Monthly M&A Insider June 2014 · into Q2 2014 already reached US$623bn, exceeding the total value for the full quarter of Q2 2013 that saw US$555bn. Megadeals from North America Two

A MERGERMARKET REPORT ON GLOBAL M&A ACTIVITY

MONTHLY M&A INSIDERJUNE 2014

Monthly M&A Insider | June

INSIDE:

GLOBAL OVERVIEW

LATIN AMERICA

NORTH AMERICA

ASIA-PACIFIC

EUROPE

MIDDLE EAST & AFRICA

ABOUT MERRILL DATASITE & MERRILL CORPORATION

MERRILL CORPORATION CONTACTS

GLOBAL OVERVIEW

Monthly M&A Insider | June | 01

Head of Research: Elias Latsis

Editor: Laura Resetar

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

Global Overview: Karen Sibayan and Demis Memedoski

Latin America: Raquel Mozzer and Fabio Lopes

North America: Urna Chakraborty and Lana Vilner

Asia-Pacific: Brandon Taylor and Hiro Mak

Europe: Alan Nasrat and Ewa Liksztet

Middle East & Africa: Andrea Putaturo and Silvia Paparello

However, deal sizes trended upward again in May, continuing a trend from April. The total value of transactions two months into Q2 2014 already reached US$623bn, exceeding the total value for the full quarter of Q2 2013 that saw US$555bn.

Megadeals from North AmericaTwo deals from North America from the Telecommunications and the Pharmaceutical, Medical & Biotech sectors boosted deal values during the month.

May’s top deal is AT&T’s US$65bn purchase of DirecTV. The provider of satellite-based television is AT&T’s latest acquisition target after the telecommunications company attempted, but failed, to buy T-Mobile USA in 2011. More recently, published reports have also indicated that AT&T is still eyeing Vodafone Plc. even after it told UK antitrust authorities in January that it no longer wanted to buy the European telecommunications provider. The purchase would allow AT&T to include DirecTV’s services to its current product offerings and to tap existing customers for additional revenue by offering new bundled services.

May also saw an addition to the recent list of jumbo pharmaceutical transactions. These companies are attempting to boost their product offerings while divesting less stellar and ancillary business units. Although not as large as AT&T’s acquisition of DirecTV, Bayer’s US$14bn purchase of Merck & Co’s consumer care unit will create one of the largest global healthcare-related consumer companies. Merck includes in its roster popular products Coppertone and Claritin.

Food M&A leads consumer dealsThe Consumer sector, specifically food-related transactions, had a significant slice of the pie in May as over a third of the top 20 deals were from this segment. The third largest deal announced during the month was Hillshire Brands’ US$7bn purchase of Pinnacle Foods. However, Hillshire has since abandoned its plan to buy Pinnacle and has turned its attention to Tyson Foods.

Although the top deals thus far have been from North America, one of the consumer megadeals announced in May was from Europe. The US$5bn merger between the coffee businesses of Mondelez International and D.E Master Blenders 1753 has resulted in a new firm called Jacobs Douwe Egberts. The lack of organic growth opportunities in the food industry has compelled companies to resort to M&A to expand their offerings. Combining forces is also a way for food companies to combat recent shortages in food items such as pork and to be more competitive in terms of pricing.

A month shy of H2 2014, M&A activity thus far has not shown enough strength to signify that the market is on its way to a rebound in dealmaking. But there are pockets of activity, particularly in food M&A, that are driving up numbers and giving the market some measure of hope that a revival might still be on the horizon.

Two months into Q2 2014, global M&A appears flat over 2013 numbers. Over this time period, there were 2,158 transactions versus 3,515 deals in the whole of Q2 2013.

TREND GRAPHS

GLOBAL OVERVIEW Monthly M&A Insider | June | 02

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

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

Valu

e (U

S$bn

)

Num

ber of deals

0

200

400

600

800

1,000

1,200

1,400

Q214*

Q114

Q413

Q313

Q213

Q113

Q412

Q312

Q212

Q112

Q411

Q311

Q211

Q111

Q410

Q310

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

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

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

Num

ber of deals

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

YTD 2014*201320122011201020092008


Valu

e (U

S$bn

)

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

Num

ber of deals

0

100

200

300

400

500

600

700

800

900

YTD 2014*201320122011201020092008

Valu

e (U

S$bn

)

Buyout value Exit value Buyout volume Exit volume

0

500

1,000

1,500

2,000

2,500

3,000

3,500

Valu

e (U

S$bn

)

Num

ber of deals

0

50

100

150

200

250

300

350

400

Q214*

Q114

Q413

Q313

Q213

Q113

Q412

Q312

Q212

Q112

Q411

Q311

Q211

Q111

Q410

Q310

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108


0

100

200

300

400

500

600

700

800

900


TREND GRAPHS

GLOBAL M&A GEOGRAPHIC BREAKDOWN YTD 2014

VALUE VOLUME

12.6%

19.4%

12.1%

11.3%

8.8%

7.6%

9.6%

3.8%

4.3%

3.1%3.4%

1.8%

1.1%0.9%

0.2%

Industrials & Chemicals

Consumer

Technology

Business Services

Energy, Mining & Utilities

Financial Services

Pharma, Medical & Biotech

Leisure

Media

Transportation

Construction

Real Estate

Telecommunications

Agriculture

Defence

10.9%

7.2%

9.9%

4.0%

13.6%

7.0%11.9%

2.0%

3.9%

17.1%

2.9%

4.8%

3.7%

0.9% 0.2%


Consumer

Technology

Business Services


Financial Services


Leisure

Media

Transportation

Construction

Real Estate

Telecommunications

Agriculture

Defence

45.7%

27.4%

21.1%

4.5%1.3%

North America

Europe

Asia-Pacific

Central & South America

Middle East & Africa

35.1%

37.4%

21.7%

3.5%

2.3%

North America

Europe

Asia-Pacific

Central & South America

Middle East & Africa

GLOBAL M&A SECTOR BREAKDOWN YTD 2014

VALUE VOLUME


TREND GRAPHS

GLOBAL M&A DEAL SIZE BREAKDOWN YTD 2014

VALUE VOLUME

Return to contents

80

82

84

86

88

90

92

94

96

98

100

YTD 2014*201320122011201020092008

Perc

enta

ge

90.1% 90.9%89.3% 89.0% 89.3%

0.9% 1.0% 1.1% 1.0% 1.0%

4.6%3.9%

4.5% 4.8% 4.6%

3.8% 3.7%4.7% 4.7% 4.7%

0.6% 0.5% 0.4% 0.5%0.7%

0.4% 0.4%

89.8%

1.0%

4.3%

4.5%

88.2%

1.2%

5.0%

4.9%

US$0-US$250m

US$251m-US$500m

US$501m-US$2,000m

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

>US$5,001m

0

10

20

30

40

50

60

70

80

90

100

YTD 2014*201320122011201020092008

Perc

enta

ge

41.9% 40.5%

27.3% 30.0% 29.3%

8.9% 7.9% 9.7% 10.1% 9.7%

15.2% 16.5%

20.4% 19.0% 19.5%

19.4% 20.5%27.5% 26.2% 27.6%

14.6% 14.6% 15.1% 14.7% 13.9%

42.8%

8.2%

15.8%

21.7%

11.5%

27.9%

9.9%

19.2%

28.0%

15.0%

US$0-US$250m

US$251m-US$500m

US$501m-US$2,000m

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

>US$5,001m

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A MERGERMARKET M&A REPORT ON

LATIN AMERICA


During these two months there were 64 deals announced worth US$29.8bn. Deal value already increased by 14.2% from last quarter, where overall deal value was US$26.1bn. However, the number of deals decreased by 51.1%, the lowest since Q1 2005 when there were only 63 deals announced.

