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An Acuris report on global M&A activity

March 2018 Monthly M&A Insider

mergermarket.com Mergermarket Monthly M&A Insider March 2018 2 Contents

An Acuris report on global M&A activity

Contents

Global Overview 4 US & Canada 12 Central & South America 19 Europe 26 Middle East and Africa 33 Asia-Pacific (excluding Japan) 40 Japan 47

mergermarket.com Mergermarket Monthly M&A Insider March 2018 3 Welcome

Welcome from Merrill Corporation

The Monthly M&A Insider explores the global takeover offer for TDC Group, a Denmark- in value and 24.3% in volume compared to M&A market with respect to the numbers, based and listed telecom provider. This was the same period last year. Backed by an movements, and trends, as well as revealing followed by aerospace and defense company exceptionally strong performance in 2017, the top financial and legal advisors – globally General Dynamics acquiring US IT services these early indications, with large deals such and across six regions (North America, Central company CSRA Inc. for US$9.5bn. as Blackstone’s US$20bn buyout of a 55% Donald Davis and South America, Europe, Middle East and stake in Thomson Reuters’ Financial and Risk By region, North America achieved the largest Vice President, Advisor Sales Africa, Asia-Pacific, and Japan). Unit, suggest another boom year may be in market share by value (45.3%), with 311 deals Merrill Corporation store for PE. February’s M&A activity saw value totals worth US$80.1bn. Europe contributed 28.2% comparable to the same month last year, but to market share by value with 306 deals at Sincerely, from far fewer deals. Overall, there were 914 US$49.9bn. However, both were down on deals worth US$183.7bn – a 1.4% fall in value, deal value and volume when compared to but a 35.5% decline in volume year-on-year February 2017. (1,419 deals worth US$186.4bn). Meanwhile, But it was Asia Pacific (excluding Japan) global cross-border deals in February saw a that provided a shining example, posting 34% drop versus the same period in 2017, with Donald Davis the second-highest value on Mergermarket a total value of US$57.9bn. Domestic deals, Vice President, Advisor Sales record (since 2001), with 210 deals worth however, saw an 18.1% surge worth US$125.8bn. US$44.2bn. This allowed the region to account The most active sector globally was Energy, for 25% of global market share by value, and Mining & Utilities with 80 deals worth also represented an increase of 74.4% on US$29.5bn, accounting for 15.9% of market value compared to the US$25.4bn recorded share by value. This was closely followed by in February 2017. This strong performance the Consumer sector, which earned 14.9% was fueled by the purchase of 69.23% stake of global market share by value through 96 (US$4.2bn) in HNA Group Finance by a deals worth US$27.5bn. consortium that included HNA Group, Hainan Airlines Commercial Holdings, Haikou Meilan The two largest deals for the month occurred International Airport Company Limited, and in the fifth-ranked Technology, Media and HNA Technology Group. Telecommunications sector. Denmark’s DK Telekommunikation, backed by a consortium Private equity continues to post a strong comprised of pension funds PFA, PKA, and performance with 409 buyout deals worth ATP as well as Macquarie Infrastructure & Real US$68.5bn occurring through February this Assets Europe, led the way with a US$10.4bn year. This represents an increase of 68.3%

mergermarket.com Mergermarket Monthly M&A Insider March 2018 4 Global Overview

Part of the Acuris report on global M&A activity

Global Overview

mergermarket.com Mergermarket Monthly M&A Insider March 2018 5 Global Overview

Global Overview

Further information As we enter the third month of 2018, the It was a slow month across the majority of Dallas-based mortgage company Nationstar Get in touch or read more disparity between value and volume in regions. Out of all regional volume and value Mortgage Holdings. global dealmaking is, once again, the major statistics in February 2018, only deal value The overall drop in global deal activity was M&A story. February saw 914 deals valued in Asia (excluding Japan) and deal count in Kate Jenkinson most acutely illustrated in cross-border at US$183.7bn – a drop of only 1.4% in value Central and South America increased when transactions, which experienced a 34% but a fall of 35.5% in volume on February compared with February 2017. drop on the same time in the previous year, 2017’s tally (US$186.4bn, 1,419 deals). Philip Segal Energy, Mining & Utilities was the best with a deal value of US$57.9bn. Conversely, Regionally, North America contributed performing sector with 80 deals worth domestic deals saw an 18.1% value surge with the largest market share of value (45.3%) US$29.5bn, accounting for 16.1% of market US$125.8bn in deals. to the global tally, with 311 deals worth share by value. This was closely followed by the For the year to date, private equity activity has US$80.1bn. Contributing to this was the Consumer sector, bringing in 14.9% of market tallied 409 buyout deals, valued at US$68.5bn month’s second-largest deal, when US share through 96 deals worth US$27.4bn. In – an increase of 68.3% in value and 24.3% aerospace and defense company General January 2018, we noted that the consumer in volume. Exit activity has also risen in value Dynamics Corporation purchased CSRA industry bucked the general decline in 2017, when compared to the same period in 2017. Inc. for US$9.5bn. This merger creates and as we reach the third month of 2018 it So far, 2018 has seen US$51.2bn-worth of exits the second-largest government IT and appears to continue to grow in strength. (an increase of 8.47%) across 294 deals (down professional services player in the industry. There were two Consumer deals in the top 10 by 2.64%). Europe contributed 28.2% to global market deals for the month globally – the purchase of share by value with 306 deals at US$49.9bn. Blue Buffalo Pet Products by US food company However, both were down in terms of deal General Mills for US$7.9bn, and US grocery value and volume when compared to February giant Albertsons’ acquisition of the remaining 2017. The month’s largest transaction was 2,500 stores owned by US drugstore chain from Europe: the US$10.4bn takeover bid by Rite Aid that were not transferred to Walgreens Denmark’s DK Telekommunikation, a company in an earlier deal executed in September 2017. controlled by a consortium comprising Business Services placed third overall by three Danish pension funds and Australia’s value for the month thanks to 119 deals Macquarie Infrastructure and Real Assets, worth US$22bn, representing 12% of global for Denmark’s largest telecommunications market share by value. The sector witnessed company, TDC A/S. The telecoms firm rejected the fourth-largest deal by value globally this the first bid from the consortium earlier in the month, as US insurance firm WMIH Corp. month, and then announced its own takeover announced its US$6.4bn bid to merge with of Sweden’s Modern Times Group, which it later withdrew. mergermarket.com Mergermarket Monthly M&A Insider March 2018 6 Global Overview

Top Financial Advisor 914 deals Morgan Stanley valued at US$183.7bn, down 1.4% by value ranked first with 20 deals worth US$29.8bn, with 505 fewer deals compared to 1,419 deals down 54% in value with 3 fewer deals compared worth US$186.4bn in February 2017. to 23 deals worth US$65bn in February 2017.

