory mechanism and interest in fintech ever increasing. Big-ticket deals boosted the Financial Services sector, becoming the second highest by value in terms of buyouts (US$25.6bn), accounting for a 20.6% market share.



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4,036 deals valued at US$717.4bn, up 2.6% by value with 42 fewer deals compared to 4,078


Top Legal Advisor

King & Wood Mallesons ranked first with 142 deals worth US$111.8bn,

up 36.7% in value with 25 more deals compared to 117 deals worth US$81.8bn in 2017.


Goldman Sachs & Coranked first with 72 deals worth US$139bn, up

23.3% in value with 11 more deals compared to 61 deals worth US$112.7bn in 2017.

Top Sector

Industrials & Chemicalssaw 832 deals valued at US$115.2bn, up

23.5% by value with 7 more deals compared to 825 deals worth US$93.3bn in 2017.



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Asia-Pacific (excluding Japan) Private equity trendAsia-Pacific (excluding Japan) M&A trend

mergermarket.com



mergermarket.com

Regional Trends



Technology Value: US$112.3bn Number of deals: 572 Market share: 15.7%

Consumer Value: US$64.6bn Number of deals: 407 Market share: 9%

Financial Services Value: US$84bn Number of deals: 304 Market share: 11.7%


Inbound US$122.5bn +4.4%

Outbound US$160bn +52.4%

India US$100bn 413 deals

13.9%

Hong Kong US$30.2bn

151 deals4.2% Australia

US$88.5bn 583 deals

12.3%

South KoreaUS$52.5bn 447 deals

5.9%

ChinaUS$371bn 1,823 deals

51.7%



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Top deals



Announcement date


16,000 9-May-18 Flipkart Internet Pvt Ltd (77% stake)

Wal-Mart Stores Inc Technology FA: Goldman Sachs & Co LA: Allen & Gledhill; Cyril Amarchand Mangaldas; Dentons Rodyk & Davidson; Gunderson Dettmer Stough Villeneuve Franklin & Hachigian; Khaitan; Allen & Overy; Kirkland & Ellis; Nishith Desai Associates; and Trilegal

FA: Barclays; and JPMorgan LA: Fried Frank Harris Shriver & Jacobson (Advising JPMorgan); Gibson, Dunn & Crutcher; Hogan Lovells International; and Shardul Amarchand Mangaldas

14,000 29-May-18 Ant Financial Services Group The Carlyle Group; Warburg Pincus; Temasek Holdings Pte Ltd; T. Rowe Price Associates Inc; Khazanah Nasional Berhad; General Atlantic Service Company; Baillie Gifford & Co Ltd; Silver Lake Partners; GIC Private Limited; Canada Pension Plan Investment Board; Sequoia Capital; Discovery Capital Corporation; Boyu Capital Advisory Company Limited; Janchor Partners; and Access Industries

Financial Services FA: China International Capital Corporation; Citi; Deutsche Bank; and Morgan Stanley LA: Morrison & Foerster; Simpson Thacher & Bartlett; and Sullivan & Cromwell

FA: -LA: Clifford Chance; Fangda Partners; Goodwin Procter; Kirkland & Ellis; O'Melveny & Myers; Weil Gotshal & Manges; and White & Case

12,731 10-May-18 Yantai Wanhua Chemical Co Ltd

Wanhua Chemical Group Co Ltd Industrials & Chemicals FA: -LA: -

FA: Citi Orient Securities LA: Zhongzi

11,764 5-Oct-18 Coles Group Limited Wesfarmers Limited (Shareholders) Consumer FA: Goldman Sachs & Co; Grant Samuel; Gresham Advisory Partners; and Macquarie Group LA: Allens; Herbert Smith Freehills; and Gilbert + Tobin (Advising Goldman Sachs & Co)

FA: -LA: -

10,654 25-Apr-18 Indus Towers Limited Bharti Infratel Limited Technology FA: Bank of America Merrill Lynch; and Morgan Stanley LA: Kochhar & Co; Bharucha & Partners; Nishith Desai Associates; S&R Associates; and Slaughter and May

FA: Goldman Sachs & Co; JPMorgan LA: AZB & Partners; Shardul Amarchand Mangaldas & Co; and Talwar Thakore & Associates (Advising JPMorgan)

9,500 2-Apr-18 Ele.me Alibaba Group Holding Co Ltd; and Ant Financial Services Group