The Energy, Mining & Utilities sector is still the most active with 41 deals announced in the year-to-date, a total of US$23bn. However, the sector had only one deal in the top 10 list for May: the acquisition of two thermoelectric generators in northeastern Brazil from Bertin Energia by Bolognesi Empreendimentos.

The Industrials and Chemicals sector announced 34 deals worth US$1.9bn and the Consumer sector registered 22 deals worth US$3.5bn. The deal of the month was in the Pharma, Medical & Biotech sector, which by May had 11 deals worth US$3.6bn. Additionally, US$3.3bn came from the acquisition of CFR Pharmaceuticals (Chile-based company engaged in development, production and sale of pharmaceutical products) by Abbott Investments Luxembourg Sarl, the Luxembourg-based holding company of Abbott Laboratories, the US-based healthcare company. This acquisition will enhance and broaden Abbott’s presence in Latin America by assisting to establish itself among the top ten pharmaceutical companies in the

region. Advisors on the deal include Barclays, Deutsche Bank, Clifford Chance, Davis Polk & Wardwell, Cleary Gottieb Steen & Hamilton and Russi & Eguiguren.

Brazil continues to be the most active country in the region with 100 deals announced so far and a total value of US$23.5bn. However, with the start of the World Cup the probability of a negative impact on the country’s economy, and especially a slowdown in M&A activity, is highly expected. Euler Hermes, a trade credit insurer that is part of the Allianz group, blames the negative impact of hosting this mega event on the weaknesses of the Brazilian economic model. It lists the lack of infrastructure, high inflation, high taxes, bureaucracy and protectionism as main problems. Not to mention the fact that presidential elections are in October and President Dilma Rousseff’s chances of re-election for a second term are decreasing, which also increases the feeling of instability in the country, repelling the likelihood of investments in the country until at least the end of H1 2014.

With the region’s main player put on hold for the World Cup and growing instability in the country, it is hard to believe June will be able to generate as many deals as April and May combined.

M&A activity in Latin America during the months of April and May has already surpassed overall value when compared with Q1 2014. However, deal count is still the lowest since Q1 2005.

http://www.eulerhermes.com/mediacenter/Lists/mediacenter-documents/Economic-Insight-Brazil-World-Cup-Jun14.pdf


TOP DEALS

LATIN AMERICA

TOP 10 LATIN AMERICAN ANNOUNCED DEALS OF THE MONTH (MAY-14)Announced Bidder company Target company Target dominant

sectorSeller company Exit multiples (x) Bid premia

1-day before

Deal value

(US$m) Revenue EBITDA P/E

16-May-14 Abbott Investments Luxembourg Sarl

CFR Pharmaceuticals SA Pharma, Medical & Biotech

Positron Limited 4.4 34.1 50.4 52.7% 3,346

06-May-14 Alliance Boots GmbH Farmacias Ahumada SA Consumer Grupo Casa Saba SAB de CV

0.5 17.1 20.7 118.0% 747

27-May-14 Union Andina de Cementos SAA

Lafarge Cementos SA (98.57% stake)

Construction Lafarge SA - - - - 545

08-May-14 Equity International; and Terranum Group

Hoteles Decameron Colombia SA

Leisure - - - - - 490

21-May-14 Abertis Infraestructuras SA Invin SA (42.3% stake) Transportation Capital Riesgo Global, SCR de Regimen Simplificado SA

- - - - 398

16-May-14 Bolognesi Empreendimentos LTDA

Bertin Energia (two thermoelectric generators in northeastern Brazil)


Bertin Energia e Participacoes SA

- - - - 317

11-May-14 Fundo de Investimento do Fundo de Garantia do Tempo de Servico

Estaleiro Atlantico Sul SA (30% stake)


- - - - - 181

06-May-14 Temasek Holdings Pte Ltd; GIC Special Investments Pte Ltd; Tiger Global Management LLC; Kaszek Ventures; and Iconic Ventures LLC

Netshoes Comercio Ltda (undisclosed minority stake)

Consumer - - - - - 170

09-May-14 Fresenius Kabi AG Novafarma Industria Farmaceutica Ltda


Marco Aurelio Limirio Goncalves (Private investor)

2.9 - - - 138

19-May-14 Ser Educacional SA Universidade da Amazonia; and Faculdades Integradas do Tapajos

Business Services

- 3.3 30.2 - - 68

Based on announced deals, including lapsed and withdrawn bids Based on dominant geography of target company being Latin American Data correct as of 09-Jun-14

Source: Mergermarket

TREND GRAPHS

LATIN AMERICA Monthly M&A Insider | June | 08

LATIN AMERICAN M&A QUARTERLY TREND LATIN AMERICAN M&A QUARTERLY PRIVATE EQUITY TREND

LATIN AMERICAN M&A ANNUAL TREND LATIN AMERICAN M&A ANNUAL PRIVATE EQUITY TREND

Valu

e (U

S$bn

)

Num

ber of deals

0

10

20

30

40

50

60

70

Q214*

Q114

Q413

Q313

Q213

Q113

Q412

Q312

Q212

Q112

Q411

Q311

Q211

Q111

Q410

Q310

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108


0

50

100

150

200

250

Num

ber of deals

0

20

40

60

80

100

120

140

160

180

YTD 2014*201320122011201020092008


Valu

e (U

S$bn

)

0

100

200

300

400

500

600

700

800

Num

ber of deals

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

YTD 2014*201320122011201020092008

Valu

e (U

S$m

)


0

10

20

30

40

50

60

70

Valu

e (U

S$m

)

Num

ber of deals

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

Q214*

Q114

Q413

Q313

Q213

Q113

Q412

Q312

Q212

Q112

Q411

Q311

Q211

Q111

Q410

Q310

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108


0

5

10

15

20

25

30

LATIN AMERICAN M&A GEOGRAPHIC BREAKDOWN YTD 2014

LATIN AMERICA Monthly M&A Insider | June | 09

TREND GRAPHS

VOLUMEVALUE

41.1%

3.4%6.3%3.8%

18.1%

2.3%

0.3%1.0%

14.9%

1.0%

0.1%

6.4%

0.8%0.5%



Consumer

Business Services

Financial Services

Technology


Media

Leisure

Transportation

Construction

Agriculture

Telecommunications

Real Estate

3.8%

0.1%

0.2%

15.1%

1.2%

42.0%

17.2%

17.2%

3.2%

Argentina

Brazil

Chile

Colombia

Ecuador

Mexico

Peru

Uruguay

Venezuela

LATIN AMERICAN M&A SECTOR BREAKDOWN YTD 2014

VALUE VOLUME

0.5%

11.8%

1.0%

0.5%

7.2%6.7%0.5%

0.5%0.5%

0.5%

51.4%8.7%

9.2%

Argentina

Brazil

Chile

Colombia

Costa Rica

Dominican Republic

Ecuador

Guatemala

Honduras

Mexico

Panama

Peru

Uruguay

Venezuela

1.0%

21.1%

17.4%

11.3%9.7%

8.2%

7.7%

4.1%

4.1%

2.1%

2.1%

0.5%1.5%

4.6%

5.6%



Consumer

Business Services

Financial Services

Technology


Media

Leisure

Transportation

Construction

Agriculture

Telecommunications

Real Estate

LATIN AMERICAN M&A DEAL SIZE BREAKDOWN YTD 2014

VALUE VOLUME

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

TREND GRAPHS

0

10

20

30

40

50

60

70

80

90

100

YTD 2014*201320122011201020092008

Perc

enta

ge

30.3%

9.2%

39.2%28.6%

21.9%

9.9% 10.1%

7.5%

9.5%

10.3%13.6%

25.1%36.6%

24.8%

28.6%

33.7%

20.1%

29.3%

19.0%

18.2%

14.4%

14.6% 14.8% 14.3% 16.4%

16.3%

45.7%

17.3%

20.7%9.3%

20.3%

46.6%

13.6%

10.2%

US$0-US$250m

US$251m-US$500m

US$501m-US$2,000m

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

>US$5,001m

20

30

40

50

60

70

80

90

100

YTD 2014*201320122011201020092008

Perc

enta

ge

88.1% 85.8% 86.3% 86.7%

4.9% 6.8% 8.1%6.2% 5.8%

5.2%5.3%

6.7%5.6% 6.5%

1.2% 1.8% 2.0% 1.1% 0.7%0.6% 0.3% 1.2% 0.9%0.8% 2.1%0.3%

86.2%

6.0%

6.9% 1.5%

82.5%

6.7%

7.2%

US$0-US$250m

US$251m-US$500m

US$501m-US$2,000m

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

>US$5,001m

82.0%



NORTH AMERICA

May’s M&A figures brought the second quarter’s total to US$268.2bn with 748 deals in North America.