Top Legal Advisor Top Sector Energy, Mining Debevoise & Plimpton ranked first with 5 deals worth US$17.6bn, up & Utilities 215% in value with 3 fewer deals compared to 2 deals worth US$5.6bn in February 2017. saw 80 deals valued at US$29.5bn, down 31.5% by value with 38 fewer deals compared to 118 deals worth US$40bn in February 2017.

Mergermarket.commergermarket.com Mergermarket Monthly M&A Insider March 2018 7 Global Overview

Global M&A trend Global Private Equity trend

4,000 20,000 600 3,500

18,000 3,500 3,000 US$ 500 1,199.9 16,000

3,000 US$ 827.2 US$ US$ 14,000 2,500 1,029.6 936.6 US$ 896.3 400 2,500 12,000 Number of deals Number of deals US$ 2,000 872.1 2,000 US$ 10,000 US$ US$ US$ 300 571.4 861.2 US$ 725.1 723.7 US$ US$ US$ Value (US$bn) Value Value (US$bn) Value 869.5 536.3 532.3 US$ 519.8 1,500 8,000 490.3 1,500 US$ 452.3 US$ US$ US$ 200 US$ 416.2 658 US$ 407.7 401.6 1,040.4 6,000 US$ US$ 1,000 794.9 794.3 1,000 US$ US$ US$ 965 US$ 740.2 298.8 294.9 4,000 US$ 561.6 100 500 500 2,000 US$ US$ 761.6 US$ US$ 750 US$ US$ 568.1 626.2 US$ 446.7 457.6 68.5 US$ 51.3 0 0 0 0 2013 2014 2015 2016 2017 YTD 2018 2013 2014 2015 2016 2017 YTD 2018

Q1 value Q3 value Volume Buyout value Buyout volume Q2 value Q4 value Exit value Exit volume

mergermarket.com Mergermarket Monthly M&A Insider March 2018 8 Global Overview

Regional Trends

Energy, Mining & Utilities Value: US$29.5bn Number of deals: 80 Market share: 16.1%

Consumer C&S America Asia-Pacific Value: US$27.5bn North America US$4.9bn (excluding Japan) Number of deals: 96 Market share: 14.9% US$80.1bn 38 deals US$44.2bn 2.8% 210 deals Business Services 311 deals Value: US$22bn 25% Number of deals: 119 45.3% Market share: 12%

Industrials & Chemicals Value: US$18bn Number of deals: 206 Market share: 9.8%

Telecommunications Japan Europe Value: US$15.1bn US$3.4bn Number of deals: 9 Middle East 36 deals US$49.9bn Market share: 8.2% and Africa 1.9% US$1.2bn 306 deals 13 deals 0.7% 28.2%

Domestic US$125.8bn +18.1% Cross-border US$57.9bn -34%

mergermarket.com Mergermarket Monthly M&A Insider March 2018 9 Global Overview

Top deals

Top 10 Announced Deals for February 2018

Value (US$m) Deal details Advisor details

Announcement Target Bidder Dominant sector Sell-side Buy-side date

10,480 12-Feb-18 TDC A/S DK Telekommunikation A/S TMT FA: LionTree Advisors; and Morgan Stanley FA: Barclays; and Nordea LA: Kromann Reumert LA: Baker McKenzie; Clifford Chance; and Plesner

9,597 12-Feb-18 CSRA Inc General Dynamics Corporation TMT FA: Evercore; and Macquarie Group FA: Stone Key Partners LA: Paul Weiss Rifkind Wharton & Garrison; Alston & Bird (Advising FA: LA: Jenner & Block Macquarie Group); and Debevoise & Plimpton (Advising FA: Evercore)

7,935 23-Feb-18 Blue Buffalo Pet Products Inc General Mills Inc Consumer FA: Centerview Partners; and JPMorgan FA: Goldman Sachs & Co LA: Simpson Thacher & Bartlett LA: Cleary Gottlieb Steen & Hamilton

6,373 13-Feb-18 Nationstar Mortgage Holdings WMIH Corp Business Services FA: Citi; Houlihan Lokey; Morgan Stanley; and PJT Partners FA: KKR Capital Markets; and Stifel/KBW Inc LA: Davis Polk & Wardell; Debevoise & Plimpton; and Cravath, Swaine & Moore LA: Akin Gump Strauss Hauer & Feld; and Simpson Thacher & Bartlett

5,537 20-Feb-18 Rite Aid Corporation Albertsons Companies Inc Consumer FA: Citi FA: Bank of America Merrill Lynch; Credit Suisse; and Goldman Sachs LA: Skadden Arps Slate Meagher & Flom; and White & Case (Advising FA: Citi) & Co LA: Schulte Roth & Zabel; Cahill Gordon & Reindel (Advising FA: Bank of America Merrill Lynch); Credit Suisse; and Goldman Sachs & Co

4,694 22-Feb-18 Gas Natural Fenosa CVC Capital Partners Limited; Energy, Mining & Utilities FA: - FA: - (20.07% stake) Corporacion Financiera Alba SA LA: - LA: Garrigues; and Perez – Llorca

4,589 15-Feb-18 Canadian Real Estate Investment Choice Properties Real Estate Real Estate FA: RBC Capital Markets FA: TD Securities Inc Trust (CREIT) Investment Trust LA: Blake, Cassels & Graydon LA: Tor ys

4,091 23-Feb-18 Vebnet (Holdings) plc; and Phoenix Group Holdings Limited Financial Services FA: Fenchurch Advisory Partners; and JPMorgan Cazenove FA: Bank of America Merrill Lynch; and HSBC Standard Life Assurance Limited LA: - LA: Skadden Arps Slate Meagher & Flom; and Hogan Lovells International (Advising Debt Provider: Royal Bank of Scotland Group)

3,266 16-Feb-18 Enel Generación Chile Enel Chile SA Energy, Mining & Utilities FA: - FA: Mediobanca 40.02% stake) LA: - LA: Carey y Cia; and Winston & Strawn

3,022 7-Feb-18 Saeta Yield SA TerraForm Power, Inc. Energy, Mining & Utilities FA: - FA: - LA: - LA: -

mergermarket.com Mergermarket Monthly M&A Insider March 2018 10 Global Overview

League tables

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

Ranking February 2018 February 2017 Ranking February 2018 February 2017

February February Company name Value Deal count Value % Value February February Company name Value Deal count Deal count Deal count 2018 2017 (USD m) (USD m) change 2018 2017 (USD m) change

