Including League Tables of Legal Advisors
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An Acuris Company Finding the opportunities in mergers and acquisitions Global & Regional M&A Report Q1-Q3 2019 Including League Tables of Legal Advisors mergermarket.com An Acuris Company Content Overview 03 Global 04 Global Private Equity 09 Europe 14 US 19 Latin America 24 Asia Pacific (excl. Japan) 29 Japan 34 Middle East & Africa 39 M&A and PE League Tables 44 Criteria & Contacts 79 mergermarket.com Mergermarket Global & Regional Global Overview 3 M&A Report 3Q19 Global Overview Regional M&A Comparison North America USD 1.32tn -0.4% vs. YTD 18 Inbound USD 197.3bn 3.9% Outbound USD 268.3bn -7% PMB USD 230.8bn 3.8x Latin America USD 56.3bn 3.2% vs. YTD 18 Inbound USD 35bn 38.2% Outbound USD 4.8bn 12.8% EMU USD 20.5bn 57.3% 23% 53% Europe USD 573.5bn -29.4% vs. YTD 18 1.3% Inbound USD 248.3bn -34% Outbound USD 187.1bn 20.2% PMB USD 146.3bn 6.1% MEA USD 125.1bn 141.7% vs. YTD 18 Inbound USD 38.8bn 13.6% Outbound USD 9.3bn -61.3% Ind. & Chem. USD 71.2bn 6.3x 5% 15.3% 2.3% APAC (ex. Japan) USD 383.5bn -28.5% vs. YTD 18 Inbound USD 78.8bn 1.3% Outbound USD 72.4bn -29.5% Ind. & Chem. USD 85.6bn -4.2% Japan USD 33.6bn 8.6% vs. YTD 18 Inbound USD 11.3bn 5.7x Global M&A USD 2.49tn -11.4% vs. YTD 18 Outbound USD 67.6bn -48.1% Technology USD 12.8bn 70.3% Cross-border USD 911.4bn -14.6% vs. YTD 18 The % values on the map indicate Top sector: PMB USD 405.8bn 51.1% vs. YTD 18 market shares in global M&A mergermarket.com Mergermarket Global & Regional Global Analysis 4 M&A Report 3Q19 Global Value Deal Details (USDbn) Announcement Bidder Company Target Company Target Target Sector USD 2.49tn Date Geography 89.5 03-Jan Bristol-Myers Celgene USA Pharma, Squibb Company Corporation Medical & Biotech Value of global M&A in 1Q-3Q 2019, down 11.4% on last year 88.9 09-Jun United Raytheon USA Defence Technologies Company Corporation 86.3 25-Jun AbbVie Allergan Republic of Pharma, Ireland Medical & Biotech USD USD 70.4 27-Mar Saudi Arabian Saudi Basic Saudi Arabia Industrials & Oil Co Industries Chemicals 262.9bn 424.6m Corporation (70% Stake) Lowest quarterly US Average disclosed deal M&A value since 1Q16 value, the highest on record 54.4 09-May Occidental Anadarko USA Energy, Mining (USD 254.6bn) Petroleum Petroleum & Utilities Corporation Corporation mergermarket.com Mergermarket Global & Regional Global Analysis 5 M&A Report 3Q19 Global The slowdown in dealmaking spread to the US market in 3Q19, which will be going through severe merger control scrutiny, is USD 394.1bn spent by private equity firms so far this year, causing global M&A to drop 11.4% YTD on last year to USD only the tenth largest deal of the year so far. But it exemplifies buyout activity is not too far from the record levels seen this 2.49tn (across 13,304 deals). Activity was particularly subdued the strength of European outbound M&A, which at USD 187.1bn time last year (USD 457.7bn). in the difficult to interpret third quarter of the year, when USD is up more than 20% on last year and at its highest YTD level European private equity firms have been showing particularly 622.2bn worth of deals were struck globally, down 21.2% on since 2016. strong interest for North American assets. Six buyouts above 3Q18 (USD 789.7bn) and with 1,164 fewer deals than last year. It also serves as a reminder that in spite or perhaps because USD 1bn have already been conducted by European sponsors The US market, which had so far seemed immune to the of slowing global economic growth, which, according on North American soil this year, five of which in 3Q19. Deals global downward trend at play since the middle of last year, is to a recent Organisation for Economic Cooperation such as BC Partners’ acquisition of a 51% stake in Canada, starting to be impacted. At USD 262.9bn in 3Q19, US M&A has and Development (OECD) report, could, in 2019, be the Montreal-based security services group Garda World Security fallen to its lowest quarterly value since 1Q16 (USD 254.6bn). weakest since the 2008 financial crisis, appetite for large in July or Permira’s take-private of US-based life sciences Worth USD 1.25tn YTD, US M&A is still marginally up on the transformative deals is still strong among corporates. So far company Cambrex in August have helped take the cross- same period last year (USD 1.23tn), just about retaining a 50% this year, 31 megadeals (> USD 10bn) took place, only the border buyout activity between the two continents to record YTD share of global M&A activity, down from 52.5% in 1H19. second time since 2008, that more than 30 such deals are levels. recorded within the first nine months of the year. Marred by the trade and tech war between Washington and Beijing and persistent political instability in Hong Kong, YTD With regards to