Globally, North American deal value in the year-to-date is nearly the combined value of Europe and Asia-Pacific, with US$573.6bn for North America versus US$608.5bn for the other two regions, while deal volume across the three regions is roughly the same. A contributing factor to this trend may be inflated deal valuations in North America, with a couple megadeals taking place during May in the Telecommunications and Pharma, Medical & Biotech sectors.

The top deal for May was AT&T’s acquisition of DirecTV for US$65.5bn- the rationale for the deal being further diversification of AT&T’s revenue mix through the inclusion of high-speed broadband and new competitive options in mobile, video and broadband services, allowing the company to compete with other companies like Verizon. This is a trend that DISH Network also tried taking advantage of in 2013 through its proposed merger with Sprint, which did not go through, but it will most likely be revisited in the future. The Telecommunications sector got another large boost from this transaction, bringing the sector total in the year to date to US$145.6bn with a 25% market share by value.

The second largest deal was Bayer’s US$14.2bn acquisition of Merck’s consumer care business, an opportunity for Bayer to enlarge its already significant consumer products line, including Bayer aspirin and Aleve. The German company wanted to expand geographically by bringing Merck’s products such as Claritin, Afrin and Coppertone to other regions. With this deal, Pharma, Medical & Biotech in the year-to-date came to US$101.5bn and a 18% market share by value.

These two sectors seem to be gaining traction going forward with no slowdown in sight. Dish Network maintains that T-Mobile would be a strategic interest if their Sprint merger fails. Meanwhile, Pharma, Medical & Biotech companies have begun looking at emerging markets to keep drugs going in their pipelines. Cross-border transactions in this sector may be entering new markets, as countries like Brazil and India seem especially attractive due to their growing middle-class populations. Additionally, up and coming markets carry less obstacles for drug companies, such as looser regulatory structures and fewer regulatory roadblocks between drugs and patients.


TOP DEALS

NORTH AMERICA

TOP 10 NORTH AMERICAN ANNOUNCED DEALS OF THE MONTH (MAY-14)Announced Bidder company Target company Target dominant


1-day before

Deal value

(US$m) Revenue EBITDA P/E

18-May-14 AT&T Inc The DirecTV Group Inc Telecommunications - 2.1 8.2 18.4 10.2% 65,495

06-May-14 Bayer AG Merck & Co (consumer care business)


Merck & Co Inc 6.5 - - - 14,200

12-May-14 Hillshire Brands Co Pinnacle Foods Inc Consumer Blackstone Group LP 2.7 17.9 44.5 19.8% 6,662

01-May-14 Berkshire Hathaway Energy AltaLink LP Energy, Mining & Utilities

SNC-Lavalin Group Inc 11.0 15.0 19.2 - 5,516

07-May-14 Encana Oil & Gas (USA) Inc Freeport-McMoRan Oil & Gas LLC (Eagle Ford Shale assets)


Freeport-McMoRan Oil & Gas LLC

- - - - 3,100

01-May-14 National Oilwell Varco Inc (shareholders)

NOW Inc Business Services National Oilwell Varco Inc 0.7 11.8 20.6 - 3,025

28-May-14 Apple Inc Beats Electronics LLC Consumer The Carlyle Group; Dr. Dre (private investor); and Jimmy Iovine (private investor)

2.7 - - - 3,000

22-May-14 Speedway LLC Hess Retail Corporation Consumer Hess Corporation - - - - 2,644

29-May-14 Amsurg Corp Sheridan Healthcare Inc Pharma, Medical & Biotech

Hellman & Friedman LLC 2.2 19.1 - - 2,350

22-May-14 Mizkan Group Corporation Conopco Inc (North America pasta sauces business)

Consumer Conopco Inc 3.6 15.8 - - 2,150

Based on announced deals, including lapsed and withdrawn bids Based on dominant geography of target company being North American (US + Canada) Data correct as of 09-Jun-14


TREND GRAPHS

NORTH AMERICA Monthly M&A Insider | June | 13

NORTH AMERICAN M&A QUARTERLY TREND NORTH AMERICAN M&A QUARTERLY PRIVATE EQUITY TREND

NORTH AMERICAN M&A ANNUAL TREND NORTH AMERICAN M&A ANNUAL PRIVATE EQUITY TREND

Valu

e (U

S$bn

)

Num

ber of deals

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

YTD 2014*201320122011201020092008


0

1,000

2,000

3,000

4,000

5,000

6,000

Valu

e (U

S$bn

)

Num

ber of deals

0

50

100

150

200

250

300

350

400

450

500

YTD 2014*201320122011201020092008


0

200

400

600

800

1,000

1,200

Valu

e (U

S$bn

)

Num

ber of deals

0

100

200

300

400

500

600

Q214*

Q114

Q413

Q313

Q213

Q113

Q412

Q312

Q212

Q112

Q411

Q311

Q211

Q111

Q410

Q310

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108


0

200

400

600

800

1,000

1,200

1,400

1,600

Valu

e (U

S$bn

)

Num

ber of deals

0

50

100

150

200

250

Q214*

Q114

Q413

Q313

Q213

Q113

Q412

Q312

Q212

Q112

Q411

Q311

Q211

Q111

Q410

Q310

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108


0

50

100

150

200

250

300

350

Monthly M&A Insider | June | 14NORTH AMERICA

NORTH AMERICAN M&A SECTOR BREAKDOWN YTD 2014

VALUE VOLUME

TREND GRAPHS

Return to contents

8.2%

9.6%

4.2%

13.5%

17.7%4.9%

11.4%

0.7%

25.5%

0.6%

1.2%1.9%

0.5%0.1%


Technology

Business Services



Financial Services

Consumer

Media

Leisure

Construction

Transportation

Telecommunications

Real Estate

Agriculture

17.9%

15.3%

12.7%

11.0%

10.3%

9.8%

9.4%

3.2%

2.4%

0.9%

2.0%

0.7%

0.7%

3.4%

0.3%


Technology

Business Services



Financial Services

Consumer

Media

Leisure

Construction

Transportation

Telecommunications

Real Estate

Agriculture

Defence

NORTH AMERICAN M&A DEAL SIZE BREAKDOWN YTD 2014

VALUE VOLUME

0

10

20

30

40

50

60

70

80

90

100

YTD 2014*201320122011201020092008

Perc

enta

ge

49.1%58.7%

31.8%37.5%

32.3%

7.3%5.5%

9.8% 9.0% 8.2%

17.4%

13.2%

27.8%20.6% 27.5%

13.9%

13.3%

17.9%

21.1%21.3%

12.3% 9.3% 12.7% 11.8% 10.7%

42.1%

7.4%

24.4%

15.5%

49.5%

13.5%

8.4%

7.3%

21.3%

10.6%

US$0-US$250m

US$251m-US$500m

US$501m-US$2,000m

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

>US$5,001m

75

80

85

90

95

100

YTD 2014*201320122011201020092008

Perc

enta

ge

90.6% 91.1%

87.5% 87.6% 87.1%

0.9% 1.0% 1.1% 1.4% 1.4%

4.1% 3.8%

5.2% 5.4%5.0%

3.7% 3.4%5.6% 4.9% 6.0%

0.7% 0.7% 0.6% 0.6%0.5%

85.9%

1.4%0.9%

6.0%

5.8%

0.7%

88.5%

1.1%

4.5%

5.3%

US$0-US$250m

US$251m-US$500m

US$501m-US$2,000m

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

>US$5,001m



ASIA-PACIFIC

Standout sectorsChina led the way with M&A deals for the month with a total of 97 transactions worth US$13.8bn. This accounted for 30% of total deals. Australia followed, by a considerable margin, with 41 deals worth US$8.5bn.