1 1 Morgan Stanley 29,884 20 64,957 -54.0% 1 6 Morgan Stanley 29,884 20 23 -3

2 3 Goldman Sachs & Co 28,831 16 37,410 -22.9% 2 10 Citi 21,774 18 17 1

3 10 Citi 21,774 18 16,473 32.2% 3 3 Goldman Sachs & Co 28,831 16 31 -15

4 5 JPMorgan 20,519 15 25,384 -19.2% 4 14 Barclays 18,353 16 13 3

5 4 Barclays 18,353 16 26,030 -29.5% 5 8 Rothschild 3,913 16 21 -5

6 18 Evercore 17,769 15 4,983 256.6% 6 9 JPMorgan 20,519 15 19 -4

7 11 Credit Suisse 14,632 10 12,954 13.0% 7 23 Evercore 17,769 15 8 7

8 2 Bank of America Merrill Lynch 13,824 14 46,462 -70.2% 8 16 Bank of America Merrill Lynch 13,824 14 11 3

9 55 LionTree Advisors 13,268 3 869 1,426.8% 9 4 Deloitte 647 14 29 -15

10 94 Nordea 10,480 1 371 2,724.8% 10 5 PwC 41 14 28 -14

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

Ranking February 2018 February 2017 Ranking February 2018 February 2017

February February Company name Value Deal count Value % Value February February Company name Value Deal count Deal count Deal count 2018 2017 (USD m) (USD m) change 2018 2017 (USD m) change

1 26 Debevoise & Plimpton 17,643 5 5,600 215.1% 1 1 Latham & Watkins 9,217 24 38 -14

2 5 Skadden Arps Slate Meagher & Flom 15,800 8 26,353 -40.0% 2 8 Kirkland & Ellis 3,815 19 25 -6

3 7 Simpson Thacher & Bartlett 15,683 6 22,780 -31.2% 3 6 Baker McKenzie 13,764 12 27 -15

4 29 Baker McKenzie 13,764 12 4,909 180.4% 4 5 Jones Day 3,539 12 28 -16

5 421 Kromann Reumert 13,101 4 0 - 5 10 Weil Gotshal & Manges 8,933 10 23 -13

6 3 Davis Polk & Wardwell 12,481 8 28,962 -56.9% 6 3 Goodwin Procter 2,840 10 35 -25

7 6 Clifford Chance 12,153 4 24,967 -51.3% 7 24 Squire Patton Boggs 240 10 14 -4

8 13 Paul Weiss Rifkind Wharton & Garrison 10,830 9 15,305 -29.2% 8 27 Paul Weiss Rifkind Wharton & Garrison 10,830 9 13 -4

9 374 Plesner 10,497 5 10 104,870.0% 9 17 Allen & Overy 2,645 9 17 -8

10 1 Cleary Gottlieb Steen & Hamilton 10,369 3 38,059 -72.8% 10 130 Wilson Sonsini Goodrich & Rosati 2,278 9 4 5

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Part of the Acuris report on global M&A activity

US & Canada

mergermarket.com Mergermarket Monthly M&A Insider March 2018 13 US & Canada

US & Canada

Further information After an unspectacular if solid 2017, the M&A Dallas-based Nationstar Mortgage Holdings, of 34% in volume and 180% in value versus Get in touch or read more market in the US and Canada continues the largest non-bank service provider in the US. the same period in 2017. Exit activity is also to flounder – value and volume both fell improved versus the same period last year It comes as little surprise that Consumer ranked when compared to the same period in 2017. with 151 exits worth US$32.2bn – an increase Kate Jenkinson second among sectors as the steady growth in February saw 308 deals valued at US$77.7bn, of 3.4% and 8.4% respectively. the US economy continues to drive consumer representing a drop of 12.7% in value and spending. In 2017, Consumer M&A reached While dealmaking has been somewhat muted 38.4% in volume compared to the same Aram Hovsepian a total value of US$311.6bn, a 109% increase at the start of 2018, business-friendly reforms month in 2017 (US$89bn, 500 deals). In value from US$149.1bn in 2017. Dealmakers anticipate by the Trump regime could spur the market terms, US deals made up 87.3% of the region’s this deal confidence to continue in the sector back into action. In addition to December’s market share, with 281 deals worth U$67.8bn. through 2018 as the economy improves further, corporate tax cuts, a bipartisan effort to In Canada, there were 27 deals valued at and indeed three of the top 10 deals of the update the 2010 Dodd-Frank Wall Street US$9.9bn, a decline in volume but a rise in month were from this sector. The top deal in Reform and Consumer Protection Act to raise value year-on-year (YoY). the Consumer sector for February saw US food the bank oversight threshold to US$250bn Four of the top five deals this month came company General Mills acquire Blue Buffalo Pet could boost deal confidence in the Financial out of the US Business Services or Consumer Products for US$7.9bn. Meanwhile, US grocery Services sector. sectors. The month’s top deal for the North chain Albertsons acquired drugstore chain Rite American region was in Business Services: Aid for US$5.5bn, and UK-based Euro Garages US aerospace and defense company General acquired US convenience store business Dynamics’s US$9.5bn purchase of IT services Kroger Co for US$2.1bn. company CSRA Inc. This transaction boosts Canada’s sole top-five deal was the US$4.5bn General Dynamics to the second-largest purchase of Canadian Real Estate Investment government IT and professional services player Trust (CREIT) by Choice Properties Real Estate in the industry (just behind Virginia-based Insurance Trust. engineering firm Leidos), with US$9.9bn in revenue. Domestic deals in the US and Canada enjoyed a 21.6% increase YoY with US$62.8bn worth Indeed, Business Services was this month’s top of transactions. Inbound and outbound deals sector overall with 47 deals worth US$19.3bn – took a dive, however, down 51.8% and 37.8% a 161.8% rise in value on the same period in with US$13.5bn and US$13.8bn worth of 2017, but through 26 fewer deals. There were deals respectively. two Business Services deals in the region’s top five this month – the aforementioned General Following a banner year in 2017, private equity Dynamics deal as well as the announcement continued its positive streak with 173 buyouts of US insurance firm WMIH’s US$6.4bn bid for worth US$40.5bn in 2018 so far – an increase mergermarket.com Mergermarket Monthly M&A Insider March 2018 14 US & Canada

Top Financial Advisor 308 deals Goldman Sachs & Co valued at US$77.7bn, down 12.7% by value ranked first with 16 deals worth US$28.8bn, down with 192 fewer deals compared to 500 deals 10.6% in value with 6 fewer deals compared to worth US$89bn in February 2017. 22 deals worth US$32.2bn in February 2017.

Top Legal Advisor Top Sector Debevoise & Plimpton Business Services ranked first with 5 deals worth US$17.6bn, up saw 47 deals valued at US$19.3bn, up 161.8% 215.1% in value with 3 more deals compared to by value with 26 fewer deals compared to 2 deals worth US$5.6bn in February 2017. 73 deals worth US$7.4bn in February 2017.

