Deal Drivers: APAC HY 2021

A spotlight on trends in 2021 Contents

Foreword: APAC an M&A bright spot despite COVID concerns 03

Outlook: APAC heat chart 04

All sectors 05

Consumer 14

Energy, mining & utilities 19

Financial services 24

Industrials & chemicals 29

Pharma, medical & biotech 34

Telecoms, media & technology 39

About this report 44 Foreword: APAC an M&A bright spot despite COVID concerns

Having experienced the first wave of COVID-19 before the rest Robust activity of the world in the early months of 2020, countries across the Nevertheless, reasons to be optimistic remain. Vaccinations Asia Pacific (APAC) region hoped the post-pandemic trajectory in much of the region are now gathering pace, providing hope of recovery would continue smoothly during 2021. But while of an escape from the pandemic. The economic backdrop some parts of the region have seen no significant return of the is supportive too, with central across the region virus, with China in particular keeping cases to a minimum, maintaining loose monetary policies that look set to endure others have seen surging case numbers in recent months. into 2022. And there is certainly no shortage of capital to India has faced particular issues, but countries such as fund transactions. Singapore and Australia have also reported outbreaks despite tough restrictions. Despite a small quarter-on-quarter drop from Q1 to Q2 of this year, deal activity was still strong over the first half of 2021. Inevitably, this ongoing COVID-19 uncertainty has undermined There were 2,198 transactions up to the end of June—not confidence in some parts of the region. The International only was this a 17% increase year-on-year, but was above the Monetary Fund published its most recent forecasts for global 2,022 deals recorded in H1 2019, before the pandemic. economic growth in April, and upgraded its expectations of a number of APAC economies. Value was even more robust, with US$557.3bn worth of deals announced across the first half of this year. This represents a 93% rise on H1 2020 and nearly matches the Since then, however, rising case numbers— US$557.6bn in M&A activity seen in H2 2020. and limited vaccination programs in several countries—have prompted warnings those Against this backdrop—and assuming no serious escalation projections may be too optimistic. of the COVID-19 pandemic—M&A activity has the potential to accelerate once again, and to eclipse the elevated levels of dealmaking seen prior to the crisis.

3 Outlook: Heat chart based on potential companies for sale

APAC heat chart Greater China Greater South Korea Japan India Southeast Asia & Australia Zealand New TOTAL

Two sectors above all look set to be hotbeds of M&A activity Industrials & chemicals 399 53 30 36 56 22 596 in the APAC region during the second half of the year:

Mergermarket’s analysis of ‘companies for sale’ stories over TMT 272 60 33 55 69 62 551 the first six months of 2021 suggests the industrials and chemicals (I&C) and technology, media and telecoms (TMT) Consumer 125 33 21 39 55 78 351 sectors will lead the way.

Business services 176 9 30 21 38 36 310 In I&C, Mergermarket tracked 596 stories about potential targets in a sector that has seen consolidation on a global Pharma, medical & biotech 129 19 17 29 31 30 255 scale, particularly following the disruptions of the COVID-19 crisis. TMT targets, meanwhile, featured in 551 companies for Energy, mining & utilities 125 4 4 16 46 37 232 sale stories; the industry’s resilience during the pandemic and its crucial role in broader digital transformation continue to 95 13 11 29 50 30 228 attract attention.

Between them, I&C and TMT accounted for more than a third Real estate 84 4 6 4 40 4 142 of all M&A coverage during the first half of the year. Only consumer (351 stories) and business services (310) came Construction 81 4 2 7 28 1 123 close to generating similar levels of speculation. Transportation 45 12 6 9 26 13 111 Geographical analysis suggests China is set to again dominate M&A activity during the second half of the year. The Leisure 38 14 9 4 25 21 111 Cold Warm Hot Greater China region, now in post-pandemic recovery mode, accounted for 1,588 companies for sale stories in the first Agriculture 16 1 1 1 18 17 54 Note: The Intelligence Heat Charts are based on half—that was more than half of all such stories. Chinese ‘companies for sale’ tracked by Mergermarket in targets featured prominently in every single industry sector. Defense 3 2 5 the respective regions between January 01, 2021 and June 30, 2021. Opportunities are captured according to the dominant geography and sector TOTAL 1,588 226 170 252 482 351 3,069 Source:of the Mergermarket potential target company. 4 All sectors Deal activity slows after H2 rebound, despite strong macro tailwinds

M&A activity in the APAC region continued to perform strongly In this environment, the APAC region recorded 2,198 M&A All sectors M&A activity, in the first half of 2021. Both deal values and volumes were transactions during the first six months of 2021, worth a 2018 - HY 2021 significantly higher than in the same period a year ago when total of US$557.3bn. Compared to the first half of 2020, that the COVID-19 pandemic forced large parts of the region to represented a 17% increase in deal volumes and a 93% rise in impose tough lockdown restrictions on their economy. aggregate value. 1,400 400

350 The first half did not quite match the strength of the last 1,200 While COVID-19 uncertainties remain—with six months of last year, when volumes and values totaled patchy progress on vaccination programs 2,418 deals worth US$557.6bn. However, the strength of the 300 across APAC—the market backdrop has M&A market across the APAC region continues to compare 1,000 been supportive of dealmaking. favorably by historical standards, with activity now having 250 Deal value US$(bn) returned to—and often exceeding—pre-pandemic levels. 800

200 One driver of M&A has been the strength of the economic Deal volume Deal 600 bounceback—the International Monetary Fund predicts 150 economic growth of 6.9% for Asia during 2021, compared to a contraction of 2.2% last year. In addition, both corporates 400 100 and (PE) firms are sitting on record cash piles, having been unable to deploy this capital during the crisis. 200 50 Accommodating monetary policies provide affordable access to further funding for those dealmakers who need it. 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2018 2019 2020 2021

Deal volume Deal value US$(bn)

Source: Mergermarket

6 Private equity boosts activity All sectors top sectors by value I HY 2021 Elevated dealmaking activity in the PE industry was a US$(m) particularly important element of this story, with both new TMT 157,338 investments and exits increasing sharply on last year’s levels. Construction 142,993 Clearly, PE firms are anxious to deploy the record amounts Industrials & chemicals 55,902 of dry powder they have amassed—and to reassess their Energy, mining & utilities 43,916 portfolios following a year in which decisions often had to Real estate 33,260 be delayed. All sectors top sectors by volume I HY 2021 PE firms invested in 340 buyouts worth US$128bn in aggregate during the first half of 2021; that was a 31% rise in Deal count deal volumes compared to a year ago and a remarkable 128% Industrials & chemicals 446 increase in deal values. This recovery in PE buyout activity TMT 434 actually began in the second half of last year, which saw Business services 207 330 transactions worth US$67 billion, but has continued to Energy, mining & utilities 204 Consumer 175 accelerate in 2021.

Exit activity has pursued a similar trajectory. PE firms made All sectors top bidders by value I HY 2021 149 disposals worth US$29bn during the first half of 2021. US$(m) In value terms, that eclipsed the US$25bn worth of exits China 251,413 achieved during the whole of last year. USA 88,719 Australia 40,469 Indeed, PE investors have been active at every level of the Japan 25,946 M&A market, from the smallest deals to the very largest. That India 24,855 includes the second largest transaction of all in the APAC region over the first half of the year, the US$34.7bn merger All sectors top bidders by volume I HY 2021 between Altimeter Growth, a US-listed special purpose acquisitions company (SPAC), and Singapore-based app Deal count developer Grab Holdings. The deal includes investment from China 810 a number of PE firms, as well as from Altimeter Capital, the PE Japan 257 firm backing the SPAC. South Korea 217 Australia 195 USA 172