Business Services FA: Hina Group LA: Han Kun

FA: -LA: Fangda Partners; and Simpson Thacher & Bartlett

9,432 31-Aug-18 Sydney Motorway Corporation (51% stake)

Sydney Transport Partners Transportation FA: Goldman Sachs & Co LA: Ashurst; Baker McKenzie; and Allens; Clayton

FA: AquAsia; Macquarie Group Limited; Morgan Stanley; and UBS Investment Bank LA: Allen & Overy (Advising UBS Investment Bank); Herbert Smith Freehills; and King & Wood Mallesons

8,474 28-Nov-18 Yingkou Port Group Co Ltd (54.07% stake)

A group of banks led by Bank of China Limited Transportation FA: China International Capital Corporation LA: -

FA: -LA: -

7,397 15-May-18 Tata Steel BSL (72.65% stake) Tata Steel Limited Industrials & Chemicals FA: Deloitte; and KPMG LA: L&L Partners; and Shardul Amarchand Mangaldas

FA: -LA: AZB & Partners

7,312 2-Nov-18 Yunnan Baiyao Holding Co Ltd

Yunnan Baiyao Group Co Ltd Pharma, Medical & Biotech FA: -LA: -

FA: China International Capital Corporation LA: DeHeng




mergermarket.com

League tables


Ranking 2018 2017



% Value change

1 1 King & Wood Mallesons 111,800 142 81,802 36.7%

2 3 Herbert Smith Freehills 92,788 122 70,931 30.8%

3 7 Allens 81,411 62 49,010 66.1%


5 6 Linklaters 58,882 35 50,767 16.0%

6 8 Sullivan & Cromwell 56,462 26 46,884 20.4%

7 24 Allen & Overy 56,095 59 25,024 124.2%

8 30 Shardul Amarchand Mangaldas & Co 52,364 105 23,098 126.7%

9 14 AZB & Partners 49,494 100 33,384 48.3%


Ranking 2018 2017



1 2 King & Wood Mallesons 111,800 142 117 25

2 1 Herbert Smith Freehills 92,788 122 120 2

3 9 Shardul Amarchand Mangaldas & Co 52,364 105 70 35

4 7 AZB & Partners 49,494 100 71 28

5 4 Kim & Chang 37,361 96 80 16

6 3 Baker McKenzie 43,288 84 94 -10

7 10 Gilbert + Tobin 38,609 70 70 0

8 8 MinterEllison 15,739 66 71 -5

9 24 Allens 81,411 62 46 16

10 11 Fangda Partners 41,397 61 69 -8

Ranking 2018 2017



1 1 KPMG 25,026 114 121 -7

2 2 PwC 7,639 98 109 -11

3 3 EY 26,349 88 99 -11

4 4 Deloitte 21,229 88 71 17

5 6 Goldman Sachs & Co 138,984 72 61 11

6 12 Citi 105,166 63 37 26

7 10 UBS Investment Bank 104,814 63 45 18

8 7 JPMorgan 86,245 51 48 3

9 14 Rothschild & Co 44,521 49 33 16

10 8 China International Capital Corporation 65,666 44 48 -4

Ranking 2018 2017



% Value change

1 2 Goldman Sachs & Co 138,984 72 112,686 23.3%

2 1 Morgan Stanley 106,961 43 135,451 -21.0%

3 4 Citi 105,166 63 86,994 20.9%

4 3 UBS Investment Bank 104,814 63 94,636 10.8%

5 5 JPMorgan 86,245 51 84,030 2.6%


7 7 China International Capital Corporation 65,666 44 68,577 -4.2%

8 10 Deutsche Bank 55,185 30 44,897 22.9%

9 8 Macquarie Group 49,653 41 54,043 -8.1%

10 15 Lazard 47,525 30 32,498 46.2%



mergermarket.com


Japan

Mergermarket Monthly M&A Insider 47FY 2018Japan


mergermarket.com


Candice Liu

Danni Sun

Japan

With relatively stable economic and political circumstances at home, Japan saw a steady M&A deal flow in 2018 (US$46.8bn, 444 deals) climbing slightly compared to 2017’s value (US$45.6bn, 468 deals). The last three months of 2018 finished with US$15.9bn changing hands across 100 deals, accounting for 8.1% share of Asian M&A, the highest quarterly figure for the country since Q3 2017 (10.3%).