Mergermarket.commergermarket.com Mergermarket Monthly M&A Insider March 2018 15 US & Canada

US & Canada M&A trend US & Canada Private Equity trend

2,000 7,000 300 1,400

1,800 6,000 1,200 250 1,600 US$ 526

5,000 1,400 1,000

US$ 200 US$ 513.4 375.1 1,200 US$ Number of deals 393.8 4,000 Number of deals US$ 800 472.3 1,000 US$ 150 296 US$ US$ Value (US$bn) Value Value (US$bn) Value 3,000 266.4 US$ 456.3 US$ US$ US$ 600 800 249.9 US$ 438.3 311.4 251.7 246.1

US$ 100 203.7 600 US$ 2,000 US$ US$ 512.9 US$ US$ 171 175.8 400 338.5 US$ 162.5 US$ 321 US$ 157.8 US$ US$ 145.2 400 415 341.8

US$ 1,000 50 193.7 200 200 US$ US$ 367.3 US$ 350.3 US$ US$ US$ US$ US$ 270.1 240.6 40.5 196.6 235.2 32.2 0 0 0 0 2013 2014 2015 2016 2017 YTD 2018 2013 2014 2015 2016 2017 YTD 2018

Q1 value Q3 value Volume Buyout value Buyout volume Q2 value Q4 value Exit value Exit volume

mergermarket.com Mergermarket Monthly M&A Insider March 2018 16 US & Canada

Regional Trends

Business Services Value: US$19.3bn Number of deals: 47 Market share: 24.8%

Consumer Value: US$16.8bn Number of deals: 23 Market share: 21.7%

US Canada Energy, Mining & Utilities Value: US$12.1bn US$67.8bn US$9.9bn Number of deals: 35 281 deals 27 deals Market share: 15.5% Industrials & Chemicals 87.3% 12.7% Value: US$6.5bn Number of deals: 59 Market share: 8.4%

Technology Value: US$5.8bn Number of deals: 56 Market share: 7.5%

Domestic US$62.9bn +21.6% Inbound US$13.6bn -51.8% Outbound US$13.8bn -37.8%

mergermarket.com Mergermarket Monthly M&A Insider March 2018 17 US & Canada

Top deals

Top 10 Announced Deals for February 2018

Value (US$m) Deal details Advisor details

Announcement Target Bidder Dominant sector Sell-side Buy-side date

9,597 12-Feb-18 CSRA Inc General Dynamics Business Services FA: Evercore Inc; and Macquarie Group FA: Stone Key Partners Corporation LA: Paul Weiss Rifkind Wharton & Garrison (Advising FA: Alston & Bird); LA: Jenner & Block and Debevoise & Plimpton

7,935 23-Feb-18 Blue Buffalo Pet Products Inc General Mills Inc Consumer FA: Centerview Partners; and JPMorgan FA: Goldman Sachs & Co LA: Simpson Thacher & Bartlett LA: Cleary Gottlieb Steen & Hamilton

6,373 13-Feb-18 Nationstar Mortgage Holdings Inc WMIH Corp Business Services FA: Citi; Houlihan Lokey; Morgan Stanley; and PJT Partners FA: KKR Capital Markets; and Stifel/KBW LA: Cravath Swaine & Moore; Davis Polk & Wardwell; and Debevoise LA: Akin Gump Strauss Hauer & Feld; and Simpson Thacher & Bartlett & Plimpton

5,537 20-Feb-18 Rite Aid Corporation Albertsons Companies Inc Consumer FA: Citi FA: Bank of America Merrill Lynch; Credit Suisse; and Goldman Sachs LA: Skadden Arps Slate Meagher & Flom (Advising FA: White & Case) & Co LA: Schulte Roth & Zabel (Advising FA: Cahill Gordon & Reindel)

4,589 15-Feb-18 Canadian Real Estate Investment Choice Properties Real Real Estate FA: RBC Capital Markets FA: TD Securities Trust (CREIT) Estate Investment Trust LA: Blake, Cassels & Graydon LA: Tor ys

2,884 15-Feb-18 A. Schulman Inc LyondellBasell Industries NV Industrials & Chemicals FA: Citi FA: Dyal Co; and JPMorgan LA: Skadden Arps Slate Meagher & Flom LA: Shearman & Sterling

2,150 5-Feb-18 The Kroger Co (Convenience store Euro Garages Limited Consumer FA: Goldman Sachs & Co FA: Bank of America Merrill Lynch; Barclays; and Morgan Stanley business) LA: Weil Gotshal & Manges LA: Allen & Overy

1,900 15-Feb-18 Flatiron Health Inc (87.4% stake) Roche Holding AG Technology FA: Allen & Company FA: - LA: Wilson Sonsini Goodrich & Rosati LA: Davis Polk & Wardwell

1,655 5-Feb-18 8point3 Energy Partners LP Capital Dynamics AG Energy, Mining & Utilities FA: Bank of America Merrill Lynch; Evercore; and Goldman Sachs & Co FA: - LA: Baker Botts; Richards Layton & Finger; and Skadden Arps Slate LA: Amis Patel & Brewer Meagher & Flom (Advising FA: Sullivan & Cromwell)

1,375 7-Feb-18 NRG Yield Inc (46% stake); and Global Infrastructure Energy, Mining & Utilities FA: Barclays; Citi; Goldman Sachs & Co; JPMorgan; and Morgan Stanley FA: - NRG Energy Inc (Renewable energy Partners LA: Jones Day; and Sullivan & Cromwell (Advising FA: White & Case) LA: Amis Patel & Brewer development and operations platform)

mergermarket.com Mergermarket Monthly M&A Insider March 2018 18 US & Canada

League tables

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

Ranking February 2018 February 2017 Ranking February 2018 February 2017

February February Company name Value Deal count Value % Value February February Company name Value Deal count Deal count Deal count 2018 2017 (USD m) (USD m) change 2018 2017 (USD m) change

1 2 Goldman Sachs & Co 28,831 16 32,237 -10.6% 1 1 Goldman Sachs & Co 28,831 16 22 -6

2 10 Citi 19,782 12 11,046 79.1% 2 14 Evercore 17,369 13 8 5

3 14 Evercore 17,369 13 4,983 248.6% 3 3 Morgan Stanley 13,681 13 18 -5

4 5 JPMorgan 16,019 11 24,015 -33.3% 4 7 Citi 19,782 12 10 2

5 1 Morgan Stanley 13,681 13 56,356 -75.7% 5 6 Barclays 7,256 12 11 1

6 9 Credit Suisse 10,248 7 11,447 -10.5% 6 4 JPMorgan 16,019 11 16 -5

7 24 Macquarie Group 9,827 3 2,039 382.0% 7 8 RBC Capital Markets 9,105 11 10 1

8 - Stone Key Partners 9,597 1 - - 8 46 Jefferies 1,840 9 2 7

9 11 RBC Capital Markets 9,105 11 8,853 2.8% 9 12 Bank of America Merrill Lynch 8,864 8 8 0

10 3 Bank of America Merrill Lynch 8,864 8 26,404 -66.4% 10 13 Credit Suisse 10,248 7 8 -1