Industrials & Chemicals accounted for 22% of deal volume; TMT 20%; Consumer 13%; and Energy, Mining & Utilities accounted for 12% of transactions for the month.

Highlighting deals in the Industrials & Chemicals space were several key acquisitions by Nippon Pain Co Ltd, giving it up to a 51% stake in eight target paint retailers, distributors and manufacturers in China, Hong Kong, Malaysia, and Singapore. The deals were worth approximately US$1bn, and will enable Nippon Paint to expand its paint business in Asia.

Notable Consumer deals were in China this month, and included a US$564m, 22% stake in China-based Eastern Gold Jade Co Ltd, which owns department stores, luxury goods and manufactures other consumer products, by a private investor (Zhao Xinglong). Better Life Commercial Chain Share Co Ltd bought Guangxi Nancheng Department Store for US$253m.

Investors still eyeing Australia’s Energy sector Energy deals were led by the acquisition of an 83% stake in Australia-based Envestra Ltd by China’s CK ENV Investments Pty Ltd (ENV) for US$3.8bn. Envestra, headquartered in Melbourne is a limited liability company with interests in natural gas distribution companies, oil and gas exploration and production. ENV plans to finance the acquisition through existing cash reserves and credit facilities available to Cheung Kong Infrastructure Holdings Limited, Cheung Kong (Holdings) Limited and Power Assets Holdings Limited (CKI), a Hong Kong listed diversified infrastructure group.

Kakao plans market expansionKakao Corporation – the South Korea-based company behind the successful messaging app KakaoTalk – acquired South Korean firm, Daum Communications Corporation, in a US$3bn reverse takeover. Daum Communications Corporation, the listed South Korea-based company headquartered in Jeju, is a provider of online advertising and internet portal services. The deal demonstrates Kakao’s ambitions in a global industry that has attracted a flurry of big-money acquisitions in 2014, including Facebook Inc.’s acquisition of messaging app, WhatsApp Inc. for as much as $19bn and Rakuten Inc.’s US$900m takeover of Viber.

M&A activity for May yielded 239 deals worth US$45.2bn. This activity represents a marginal increase in deal volume, but a 47% decrease in value compared to April’s US$95.3bn figure. Private equity buyouts totalled 24 transactions worth US$9bn, with inbound funds completing 11 worth US$2.7bn.

TOP DEALS

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

TOP 10 ASIA-PACIFIC ANNOUNCED DEALS OF THE MONTH (MAY-14)Announced Bidder company Target company Target

dominant sector

Seller company Exit multiples (x) Bid premia 1-day before

Deal value

(US$m)Revenue EBITDA P/E

14-May-14 Temasek Holdings Pte Ltd; Tokio Marine & Nichido Fire Insurance Co Ltd; China Life Insurance Company Limited; Fubon Life Insurance Co Ltd; National Council for Social Security Fund; Mizuho Bank Ltd; Qatar Holding LLC; ICBC International Holdings Limited; CTBC Life Insurance Co Ltd; Beijing Infrastructure Investment (Hong Kong) Limited; AIA Company Limited; Safe Investment Company Limited; East Global Investments Limited; Harmony Glory Investment Limited; and Giant Wave Investments Limited

CITIC Pacific Limited (11.78% stake)

Construction - 4.79 29.25 8.93 -1.7% 5,100

30-May-14 CK ENV Investments Pty Ltd Envestra Ltd (82.54% stake) Energy, Mining & Utilities

- 8.80 12.24 20.00 -2.2% 3,758

26-May-14 Daum Communications Corporation

Kakao Corporation Technology - 15.21 - 52.58 - 3,040

22-May-14 Bright Food (Group) Co Ltd Tnuva Food Industries Ltd (56% stake)

Consumer Apax Partners LLP 2.15 17.86 29.58 - 2,485

22-May-14 Mizkan Group Corporation Conopco Inc (North America Pasta Sauces Business)

Consumer Conopco Inc 3.58 15.81 - - 2,150

05-May-14 Bendigo and Adelaide Bank Ltd Rural Finance Corporation of Victoria

Financial Services

Government of Victoria n/a n/a 55.03 - 1,666

19-May-14 Sichuan Chengfei Integration Technology Corp Ltd

AVIC Shenyang Aircraft Corporation

Defence China Huarong Asset Management Corporation; and Aviation Industry Corporation of China

0.68 - 27.32 - 1,272

27-May-14 Kohlberg Kravis Roberts & Co LP

Goodpack Limited Industrials & Chemicals

- 6.47 14.20 20.94 7.0% 1,235

19-May-14 Sichuan Chengfei Integration Technology Corp Ltd

Chengdu Aircraft Industry Group

Defence Aviation Industry Corporation of China

0.78 - 19.03 - 1,145

22-May-14 Polymetal International plc Altynalmas Gold Ltd Energy, Mining & Utilities

Sumeru Gold BV; and Sumeru LLP

- - - - 1,119

n/a=not applicable Based on announced deals, including lapsed and withdrawn bids Based on dominant geography of target company being Asia-Pacific Data correct as of 06-Jun-14


TREND GRAPHS


ASIA-PACIFIC M&A QUARTERLY TREND ASIA-PACIFIC M&A QUARTERLY PRIVATE EQUITY TREND

ASIA-PACIFIC

ASIA-PACIFIC M&A ANNUAL TREND ASIA-PACIFIC M&A ANNUAL PRIVATE EQUITY TREND

Valu

e (US$

bn)

Num

ber of deals

0

20

40

60

80

100

120

140

160

Q214*

Q114

Q413

Q313

Q213

Q113

Q412

Q312

Q212

Q112

Q411

Q311

Q211

Q111

Q410

Q310

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108


0

100

200

300

400

500

600

700

800

900

Valu

e (U

S$bn

)

Num

ber of deals

0

100

200

300

400

500

YTD 2014*201320122011201020092008


0

500

1,000

1,500

2,000

2,500

3,000

3,500

Valu

e (U

S$bn

)

Num

ber of deals

0

10

20

30

40

50

60

70

YTD 2014*201320122011201020092008


0

50

100

150

200

250

300

350

Valu

e (U

S$bn

)