The quarter also witnessed the US$5.7bn tie-up between Japanese refiners Idemitsu Kosan and Showa Shell Sekiyu, marking the only deal targeting the country to breach US$5bn in 2018 and the fourth largest in the Japanese energy sector on Mergermarket record (since 2001). The deal pushed Energy, Mining & Utilities to become the fastest growing sector of the year with US$7.2bn across 11 deals, up 6.1x by value on 2017 while also representing its highest value since 2012 (US$17.7bn).

While domestic deals remained subdued in 2017, the last 12 months notched US$40.5bn across 411 transactions, almost double the value seen a year prior (US$20.6bn, 420 deals), indicating that domestic investors are picking up confidence once again. On the other hand, in line with trends seen globally, protectionism and trade tensions caused foreign investment to slow to its lowest annual value since 2013, after experiencing a post-crisis high in 2017, which saw US$25bn.

The US and China, two significant dealmakers into Japan, both saw sharp drops in both deal values and number of deals in the past year. In 2018, 33 deals worth just US$6.3bn were triggered by bidders outside Japan, a 74.9% decline compared to the previous year. Two of the most high-profile inbound deals both occurred in Q4, including Johnson & Johnson’s US$1.9bn takeover of an 80.1% stake in Ci:z Holdings — the only US-initiated transaction valued above US$1bn this year.

Outbound activity reached an unprecedented level, recording 311 transactions worth US$171.8bn, with 25 deals breaching the US$1bn threshold. This marked the highest value on Mergermarket record, 48.6% above the previous record set in 2012 (US$115.6bn, 258 deals) — largely driven by Takeda Pharmaceutical’s US$79.7bn acquisition of Shire, the largest acquisition by a Japanese company on record. The US was the most targeted country for Japanese dealmakers with 93 deals totaling US$23.7bn, down 41% by value compared to 2017 (US$40.2bn, 113 deals).

French companies are in line to gain greater access to public tenders in Japan due to the recently announced EU/Japan trade agreement, according to Mergermarket intelligence. Outbound Industrials & Chemicals (US$33.2bn) saw its value soar 3.5x compared

to 2017, boosted by Taiyo Nippon Sanso’s US$5.7bn acquisition of Praxair. Similar deals in the space are expected as digitalization and mass manufacturing customization grows, according to Mergermarket intelligence.

Meanwhile, private equity (PE) activity experienced a slowdown in 2018. Buyouts decreased 86.9% by value to US$2.1bn (54 deals) compared to 2017 (US$16.3bn, 45 deals), to its third lowest value on Mergermarket record. Similarly, exits dropped by both value and number of deals to US$1.7bn (24 deals), down 61% by value compared to 2017 (US$4.3bn, 43 deals).

Technology was the most active sector in terms of exits with US$1.1bn (four deals), a 4x increase compared to 2017 (US$264m, six deals), mainly led by INCJ’s sale of Renesas Electronics for US$762m, the largest PE deal announced this year. The Consumer sector also recorded four exits worth US$84m, up 86.7% compared to 2017 (US$45m, six deals), with additional deals in the pipeline as portfolio companies including Kojitusanso, MoonStar and Mark Styler mature for exit, according to Mergermarket intelligence.



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Top Legal Advisor

Fried Frank Harris Shriver & Jacobson ranked first with 5 deals worth US$158bn, up 3,129.8% in value with 4 more deals compared

to 1 deal worth US$4.9bn in 2017.


Goldman Sachs & Coranked first with 20 deals worth US$196.3bn,

up 421.2% in value compared to 20 deals worth US$37.7bn in 2017.

444 deals valued at US$46.8bn, up 2.5% by value with 24 fewer deals compared to 468


Top Sector

Consumersaw 85 deals valued at US$8.6bn, up 274%

by value with 21 more deals compared to 64 deals worth US$2.3bn in 2017.