large deals, the Pharma, Medical & Biotech M&A activity in Asia is down 26.5% over last year to USD (PMB) sector never fails to deliver and managed to put three “Whether they are 417.2bn. China and Hong Kong accounts for only 7.8% of deals in this quarter’s global top 10, including the creation of a global M&A activity so far this year, down from 11.4% last year mighty generic drugs maker through the combination of US- motivated by the desire to and a far cry from 2015, when they were responsible for 15.6% based Mylan and Pfizer’s Upjohn, which is itself expected to of the total global value of deals. In fact, the largest deal of engage in M&A, as reported. get more growth, or a way the year so far in the region was struck between Japan and Whether they are motivated by the desire to get more growth, Australia with Asahi’s AUD 16bn (USD 11.3bn) acquisition of or a way to secure future survival, deals are getting larger. to secure future survival, Australia-based brewery Carlton & United Breweries (CUB) On the back of the longest equity bull market in history, and from Anheuser-Busch InBev in July. amid persistently low interest rates, corporates have ample deals are getting larger” After an abysmal performance in 1H19, Europe has enjoyed a cash reserves and appealing debt financing options at very relative recovery over the summer, with the value of deals their disposal to pursue M&A. This context and the growing in 3Q19 reaching USD 166.5bn across 1,551 transactions down feeling that it will not last forever are pushing valuations up. only 2.3% compared to 3Q18 (USD 170.5bn across 1,974 deals). At USD 424.6m YTD, the average size of deal with a disclosed Beranger Guille, Global YTD, European M&A is still down 29.4% compared to the same value is up from USD 380.1m in 2018, and the highest on period last year. Mergermarket record by some margin. Editorial Analytics Director The largest deal of the quarter, London Stock Exchange’s USD Private equity’s unquenchable thirst has been another source 27bn acquisition of US-based financial data provider Refinitiv, of great consolation for global dealmakers. With a disclosed Mergermarket Global & Regional Global Analysis 6 M&A Report 3Q19 31 7.8% -21.2% Global share of China and Global M&A value decrease Hong Kong M&A, down from from 3Q18 to 3Q19 Number of megadeals 11.4% the previous year (> USD 10bn) announced so far this year USD -29.4% USD 27bn 622.2bn Value of LSE-Refinitiv deal, Value of Global M&A in European M&A value YTD the largest deal in 3Q19 3Q19, down 21.2% on last decrease on last year year mergermarket.com Mergermarket.com Mergermarket Global & Regional Global Analysis 7 M&A Report 3Q19 Chart title 1 Chart title 1 ChartGlobal title Quarterly2 Breakdown Trend ChartGlobal title Sector 2 Breakdown Trend 2014 - 2019 1Q-3Q18 - 1Q-3Q19 1100 4000 21000 1000 3500 18000 900 1,199.8 1,120.0 753.9 3000 800 826.2 15000 ) 959.5 952.2 700 2500 Count Deal 789.7 12000 600 869.8 622.2 2000 (USDbn Value Deal 838.5 500 860.5 715.4 1093.8 Deal Value (USDbn) Value Deal 9000 1500 1079.3 400 854.7 960.0 1,040.5 756.8 300 963.2 6000 1000 741.6 200 391.7 523.1 391.7 3000 366.5 331.4 500 948.1 912.7 268.6 257.5 761.5 763.2 100 307.6 226.9 629.5 570.9 284.2 0 0 0 2014 2015 2016 2017 2018 2019 Pharma, Medical Industrials Energy, Mining Technology Business Other & Biotech & Chemicals & Utilities Services Q1 Q2 Q3 Q4 2018 2019 Deal Count mergermarket.com Mergermarket Global & Regional Global Analysis 8 M&A Report 3Q19 Global League tables Legal advisor league table by value Ranking 3Q19 3Q18 Regional ranking comparison 3Q19 3Q18 Company name Value Deal % Value Value Europe US Asia Japan Middle Latin (USDm) count change (USDm) Pacific East & America Africa 1 9 Wachtell, Lipton, Rosen & Katz 527,507 52 72.3% 306,237 6 1 101 - 78 - 2 14 Kirkland & Ellis 464,618 475 100.1% 232,217 1 2 8 61 34 52 3 1 Davis Polk & Wardwell 412,741 98 -6.4% 441,028 3 3 70 2 28 12 4 4 Sullivan & Cromwell 408,207 107 9.8% 371,612 15 4 48 22 76 6 5 10 Simpson Thacher & Bartlett 335,793 112 10.0% 305,272 12 5 9 13 15 10 6 7 White & Case 306,039 207 -0.9% 308,704 22 14 3 15 1 3 7 17 Weil Gotshal & Manges 294,481 161 45.5% 202,372 4 6 32 39 6 148 8 13 Cravath, Swaine & Moore 289,299 62 8.8% 265,880 19 8 27 - 7 19 9 6 Cleary Gottlieb Steen & Hamilton 282,241 78 -22.6% 364,723 18 10 21 25 24 7 10 3 Skadden Arps Slate Meagher & Flom 279,795 125 -26.8% 382,217 20 7 50 29 64 15 11 2 Latham & Watkins 276,629 271 -27.9% 383,669 8 12 30 36 12 20 12 25 Shearman & Sterling 261,590 88 76.4% 148,295 28 9 18 65 27 34 13 5 Freshfields Bruckhaus Deringer 261,531 147 -28.3% 364,942 2 16 6 3 9 87 14 20 Slaughter and May 245,837 48 28.4% 191,466 5 13 45 59 29 - 15 12 Fried Frank Harris Shriver & Jacobson 232,705 49 -12.9% 267,017 67 11 78 - 79 - 16 24 Jones Day 174,476 263 14.5%