7 Megadeal pushes up construction value All sectors top 10 announced deals, HY 2021 Only one deal eclipsed the Altimeter/Grab transaction, though it did so by some margin. In April, two of China’s state-owned Announced Bidder company Target company Target Vendor company Deal value infrastructure giants, Sichuan Railway Investment Group and date dominant (US$m) Sichuan Transportation Investment Group, announced a mega sector US$111.5bn merger to form the Shudao Investment Group. 1 02-Apr-21 Sichuan Railway Investment Group Sichuan Transportation Investment Construction 111,535 Co., Ltd. Group Co., Ltd. This giant deal played a large part in the fact that the 2 13-Apr-21 Altimeter Growth Corporation Grab Holdings Inc. TMT 34,690 construction sector, with a total of US$143bn worth of transactions, was the second most valuable industry of 3 19-Apr-21 Gulf Energy Development Public Advanced Info Service Plc TMT 15,871 Company Limited all for APAC M&A activity during the first half of the year. 4 03-Mar-21 Xinjiang Tianshan Cement Co., Ltd. China United Cement Group Co., Construction An investor group led by 15,173 Only TMT posted a higher total, with US$157.3bn worth of Ltd.; South Cement Company China National Building first-half transactions. The pace of dealmaking amongst Limited (99.93% Stake); Sinoma Material Co., Ltd. Cement Co., Ltd.; Southwest TMT companies has been frenetic during a period when the Cement Co., Ltd. (95.72% Stake) COVID-19 pandemic has brought the value of digitalization 5 10-May-21 Woolworths Group Limited Endeavour Group Limited Consumer Woolworths Group 10,071 into sharper relief than ever before. (shareholders) (70.78% Stake) Limited 6 30-Apr-21 Ping An Insurance (Group) Company Peking University Founder Group TMT 8,177 In deal volume terms, however, TMT finished in second place of China, Ltd.; Zhuhai Huafa Group Co., Ltd. (73% Stake) to the industrials and chemicals (I&C) sector, posting 434 Co., Ltd. deals to the latter’s 446 during the first half. Both sectors saw 7 22-Mar-21 CLA Real Estate Holdings Pte Ltd CapitaLand Limited (48.24% Stake) Real estate 7,675 twice as many deals as the next busiest industry, business services, where there were 207 transactions. I&C activity 8 17-May-21 PT Aplikasi Karya Anak Bangsa Tokopedia Pt TMT 7,560 was particularly strong during the second quarter of 2021, 10-May-21 Seven Group Holdings Limited Boral Limited (77.03% Stake) Construction 6,937 as businesses across the APAC region continue to enjoy 9 recovering demand and reduced supply chain disruption 10 16-Jun-21 Blackstone Group Inc. SOHO China Limited Real estate Cititrust Private Trust 5,747 following the pandemic. (Cayman) Ltd

Source: Mergermarket 8 All sectors M&A value split by deal size All sectors M&A volume split by deal size

1,000 5,000 14 41 257 11 271 44 21 200 39 231 217 800 4,000 251

600 3,000

3,321 3,109 12 2,951 30 Deal volume Deal 106 Deal value US$(bn) value Deal 400 2,000 138

1,452 200 1,000

923 851 810 460 0 0 2018 2019 2020 HY 2021 2018 2019 2020 HY 2021

US$5m-US$250m US$251m-US$500m US$501m-US$2,000m Undisclosed US$5m-US$250m US$251m-US$500m US$2,001m-US$5,000m >US$5,001m US$501m-US$2,000m US$2,001m-US$5,000m >US$5,001m

Source: Mergermarket Source: Mergermarket

9 All sectors PE buyouts All sectors PE exits

Based on announced buyouts, excluding those that lapsed or were Based on announced exits, excluding those that lapsed or were withdrawn, where the dominant location of the target is in APAC. withdrawn, where the dominant location of the target is in APAC.

200 100 100 70

60

80 80

150 50

60 Deal value US$(bn) 60 Deal value US$(bn) 40

100 Deal volume Deal volume Deal 30 40 40

20 50

20 20

10

0 0 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2018 2019 2020 2021 2018 2019 2020 2021

Deal volume Deal value US$(bn) Deal volume Deal value US$(bn)

Source: Mergermarket Source: Mergermarket

10 All sectors league tables

Financial advisors by value Financial advisors by volume

2020HY 20212019HY 2020CompanyCompany Name name ValueValue (US$m) (US$m) DealDeal count count 2020HY 20212019HY 2020CompanyCompany Name name ValueValue (US$m) (US$m) DealDeal count count 11 2 China International Capital Corporation 151,579 28 11 2 PwC 6,922 53 22 3 75,597 37 22 1 Deloitte 11,273 51 33 5 JPMorgan 70,776 23 33 4 KPMG 4,821 43 44 6 & Co 54,462 36 44 3 EY 9,031 38 55 18 Citi 50,386 22 55 7 Morgan Stanley 75,597 37 66 65 41,774 6 66 10 Goldman Sachs & Co 54,462 36 77 7 UBS Investment 40,378 13 77 9 Sumitomo Mitsui Financial Group 8,358 30 88 1 CITIC Securities Co 37,054 23 88 6 China International Capital Corporation 151,579 28 99 10 26,760 19 99 5 Nomura Holdings 6,804 25 1010 44 Co 17,088 16 1010 12 JPMorgan 70,776 23

Legal advisors by value Legal advisors by volume

2020HY 20212019HY 2020CompanyCompany Name name ValueValue (US$m) (US$m) DealDeal count count 2020HY 20212019HY 2020CompanyCompany Name name ValueValue (US$m) (US$m) DealDeal count count 11 65 Sullivan & Cromwell 46,563 9 11 2 AZB & Partners 18,048 60 22 48 Ropes & Gray 45,492 6 22 10 Khaitan & Co 14,403 47 33 9 Skadden Arps Slate Meagher & Flom 45,458 9 33 6 King & Wood Mallesons 24,641 46 44 103 Hughes Hubbard & Reed 38,730 2 44 7 Kim & Chang 18,877 46 55 76 Cooley 35,238 8 55 4 Shardul Amarchand Mangaldas & Co 16,701 43 66= - Travers Thorp Alberga 34,690 1 66 1 Cyril Amarchand Mangaldas 28,472 42 76= - WilmerHale 34,690 1 77 29 Lee & Ko 9,853 42 88 6 Cyril Amarchand Mangaldas 28,472 42 88 26 Anderson Mori & Tomotsune 14,339 41 99 1 Davis Polk & Wardwell 26,504 11 99 8 Fangda Partners 24,452 40 1010 15 King & Wood Mallesons 24,641 46 1010 9 Herbert Smith Freehills 15,478 40 Source: Mergermarket Source: Mergermarket

The advisor league tables by value and volume have been run from 01/01/2021 to 30/06/2021 and exclude lapsed and withdrawn deals. 11 The tables are based on advice to an Asia Pacific-based bidder, target or vendor and cover all sectors. Source: Mergermarket All sectors league tables—mid-market

Financial advisors by valuevalue—mid-market (US$5m-US$250m) Financial advisors by volumevolume—mid-market (US$5m-US$250m)

2020HY 20212019HY 2020CompanyCompany Name name ValueValue (US$m) (US$m) DealDeal count count 2020HY 20212019HY 2020CompanyCompany Name name ValueValue (US$m) (US$m) DealDeal count count 11 1 PwC 2,020 26 11 1 PwC 2,020 26 22 7 KPMG 1,988 25 22 4 KPMG 1,988 25 33 4 Deloitte 1,894 20 33 2 Deloitte 1,894 20 44 6 Sumitomo Mitsui Financial Group 1,724 18 44 6 Sumitomo Mitsui Financial Group 1,724 18 55 8 China International Capital Corporation 1,398 8 55 3 EY 1,210 17 66 35 CEC Capital 1,234 9 66 7 Nomura Holdings 1,144 13 77 3 EY 1,210 17 77 38 CEC Capital 1,234 9 88 5 Nomura Holdings 1,144 13 88 13 China Renaissance Holdings 958 9 99 30 UBS Investment Bank 994 6 99 16 / DC Advisory 767 9 1010 46 Bank of America 983 6 1010 17 Morgan Stanley 575 9

Legal advisors by valuevalue—mid-market (US$5m-US$250m) Legal advisors by volumevolume—mid-market (US$5m-US$250m)

2020HY 20212019HY 2020CompanyCompany Name name ValueValue (US$m) (US$m) DealDeal count count 2020HY 20212019HY 2020CompanyCompany Name name ValueValue (US$m) (US$m) DealDeal count count 11 4 AZB & Partners 3,170 32 11 12 Lee & Ko 2,766 33 22 13 Lee & Ko 2,766 33 22 10 AZB & Partners 3,170 32 33 1 Kim & Chang 2,455 29 33 1 Kim & Chang 2,455 29 44 9 King & Wood Mallesons 2,186 22 44 8 Khaitan & Co 1,868 26 55 48 Sidley Austin 2,108 14 55 6 King & Wood Mallesons 2,186 22 66 2 Shardul Amarchand Mangaldas & Co 2,091 19 66 4 Cyril Amarchand Mangaldas 1,868 21 77 5 Fangda Partners 1,900 13 77 2 Shardul Amarchand Mangaldas & Co 2,091 19 88 12 Khaitan & Co 1,868 26 88 9 Nishimura & Asahi 1,720 19 99 11 Cyril Amarchand Mangaldas 1,868 21 99 75 Thomson Geer 939 18 1010 28 Anderson Mori & Tomotsune 1,724 16 1010 35 Anderson Mori & Tomotsune 1,724 16 Source: Mergermarket Source: Mergermarket

The advisor league tables by value and volume have been run from 01/01/2021 to 30/06/2021 and exclude lapsed and withdrawn deals. 12 The tables are based on advice to an Asia Pacific-based bidder, target or vendor and cover all sectors. Source: Mergermarket All sectors league tables—PR advisors

FinancialPR advisors advisors by value by value FinancialPR advisors advisors by volume by volume