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

Ranking February 2018 February 2017 Ranking February 2018 February 2017

February February Company name Value Deal count Value % Value February February Company name Value Deal count Deal count Deal count 2018 2017 (USD m) (USD m) change 2018 2017 (USD m) change

1 23 Debevoise & Plimpton 17,643 5 5,600 215.1% 1 2 Latham & Watkins 9,169 19 31 -12

2 6 Simpson Thacher & Bartlett 15,683 5 22,580 -30.5% 2 3 Kirkland & Ellis 3,815 19 25 -6

3 11 Paul Weiss Rifkind Wharton & Garrison 10,630 8 15,305 -30.5% 3 4 Jones Day 3,539 11 25 -14

4 3 Davis Polk & Wardwell 10,426 6 27,744 -62.4% 4 6 Weil Gotshal & Manges 8,686 9 20 -11

5= 82 Alston & Bird 9,597 1 659 1,356.3% 5 1 Goodwin Procter 2,840 9 32 -23

5= 158 Jenner & Block 9,597 1 143 6,611.2% 6 75 Wilson Sonsini Goodrich & Rosati 2,278 9 4 5

7 4 Skadden Arps Slate Meagher & Flom 9,267 6 26,353 -64.8% 7 13 Paul Weiss Rifkind Wharton & Garrison 10,630 8 13 -5

8 14 Latham & Watkins 9,169 19 9,866 -7.1% 8 14 Sullivan & Cromwell 5,267 8 12 -4

9 15 Weil Gotshal & Manges 8,686 9 9,633 -9.8% 9 12 Morgan Lewis & Bockius 659 8 14 -6

10 1 Cleary Gottlieb Steen & Hamilton 7,935 1 37,513 -78.8% 10 18 Cooley 1,414 7 11 -4

mergermarket.com Mergermarket Monthly M&A Insider March 2018 19 C&S America

Part of the Acuris report on global M&A activity

Central & South America

mergermarket.com Mergermarket Monthly M&A Insider March 2018 20 C&S America

C&S America

Further information After a strong finish to 2017, Central and Services to the second-ranked sector for the When compared to February 2017, domestic, Get in touch or read more South American M&A activity saw a decline in period, also aided by the US$1.7bn purchase inbound, and outbound deal values all dropped. value during February 2018 compared to the of Wells Fargo and Company’s auto finance Domestic M&A brought in US$3.7m in deals same period in 2017. With 38 deals valued at business in Puerto Rico by Banco Popular de (down 23%) while inbound deals brought in Kate Jenkinson US$4.9bn, the region experienced a 28.2% Puerto Rico. US$1.3m (down 65.8% on the previous year) year-on-year drop in value despite a very slight and zero outbound deals. Chile was the region’s top-performing country increase in volume (37 deals in February 2017). Jonathan DelCegno in February, witnessing only two deals (one with Political uncertainty is expected to increase undisclosed value) with a value of US$3.3bn market volatility and reduce deal activity in and contributing 65.8% to market share value. 2018 as voters prepare to go to the polls The one disclosed deal was the region’s largest for presidential elections in Brazil, Mexico, and came from in the Energy, Mining & Utilities and Columbia, and businesses hold fire on (EMU) sector, where Enel Chile purchased transactions. Brazil – usually the strongest shares in its subsidiary, and largest electricity performer in the region, and currently enjoying generator and provider in the country, Enel low interest rates and low inflation – contributed Generacion Chile, for US$3.2bn. only 11.6% to market share in value this month. EMU was the top-ranked sector for the month, The country made 20 deals worth US$577m – with six deals valued at US$3.8bn, up 1,038% an increase in volume, but a decrease in value by value with one fewer deal, compared to on the same period in 2017. Four of the top seven deals worth US$336m in February 2017. 10 deals involved Brazilian targets, the largest Alongside the Enel Chile deal, there were two of which was the fifth-ranked Kinross Brasil other EMU transactions in the top five for the Mineracao’s US$254m purchase of Gerdau SA’s month: GE Energy Financial Services’ US$275m Barra dos Coqueiros hydroelectric power plant. bid for a 24.99% stake in Argentina’s YFP Argentina was the only country in the region Energia Electrica SA was ranked fourth, and to enjoy an increase in both deal value and the aforementioned Kinross Brasil Mineracao’s volume, with six deals worth US$715.5m, hydroelectric power plant acquisition. representing 14.5% of regional market share by Private equity activity is off to a slow start in value for the month. Two of the top five deals the region, with some nine buyouts valued at for the region involved Argentinian targets. US$278.2m – a 9.6% decline in value on the The largest of which was Zurich Insurance same period in 2017 when there were seven Group’s US$409m purchase of QBE Insurance PE deals year-to-date in the region worth a Group Limited’s Latin America operations in total of US$308m. Argentina. This deal helped to boost Financial mergermarket.com Mergermarket Monthly M&A Insider March 2018 21 C&S America

38 deals Top Financial Advisor Mediobanca SpA valued at US$4.9bn, down 28.2% by value with 1 more deal compared to 37 deals ranked first with 1 deal worth US$3.2bn, worth US$6.9bn in February 2017. compared to 0 deals in February 2017.

Top Legal Advisor Top Sector Energy, Mining Carey y Cia and & Utilities Winston & Strawn each ranked first with 1 deal worth US$3.2bn. saw 6 deals valued at US$3.8bn, up 1,038% by value with 1 fewer deal compared to 7 deals worth US$336m in February 2017.

Mergermarket.commergermarket.com Mergermarket Monthly M&A Insider March 2018 22 C&S America

C&S America M&A trend C&S America Private Equity trend

140 700 12 70

120 600 US$ 60 28.5 10

100 500 50

8

US$ Number of deals 38 Number of deals 80 400 40 US$ US$ 25.4 41.8 US$ 6 20.4 US$ US$ Value (US$bn) Value 60 29.7 300 (US$bn) Value 10.5 30

US$ US$ US$ US$ 22.4 8.6 8.5 8.3 US$ 4 US$ 39.9 US$ US$ 7.5 40 30.1 24.9 200 20 US$ US$ 6.1 24.2 US$ US$ 5.3 21.4 US$ 4.4 US$ US$ 2 20 US$ 11.2 14.4 100 10 12.2 US$ US$ US$ 24.8 US$ US$ US$ 1.9 US$ US$ 17.8 US$ 14.9 US$ 1.3 0.3 11.2 14.1 1.1 0 5 0 0 0 2013 2014 2015 2016 2017 YTD 2018 2013 2014 2015 2016 2017 YTD 2018

Q1 value Q3 value Volume Buyout value Buyout volume Q2 value Q4 value Exit value Exit volume

mergermarket.com Mergermarket Monthly M&A Insider March 2018 23 C&S America

Regional Trends

Energy, Mining & Utilities Value: US$3.8bn Number of deals: 6 Market share: 77.1%