Num

ber of deals

0

5

10

15

20

25

Q214*

Q114

Q413

Q313

Q213

Q113

Q412

Q312

Q212

Q112

Q411

Q311

Q211

Q111

Q410

Q310

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

0

20

40

60

80

100

120

0

20

40

60

80

100

120


ASIA-PACIFIC M&A GEOGRAPHIC BREAKDOWN YTD 2014

VALUE VOLUME


TREND GRAPHS

8.1%

9.5%

10.9%

12.0%

22.5%

1.6%

2.8%

3.7%

9.0%

9.4%

3.6%

0.7%0.9%2.5%

2.8%


Technology

Consumer


Financial Services

Business Services

Leisure


Transportation

Media

Real Estate

Construction

Agriculture

Telecommunications

Defence

13.1%

20.3%

12.6%

10.3%

8.2%

7.5%

6.5%

5.5%

4.2%

4.2%

2.5%

3.3%

1.1%

0.2%

0.5%


Technology

Consumer


Financial Services

Business Services

Leisure


Transportation

Media

Real Estate

Construction

Agriculture

Telecommunications

Defence

42.6%

13.1%

12.6%

9.4%

4.0%

5.9%

1.6%

4.8%

1.4% 1.3%

3.3%China

Australia

South Korea

Hong Kong

India

Japan

Singapore

Malaysia

Kazakhstan

Papua New Guinea

Other

35.5%

14.2%9.1%

4.8%

12.4%

7.6%

2.6%

4.3%

0.7%0.2%

8.6%China

Australia

South Korea

Hong Kong

India

Japan

Singapore

Malaysia

Kazakhstan

Papua New Guinea

Other

ASIA-PACIFIC M&A SECTOR BREAKDOWN YTD 2014

VALUE VOLUME


ASIA-PACIFIC M&A DEAL SIZE BREAKDOWN YTD 2014

VALUE VOLUME

TREND GRAPHS

Return to contents

75

80

85

90

95

100

YTD 2014*201320122011201020092008

Perc

enta

ge

88.5%

0.9%

5.7%

4.5%

0.4% 0.2%0.3%0.4%

87.9% 88.7%87.7%

88.6%

1.0% 1.5% 0.8% 0.9%

5.3%5.1%

5.9%5.5%

5.4% 4.4% 5.2% 4.7%

0.4% 0.3%

88.1%

5.6%

0.8%

5.3%

0.6%

85.9%

6.6%

1.2%

5.7%

US$0-US$250m

US$251m-US$500m

US$501m-US$2,000m

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

>US$5,001m

0

10

20

30

40

50

60

70

80

90

100

YTD 2014*201320122011201020092008

Perc

enta

ge

13.7%

34.1%

11.8%

16.6%

23.8%

10.9%

25.3%

29.4%

16.6%

17.8%

29.6%19.9%

13.4%24.4% 20.6%

12.0% 11.2% 11.1% 12.0% 12.1%

22.2%30.4% 26.2% 29.7% 28.9%

15.7%

17.0% 27.3%13.5%

16.6%

20.5% 22.0% 20.4% 21.8%

US$0-US$250m

US$251m-US$500m

US$501m-US$2,000m

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

>US$5,001m

21.5%



EUROPE

A combined US$173bn value of April and May deals has exceeded a full Q1 2014 record of US$171bn. Total European M&A activity is already worth US$343.9m, 54% of full year 2013’s US$641m, and this occurs only one month away from closing H1 2014.

A significant increase in value was boosted by a stack of megadeals in the region. There is however less optimism on the deal volume front. The number of deals significantly dropped 41% to 790 transactions since Q1 2014’s 1,343 deals. This is also the lowest figure since Q3 2009’s 873 deals.

Market consolidating moves in a Consumer sector have predominantly shaped the high-value M&A scene so far this year. Eight out of ten biggest deals registered in May 2014 exceeded US$1bn, with the highest, US$5bn, involving D.E Master Blenders 1,753 merger with Mondelez International shaking up consumer sector in Europe and across the Atlantic. Second from top was another merger where UK Dixons Retail and The Carphone Warehouse Group signed an agreement worth US$3.03bn.

Private equity activity acted with reservations, as Europe got caught up in Europarliament elections. The 135 European buyouts in April and May this year accounted for US$20.9bn and were 44% lower in value than Q2 2013 figure (US$37.6bn). So far, 111 exits of Q2 2014 brought US$32.5bn and were on its highest in two years compared to Q2 2012’s US$43.2bn. The average exit size was also record breaking; worth US$0.2m, it was the second highest result since Q4 2006 (US$0.3m).

The most active sector for May was Telecommunications with US$54.4m worth of deals and a 16% share in the market. It also noted a significant 61% increase in the total deal value compared to the same period last year (US$33.4bn). The second most active was Industrials and Chemicals, reaching a market share of 14% (US$46.4bn). Determinant for M&A European markets was also Construction, which jumped from US$3.4bn at this time in 2013 to US$43.3bn, an astounding 13 times multiplication coming from 90 deals.

The USA was the most active country (US$58.6bn, 252 deals), being involved in 17% of the total US$343.9m value for deals targeting Europe. Placed in second and third on the same ranking, is Switzerland (US$57.3bn) and the United Kingdom (US$46.3bn), reaching a market share of 17% and 14%, respectively. CEE activity has seen a decline as per YTD data. As anticipated, the repercussions of the Crimean crisis deterred current investments. CEE has lost 65% in value compared to the same period in 2013. The region went down from being the second most active at this time in 2013 (US$43.6bn) to the low-scoring eighth position today (US$15.3bn).

TOP DEALS

Monthly M&A Insider | June | 21EUROPE

TOP 10 EUROPEAN ANNOUNCED DEALS OF THE MONTH (MAY-14)Announced Bidder company Target company Target dominant


1-day before

Deal value


07-May-14 Jacobs Douwe Egberts D.E Master Blenders 1753 NV; and Mondelez International Inc (coffee business outside France)

Consumer Mondelez International Inc; and Acorn Holdings BV

- - - - 5,000

15-May-14 The Carphone Warehouse Group Plc

Dixons Retail Plc Consumer - - - - -0.3% 3,032

29-May-14 Banca Monte dei Paschi di Siena SpA; Banco Popolare Societa Cooperativa; Intesa Sanpaolo SpA; and UniCredit Group

Risanamento SpA (54.96% stake)

Real Estate - 38.0 337.7 - 45.6% 2,884

23-May-14 BRS Ventures & Holdings Limited

Travelex UK Limited Financial Services

Apax Partners LLP 1.4 12.5 - - 1,682

11-May-14 Clayton Dubilier & Rice LLC Mauser AG Industrials & Chemicals

Dubai International Capital LLC

1.0 7.8 - - 1,651

30-May-14 Turkish Petroleum Corporation Shah Deniz gas field (10% stake); and South Caucasus Pipeline Company Limited (10% stake)


Total SA - - - - 1,500

06-May-14 Siemens AG Rolls-Royce Plc (energy gas turbine and compressor business)


Rolls-Royce Plc 0.9 - - - 1,333

06-May-14 Telefonica SA DTS Distribuidora de Television Digital SA (56% stake)

Media Promotora de Informaciones SA

- - - - 1,044

08-May-14 Liberty Global Plc; and Discovery Communications Inc

ALL3MEDIA Limited Media Permira 1.1 8.5 - - 931

01-May-14 Viacom International Media Networks Inc

Channel 5 Broadcasting Limited

Media Northern & Shell Group Limited

- - - - 760

Based on announced deals, including lapsed and withdrawn bids Based on dominant geography of target company being European Data correct as of 09-Jun-14


TREND GRAPHS


EUROPEAN M&A QUARTERLY PRIVATE EQUITY TREND

EUROPEAN M&A QUARTERLY TREND

EUROPE

Num

ber of deals

0

100

200

300

400

500

600

Q214*

Q114

Q413

Q313

Q213

Q113

Q412

Q312

Q212

Q112

Q411

Q311

Q211

Q111

Q410

Q310

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108


Valu

e (US$bn

)

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

Valu

e (US$bn

)

Num

ber of deals

0

20

40

60

80

100

120

140

Q214*

Q114

Q413

Q313

Q213

Q113

Q412

Q312

Q212

Q112

Q411

Q311

Q211

Q111

Q410

Q310

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

0

50

100

150

200

250

300

350

400

450


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

Valu

e (US$

bn)