2020HY 20212019HY 2020CompanyCompany Name name ValueValue (US$m) (US$m) DealDeal count count 2020HY 20212019HY 2020CompanyCompany Name name ValueValue (US$m) (US$m) DealDeal count count 11 2 Sard Verbinnen & Co 36,473 11 11 7 Kekst CNC (Publicis) 1,938 12 22 43 Blueshirt Group 34,690 1 22 1 Sard Verbinnen & Co 36,473 11 33 15 Finsbury Glover Hering 10,218 7 33 3 FTI Consulting 3,556 8 44 1 Brunswick Group 6,139 4 44 14 Adfactors PR 1,608 8 55 27 ICR 4,982 6 55 10 Finsbury Glover Hering 10,218 7 66 - TrailRunner International 4,398 2 66 12 Citadel Magnus 3,080 7 77 5 FTI Consulting 3,556 8 77 15 ICR 4,982 6 88 10 Citadel Magnus 3,080 7 88 64 Tulchan Communications 2,620 6 99 64 Tulchan Communications 2,620 6 99 2 Brunswick Group 6,139 4 1010 7 Kekst CNC (Publicis) 1,938 12 1010 16 Joele Frank Wilkinson Brimmer Katcher 1,270 4

LegalPR advisors advisors by byvalue—mid-market value (US$5m-US$250m) LegalPR advisors advisors by byvolume—mid-market volume (US$5m-US$250m)

2020HY 20212019HY 2020CompanyCompany Name name ValueValue (US$m) (US$m) DealDeal count count 2020HY 20212019HY 2020CompanyCompany Name name ValueValue (US$m) (US$m) DealDeal count count 11 31 Kekst CNC (Publicis) 725 5 11 31 Kekst CNC (Publicis) 725 5 22 1 Sard Verbinnen & Co 601 5 22 1 Sard Verbinnen & Co 601 5 33 - Joele Frank Wilkinson Brimmer Katcher 470 3 33 17 Citadel Magnus 390 5 44 5 ICR 412 3 44 - Joele Frank Wilkinson Brimmer Katcher 470 3 55 13 Citadel Magnus 390 5 55 6 ICR 412 3 66 3 Adfactors PR 347 3 66 5 Adfactors PR 347 3 77= 4 Brunswick Group 227 2 77= 3 Brunswick Group 227 2 87= 2 FTI Consulting 227 2 87= 2 FTI Consulting 227 2 97= - Solebury Trout 227 2 97= - Solebury Trout 227 2 1010 - Gateway Investor Relations 206 1 1010 14 Finsbury Glover Hering 184 2 Source: Mergermarket Source: Mergermarket

The advisor league tables by value and volume have been run from 01/01/2021 to 30/06/2021 and exclude lapsed and withdrawn deals. 13 The tables are based on advice to an Asia Pacific-based bidder, target or vendor and cover all sectors. Source: Mergermarket Consumer Consumer sector sees subdued M&A despite rise in confidence

Many of the world’s leading consumer businesses regard the This dynamic provides every incentive for dealmaking activity Consumer M&A activity, APAC region as their most important source of future growth. in the region, particularly as economic growth—and therefore 2018 - HY 2021 The spending power of the emerging middle classes in the consumer prosperity—recovers from the COVID-19 pandemic. region, particularly in China and India, is an enticing lure for That said, uncertainties remain—APAC countries ranging from businesses seeking growth rates in more mature markets. Singapore to Australia have seen COVID-19 resurgences in 150 40 recent months and locked down their economies once again. China has kept its COVID-19 case numbers under control, but There were some 2bn Asian members of India is still struggling after a devastating wave of infections in 120 the middle classes in 2020 according to April and May. 30 the World Economic Forum, but this

Still, vaccination programs do now offer the region a way out Deal value US$(bn) figure could reach 3.5bn by 2030. 90 of the crisis, at least in the medium term. And M&A activity in

the consumer sector has continued at a steady pace—albeit 20 with a less marked recovery than in some other industries, Deal volume Deal partly because these saw a sharper fall-off in dealmaking at 60 the height of the pandemic in the first half of last year.

10 30

0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2018 2019 2020 2021

Deal volume Deal value US$(bn)

Source: Mergermarket

15 Treading cautiously Consumer top bidders by value I HY 2021 In total, the first half of 2021 saw 175 M&A transactions worth US$(m) US$25.5bn in the consumer sector. That compares to 183 Australia 10,366 deals worth US$23bn in the same period a year ago. Deal China 5,566 activity did accelerate slightly in the second quarter of the South Korea 2,001 year but M&A in the consumer sector has yet to return to pre- USA 1,996 pandemic levels in most parts of the region. Japan 1,836

In large part, that reflects a cautious approach to M&A from Consumer top bidders by volume I HY 2021 trade buyers. PE investors, by contrast, have returned to the consumer sector in significant number. Deal count Japan 38 The first half of the year saw 40 PE buyouts in the industry, South Korea 32 with deals worth US$6bn. That was 135% up on the first six China 31 months of 2020 in volume terms, and a fourfold increase in Australia 19 USA 11 deal values.

PE exits also gathered pace—PE investors disposed of 15 consumer companies in the first half of 2021, up from 10 and 13 in the first and second halves of 2020 respectively.

Indeed, the second biggest consumer sector deal during the first half of the year involved a PE acquirer, with Primavera Capital buying the UK-based personal care firm Reckitt Benckiser Group’s infant formula and child nutrition business in China for US$2.2bn. Primavera has made a series of acquisitions in the region as it continues to build out its portfolio of consumer businesses.

16 Ecommerce set to fuel more deals Consumer top 10 announced deals, HY 2021 The biggest first-half transaction of all in the region’s consumer sector was Australia-based retailer Woolworths’ Announced Bidder company Target company Target Vendor company Deal value spin-off of a 71% stake in Endeavour Group, a subsidiary date dominant (US$m) which operates a chain of liquor stores, for US$10.1bn. The country deal valued Endeavour at an enterprise value of US$12.5bn. 1 10-May-21 Woolworths Group Limited Endeavour Group Limited Australia Woolworths Group 10,071 Endeavour hopes to use its new-found independence to (shareholders) (70.78% Stake) Limited pursue opportunities in ecommerce more aggressively. 2 05-Jun-21 Primavera Capital Group Reckitt Benckiser Group Plc (Infant China Reckitt Benckiser 2,200 formula and child nutrition business Group Plc in China) Looking forward, the outlook for M&A in the consumer sector 26-Feb-21 Matsumotokiyoshi Holdings Co., Ltd. Cocokara Fine Inc. (79.98% Stake) Japan 1,347 is positive, with the sector continuing to rebound from the 3 COVID-19 pandemic. Consumer confidence across the APAC 4 03-Feb-21 CVC Capital Partners Limited Shiseido Company, Limited (personal Japan Shiseido Company, 988 region now appears to be stronger than in any other region care products business) (65% Stake) Limited of the world—the Conference Board’s confidence index for 5 01-Feb-21 Zhuhai Huafa Industrial Investment Beijing Digital Telecom Co., Ltd. China 659 APAC is some 20 points ahead of its yardstick for Europe, for Holding Co., Ltd. example. There is already evidence of this confidence feeding 6 21-May-21 KKR & Co., Inc. Vini Cosmetics Private Limited India Sequoia Capital; 625 Darshan Patel (Private through into stronger sales—fast moving consumer goods Investor); Dipam Patel (FMCG) sales were up 5% in the region during the first quarter (Private Investor) of the year alone, according to data from Kantar. 7 17-Feb-21 Essity Aktiebolag (publ) Asaleo Care Limited (63.84% Stake) Australia 504

The continued rise of ecommerce is a particularly important 8 03-Jun-21 Jiangsu Xinxin Retailing Innovation Suning.com Co., Ltd. (5.59% Stake) China Suning Appliance 498 theme for APAC consumer business, with high rates of mobile Fund (Limited Partnership) Group Co., Ltd. penetration and digital connectivity driving an accelerating 9 31-Mar-21 a.k.a. BRANDS, Inc. Culture Kings Australia 456 shift away from physical . In China alone, the ecommerce market could be worth as much as US$3 trillion by 2024, up 10 30-Jan-21 Wangfujing Group Co., Ltd. Beijing Capital Retailing Group Co., Ltd. China 445 from US$2.2 trillion today, according to GlobalData. Given such rapid growth rates, consumer businesses across the region are continuing to consider transformative deals that ensure they do not miss out on the changing mix of sales.