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50

60

70

80

201820172016201520142013

0

50

100

150

200

250

300

350

400

450

500

Valu

e (U

S$

bn)

Num

ber of d

eals

US$9

US$5.5

US$8.1

US$7.1

US$9.1

US$17.1

US$15.2

US$10.8

US$9.1

US$13.5

US$4.8

US$7.3

US$5.1

US$21.6

US$17.1

US$15.2

US$9.1

US$11.4

US$19.7

US$8.6

US$9.4

US$13.2

US$15.9

US$35.3

0

2

4

6

8

10

12

14

16

18

2018201720162015201420130

10

20

30

40

50

60

Valu

e (U

S$

bn)

Num

ber of d

eals

US$4

US$4.7 US$

3.7 US$2.6 US$

2.1

US$6.5

US$4.3

US$11.4

US$16.3

US$7.6

US$1.7

US$2.1

Q1 value

Q2 value

Q3 value

Q4 value

Volume Buyout value

Exit value

Buyout volume

Exit volume

Japan Private equity trendJapan M&A trend

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Regional Trends




Transportation Value: US$4.8bn Number of deals: 12 Market share: 10.2%

Technology Value: US$7.5bn Number of deals: 69 Market share: 16.1%Domestic

US$40.5bn +96.4%

InboundUS$6.3bn

-74.9%

Outbound US$171.8bn

+116.4%



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Top deals



Announcement date


5,706 16-Oct-18 Showa Shell Sekiyu KK (68.36% stake)

Idemitsu Kosan Co Ltd Energy, Mining & Utilities FA: Citi; Lazard; Mizuho Financial Group; and Nomura Holdings LA: Herbert Smith Freehills; Mori Hamada & Matsumoto; and Nakamura, Tsunoda & Matsumoto

FA: Daiwa Securities Group; Goldman Sachs & Co; JPMorgan; and Morgan Stanley LA: Davis Polk & Wardwell (Advising Goldman Sachs & Co); and Nishimura & Asahi

4,370 1-Aug-18 30-year Concession for Fukuoka Airport

Fukuoka Airport HD Group Transportation FA: - LA: -

FA: Mizuho Financial Group LA: Nishimura & Asahi

3,429 19-Apr-18 FamilyMart UNY Holdings Co Ltd (8.6% stake)

Itochu Corporation Consumer FA: Sumitomo Mitsui Financial Group; Goldman Sachs & Co; JPMorgan; and Nomura Holdings LA: Mori Hamada & Matsumoto

FA: Nomura Holdings LA: Nishimura & Asahi

1,980 9-Jul-18 Yahoo Japan Corporation (10.73% stake)

Yahoo Japan Corporation Technology FA: Morgan Stanley; Goldman Sachs & Co; JPMorgan; and Nomura Holdings LA: Hibiya Park Law Offices; Nakamura, Tsunoda & Matsumoto; Mori Hamada & Matsumoto; Morrison & Foerster; and Skadden Arps Slate Meagher & Flom

FA: - LA: -

1,856 23-Oct-18 Ci:z Holdings Co Ltd (80.1% stake)

Johnson & Johnson Consumer FA: Nomura Holdings LA: Nagashima Ohno & Tsunematsu

FA: Goldman Sachs & Co; PwC; and Sumitomo Mitsui Financial Group LA: Cravath, Swaine & Moore; and Mori Hamada & Matsumoto

1,609 15-Oct-18 NTT Urban Development Corporation (32.7% stake)

Nippon Telegraph and Telephone Corporation

Real Estate FA: Nomura Holdings LA: TMI Associates

FA: Deloitte; and Morgan Stanley LA: Mori Hamada & Matsumoto

1,361 26-Oct-18 Clarion Co Ltd Faurecia SA Industrials & Chemicals FA: Daiwa Securities Group; and Morgan Stanley LA: Nishimura & Asahi

FA: Rothschild & Co; and Sumitomo Mitsui Financial Group LA: Baker McKenzie

1,143 24-Jan-18 Sekisui House Residential Investment Corporation

Sekisui House Reit Inc Financial Services FA: Mizuho Financial Group; and Sumitomo Mitsui Financial Group LA: Morrison & Foerster

FA: -LA: -

1,117 20-Feb-18 Mitsubishi Motors Corporation (10.76% stake)

Mitsubishi Corporation Industrials & Chemicals FA: Morgan Stanley LA: Mori Hamada & Matsumoto

FA: -LA: -

990 2-Mar-18 MassMutual Life Insurance Company (85.1% stake)