Financial Services Value: US$409m Colombia Brazil Number of deals: 1 Chile Market share: 8.2% US$3.3bn US$105m US$577m 1 deal 20 deals Telecommunications Value: US$227m 2 deals 2.1% 11.6% Number of deals: 1 65.8% Market share: 4.6% Transportation Value: US$188.9m Number of deals: 3 Market share: 3.8%

Business Services Peru Value: US$113.1m Argentina US$38m Number of deals: 5 3 deals Market share: 2.3% US$715.5m 0.8% 6 deals Domestic US$3.7bn -23% 14.4% Inbound US$1.3bn -65.8% Outbound - -

mergermarket.com Mergermarket Monthly M&A Insider March 2018 24 C&S America

Top deals

Top 10 Announced Deals for February 2018

Value (US$m) Deal details Advisor details

Announcement Target Bidder Dominant sector Sell-side Buy-side date

3,266 16-Feb-18 Enel Generacion Chile Enel Chile SA Energy, Mining & Utilities FA: - FA: Mediobanca SpA LA: - LA: Winston & Strawn

1,700 14-Feb-18 Wells Fargo & Company (Auto Banco Popular de Puerto Rico Financial Services FA: - FA: - finance business in Puerto Rico) LA: - LA: -

409 25-Feb-18 QBE Insurance Group Limited Zurich Insurance Group Financial Services FA: - FA: JPMorgan (Latin America operations) LA: - LA: -

275 7-Feb-18 YPF Energia Electrica SA (24.99% GE Energy Financial Services Energy, Mining & Utilities FA: Lazard FA: - stake) LA: - LA: -

254 14-Feb-18 Gerdau SA (Barra dos Coqueiros Kinross Brasil Mineracao Energy, Mining & Utilities FA: Credit Suisse FA: - hydroelectric power plant) LA: Lino, Beraldi, Belluzzo e Caminati Advogados LA: -

227 12-Feb-18 Cabletica (80% stake) Liberty Latin America Telecommunications FA: LionTree Advisors FA: - LA: - LA: -

189 1-Feb-18 Concessionaria de Rodovias EcoRodovias Infraestrutura Transportation FA: Banco BTG Pactual FA: - Minas Gerais Goias SA e Logistica LA: Cescon, Barrieu, Flesch & Barreto Advogados LA: Machado Meyer Sendacz e Opice; and Demarest

105 7-Feb-18 RAPPI S.A.S. (Undisclosed Delivery Hero Internet, eCommerce FA: - FA: - minority stake) LA: - LA: Morrison & Foerster

104 7-Feb-18 Faculdade da Serra Gaucha Universidade Cruzeiro do Sul Services (other) FA: Banco BTG Pactual FA: Banco Itau BBA LA: Lobo de Rizzo Advogados LA: Machado Meyer Sendacz e Opice

90 26-Feb-18 Guide Investimento SA Corretora Fosun International Financial Services FA: - FA: - de Valores (70% stake) LA: - LA: -

mergermarket.com Mergermarket Monthly M&A Insider March 2018 25 C&S America

League tables

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

Ranking February 2018 February 2017 Ranking February 2018 February 2017

February February Company name Value Deal count Value % Value February February Company name Value Deal count Deal count Deal count 2018 2017 (USD m) (USD m) change 2018 2017 (USD m) change

1 - Mediobanca SpA 3,266 1 - - 1 3 Banco BTG Pactual SA 293 3 2 1

2 - JPMorgan 409 1 - - 2= - Mediobanca SpA 3,266 1 0 1

3 3 Banco BTG Pactual SA 293 3 1,648 -82.2% 2= - JPMorgan 409 1 0 1

4 - Lazard 275 1 - - 2= - Lazard 275 1 0 1

5= - Bank of America Merrill Lynch 254 1 - - 2= - Bank of America Merrill Lynch 254 1 0 1

5= 6 Credit Suisse 254 1 1,089 -76.7% 2= 6 Credit Suisse 254 1 1 0

7 - LionTree Advisors LLC 227 1 - - 2= - LionTree Advisors LLC 227 1 0 1

8 14 Banco Itau BBA SA 104 1 14 642.9% 2= 14 Banco Itau BBA SA 104 1 2 -1

9 17 Evercore Inc. 0 1 - - 2= - Cornerstone Financial Advisors LLC 0 1 0 1

10 - EY 0 1 - - 2= 17 Evercore 0 1 0 1

Top 10 Legal Advisors - Value Top 11 Legal Advisors - Volume

Ranking February 2018 February 2017 Ranking February 2018 February 2017

February February Company name Value Deal count Value % Value February February Company name Value Deal count Deal count Deal count 2018 2017 (USD m) (USD m) change 2018 2017 (USD m) change

1= 1= Carey y Cia 3,266 1 8 40,725.0% 1 1 Machado Meyer Sendacz e Opice 293 2 3 -1

1= 1= Winston & Strawn LLP 3,266 1 - - 2= 2= Carey y Cia 3,266 1 1 0

3 1= Machado Meyer Sendacz e Opice 293 2 298 -1.7% 2= 2= Winston & Strawn LLP 3,266 1 0 1

4 1= Shearman & Sterling LLP 275 1 - - 2= 2= Shearman & Sterling LLP 275 1 0 1

5= 5= Dechert LLP 254 1 - - 2= 2= Dechert LLP 254 1 0 1

5= 5= Lino, Beraldi, Belluzzo e Caminati Advogados 254 1 - - 2= 6= Lino, Beraldi, Belluzzo e Caminati Advogados 254 1 0 1

5= 5= Pinheiro Neto Advogados 254 1 51 398.0% 2= 6= Pinheiro Neto Advogados 254 1 2 -1

8= 5= Cescon, Barrieu, Flesch & Barreto Advogados 189 1 - - 2= 6= Cescon, Barrieu, Flesch & Barreto Advogados 189 1 0 1

8= 9 Demarest 189 1 - - 2= 6= Demarest 189 1 0 1

10 10= Morrison & Foerster LLP 105 1 - - 2= 10= Morrison & Foerster LLP 105 1 0 1

2= 10= Lobo de Rizzo Advogados 104 1 4 -3 mergermarket.com Mergermarket Monthly M&A Insider March 2018 26 Europe