Source: Mergermarket 17 Consumer league tables

Financial advisors by value Financial advisors by volume

2020HY 20212019HY 2020CompanyCompany Name name ValueValue (US$m) (US$m) DealDeal count count 2020HY 20212019HY 2020CompanyCompany Name name ValueValue (US$m) (US$m) DealDeal count count 11 10 Citi 10,490 2 11 2 PwC 544 8 22= - Grant Samuel 10,071 1 22 5 KPMG 499 7 32= - Jarden 10,071 1 33 4 Deloitte 1,306 6 44 9 Morgan Stanley 4,051 3 44 3 Sumitomo Mitsui Financial Group 1,228 6 55 4 Goldman Sachs & Co 2,240 2 55 - Daiwa Securities Group / DC Advisory 1,538 5 66 7 HSBC 2,200 1 66 1 Nomura Holdings 107 5 77 - Daiwa Securities Group / DC Advisory 1,538 5 77 9 Morgan Stanley 4,051 3 88 22 1,531 3 88 17 Credit Suisse 1,531 3 99 24 Deloitte 1,306 6 99 49 EY 67 3 1010 20 Sumitomo Mitsui Financial Group 1,228 6 1010 27 Citi 10,490 2

Legal advisors by value Legal advisors by volume

2020HY 20212019HY 2020CompanyCompany Name name ValueValue (US$m) (US$m) DealDeal count count 2020HY 20212019HY 2020CompanyCompany Name name ValueValue (US$m) (US$m) DealDeal count count 11 40 King & Wood Mallesons 10,924 6 11 30 King & Wood Mallesons 10,924 6 22 64 Ashurst 10,071 1 22 24 Anderson Mori & Tomotsune 1,387 6 33 14 Simpson Thacher & Bartlett 2,825 2 33 6 Mori Hamada & Matsumoto 1,188 6 44= - De Brauw Blackstone Westbroek 2,200 1 44 - AZB & Partners 712 5 54= - NautaDutilh 2,200 1 55 5 Kim & Chang 502 5 64= 8 Slaughter and May 2,200 1 66 33 Lee & Ko 394 5 77 28 Anderson Mori & Tomotsune 1,387 6 77 25 Khaitan & Co 261 5 88 - Nomura & Partners 1,347 1 88 - Haiwen & Partners 732 4 99 41 Mori Hamada & Matsumoto 1,188 6 99 1 Nishimura & Asahi 291 4 1010 7 Davis Polk & Wardwell 995 2 1010 79 Thomson Geer 174 4 Source: Mergermarket Source: Mergermarket

The advisor league tables by value and volume have been run from 01/01/2021 to 30/06/2021 and exclude lapsed and withdrawn deals. 18 The tables are based on advice to an Asia Pacific-based bidder, target or vendor and cover the consumer sector. Source: Mergermarket Energy, mining & utilities EMU deal value doubles on the back of economic recovery

The energy, mining and utilities (EMU) sector suffered severe However, as the crisis has receded, these pressures disruption in the face of the COVID-19 pandemic last year. EMU M&A activity, have flowed through into renewed M&A activity. Troubled Not only did a sharp slowdown in regional and global 2018 - HY 2021 businesses have been acquired or sought scale through economic growth lead to an unprecedented slowdown in mergers; stronger EMU companies have seen dealmaking demand, but also, EMU businesses had to deal with huge activity as a key to unlocking the transformation they supply chain problems. 180 120 now require.

In a sector already needing to transform—particularly in the 150 100 context of climate change imperatives and the shift towards Against this backdrop, first-half M&A renewable energy—the pandemic piled on the pressure. That activity in EMU proved to be strong in prompted a sharp decline in M&A activity during the first half 120 80 the APAC region. of last year in a sector of the APAC market where dealmaking Deal value US$(bn) had previously been robust.

90 60 Aggregate deal value of US$43.9bn was more than double the US$19.3bn of total deal activity recorded during the first half Deal volume Deal of 2020. Volume rose from 155 deals in the first half of 2020 60 40 to 204 in the same period of 2021, a 32% increase.

30 20

0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2018 2019 2020 2021

Deal volume Deal value US$(bn)

Source: Mergermarket

20 India and China dominate EMU top bidders by value I HY 2021 HY 2021 figures did not quite match the surging deal activity US$(m) seen during the second half of last year, when EMU businesses China 17,292 completed 259 transactions worth US$162.1bn. Nevertheless, India 6,941 M&A activity so far this year has been maintained at pre- USA 3,584 pandemic levels and is on target to exceed the levels of France 3,343 activity seen in the EMU sector during 2018 and 2019. New Zealand 2,986

Indian and Chinese deals dominated the EMU sector during EMU top bidders by volume I HY 2021 the first half, accounting for more than half of transactions by both value and volume. Australia also saw heightened Deal count levels of activity, with 19 first-half deals (against 111 and 18 China 111 in China and India respectively), though these were typically Australia 19 smaller transactions. India 18 Japan 10 New Zealand 5 Indeed, eight of the ten largest transactions in the APAC Philippines 5 region’s EMU sector during the first half of the year took Malaysia 5 place in India and China. These included the biggest deal of all during the period, the acquisition of ReNew Power for US$3.6bn by RMG Acquisition Corp, a Nasdaq-listed SPAC. ReNew is a market leader in India’s renewable energy sector, operating wind and solar energy projects for a fast-growing customer base of commercial and industrial customers.

21 EMU top 10 announced deals, HY 2021 Green energy fuels transactions The strength of that market is underlined by the fact that the second largest EMU deal of the first half also took place in Announced Bidder company Target company Target Vendor company Deal value India’s green energy industry. Adani Green Energy agreed to date dominant (US$m) country pay Softbank Group and Bharti Enterprises US$3.5bn for solar and wind energy provider SB Energy. 1 24-Feb-21 RMG Acquisition Corp. II ReNew Power Private Limited India Canada Pension Plan 3,584 Investment Board; Global Environment Fund The impact of the energy transition on M&A was made further 2 19-May-21 Adani Green Energy Limited SB Energy Holdings Limited India SoftBank Group Corp.; Bharti 3,500 evident by the fact that four out of the five largest transactions Enterprises Limited targeted renewable energy businesses in the APAC region. 3 23-Jan-21 Henan City Development Tus Environmental Science and China 3,488 Environment Co., Ltd. Technology Development Co., Ltd. Competition for the best EMU assets in the APAC region is 4 24-May-21 Huadian Power International Huadian Fuxin Energy Development China 3,305 Corporation Limited Company Limited (37.19% Stake) likely to remain tough in the months ahead, particularly in favored subsectors such as renewables, where the climate 5 14-Mar-21 A consortium of Powering Tilt Renewables Limited (100% New Zealand 2,554 Australian Renewables and Stake) change agenda—and state support—offers continuing Mercury Energy growth potential. Potential acquirers of assets include 6 18-Jan-21 Total S.A. Universal Trade and Investments India Adani Green Energy Limited; 2,500 both trade buyers and PE investors, though the latter were Ltd; Acme Trade and Investment Dome Trade and Investment Ltd unusually quiet during the first half of the year, with just two Ltd; Adani Green Energy Limited (2.35 GWac portfolio of operating buyouts recorded; that was down from 10 in the second half solar assets) (50% Stake) of last year. 7 09-Jan-21 Vedanta Resources Limited Vedanta Limited (10.07% Stake) India 2,081

8 25-Mar-21 Engineers India Limited; Oil Numaligarh Refinery Limited India Bharat Petroleum Corporation 1,285 India Limited (58.53% Stake) Ltd 9 19-Apr-21 Orocobre Limited Galaxy Resources Limited Australia 1,191 (100% Stake) 10 23-Jan-21 Nafine Chemical Industry Northern Copper Industrial Co China A group of 9 investors led by 1,107 Group Co., Ltd. Zhongtiaoshan Non-ferrous Metals Group Co., Ltd.

Source: Mergermarket 22 EMU league tables

Financial advisors by value Financial advisors by volume

2020HY 20212019HY 2020CompanyCompany Name name ValueValue (US$m) (US$m) DealDeal count count 2020HY 20212019HY 2020CompanyCompany Name name ValueValue (US$m) (US$m) DealDeal count count 11 - Bank of America 10,442 6 11 27 Morgan Stanley 5,308 7 22 6 Goldman Sachs & Co 6,961 5 22 7 China International Capital Corporation 4,331 7 33 20 Morgan Stanley 5,308 7 33 3 EY 1,534 7 44 - Barclays 4,791 3 44 - Bank of America 10,442 6 55 5 China International Capital Corporation 4,331 7 55 4 Goldman Sachs & Co 6,961 5 66 55 Citi 4,060 4 66 - HSBC 3,107 5 77 - HSBC 3,107 5 77 55 Citi 4,060 4 88 - Forsyth Barr 2,860 2 88 43 Jefferies 1,242 4 99= - Jarden 2,554 1 99 - Barclays 4,791 3 109= 8 2,554 1 1010 11 Rothschild & Co 1,260 3