Num

ber of deals

0

200

400

600

800

1,000

1,200

1,400

1,600

YTD 2014*201320122011201020092008


0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

Num

ber of deals

0

50

100

150

200

250

300

350

YTD 2014*201320122011201020092008


Valu

e (US$

bn)

0

200

400

600

800

1,000

1,200

1,400

1,600


EUROPEAN M&A GEOGRAPHIC BREAKDOWN YTD 2014

VALUE VOLUME

TREND GRAPHS

EUROPE

EUROPEAN M&A SECTOR BREAKDOWN YTD 2014

17.0%

13.5%

16.6%

8.4%

9.2%

6.7%

5.6%

3.1%

3.0%

4.5%

2.1%

1.9% 6.8%1.6%USA

Switzerland

UK

Luxembourg

France

Nordics

Germany

CEE

Brazil

China

Netherlands

Italy

Turkey

Others

3.5%

11.8%

15.6%

0.6%

10.9%

9.7%

0.1%

15.0%

2.4%

4.5%

4.1%

1.3%

8.3%

12.2%

USA

Switzerland

UK

Luxembourg

France

Nordics

Germany

CEE

Brazil

China

Netherlands

Italy

Turkey

Others

5.5%

2.4%

9.2%

6.4%

9.3%9.4%

2.5%

12.6%

5.3%

1.4%

5.5%

15.9%

1.0%0.1%

13.5% Industrials & Chemicals

Consumer

Business Services

Technology

Financial Services



Construction

Transportation

Media

Leisure

Real Estate

Telecommunications

Agriculture

Defence

15.6%

12.8%9.1%

7.9%

6.8%

6.7%

4.2%

4.2%

3.8%

1.3%

0.2%

0.8%

3.8%

1.8%

21.0% Industrials & Chemicals

Consumer

Business Services

Technology

Financial Services



Construction

Transportation

Media

Leisure

Real Estate

Telecommunications

Agriculture

Defence

VALUE VOLUME

Monthly M&A Insider | June | 24EUROPE

TREND GRAPHS

EUROPEAN M&A DEAL SIZE BREAKDOWN YTD 2014

VALUE VOLUME

Return to contents

0

10

20

30

40

50

60

70

80

90

100

YTD 2014*201320122011201020092008

Perc

enta

ge

44.4%

8.3%

19.2%

15.0%

13.1%

33.6%28.6% 26.6%

33.9%

8.5% 9.0% 9.8% 9.5%

20.9%29.1% 29.0%

25.3%

20.7%18.7% 20.4%

18.7%

16.3% 14.6% 14.2% 12.6%

22.1%

10.2%

27.5%

25.8%

14.4%

43.9%

6.8%

20.5%

18.0%

10.8%

US$0-US$250m

US$251m-US$500m

US$501m-US$2,000m

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

>US$5,001m

80

82

84

86

88

90

92

94

96

98

100

YTD 2014*201320122011201020092008

Perc

enta

ge

90.6%93.1%

92.0% 91.1% 91.6%

0.9% 0.9% 0.7% 0.9% 0.8%

4.2%

2.9%3.2%

3.6%3.7%

3.7%2.7% 3.8% 4.0% 3.5%

0.6% 0.6%

91.9%

1.0%

3.0%

3.5%

0.4%0.4% 0.4%

92.4%

0.9%

3.2%

3.3%

US$0-US$250m

US$251m-US$500m

US$501m-US$2,000m

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

>US$5,001m

0.3% 0.2%



THE MIDDLE EAST & AFRICADeal activity in the Middle East and Africa continues to follow the trend outlined in April. After a modest Q1, mergers and acquisitions have been picking up in the current quarter, with total value amounting to US$10.1bn, already ahead on the previous three months (US$6.6bn), although with fewer transaction. But despite the recent upturn, year-to-date (YTD) figures paint a less rosy picture, with both transaction value and volume behind 2013 – down by 18% and 15% respectively.

YTD deals worth US$16.7bn have been signed in the region, compared to US$20.3bn in 2013. However, just to put numbers into context, it is also worth bearing in mind that 2013 has been the best performing year since the financial crisis (2008) and in all likelihood difficult to replicate given the current trajectory.

Private equity buyouts decreased 11% by volume and 24% by value so far this year. A single transaction propelled exits value at US$2.8bn, the second highest figure since Q1 2007 (US$685m). On May 22nd, UK-based private equity firm, Apax Partners announced the sale of its 56% stake in Israel’s largest food company Tnuva to Bright Food Group of China, for a deal valued at US$2.5bn. The transaction, which helps the Chinese group to expand its dairy foods business, has also boosted the consumer sector’s share for the year by value – 21% of the total so far. It was 10% last month.

The Telecommunications sector still holds the top spot in terms of value (US$4.5bn, equivalent to a 27% share), followed by Consumer (US$3.6bn, 21%), Energy & Mining (US$2.5bn, 15%), and Financial Services (US$1.8bn, 11%). At the end of May last year, Energy & Mining was the dominant sector (36%), with Industrial & Chemical (15%) and Construction (12%) in second and third place respectively.

The Apax-Bright Food transaction also confirmed Israel’s position as the most attractive country within the region – 27% of the total by value YTD 2014. It is followed by South Africa (19%), Algeria (16%), and the United Arab Emirates (11%).

Detailed economic figures on Africa’s growth were released in May in conjunction with the African Development Bank (AfDB) annual meeting. Last year, the continent posted an average growth rate of about 4%, compared to 3% for the global economy. “These figures underscore again the continent´s resilience to global and regional headwinds,” the Bank notes. Performance varied widely, with growth in Sub-Saharan Africa at 5%, while in East and West Africa above 6%. Excluding South Africa, the figure comes in at 6.1%. Moreover, growth in low-income countries was more than 6%, exceeding that of upper-middle-income countries in North and Southern Africa at below 3%.

AfDB’s short-term economic projections see growth accelerate to close to 5% in 2014 and 5%-6% in 2015, which is equivalent to levels last seen before the onset of the 2009 global recession. However, the Bank also feels the need to sound a word of caution, pointing to the political, social and economic headwind

that could cripple the continent’s economic potential. The Bank says that there were 13 armed conflicts in 2012 in Africa, twice 2005’s number, according to the latest figures. The lack of trade between African states is also cited among the factors that could discourage investment and hamper growth. In addition, the International Monetary Fund warned African nations on the perils of issuing excessive sovereign debt.

Africa’s “rising middle class” investment theme is well-consolidated and the continent has been drawing much attention from the global investment community. In April, the US-based private equity firm Carlyle Group closed its first sub-Saharan Africa fund, reaching US$698m, 40% above target. Although minor funds targeting single countries or sub-regions have been established before, Carlyle’s vehicle is the first to be exclusively dedicated to the whole sub-Saharan area. PE firm KKR of the US is also eyeing acquisitions in the region.

Atlas Mara’s activity grabbed the headlines again in May. The investment vehicle created by Barclays’ ex-CEO Bob Diamond announced it will raise fresh capital to more than double its war chest for African bank acquisitions, reported the Financial Times.

On a global level, the US administration in May sent three senior trade and economic officials to the African region with the aim of drumming up support for American companies on the eve of the first US-Africa business forum in August. The forum will be concomitant to the US-Africa Leaders Summit hosted by the President at the White House. In the light of these latest moves, the US seems to be ready to give a fresh boost to its strategy towards Africa, after years in which China and other emerging countries have appeared more active in establishing a regional economic presence. Inbound investments from the US slightly surpassed US$1bn so far this year according to Mergermarket data, after totalling close to US$4bn in 2013.