Part of the Acuris report on global M&A activity

Europe

mergermarket.com Mergermarket Monthly M&A Insider March 2018 27 Europe

Europe

Further information With a steady flow of high-profile deals, deal value, the UK (75 deals), as usual, also saw that Chinese dealmakers are still willing to look Get in touch or read more the accumulated deal values in February the highest number of deals in Europe, raking in towards Europe, despite restrictions imposed (US$49.9bn) remained similar to that recorded more than double the deals in Italy (30 deals), by Beijing in late 2016. in January (US$50.7bn). However, with 306 which came second. Frederik Pedersen Private equity activity continues to be strong deals logged, February saw 182 fewer deals The largest deal in February was that of ATP in the region, with ample financing and than January, which recorded 488 deals. Groupe, Macquarie Infrastructure and Real dry-powder ready to deploy. The number The number of deals announced represents Assets, PFA and PKA launching a public tender of buyouts in Europe reached 69 deals in the lowest number of European deals recorded offer to acquire the Danish Telecommunication February with a combined deal value of in a month since September 2009 (296 deals, giant TDC AS. The tender offer priced each US$10.3bn, a decline of 39 deals and US$1.5bn US$28.8bn). The European M&A landscape share of TDC at US$8.28, equivalent to a deal from the same period last year, while there shows signs of dealmakers treading water value of US$10.48bn, resulting in the second was an increase in accumulated deal value as political uncertainty continues to disrupt largest acquisition in Denmark on Mergermarket from January when only US$2.4bn changed activity. However, time will tell if the new political record (since 2001), only behind the 2005 hands across 92 deals. The largest buyout in outlook in Italy will cause longer-term anxiety acquisition of TDC, a deal valued at US$13.9bn. February, the second largest deal of the month, and further upset to the Eurozone. was that of CVC and Corporacion Financiera A week before the offer was launched, TDC had Alba, who acquired a 20.07% stake in Gas The newly formed coalition government in agreed to acquire the Nordic Entertainment Natural Fenosa for US$4.7bn. Germany might prove beneficial for Europe, and Studio businesses from Modern Times indicating to the world that the political Group MTG, however, subsequent to the The recent Italian election has seen populist situation is once again stable. Germany has tender offer being launched, TDC’s board of parties seizing on the public’s sense of had a slow start to the year, only recording directors withdrew their recommendation of frustration and is sure to cause worry among 105 deals worth US$1.3bn so far. The 28 the deal. many dealmakers around Europe. While no deals worth US$143m that were recorded in party gained enough to form a majority ruling The lion’s share of the February deals in February represented a significant decrease government, the effect of a new government Europe, by both value and count, came from December values, which saw US$5.7bn might still be felt in the M&A market. The added from intra-European M&A, which stood at spread out over 80 deals. political uncertainty, coupled with the stumbling US$36.6bn across 249 deals, resulting in only macroeconomic situation, might prove difficult Over 60% of the total deal value in February 18.6% of deals in the region being conducted for Italy, which saw substantial growth in its M&A targeted only three countries, with the UK by foreign dealmakers (57 deals, US$13.3bn). market last year. accounting for 23.8% of the total European The vast majority of the foreign investment deal value following US$11.9bn being invested into Europe by value (96.5%) came from the into the country. The UK was followed by US and China, which saw US$11.4bn and Spain and Denmark, which saw US$10.7bn and US$1.5bn respectively. This gives an indication US$10.6bn invested respectively. As with the mergermarket.com Mergermarket Monthly M&A Insider March 2018 28 Europe

Top Financial Advisor 306 deals Barclays valued at US$49.9bn, down 7.5% by value ranked first with 7 deals worth US$16.2bn, with 182 fewer deals compared to 488 deals with 4 more deals compared to 3 deals worth US$53.9bn in February 2017. worth US$1.2bn in February 2017.

Top Legal Advisor Top Sector Telecommunications Kromann Reumert ranked first with 4 deals worth US$13.1bn, compared saw 3 deals valued at US$12.8bn, up 10.6x by to 4 undisclosed deals in February 2017. value with 1 fewer deal compared to 4 deals worth US$1.2bn in February 2017.

Mergermarket.commergermarket.com Mergermarket Monthly M&A Insider March 2018 29 Europe

Europe M&A trend Europe Private Equity trend

1,000 8,000 200 1,600

900 180 7,000 1,400

US$ US$ 800 234.4 213.8 160 6,000 US$ 1,200 292.2 700 US$ 140 272.3 5,000 1,000 600 US$ US$ Number of deals 186.6 Number of deals US$ 211.3 120 158 US$ 500 4,000 179.6 100 800 US$ US$ 177.5 US$ Value (US$bn) Value Value (US$bn) Value 180.9 US$ 177 400 158.6 US$ 3,000 80 160.5 US$ US$ US$ 148.5 600 301 143.6 US$ US$ US$ 137 166.5 310.6 US$ 300 126.4 US$ 60 262 US$ 198.4 2,000 US$ US$ US$ 400 201.2 96.7 200 91.2 40

1,000 100 200 US$ US$ US$ US$ 210.8 20 US$ 178.8 163.9 174.2 136.3 US$ 100.7 US$ US$ 0 0 12.8 9.1 0 0 2013 2014 2015 2016 2017 YTD 2018 2013 2014 2015 2016 2017 YTD 2018

Q1 value Q3 value Volume Buyout value Buyout volume Q2 value Q4 value Exit value Exit volume

mergermarket.com Mergermarket Monthly M&A Insider March 2018 30 Europe

Regional Trends

Telecommunications Value: US$12.8bn Number of deals: 3 Market share: 25.7%

Italy Energy, Mining & Utilities Value: US$10bn United Kingdom US$4.3bn Denmark Number of deals: 18 Market share: 20% US$11.9bn 30 deals US$10.6bn 8.6% 14 deals Financial Services 75 deals Value: US$6bn 21.2% Number of deals: 20 23.8% Market share: 12%

Consumer Value: US$5.3bn Number of deals: 45 Market share: 10.6%

Media Spain Value: US$4.3bn Russia Number of deals: 9 US$3.6bn US$10.7bn Market share: 8.5% 12 deals 19 deals 7.2% 21.4% Domestic US$36.6bn +3.2% Inbound US$13.3bn -28% Outbound US$12.6bn -51.3%

mergermarket.com Mergermarket Monthly M&A Insider March 2018 31 Europe

Top deals

Top 10 Announced Deals for February 2018

Value (US$m) Deal details Advisor details

Announcement Target Bidder Dominant sector Sell-side Buy-side date

10,480 12-Feb-18 TDC AS (Denmark) DK Telekommunikation AS Telecommunications FA: LionTree Advisors; and Morgan Stanley FA: Barclays; and Nordea LA: Kromann Reumert LA: Baker McKenzie; Clifford Chance; and Plesner

4,694 22-Feb-18 Gas Natural Fenosa (20.07% stake) (Spain) CVC Capital Partners Limited; and Energy, Mining & Utilities FA: - FA: - Corporacion Financiera Alba SA LA: - LA: Garrigues; and Perez-Llorca

4,091 23-Feb-18 Vebnet (Holdings) plc; and Standard Life Phoenix Group Holdings Limited Financial Services FA: Fenchurch Advisory Partners; and JPMorgan Cazenove FA: Bank of America Merrill Lynch; and HSBC Assurance Limited (UK) LA: - LA: Skadden Arps Slate Meagher & Flom