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2020HY 20212019HY 2020CompanyCompany Name name ValueValue (US$m) (US$m) DealDeal count count 2020HY 20212019HY 2020CompanyCompany Name name ValueValue (US$m) (US$m) DealDeal count count 11 1 Cyril Amarchand Mangaldas 16,609 7 11 6 Herbert Smith Freehills 1,124 10 22 46 Latham & Watkins 9,425 6 22 1 Cyril Amarchand Mangaldas 16,609 7 33 25 Khaitan & Co 7,833 6 33 46 Latham & Watkins 9,425 6 44 - Clifford Chance 6,384 6 44 12 Khaitan & Co 7,833 6 55 13 Freshfields Bruckhaus Deringer 4,504 5 55 - Clifford Chance 6,384 6 66 3 King & Wood Mallesons 4,349 3 66 16 Freshfields Bruckhaus Deringer 4,504 5 77 2 Trilegal 3,991 4 77 3 AZB & Partners 3,741 5 88 - Shardul Amarchand Mangaldas & Co 3,959 3 88 7 Allens 3,036 5 99 37 Ashurst 3,745 3 99 10 DLA Piper 564 5 1010 11 AZB & Partners 3,741 5 1010 9 Trilegal 3,991 4 Source: Mergermarket Source: Mergermarket

The advisor league tables by value and volume have been run from 01/01/2021 to 30/06/2021 and exclude lapsed and withdrawn deals. 23 The tables are based on advice to an Asia Pacific-based bidder, target or vendor and cover the EMU sector. Source: Mergermarket Financial services Financial services M&A drops YoY, despite pandemic resilience

The financial services sector weathered the COVID-19 Deal activity slows down Financial services M&A activity, pandemic with greater resilience than most other industries The sector recorded 151 deals across the region during the 2018 - HY 2021 during 2020. Its lack of exposure, relatively speaking, to first six months of the year, a 13% decline on the first half of physical infrastructure provided significant protection, as 2020, though broadly in line with the second half of last year, did its transition to virtual operations and remote working. which saw 153 deals. 100 35 The crisis caused the sort of economic dislocation normally associated with a sharp increase in bad debt, but regulatory First-half 2021 deals in the sector totaled 30 and governmental interventions across the APAC region 80 reduced this risk. US$28.6 billion, a 47% decline on the same period a year ago, but not much reduced 25

As a result, M&A activity in financial services held up more Deal value US$(bn) from the US$33bn worth of activity seen in 60 strongly than in most other industries last year. Indeed, across 20 APAC, the sector bucked the trend, recording more deals in the the second half of 2020. first half of 2020, when M&A was slowing in most industries, Deal volume Deal 15 than in the second, when dealmaking recovered elsewhere. The first-half figure for last year was, in any case, significantly 40 boosted by a single deal, the US$18.4bn acquisition of the In 2021, improving economic confidence across the region Baoshang Bank’s Beijing, Chengdu, Ningbo & Shenzhen 10 has provided a supportive backdrop for the sector. Banks have branches by Huishang Bank Corporation. 20 begun to lend again; global capital markets have performed 5 strongly; insurers are once again recording premium For now, at least, the sector appears to remain some way off increases, though still counting the cost of the pandemic. pre-pandemic levels of M&A activity. In 2019, for example, 0 0 there were 353 financial services transactions in the APAC Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 In this context, M&A activity might have been expected to region, with an aggregate deal value of US$85bn; without 2018 2019 2020 2021 tick upwards once again, but in fact, financial services sector quite a spike in the second half of the year, 2021 looks unlikely Deal volume Deal value US$(bn) dealmaking slowed somewhat. to match those figures. Source: Mergermarket

25 Indian deals dominate FS top bidders by value I HY 2021 Nevertheless, M&A activity remains robust, with scope for US$(m) an acceleration if conditions remain supportive. Indeed, India 6,403 the competitive pressures facing the sector, from the Australia 5,591 imperative for further digital transformation in the face of China 4,778 new competition, to the need for scale to drive efficiency and Hong Kong 2,640 effectiveness, provide incentives for dealmaking. Japan 2,541

In the largest transaction of the year so far in APAC financial FS top bidders by volume I HY 2021 services, India-based Piramal Capital & Housing Finance acquired Dewan Housing Finance Corporation Limited for Deal count US$4.7bn in a deal that followed DHFL’s filing for insolvency in China 39 2020. Indeed, by value, Indian bidders were more active than Australia 30 any others during the first half (Chinese bidders did the most Japan 15 deals by volume). USA 14 South Korea 13 The second biggest deal was a merger between two Australian investment firms. The US$2.7bn acquisition of Milton Corporation by Washington H. Soul will create a company with a US$8.1bn market capitalisation, catapulting the business into the Australian market’s top 50 ASX index.

26 Southeast Asia attracts attention Financial services top 10 announced deals, HY 2021 The third largest transaction of the sector saw Japan’s SMBC Consumer Finance, a subsidiary of Sumitomo Mitsui Financial Announced Bidder company Target company Target Vendor company Deal value Group, acquire a 49% stake in the Vietnamese VPBank. The date dominant (US$m) deal reflects the ongoing attractions of the Southeast Asian country market for Japanese financial groups looking for growth 1 07-Jun-21 Piramal Capital & Housing Finance Dewan Housing Finance India 4,692 opportunities beyond their domestic market. The US$1.4bn Corporation Limited deal between SMBC and VPBank follows a similar transaction 2 22-Jun-21 Washington H. Soul Pattinson & Milton Corporation Limited Australia 2,686 Company Limited (96.7% Stake) in 2019, when Japanese bank MUFG took a 54% stake in Indonesia’s Bank Danamon. 3 28-Apr-21 SMBC Consumer Finance Co., Ltd. VPBank Finance Company Limited Vietnam Vietnam Prosperity Joint- 1,372 (49% Stake) Stock Commercial Bank 4 30-Mar-21 SG Fleet Group Limited LeasePlan Australia Limited; Australia LeasePlan Corporation N.V. 1,143 Trade deals of this type are not the only source of M&A LeasePlan New Zealand Limited activity in the APAC region’s financial services sector, with 5 22-Feb-21 Bank of Queensland Limited Members Equity Bank Limited Australia 1,046 PE firms also continuing to take a keen interest in a range of opportunities. There were 19 PE buyouts worth US$3.2bn 6 23-Jun-21 Undisclosed bidder Zhijiang New Industrial Co., Ltd. China Zhejiang Provincial Financial 899 during the first half of 2021, an increase by value on last year’s (11.4% Stake) Holdings Co., Ltd. first-half figures of 19 deals worth US$1.8bn (though down on 7 03-Feb-21 China Development Financial China Life Insurance Company Taiwan 845 the second half data). Holdings Corporation Limited [Taiwan] (21.13% Stake) 8 20-Apr-21 DBS Group Holdings Limited Shenzhen Rural Commercial Bank China 813 Corporation Limited (13% Stake) Exit activity was also elevated, with PE investors announcing nine sales of financial services sector businesses in the region 9 25-Mar-21 Government of India Punjab & Sind Bank (14.01% Stake) India 754 during the first half, compared to eight in the same period of 10 24-Mar-21 Shanghai Dahua (Group) Co Ltd; Yunnan Asset Management Co., China 658 last year. Exit proceeds rose from US$330bn in the first six Shanghai Shenxin Real Estate Ltd. (64% Stake) months of 2020 to US$892bn in the same period of this year. Co., Ltd.

Source: Mergermarket 27 Financial services league tables

Financial advisors by value Financial advisors by volume

2020HY 20212019HY 2020CompanyCompany Name name ValueValue (US$m) (US$m) DealDeal count count 2020HY 20212019HY 2020CompanyCompany Name name ValueValue (US$m) (US$m) DealDeal count count 11 3 Goldman Sachs & Co 5,357 7 11 6 Goldman Sachs & Co 5,357 7 22 4 EY 4,692 3 22 23 Bank of America 1,542 4 33 7 RBSA Advisors 4,692 1 33 7 Morgan Stanley 971 4 44= - Greenhill & Co 2,690 1 44 3 Deloitte 826 4 54= - Pitt Capital Partners 2,690 1 55 1 EY 4,692 3 66 1 China International Capital Corporation 2,514 2 66 15 1,817 3 77 27 Macquarie Group 1,817 3 77 - Grant Samuel 183 3 88 38 Sumitomo Mitsui Financial Group 1,595 2 88 2 China International Capital Corporation 2,514 2 99 18 Bank of America 1,542 4 99 39 Sumitomo Mitsui Financial Group 1,595 2 1010 26 PwC 1,407 2 1010 9 PwC 1,407 2