Chinese cross-border investments to the region have reached almost US$2.7bn so far this year. Again, Bright Food’s acquisition of a controlling stake in Israeli food producer Tnuva takes most of the credit for such a high figure. It accounts for 93% of the investments coming from China. The total for the whole 2013 was US$4.4bn. Beijing has been reviewing its African policy of late, by signing an agreement with the African Development Bank to set up a US$2bn multilateral fund. The move marks a significant shift from the bilateral approach that Beijing has favoured so far. The new fund will be open to the most suitable bidder rather than to just Chinese companies.

TOP DEALS

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

TOP 10 MIDDLE EASTERN & AFRICAN ANNOUNCED DEALS OF THE MONTH (MAY-14)Announced Bidder company Target company Target dominant


1-day before

Deal value


22-May-14 Bright Food (Group) Co Ltd

Tnuva Food Industries Ltd (56% stake)

Consumer Apax Partners LLP 2.1 17.9 29.6 - 2,485

19-May-14 Vodacom Group Limited Neotel Telecommunications Tata Communications Ltd - - - - 676

05-May-14 Maroc Telecom Atlantique Telecom Group; and Prestige Telecom SA

Telecommunications Emirates Telecommunications Corporation

- - - - 650

22-May-14 Telkom SA Limited Business Connexion Group Ltd Technology - 0.4 4.0 17.6 2.59% 257

06-May-14 Axel Springer Digital Classifieds GmbH

Coral-Tell Internet Services Ltd Technology Walla! Communications Ltd - - - - 229

13-May-14 Tsogo Sun Holdings Pty Ltd

Worcester Casino Proprietary Limited (40% stake); and Sunwest International Pty Ltd (40% stake)

Leisure Sun International South Africa Ltd

- - - - 211

26-May-14 Construction Products Holding Company

Sphinx Glass Construction Citadel Capital SAE 3.3 - - - 190

13-May-14 Worcester Casino Proprietary Limited; and Sunwest International Pty Ltd

Worcester Casino Proprietary Limited (25.1% stake); and Sunwest International Pty Ltd (25.1% stake)

Leisure Grand Parade Investments Limited

- - - - 150

28-May-14 Japan Oil, Gas and Metals National Corporation

JX Nippon Oil & Gas Exploration (Qatar) Limited (49% stake)


JX Nippon Oil & Gas Exploration Corporation

- - - - 115

09-May-14 Intel Corporation Ginger Software, Inc (language processing tools and application assets)

Technology Ginger Software Inc - - - - 30

Based on announced deals, including lapsed and withdrawn bids Based on dominant geography of target company being Middle East or Africa Data correct as of 09-Jun-14


TREND GRAPHS


MIDDLE EASTERN & AFRICAN M&A QUARTERLY TREND

MIDDLE EASTERN & AFRICAN M&A QUARTERLY PRIVATE EQUITY TREND

MIDDLE EASTERN & AFRICAN M&A ANNUAL TREND

MIDDLE EASTERN & AFRICAN M&A ANNUAL PRIVATE EQUITY TREND

Valu

e (U

S$m

)

Num

ber of deals

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

Q214*

Q114

Q413

Q313

Q213

Q113

Q412

Q312

Q212

Q112

Q411

Q311

Q211

Q111

Q410

Q310

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108


0

20

40

60

80

100

120

140

160

Valu

e (U

S$bn

)

Num

ber of deals

0

10

20

30

40

50

60

70

80

90

100

YTD 2014*201320122011201020092008


0

100

200

300

400

500

600

Valu

e (U

S$bn

)

Num

ber of deals

0

2

4

6

8

10

12

14

YTD 2014*201320122011201020092008


0

10

20

30

40

50

60

70

Valu

e (U

S$m

)

Num

ber of deals

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

Q214*

Q114

Q413

Q313

Q213

Q113

Q412

Q312

Q212

Q112

Q411

Q311

Q211

Q111

Q410

Q310

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108


0

5

10

15

20

25


MIDDLE EASTERN & AFRICAN M&A GEOGRAPHIC BREAKDOWN YTD 2014

VALUE VOLUME

TREND GRAPHS

MIDDLE EASTERN & AFRICAN M&A SECTOR BREAKDOWN YTD 2014

VALUE VOLUME

19.2%

26.6%

16.0%

1.8%

5.8%

4.6%

0.9%0.1%0.1%

0.8%

0.6%

3.9%

0.3%0.2%

0.6%

1.3%

2.4% 11.3%3.5%

South Africa

Israel

United Arab Emirates

Nigeria

Saudi Arabia

Kenya

Egypt

Angola

Qatar

Algeria

Namibia

Morocco

Botswana

Mozambique

Ivory Coast

Ghana

Oman

Gabon

Uganda

0.8%

26.2%

21.5%

11.5%

4.6%

4.6%

4.6%

3.1%

2.3%

2.3%

1.5%

South Africa

Israel

United Arab Emirates

Nigeria

Saudi Arabia

Kenya

Egypt

Angola

Qatar

Algeria

Namibia

Morocco

Botswana

Mozambique

Tanzania

Lebanon

Ivory Coast

Ghana

Oman

Gabon

Uganda

Tunisia

Liberia

Congo

Ethiopia

Rwanda

Bahrain

11.5%

11.5%

15.2%

3.1%14.5%5.3%

4.6%

10.7%

6.1%

3.8%2.3%

6.1%

1.5%

3.8%

Consumer


Financial Services


Leisure

Media


Real Estate

Technology

Telecommunications

Transportation

Agriculture

Business Services

Construction

21.3%

1.5%

4.9%

3.1%

9.7%

26.8%

0.8%0.2%

2.7%

2.2%

14.9%

10.5%

1.3%

0.1%

Consumer


Financial Services


Leisure

Media


Real Estate

Technology

Telecommunications

Transportation

Agriculture

Business Services

Construction


MIDDLE EASTERN & AFRICAN M&A DEAL SIZE BREAKDOWN YTD 2014

VALUE VOLUME

TREND GRAPHS

Return to contents

0

10

20

30

40

50

60

70

80

90

100

YTD 2014*201320122011201020092008

Perc

enta

ge

42.6%47.3% 45.1% 46.9% 44.8%

5.6% 4.0%5.6% 6.1% 4.9%

11.5% 13.0%10.3% 11.1% 12.3%

36.5%32.4% 33.1% 28.6% 30.3%

3.8% 3.3% 5.9% 7.3% 7.7%

55.0%

4.3%

9.4%

25.5%

5.8%

46.6%

16.0%

25.2%

5.3%

6.9%

US$0-US$14.9m

US$15m-US$100m

US$101m-US$250m

US$251m-US$500m

>US$501m

0

10

20

30

40

50

60

70

80

90

100

YTD 2014*201320122011201020092008

Perc

enta

ge

47.5%53.1%

67.8%58.4%

65.3%

13.7% 12.9%9.0% 9.2% 8.2%

18.9%13.2%

12.6%

13.9% 13.5%

52.5%

7.7%

18.4%

20.6%18.2% 19.2%

9.6%

17.2%12.1%

1.6% 1.0% 1.3%

72.5%

6.3%

10.0%

10.4%

US$0-US$14.9m

US$15m-US$100m

US$101m-US$250m

US$251m-US$500m

>US$501m

1.7% 0.9% 0.8% 0.8%

Merrill DataSite The No.1 VDR Choice for Dealmakers

The Market Leading VDR Solution With decades of experience in document management and due diligence services, Merrill Corporation has created a smart, simple and secure virtual data room (VDR) solution - Merrill DataSite. With Merrill DataSite you can easily execute on all of your acquisition checklist items and turn your paper and electronic files into a fully searchable, secure, and completely edit-enabled online library – no additional hardware, software, personnel or programming needed. We have worked with great success on many thousands of deals, so far uploading approximately 700,000,000 pages of data on over 30,000 projects.