Nippon Life Insurance Company

Financial Services FA: Nomura Holdings LA: Jones Day

FA: -LA: -




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League tables


Ranking 2018 2017



% Value change

1 24 Fried Frank Harris Shriver & Jacobson 158,036 5 4,893 3,129.8%

2 44 Latham & Watkins 150,943 11 2,597 5,712.2%

3 9 Mori Hamada & Matsumoto 114,570 73 10,726 968.2%

4 13 Sullivan & Cromwell 108,519 8 8,529 1,172.4%

5 2 Nishimura & Asahi 108,313 70 20,522 427.8%

6 15 Davis Polk & Wardwell 99,618 10 8,168 1,119.6%

7 5 Nagashima Ohno & Tsunematsu 94,464 47 13,054 623.6%

8 154 Lee & Ko 87,448 3 99 88,231.3%

9 19 Linklaters 86,440 12 5,904 1,364.1%

10 101 A&L Goodbody 85,484 2 550 15,442.5%

Ranking 2018 2017



1 1 Mori Hamada & Matsumoto 114,570 73 72 1

2 2 Nishimura & Asahi 108,313 70 64 6

3 3 Nagashima Ohno & Tsunematsu 94,464 47 51 -4

4 4 Anderson Mori & Tomotsune 84,315 40 43 -3

5 5 Morrison & Foerster 85,271 21 32 -11

6 6 Baker McKenzie 16,617 20 26 -6

7 9 Herbert Smith Freehills 12,837 17 15 2

8 7 Jones Day 2,098 17 22 -5

9 16 White & Case 62,220 14 11 3

10 21 Linklaters 86,440 12 9 3

Ranking 2018 2017



1 2 Nomura Holdings 114,384 72 63 9

2 1 Sumitomo Mitsui Financial Group 77,102 60 68 -8

3 4 Mizuho Financial Group 97,872 58 37 21

4 5 Deloitte 12,341 42 36 6

5 7 Morgan Stanley 189,835 38 23 15

6 3 Daiwa Securities Group 13,561 34 41 -7

7 8 GCA Corporation 2,337 30 21 9

8 9 Goldman Sachs & Co 196,338 20 20 0

9 13 Frontier Management 769 18 14 4

10 16 JPMorgan 189,416 17 9 8

Ranking 2018 2017



% Value change

1 1 Goldman Sachs & Co 196,338 20 37,670 421.2%

2 3 Morgan Stanley 189,835 38 26,271 622.6%

3 4 JPMorgan 189,416 17 15,392 1,130.6%

4 8 Evercore 141,991 6 8,367 1,597.0%

5 2 Nomura Holdings 114,384 72 26,464 332.2%

6 11 Mizuho Financial Group 97,872 58 6,731 1,354.0%

7 10 Citi 88,246 8 7,310 1,107.2%

8 7 Credit Suisse 79,201 10 9,295 752.1%

9 5 Sumitomo Mitsui Financial Group 77,102 60 13,933 453.4%

10 23 Deutsche Bank 68,737 5 1,680 3,991.5%



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League Tables

Click here to access all regional FA and LA League Tables

Mergermarket Monthly M&A Insider 54FY 2018League Tables


https://www.acuris.com/assets/s3fs-public/Monthly+M%26A+Insider+January+2019+-+FY+Edition+League+Tables-v1.pdf

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About Merrill Corporation

Contacts

Merrill Corporation is a leading global SaaS provider for participants in the M&A lifecycle. Clients trust Merrill’s innovative applications, excellent customer service and deep subject expertise to successfully navigate the secure sharing of their most sensitive content. Their flagship product, DatasiteOne, helps dealmakers in over 170 countries close more deals, faster.

To learn more, visit www.merrillcorp.com or contact us:

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email: [email protected]

Mergermarket Monthly M&A Insider 56FY 2018


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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 are included in the graphs and Top Deals in each section based on thedominant geography and dominant sector of the target company.

Data underlying the League Tables are based on deals where the bidder, target or parent geography of either is that of the geography in focus.

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

All data included is correct as of December 31, 2018.

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

GlobalEzekiel Pfeifer and Elizabeth Lim

US & CanadaEzekiel Pfeifer and Lana Vilner

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Europe Jonathan Klonowski

Middle East & AfricaMohamed Rais

Asia-Pacific (excluding JapanLucy Shen and Jasmine Wu

JapanDanni Sun and Candice Liu

Head of Research Giovanni Amodeo

AmericasLana Vilner

Asia-PacificGerry Tee

EMEAAndrea Putaturo

Advertising Opportunities Erik Wickman [email protected] + (1) 212 686 3329




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An Acuris Company An Acuris report on global M&A activity FY 2018 Monthly M&A … · 2020-04-10 · Mergermarket.commergermarket.com Top Sector Energy, Mining & Utilities saw 1,477