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2020HY 20212019HY 2020CompanyCompany Name name ValueValue (US$m) (US$m) DealDeal count count 2020HY 20212019HY 2020CompanyCompany Name name ValueValue (US$m) (US$m) DealDeal count count 11 6 AZB & Partners 6,263 8 11 9 King & Wood Mallesons 2,039 9 22 2 Cyril Amarchand Mangaldas 5,595 6 22 2 AZB & Partners 6,263 8 33 - Ashurst 3,104 4 33 1 Cyril Amarchand Mangaldas 5,595 6 44 - Hamilton Locke 2,697 3 44 15 Fangda Partners 1,532 5 55 11 Debevoise & Plimpton 2,515 2 55 84 MinterEllison 1,253 5 66 16 King & Wood Mallesons 2,039 9 66 16 Herbert Smith Freehills 514 5 77 - JunHe 1,862 1 77 8 Allens 378 5 88 19 Gilbert + Tobin 1,613 2 88 - Ashurst 3,104 4 99 34 Shardul Amarchand Mangaldas & Co 1,565 4 99 6 Shardul Amarchand Mangaldas & Co 1,565 4 1010 15 Fangda Partners 1,532 5 1010 - Freshfields Bruckhaus Deringer 1,528 4 Source: Mergermarket Source: Mergermarket

The advisor league tables by value and volume have been run from 01/01/2021 to 30/06/2021 and exclude lapsed and withdrawn deals. 28 The tables are based on advice to an Asia Pacific-based bidder, target or vendor and cover the financial services sector. Source: Mergermarket Industrials & chemicals I&C tops deals table as sector benefitsfrom economic rebound

The industrials and chemicals (I&C) sector generated more PE deals top tables I&C M&A activity, M&A deals than any other sector of the market in the APAC The two biggest transactions in the sector were related. 2018 - HY 2021 region during the first six months of the year. There were 446 First, a consortium led by the PE group Bain Capital paid deals involving I&C companies over the period, a 24% increase US$4.4bn for Hitachi’s 53% stake in Hitachi Metals, its compared to the first half of last year, though slightly down on specialist metals unit. The consortium also paid around 300 50 the 505 transactions seen during the second half of 2020. US$4bn for the remainder of the business, which it acquired from other shareholders. 250 In value terms, the I&C sector finished behind technology, 40 media and telecoms (TMT) and construction on total deal Including the Bain deals, private equity accounted for five value for the first half of the year. But the US$55.9bn worth of of the top ten I&C transactions in the APAC region during 200 deals was up 42% compared to the US$39bn of transactions the first half of the year. Across the whole sector, PE firms Deal value US$(bn) 30 recorded in the first six months of 2020. announced 41 buyouts worth US$14.6bn during the first

half, up significantly on last year’s figures of 28 deals valued 150 As with deal volumes, aggregate deal values did not match at US$2.8bn. Deal volume Deal the second half of last year—when deals reached a total 20 value of US$77bn—or surpass pre-pandemic activity levels. 100 Nonetheless, last year’s second-half recovery in dealmaking in Exit activity also increased, with PE firms making 27 disposals worth US$3.8bn in the the I&C sector has largely been maintained. 10 I&C sector during the first six months of the 50 year, compared to 11 deals worth US$1.4bn

over the same period of 2020. 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2018 2019 2020 2021

Deal volume Deal value US$(bn)

Source: Mergermarket

30 I&C top bidders by value I HY 2021 China dominates I&C M&A Another potential impetus for I&C M&A activity is the US$(m) determination of Chinese businesses to grow their global China 20,301 USA 10,826 market share with deals that provide consolidation South Korea 8,567 opportunities or the chance to acquire new intellectual Japan 7,514 property. Chinese buyers dominated M&A during the first half Australia 3,945 of the year, accounting for more than a third of I&C deals by both volume and value. I&C top bidders by volume I HY 2021 That said, Chinese businesses were also likely targets for Deal count acquisition—four of the ten largest transactions in the I&C China 192 space in the APAC region during the first half were for Chinese South Korea 64 targets. These including the third biggest deal of all over Japan 61 the period. This saw the US-based I&C giant DuPont acquire USA 20 China-based Laird Performance Materials from the investment Singapore 14 group Advent for US$2.3bn. Advent acquired the British Hong Kong 14 company Laird in 2018 but subsequently split it into three India 14 different businesses.

Macro factors Looking forward, there are good reasons to be hopeful that dealmaking activity can continue or even ramp up further. In engineering and manufacturing, for example, the imperative for digital transformation, the shift to new business models, and the drive for greater operational efficiencies all represent good reasons for companies in the sector to consider M&A. In the automotive sector, original equipment manufacturers continue to undertake acquisitions to strengthen, and to build more resilient supply chains.

31 I&C top 10 announced deals, HY 2021 New opportunities M&A transactions that accelerate digital transformation are likely to command a premium. These include solutions that Announced Bidder company Target company Target Vendor company Deal value increase operational efficiency via automation or that help date dominant (US$m) country companies leverage low-touch, digital go-to-market channels. Enablers of new value-added revenue streams are also likely 1 28-Apr-21 A consortium led by Bain Capital, L.P. Hitachi Metals, Ltd. (53.38% Stake) Japan Hitachi, Ltd. 4,398 to command a premium. 2 28-Apr-21 Consortium for Hitachi Metals Hitachi Metals, Ltd. (46.62% Stake) Japan 4,000 Climate change-related opportunities can also drive M&A, 3 08-Mar-21 DuPont de Nemours, Inc. Laird Performance Materials China Advent International 2,300 particularly as I&C companies focus on new regulation and the Corporation desire of customers and investors for improved performance 4 27-Apr-21 Macquarie Infrastructure and Bingo Industries Limited Australia 2,002 on environmental, social and governance (ESG) issues. Real Assets (100% Stake) Industry subsectors including batteries, autonomous vehicles, 5 06-Apr-21 Cleanaway Waste Management Suez S.A. (Australian recycling and Australia Suez S.A. 1,927 additive manufacturing, and next-generation materials could Limited recovery business) all see M&A demand pick up. Businesses that have invested 6 17-Jun-21 Guangzhou Development Zone Baoneng New Energy Motor Group China 1,864 Financial Holding Group Co., Ltd. Co., Ltd. in start-up technologies—hydrogen powered vehicles, for example—may begin to pursue larger deals. 7 29-Jan-21 Guangxi Liugong Machinery Co., Ltd. Guangxi Liugong Group Mechanical China A group of 9 investors led 1,457 Co., Ltd. by Guangxi Liugong Group Co., Ltd. 8 26-May-21 Decarbonization Plus Acquisition Tritium Pty Ltd Australia 1,248 Corporation II 9 12-Mar-21 Yanfeng Automotive Trim Systems Yanfeng Adient Seating Co., Ltd. China Adient plc 1,239 Co., Ltd. (49.99% Stake) 10 06-Jan-21 The Carlyle Group Rigaku Corporation Japan 1,213

Source: Mergermarket 32 I&C league tables

Financial advisors by value Financial advisors by volume

2020HY 20212019HY 2020CompanyCompany Name name ValueValue (US$m) (US$m) DealDeal count count 2020HY 20212019HY 2020CompanyCompany Name name ValueValue (US$m) (US$m) DealDeal count count 11 11 Goldman Sachs & Co 11,458 4 11 2 Deloitte 6,202 17 22 1 Morgan Stanley 11,286 6 22 1 PwC 1,554 15 33 67 Bank of America 8,878 3 33 5 KPMG 1,696 11 44 8 Citi 8,423 7 44 3 CITIC Securities Co 4,978 8 55 5 Deloitte 6,202 17 55 10 Mizuho Financial Group 764 8 66 10 CITIC Securities Co 4,978 8 66 11 Citi 8,423 7 77= - Credit Agricole 4,258 1 77 7 Morgan Stanley 11,286 6 87= - Santander Corporate (SCIB) 4,258 1 88 - Credit Suisse 3,451 6 97= - Societe Generale 4,258 1 99 8 China International Capital Corporation 2,461 6 1010 - Barclays 4,000 1 1010 53 GCA Corporation 2,276 6

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2020HY 20212019HY 2020CompanyCompany Name name ValueValue (US$m) (US$m) DealDeal count count 2020HY 20212019HY 2020CompanyCompany Name name ValueValue (US$m) (US$m) DealDeal count count 11 88 Nishimura & Asahi 7,328 13 11 8 Nishimura & Asahi 7,328 13 22 2 Anderson Mori & Tomotsune 6,463 12 22 41 Lee & Ko 3,983 13 33 - Latham & Watkins 5,806 3 33 19 Anderson Mori & Tomotsune 6,463 12 44 9 Freshfields Bruckhaus Deringer 5,334 4 44 4 Kim & Chang 5,096 11 55 5 Kim & Chang 5,096 11 55 1 Mori Hamada & Matsumoto 4,754 10 66 1 Mori Hamada & Matsumoto 4,754 10 66 21 Yulchon 506 7 77= - Davis Polk & Wardwell 4,398 1 77 3 King & Wood Mallesons 3,644 6 87= 10 Ropes & Gray 4,398 1 88 13 Yoon & Yang 1,833 6 99= - Cuatrecasas 4,258 1 99 18 Shin & Kim 1,611 6 109= - Estudio Beccar Varela 4,258 1 1010 16 Nagashima Ohno & Tsunematsu 1,607 6 Source: Mergermarket Source: Mergermarket