Round-the-clock availabilityMerrill DataSite VDRs offer international dealmakers multiple business benefits. We offer rapid set-up and round-the-clock support, a reliable hosted service from a single source, advanced but easy to use functionality, plus – complete cost transparency.

Our clients have effectively used our VDRs to enhance the following types of transaction: Mergers, acquisitions and divestitures Private placements Leveraged buyouts Bankruptcy and reorganisation transactions Financing restructuring IPOs and dual track processes

Unrivalled International Service Our multilingual project managers between them speak 27 languages, and a dedicatedproject management team will be assigned to your deal right from the start and then be available 24/7/365 – giving you peace of mind that the right person is always on hand to address any issue. Our structured approach to setting up every VDR applies tried and tested practices that make it easy for you to open, manage and maintain your data room, while adding value for all the parties involved in the due diligence process.

Ironclad SecurityMerrill DataSite leads the way in VDR security having become the first VDR provider to be fully accredited with ISO 27001, the industry gold-standard for security certification. Certified since 2007, we are audited annually, to maintain the highest standards. In addition, documents are 256-bit SSL encrypted, watermarks are tamperproof and can be customised, and data can be viewed, printed and downloaded only by the users you designate. Added to this, we are fully Safe Harbor certified. You’ll have peace of mind knowing your information is being shared only with the people you choose.

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

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

Merrill DataSite is a division of Merrill Corporation.

2013 WINNERM&A Advisor

Turnaround Awards

Information Management Product/Service of the Year

2013 WINNER3rd Annual ACG

New York Champion’s Awards

Product/Service of the Year

2012 WINNERGlobal M&A Advisor

M&A Awards


2012 WINNERAcquisitions International UK

UK VDR Provider of the Year


International Awards


ISO 27001 Industry Leading Security

85 Project Managers, speaking 27 languages

Working with Dealmakers around the world

30,000 700 million pages and counting...

andVDR projects

Call Us: +44 (0)845 602 6912www.datasite.com

To find out more, or to arrange a demonstration of our VDR solution,call +44 (0)845 602 6912, email us at [email protected], or visit www.datasite.com today.

DataSite_DriverDeals_DPS.indd 2-3 11/02/2014 13:43

Return to contents

The No.1 VDR Choice for Dealmakers

The Market Leading VDR Solution With decades of experience in document management and due diligence services, Merrill Corporation has created a smart, simple and secure virtual data room (VDR) solution - Merrill DataSite. With Merrill DataSite you can easily execute on all of your acquisition checklist items and turn your paper and electronic files into a fully searchable, secure, and completely edit-enabled online library – no additional hardware, software, personnel or programming needed. We have worked with great success on many thousands of deals, so far uploading approximately 700,000,000 pages of data on over 30,000 projects.

Round-the-clock availabilityMerrill DataSite VDRs offer international dealmakers multiple business benefits. We offer rapid set-up and round-the-clock support, a reliable hosted service from a single source, advanced but easy to use functionality, plus – complete cost transparency.

Our clients have effectively used our VDRs to enhance the following types of transaction: Mergers, acquisitions and divestitures Private placements Leveraged buyouts Bankruptcy and reorganisation transactions Financing restructuring IPOs and dual track processes

Unrivalled International Service Our multilingual project managers between them speak 27 languages, and a dedicatedproject management team will be assigned to your deal right from the start and then be available 24/7/365 – giving you peace of mind that the right person is always on hand to address any issue. Our structured approach to setting up every VDR applies tried and tested practices that make it easy for you to open, manage and maintain your data room, while adding value for all the parties involved in the due diligence process.

Ironclad SecurityMerrill DataSite leads the way in VDR security having become the first VDR provider to be fully accredited with ISO 27001, the industry gold-standard for security certification. Certified since 2007, we are audited annually, to maintain the highest standards. In addition, documents are 256-bit SSL encrypted, watermarks are tamperproof and can be customised, and data can be viewed, printed and downloaded only by the users you designate. Added to this, we are fully Safe Harbor certified. You’ll have peace of mind knowing your information is being shared only with the people you choose.

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

imaging and printing. Merrill serves the corporate, legal, financial services, insurance and real estate markets. With more than 5,000 people in over 40 domestic


Turnaround Awards

Information Management Product/Service of the Year

2013 WINNER3rd Annual ACG

New York Champion’s Awards


2012 WINNERGlobal M&A Advisor

M&A Awards


2012 WINNERAcquisitions International UK

UK VDR Provider of the Year


International Awards


Working with Dealmakers around the world

700 million

Call Us: +44 (0)845 602 6912www.datasite.com


MERRILL CORPORATION CONTACTS

Return to contents

EXECUTIVE MANAGEMENTEd BifulkPresident Tel: +1 212 229 6563

EXECUTIVE SALESAnna ScottRegional Director, UK Tel: +44 (0) 207 422 6263

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

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

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

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

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

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

Bryan BrightonRegional Director, Europe Tel: +44 (0)207 422 6212

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

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

Mary WalshRegional Director, Europe Tel: +44 (0) 207 422 6270

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

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

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

Alvaro OrtegaRegional Director, Southern Europe Tel: +39 27 6362314 Tel: +34 91 7691022

David HaynesRegional Director, Asia-Pacific Tel: +852 2536 2288

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

Patrick CabreraRegional Director, South East Asia Tel: +65 9834 4557

John PateRegional Director, Australia & New Zealand Tel: +61 (0) 499 992 400

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

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

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

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

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

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

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

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

Ross WhittakerRegional Director, New England Tel: +1 617.535.1516

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

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

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

Bill PoleseRegional Director, New York +1 212 229 6612

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

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

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

Harry Poulos Regional Director, New York Tel: +1 212 367 5924

Meiken Castillo Regional Director, New York Tel: +1 212 229 6879

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

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

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

Colin SchopbachRegional Director, Southeast Tel: +1 404 796 1478

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

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

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

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

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

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

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

Angela PedersenAccount Executive, Greater Texas Region Tel: + 651 632 4394

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

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

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

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

Aleshia HlivkaAccount Executive, California Tel: +1 651 632 4967

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

Jon BlueVice President, Clean Tech Tel: +1 206 696 916

The following notes pertain to data contained in this publication:

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

Where no deal value has been disclosed, deals are included if the turnover of the target is greater than or equal to US$10m.

Deals are included in the graphs and Top Deals in each section based on the dominant geography and dominant sector of the target company. Data underlying the League Tables are based on deals where the bidder, target or parent geography of either is that of the geography in focus.

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

*Q2 2014 refers to the period 01-Apr-14 to 31-May-14. *YTD 2014 refers to the period 01-Jan-14 to 31-May-14.

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

Remark, the events and publications arm of The Mergermarket group, offers a range of publishing, research and events services that enable clients to enhance their own profile, and to develop new business opportunities with their target audience.

Disclaimer

This publication contains general information and is not intended to be comprehensive nor to provide financial, investment, legal, tax or other professional advice or services. This publication is not a substitute for such professional advice or services, and it should not be acted on or relied upon or used as a basis for any investment or other decision or action that may affect you or your business. Before taking any such decision, you should consult a qualified professional adviser. While reasonable effort has been made to ensure the accuracy of the information contained in this publication, this cannot be guaranteed and neither Schulte Roth & Zabel nor Mergermarket nor any of its subsidiaries or any affiliate thereof or other related entity shall have any liability to any person or entity which relies on the information contained in this publication, including incidental or consequential damages arising from errors or omissions. Any such reliance is solely at the user’s risk.

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

Documents

Monthly M&A Insider June 2014 · into Q2 2014 already reached US$623bn, exceeding the total value for the full quarter of Q2 2013 that saw US$555bn. Megadeals from North America Two