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Monthly M&A Insider

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Monthly M&A Insider A mergermArket report on globAl m&A Activity Monthly M&A InsIder NOVEMBER 2010 CONTENTS GlobAl overvIew 01 AmericAs: Latin AmericA 05 North AmericA 13 AsiA-Pacific 25 europe 39 middle eAst & AfricA 49 mergermarket Monthly M&A InsIder Part of the mergermarket group www.mergermarket.com 80 strand 895 broadway #4 suite 2401-3 london, Wc2r 0rl new york, ny 10003 grand millennium plaza united kingdom usA 181 Queen’s road, central hong kong t: +44 (0)20 7059 6100 t: +1 212 686-5606 t: +852 2158 9700 f: +44 (0)20 7059 6101 f: +1 212 686-2664 f: +852 2158 9701 [email protected] [email protected] [email protected] global overview GlobAl overvIew glob A IN October, THE M&A spotlight was back ON THE global Telecommunications INDUSTRy l overvie WITH yET another blockbuster transaction COMING to MARKET IN THE sector. IN THE LARGEST IN A long STRING OF TIE-UPS AND takeovers for THE GROUP, VIMPELCOM moved to ACQUIRE Weather INVESTMENTS, THE Italy-BASED HOLDING company OF TELECOM carriers W ORASCOM TELECOM HOLDING AND WIND TelecomunicazIONI, IN A US$21.99BN transaction. Upon completion of the deal, VimpelCom, already a market At this price, and factoring in Genzyme’s net debt position of leader in Russia and the CIS, will gain a sizable footprint in US$280m, the total deal value stands at US$17.86bn, making Western Europe while making the group one of the largest it the second largest Pharma deal this year globally surpassed telecoms players in the world. Specifically, the Weather only by Novartis’ acquisition of a 52.00% stake in Alcon for acquisition will give the group full control of Wind Italy and a US$26.30bn in January. 51.70% stake in Egypt’s Orascom Telecom. Other assets in the However, Genzyme’s board unanimously rejected the tender Weather portfolio, such as its businesses in the Mediterranean offer at this price and began reaching out to communicate with and Asia, will be spun-off to shareholders. shareholders regarding the intrinsic value of the company, The transaction rounds out the top five global M&A which it believes prices Genzyme at around US$89.00 per transactions announced thus far in 2010. Remarkably, two share. Completion of the deal, which stands as one among other telecoms transactions – América Móvil’s acquisition of many of the completed and lapsed hostile takeovers launched Carso Global in January for US$28.06bn in the Mexican market in the past two years, is still pending. and CenturyLink’s acquisition of Qwest Communications in In the Asia-Pacific region, the Singapore Stock Exchange April for US$22.15bn in the US – also rank among the largest agreed to acquire ASX Limited, its Australian counterpart, in global deals announced this year. Casting a look to aggregate a deal valued at US$7.25bn. In acquiring ASX, which has been disclosed valuations in the wider TMT space, with a 16.7% tipped as a prospective merger target for the past two years, share of global deal value, in terms of value the sector is the new entity will become the largest regional and second surpassed only by the Energy, Mining & Utilities space which largest global base of institutional investors with combined accounts for over a quarter of the total. assets under management of US$2.3 trillion. Elsewhere, in other main markets of the world a number of In Latin America, Sinopec moved to acquire a 40.00% stake transformational tie-ups were announced in the month of in Repsol Brazil in a US$7.11bn transaction. The acquisition, October. Firstly, across the Atlantic in the US, after failing to strategic in nature, gives Sinopec access to the Brazilian hammer out a deal with US-based biotech player Genzyme Energy market, which is emerging as the new frontier in the Corporation, French Pharma giant Sanofi-Aventis