The advisor league tables by value and volume have been run from 01/01/2021 to 30/06/2021 and exclude lapsed and withdrawn deals. 33 The tables are based on advice to an Asia Pacific-based bidder, target or vendor and cover the I&C sector. Source: Mergermarket Pharma, medical & biotech PMB deals slow in H1, but digitalization is set to propel dealmaking

The pharma, medical and biotech (PMB) sector has naturally PE appetite increases found itself at the center of the COVID-19 pandemic, working PMB M&A activity, In fact, activity has slowed a little in recent months with at full-stretch to develop vaccines, treatments, and tests to 2018 - HY 2021 deal values and volumes in the first six months of 2021 combat the virus, despite the operational challenges it poses. down on the second half of last year. Still, the PMB sector appears to be stabilizing at close to pre-pandemic levels of There have also been significant indirect impacts with 120 20 dealmaking—in both 2018 and 2019, total deal volumes in significance for the sector. Health and wellbeing have the sector in the APAC region exceeded 300, and deal values moved center stage. Digital transformation has become went above US$40bn; this year is on target to get close to 100 imperative, with a dramatic acceleration in areas such as that sort of activity. tele-health. Supply chain and sourcing policies have had 15 to be reappraised. One important driver of the resurgent PMB M&A market has 80 Deal value US$(bn) been a marked increase in appetite for dealmaking in the sector amongst PE investors. PE firms announced 49 buyouts This backdrop, allied to strong fundamentals 60 10 during the first half of the year, up from 33 such transactions including the plentiful supply of affordable in the same period of last year. PE buyout activity accounted Deal volume Deal finance, has seen M&A activity in the PMB for US$8.2bn of the total M&A market in the first half. sector increase sharply in the APAC region 40 PE exits have also increased in number. There have already 5 during the first six months of the year. been 15 PE exits from PMB businesses during 2021, raising 20 US$2.4bn in sales proceeds. By contrast, PE firms managed The industry recorded 163 M&A transactions during that only 10 exits worth US$1.3bn in the whole of last year. period, a 15% increase on the first half of 2021. This year’s 0 0 transactions to date are worth, on aggregate, US$17.3 billion, Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 a 27% increase year-on-year. 2018 2019 2020 2021 Deal volume Deal value US$(bn)

Source: Mergermarket

35 PMB top bidders by value I HY 2021 Domestic deals dominate The biggest PMB transaction of all in the APAC region The largest PMB deals during the first half reflect these during the first half was a domestic deal in China, which saw US$(m) trends. For example, in India, API Holdings agreed to pay Shanghai Pharmaceuticals raise US$2.2bn of new capital China 7,917 USA 2,410 US$855 million for a 92% stake in Thyrocare Technologies. through the sale of a 23% stake in the business to Yunnan India 2,042 The deal underlines the rapid digitalization of the PMB sector Baiyao Group and Shanghai Tandong Enterprise Consulting. Japan 1,080 in the APAC region—API is the owner of the healthcare start- South Korea 1,036 up business PharmEasy, while Thryocare runs a diagnostic In second place, the US firm KKR’s US$1.1bn acquisition laboratory chain; the deal is therefore India’s first-ever of China’s Quanyi Health Enterprise Management was the PMB top bidders by volume I HY 2021 acquisition of a publicly listed firm by a unicorn start-up. biggest PE transaction of the first half of the year. Quanyi was founded just five years ago, but now operates one of Deal count China’s largest chains of pharmacies, with 2,500 outlets China 70 across the country. Japan 17 India 16 USA 15 South Korea 8

36 Growing middle class to fuel more activity PMB top 10 announced deals, HY 2021 In fact, Chinese targets accounted for five of the ten largest PMB deals during the first half year as both domestic and Announced Bidder company Target company Target Vendor company Deal value international businesses sought to increase their exposure date dominant (US$m) to the Chinese healthcare market, or to capitalize on the country country’s growing reputation for life sciences innovation. 1 12-May-21 Yunnan Baiyao Group Co., Ltd.; Shanghai Shanghai Pharmaceuticals China 2,231 Tandong Enterprise Consulting Service Holding Co., Ltd. (23.08% Stake) Co., Ltd. Looking forward, there is good reason to expect further M&A 2 13-May-21 KKR & Co., Inc. Quanyi Health Enterprise China Co-Stone Asset 1,084 activity in PMB across the region during the second half of Management Co., Ltd. Management Co., Ltd. the year and beyond. In pharma and life sciences, R&D and 3 25-Jun-21 API Holdings Private Limited Thyrocare Technologies Limited India 855 innovation are prompting growing international interest in (92.16% Stake) licensing deals, partnerships, and M&A. But more broadly, the 4 08-Feb-21 MBK Partners Inc. Tsukui Holdings Corporation Japan 730 increased spending power of the fast-growing middle class population of the region represents a huge opportunity for 5 09-Feb-21 An investor group led by Sequoia Capital Beijing Yuanxin Technology China 466 healthcare and medical businesses in a range of fields. China and Tencent Group Co., Ltd. 6 29-Apr-21 Infratil Limited Pacific Radiology Group Limited New 416 (50.1% Stake) Zealand As noted, deal activity in the APAC region has yet to quite recapture the highs seen prior to the pandemic. But one 7 27-May-21 Consortium for EPS Holdings EPS Holdings, Inc. (78.64% Japan 410 Stake) factor in that—at least as far as deal values go—has been an 8 12-May-21 Canada Pension Plan Investment Board; Zydus Animal Health and India Cadila Healthcare Ltd. 397 absence of megadeals in the PMB sector this year. Elsewhere Multiples Alternate Asset Management Investments Ltd in the world, the sector has seen a sharp increase in such Private Ltd; RARE Enterprises Pvt Ltd activity, led by the US$34bn sale of US medical equipment 9 03-Feb-21 Hillhouse Capital Management, Ltd. InnoCare Pharma Limited China 357 manufacturer Medline to a consortium of PE funds. APAC may (12.77% Stake) not have much longer to wait. 10 03-Feb-21 Midea Group Co., Ltd. Beijing Wandong Medical China Jiangsu Yuyue Science and 356 Technology Co., Ltd. (24.09% Technology Co., Ltd.; Wu Stake) Guangming (Private Investor)

Source: Mergermarket 37 PMB league tables

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2020HY 20212019HY 2020CompanyCompany Name name ValueValue (US$m) (US$m) DealDeal count count 2020HY 20212019HY 2020CompanyCompany Name name ValueValue (US$m) (US$m) DealDeal count count 11 5 China International Capital Corporation 3,315 2 11 9 CEC Capital 1,348 9 22 23 CEC Capital 1,348 9 22 51 Daiwa Securities Group / DC Advisory 1,068 4 33 - Kotak Investment Banking 1,080 3 33 2 PwC 864 4 44 51 Daiwa Securities Group / DC Advisory 1,068 4 44 10 Sumitomo Mitsui Financial Group 629 4 55 3 Nomura Holdings 1,021 3 55 8 China Renaissance Holdings 316 4 66 8 PwC 864 4 66 1 Deloitte 79 4 77= - Citi 820 1 77 - Kotak Investment Banking 1,080 3 87= - SVB Leerink 820 1 88 6 Nomura Holdings 1,021 3 99 - Barclays 800 2 99 4 JPMorgan 795 3 1010 - 800 1 1010 7 China International Capital Corporation 3,315 2

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2020HY 20212019HY 2020CompanyCompany Name name ValueValue (US$m) (US$m) DealDeal count count 2020HY 20212019HY 2020CompanyCompany Name name ValueValue (US$m) (US$m) DealDeal count count 11 35 Shardul Amarchand Mangaldas & Co 2,048 7 11 56 Fangda Partners 1,142 8 22 57 Trilegal 1,868 6 22 10 Shardul Amarchand Mangaldas & Co 2,048 7 33 58 TMI Associates 1,349 5 33 61 Trilegal 1,868 6 44 13 AZB & Partners 1,319 4 44 11 Sidley Austin 370 6 55 76 Latham & Watkins 1,229 4 55 62 TMI Associates 1,349 5 66 50 Fangda Partners 1,142 8 66 7 AZB & Partners 1,319 4 77 - Weil Gotshal & Manges 1,101 2 77 78 Latham & Watkins 1,229 4 88 32 Anderson Mori & Tomotsune 1,015 4 88 18 Anderson Mori & Tomotsune 1,015 4 99 3 Ropes & Gray 920 2 99 19 Tian Yuan Law Firm 777 4 1010 31 Haiwen & Partners 846 3 1010 - Jingtian & Gongcheng 756 4 Source: Mergermarket Source: Mergermarket

The advisor league tables by value and volume have been run from 01/01/2021 to 30/06/2021 and exclude lapsed and withdrawn deals. 38 The tables are based on advice to an Asia Pacific-based bidder, target or vendor and cover the PMB sector. Source: Mergermarket Telecoms, media & technology TMT deal activity accelerates, as investors buy into future growth

The technology, media and telecoms (TMT) sector registered A safe haven TMT M&A activity, 434 M&A transactions in the APAC region during the first half The past year has also seen a swathe of TMT consolidation, 2018 - HY 2021 of 2021, a 31% increase on the same period a year ago. particularly in the media subsector, where scale of audience reach and breadth of content are increasingly seen as crucial points of competitive advantage. And in the telecoms space, 250 120 However, it is the rise in deal values, ongoing deregulation in a number of APAC markets has year-on-year, that really catches the eye: provided further impetus for M&A. 100 those first-half 2021 deals were worth, 200 in aggregate, US$157.3 billion, a 157% Indeed, where TMT businesses might once have been seen as high-risk from an M&A perspective—particularly in areas 80 increase on 2020’s equivalent total of innovation—the industry is increasingly regarded as a rare Deal value US$(bn) 150 of US$61.3bn. safe haven in this era of disruption. TMT businesses were

certainly well-placed to overcome the operational challenges 60 In fact, the TMT sector is one of the few examples of an of COVID-19. Deal volume Deal industry in the APAC region where the second-half M&A 100 recovery seen last year has actually accelerated during Trade buyers face stiff competition from PE investors in 40 2021. Bumper deal activity in that period—396 deals worth the TMT sector. PE firms announced 114 buyouts in the

US$115bn—has since been eclipsed by even larger deal sector during the first half of the year, a 27% increase on 50 volumes and values during the first six months of this year. the same period of 2020; this year’s deals were collectively 20 valued at US$66.8 billion, more than twice as much as in the The strength of TMT deal activity reflects the confluence of first half of last year. 0 0 a range of different drivers. Most obviously, the COVID-19 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 pandemic has underlined the imperative for digital 2018 2019 2020 2021 transformation in almost every industry, prompting huge Deal volume Deal value US$(bn) interest in those businesses able to provide the enabling technologies for change. Source: Mergermarket

40 Chinese and US buyers dominate TMT top bidders by value I HY 2021 Exit activity has also picked up sharply, with PE firms US$(m) reshuffling their portfolios to reflect the changing landscape. USA 53,152 There were 48 such transactions during the first half of the China 34,557 year, the same number as in the whole of 2020; moreover, Thailand 21,376 those exits produced proceeds of more than US$10bn, almost Hong Kong 8,073 four times as much as over the course of 2020. Indonesia 7,905

Chinese buyers continue to be particularly keen buyers of TMT top bidders by volume I HY 2021 TMT companies in the APAC region, accounting for 109 of the first-half transactions, almost a quarter of deal volumes. Deal count But interest comes from beyond the region too. US acquirers China 109 bought 76 APAC TMT businesses during the first half. USA 76 South Korea 54 Those American acquisitions have included a number of deals Japan 43 Australia 35 reached by US-listed SPACs listed with a promise to investors to identify and pursue TMT sector targets. Such deals included the largest TMT sector deal of all during the first half, with Nasdaq-listed Altimeter Growth announcing a merger with Singapore’s Grab Holdings in a transaction worth US$34.7bn. Grab’s high price tag reflects its market leadership in Southeast Asia, where it offers a ‘superapp’ aimed at helping businesses capitalize on the growth of online food delivery, on-demand mobility, and electronic transactions.

41 TMT top 10 announced deals, HY 2021 Consolidation The second biggest transaction in APAC’s TMT sector during the first half was a prime example of the trend towards Announced Bidder company Target company Target Vendor company Deal value consolidation. Gulf Energy Development, a Thai power provider date dominant (US$m) country that has already expanded into the natural gas sector, announced the US$15.9bn acquisition of Thailand’s largest 1 13-Apr-21 Altimeter Growth Corporation Grab Holdings Inc. Singapore 34,690 wireless carrier Advanced Info Service. 2 19-Apr-21 Gulf Energy Development Public Advanced Info Service Plc Thailand 15,871 Company Limited In the third largest transaction of 2021 to date, Ping An 3 30-Apr-21 Ping An Insurance (Group) Company of Peking University Founder Group Co Ltd China 8,177 Insurance announced it would buy a majority stake in the China, Ltd.; Zhuhai Huafa Group Co., Ltd. (73% Stake) Peking University Founder Group, for US$8.2bn. Founder 4 17-May-21 PT Aplikasi Karya Anak Bangsa Tokopedia Pt Indonesia 7,560 Group has been dogged by high debts and recently filed for bankruptcy, but has investments in a series of attractive 5 19-Apr-21 Gulf Energy Development Public Intouch Holdings Thailand 5,433 technology businesses offering Ping An potential to grow in Company Limited Limited (81.07% Stake) markets such as healthcare. 6 28-Feb-21 Consortium for China Youzan China Youzan Limited (85.1% Stake) Hong Kong 4,371

7 21-Jun-21 DiGi.Com Bhd Celcom Axiata Bhd Malaysia Axiata Group 4,291 Berhad 8 13-Apr-21 Morgan Stanley; Temasek Holdings Grab Holdings Inc. Singapore 4,040 Pte. Ltd.; T. Rowe Price Associates, Inc.; Fidelity International Group; Nuveen, LLC; Fidelity Management & Research Company; Permodalan Nasional Berhad; Sinar Mas Group PT; Sariaatmadja; PT Djarum; BlackRock Private Equity Partners; Janus Henderson Investors; Mubadala Capital 9 22-Mar-21 Beijing Byte Dance Technology Co., Ltd. Shanghai Moonton Technology Co. Ltd. China 4,000

10 09-Mar-21 A Consortium led by Macquarie Vocus Group Limited (100% Stake) Australia 3,610 Infrastructure and Real Assets

Source: Mergermarket 42 TMT league tables

Financial advisors by value Financial advisors by volume Financial advisors by value Financial advisors by volume HY 2021 HY 2020 Company name Value (US$m) Deal count HY 2021 HY 2020 Company name Value (US$m) Deal count 2020 2019 Company Name Value (US$m) Deal count 2020 2019 Company Name Value (US$m) Deal count 1 1 Morgan Stanley 50,287 9 1 18 Goldman Sachs & Co 15,834 11 1 1 2 11 JPMorgan 40,636 7 2 7 EY 495 10 2 2 3 24 UBS Investment Bank 35,982 5 3 2 Morgan Stanley 50,287 9 3 3 4 - Evercore 34,690 2 4 3 KPMG 651 9 4 4 5 22 Goldman Sachs & Co 15,834 11 5 20 Nomura Holdings 1,328 8 5 5 6 7 Citi 12,673 5 6 - Avendus Capital Pvt 1,291 8 6 6 7 9 Huatai Securities Co 11,474 4 7 16 JPMorgan 40,636 7 7 7 8 8 China International Capital Corporation 9,732 3 8 4 PwC 531 6 8 8 9 44 CITIC Securities Co 9,642 3 9 19 UBS Investment Bank 35,982 5 9 9 10= - Messis Capital 4,371 1 10 8 Citi 12,673 5 10 10 10= - Red Sun Capital 4,371 1

Legal advisors by value Legal advisors by volume

2020HY 20212019HY 2020CompanyCompany Name name ValueValue (US$m) (US$m) DealDeal count count 2020HY 20212019HY 2020CompanyCompany Name name ValueValue (US$m) (US$m) DealDeal count count 11 46 Sullivan & Cromwell 40,591 4 11 2 AZB & Partners 4,200 24 22 4 Skadden Arps Slate Meagher & Flom 39,398 6 22 8 Kim & Chang 9,602 19 33 48 Hughes Hubbard & Reed 38,730 2 33 1 Shardul Amarchand Mangaldas & Co 2,913 17 44 76 Ropes & Gray 37,722 2 44 14 Khaitan & Co 1,751 15 55 130 Cooley 35,066 5 55 23 Lee & Ko 4,783 14 66= - Travers Thorp Alberga 34,690 1 66 3 Fangda Partners 10,551 12 76= - WilmerHale 34,690 1 77 10 IndusLaw 1,980 12 88 2 Davis Polk & Wardwell 15,648 3 88 21 Cyril Amarchand Mangaldas 3,075 11 99 86 Allen & Overy 11,851 3 99 7 King & Wood Mallesons 2,324 11 1010 7 Fangda Partners 10,551 12 1010 28 Bae Kim & Lee 4,707 10 Source: Mergermarket Source: Mergermarket

The advisor league tables by value and volume have been run from 01/01/2021 to 30/06/2021 and exclude lapsed and withdrawn deals. 43 The tables are based on advice to an Asia Pacific-based bidder, target or vendor and cover the TMT sector. Source: Mergermarket About this report Produced in partnership with Mergermarket, an Acuris company Editors (Acuris Studios): Julian Frazer, Yining Su

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

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