took its bid oil & gas industry. hostile with a US$69.00 per share offer to shareholders. head of research – Elias Latsis Global overview: Matthew Albert editor – Rory McNeil latin America: Mathew Albert For advertising opportunities contact: north America: Svetlana Alkayeva, Allen Chan and Elizabeth Castro erik wickman Asia-Pacific:Shansuke Okano, Marco Shek, Debbie Jung, tel: + (1) 212 6863329 Maggie Cheung, Kendy Suen and Douglas Robinson [email protected] europe: Samuel Tedjasukmana and Damien Julliard Middle east & Africa: Nulifer Sezer and Marie-Laure Keyrouz Monthly M&A Insider 01 TREND GRAPHS GLOBAl M&A quArterly trend glob value volume A l overvie 1,400,000 4,500 4,000 1,200,000 W 3,500 1,000,000 3,000 m) $ 800,000 2,500 600,000 2,000 Value (US Value Number of deals 1,500 400,000 1,000 200,000 500 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 04 04 04 04 05 05 05 05 06 06 06 06 07 07 07 07 08 08 08 08 09 09 09 09 10 10 10 10* 04 04 04 04 05 05 05 05 06 06 06 06 07 07 07 07 08 08 08 08 09 09 09 09 10 10 10 10* GLOBAl M&A quArterly MId-MArket trend value volume 140,000 2,000 120,000 1,500 100,000 m) $ 80,000 1,000 60,000 Value (US Value Number of deals 40,000 500 20,000 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 04 04 04 04 05 05 05 05 06 06 06 06 07 07 07 07 08 08 08 08 09 09 09 09 10 10 10 10* 04 04 04 04 05 05 05 05 06 06 06 06 07 07 07 07 08 08 08 08 09 09 09 09 10 10 10 10* Moving average trend line Monthly M&A Insider 02 TREND GRAPHS GLOBAl M&A quArterly PrIvAte equIty trend glob A value volume l overvie 400,000 800 350,000 700 W 300,000 600 250,000 500 200,000 400 Value (US$m) Value Number of deals 150,000 300 100,000 200 50,000 100 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 04 04 04 04 05 05 05 05 06 06 06 06 07 07 07 07 08 08 08 08 09 09 09 09 10 10 10 10* 04 04 04 04 05 05 05 05 06 06 06 06 07 07 07 07 08 08 08 08 09 09 09 09 10 10 10 10* Global buyouts Global buyouts Global exits Global exits GLOBAl M&A sector breAkdown ytd 2010 value volume 2.6% 0.7% 1.2% 0.4% 2.1% 0.5% 1.9% 4.2% 12.2% 2.9% Industrials & Chemicals 17.6% Industrials & Chemicals 1.3% 3.4% TMT 4.0% TMT 9.5% Consumer Consumer 7.7% Business Services Business Services 16.7% Energy, Mining & Utilities Energy, Mining & Utilities 15.3% 10.9% Financial Services Financial Services 10.4% Pharma, Medical & Biotech Pharma, Medical & Biotech Construction Construction 7.7% Leisure Leisure Transportation 11.0% 12.1% Transportation 6.1% 25.6% Real Estate Real Estate 11.8% Agriculture Agriculture Defence Defence Monthly M&A Insider 03 TREND GRAPHS GLOBAl M&A deAl sIze breAkdown glob A value volume l overvie 2,500 9,000 8,000 W 2,000 7,000 6,000 1,500 5,000 4,000 1,000 Value (US$bn) Value Number of deals 3,000 2,000 500 1,000 0 0 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 04 04 05 05 06 06 07 07 08 08 09 09 10 10* 04 04 05 05 06 06 07 07 08 08 09 09 10 10* > US$501m > US$501m US$251m-US$500m US$251m-US$500m US$101m-US$250m US$101m-US$250m US$15m-US$100m US$15m-US$100m US$5m-US$14.9m US$5m-US$14.9m Value not disclosed Monthly M&A Insider 04 A MERgERMARkET M&A REpoRT oN LATIN AMERICA IN oCToBER, THE STRIDE oF BIg-TICkET TRANSACTIoNS IN LATIN AMERICA’S ENERgY SECToR LATIN AMERICA LATIN CoNTINUED AFooT WITH A FLURRY oF DEAL ACTIVITY oN THE HEELS oF pETRoBRAS’ LANDMARk US$70BN SHARE oFFERINg IN SEpTEMBER. THE Ipo, THE WoRLD’S LARgEST EVER, SpARkED oFF A SpATE oF DEAL ANNoUNCEMENTS ACRoSS THE REgIoN WITH FIVE oF LATIN AMERICA’S Top 10 ENERgY TRANSACTIoNS THIS YEAR BRokERED IN oCToBER ALoNE. In the largest deal, China petroleum & Chemical Corporation, Coincidentally, rising valuations may start to price out foreign or Sinopec, moved to acquire a 40.00% stake in Respsol’s players hailing from Western markets who, unlike Repsol, operations in Brazil for a handsome US$7.11bn valuation.
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