3,022 7-Feb-18 Saeta Yield SA (Spain) TerraForm Power Inc Energy, Mining & Utilities FA: - FA: - LA: - LA: -

2,919 11-Feb-18 Nuovo Trasporto Viaggiatori SpA (Italy) Global Infrastructure Partners Transportation FA: Barclays; Goldman Sachs & Co; and UniCredit Group FA: Mediobanca LA: BonelliErede; and Chiomenti LA: Latham & Watkins

2,561 1-Feb-18 Modern Times Group MTG AB (Nordic TDC AS Media FA: Credit Suisse; and SEB FA: LionTree Advisors; and Morgan Stanley Entertainment and Studio businesses) LA: Accura; and Bech-Bruun; and Gernandt & Danielsson LA: Kromann Reumert; and Roschier (Sweden)

2,442 16-Feb-18 Magnit OJSC (29.1% stake) (Russia) VTB Bank OAO Consumer FA: - FA: VTB Capital LA: - LA: Skadden Arps Slate Meagher & Flom

2,340 26-Feb-18 Interoute Communications Limited (UK) GTT Communications Inc Telecommunications FA: Jamieson Corporate Finance; Credit Suisse; and Evercore FA: - LA: Freshfields Bruckhaus Deringer; and Weil Gotshal & Manges LA: Goodwin Procter

1,823 21-Feb-18 Fidessa Group Plc (UK) Temenos Group AG Technology FA: Jefferies; and Rothschild FA: Credit Suisse LA: Cleary Gottlieb Steen & Hamilton LA: Davis Polk & Wardwell

1,675 17-Feb-18 Brack Capital Properties NV (Netherlands) Adler Real Estate AG Real Estate FA: - FA: Kempen & Co LA: - LA: Freshfields Bruckhaus Deringer

mergermarket.com Mergermarket Monthly M&A Insider March 2018 32 Europe

League tables

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

Ranking February 2018 February 2017 Ranking February 2018 February 2017

February February Company name Value Deal count Value % Value February February Company name Value Deal count Deal count Deal count 2018 2017 (USD m) (USD m) change 2018 2017 (USD m) change

1 29 Barclays 16,166 7 1,158 1,296.0% 1 5 Rothschild 2,712 12 17 -5

2 3 Morgan Stanley 16,102 7 24,557 -34.4% 2 4 Deloitte 477 10 22 -12

3 83 LionTree Advisors 13,041 2 69 18,800.0% 3 3 PwC 18 10 23 -13

4 51 Nordea 10,480 1 371 2,724.8% 4 7 Citi 6,534 9 9 0

5 19 JPMorgan 9,554 7 1,849 416.7% 5 2 EY 438 8 24 -16

6 2 Goldman Sachs & Co 7,647 5 28,224 -72.9% 6 34 Barclays 16,166 7 3 4

7 1 Bank of America Merrill Lynch 6,852 7 40,672 -83.2% 7 13 Morgan Stanley 16,102 7 6 1

8 9 Credit Suisse 6,724 4 6,191 8.6% 8 19 JPMorgan 9,554 7 5 2

9 8 Citi 6,534 9 12,172 -46.3% 9 18 Bank of America Merrill Lynch 6,852 7 5 2

10 35 Evercore 4,850 5 699 593.8% 10 6 Goldman Sachs & Co 7,647 5 12 -7

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

Ranking February 2018 February 2017 Ranking February 2018 February 2017

February February Company name Value Deal count Value % Value February February Company name Value Deal count Deal count Deal count 2018 2017 (USD m) (USD m) change 2018 2017 (USD m) change

1 257 Kromann Reumert 13,101 4 - - 1 11 Allen & Overy 2,645 9 11 -2

2 4 Clifford Chance 12,153 4 20,279 -40.1% 2 6 Latham & Watkins 3,501 8 16 -8

3 28 Baker McKenzie 11,274 7 2,650 325.4% 3 3 Baker McKenzie 11,274 7 19 -12

4 222 Plesner 10,497 5 10 104,870.0% 4 18 Weil Gotshal & Manges 6,410 6 8 -2

5 66 Skadden Arps Slate Meagher & Flom 10,180 5 1,059 861.3% 5 15 Freshfields Bruckhaus Deringer 6,106 6 10 -4

6 40 Weil Gotshal & Manges 6,410 6 1,555 312.2% 6 13 Squire Patton Boggs 125 6 11 -5

7 3 Freshfields Bruckhaus Deringer 6,106 6 21,014 -70.9% 7 73 Plesner 10,497 5 4 1

8= 35 Garrigues 4,694 1 2,062 127.6% 8 86 Skadden Arps Slate Meagher & Flom 10,180 5 3 2

8= 118 Perez-Llorca 4,694 1 240 1,855.8% 9 1 CMS 364 5 27 -22

10 8 Davis Polk & Wardwell 3,955 4 19,053 -79.2% 10 30 Bird & Bird 75 5 7 -2

mergermarket.com Mergermarket Monthly M&A Insider March 2018 33 Middle East & Africa

Part of the Acuris report on global M&A activity

Middle East & Africa

mergermarket.com Mergermarket Monthly M&A Insider March 2018 34 Middle East & Africa

Middle East & Africa

Further information M&A targeting the Middle East & Africa has bidders, notably India with the US$600m 24.99% stake in Switzerland-based Clariant Get in touch or read more started slowly this year with 34 deals worth ADNOC and the US$226m Union Cement for US$2.5bn. Meanwhile, the firms from the US$3.5bn, representing a decrease of 60.5% Company transactions, has invested the UAE have invested US$348m abroad spread by value and 44 fewer deals compared to the most with US$1.2bn across five deals. across two deals targeting Russia and India. Mohamed Rais same period last year, when 78 deals worth South Africa, typically one of the region’s most Looking at individual sectors, Energy, Mining US$8.7bn occurred. active countries, has seen its YTD activity shrink & Utilities has been the largest contributor Although M&A has yet to pick up in the 81.7% to US$95m versus the same period last in terms of value with 56.5% of the total Middle East & Africa (MEA) region, some year, with volume declining from 18 deals to US$3.5bn spread over seven deals so far important deals were struck during February. three as dealmakers continue to battle political this year. Pharma, Medical & Biotech follows The largest was conducted by a consortium uncertainty in the country. with a 14% share, achieved through six deals, of Indian companies led by the Oil and Natural while Telecommunications amounted to a Regarding February’s top deals, the second Gas Corporation (ONGC) which, through 10.8% share, corresponding to the Vodafone largest deal came from Vodafone Group’s its subsidiary ONGC Videsh and Indian Oil Qatar deal. US$374m sale to Qatar Foundation of a Corporation and Bharat PetroResources, 22.9% stake in the joint venture company they acquired a 10% stake worth US$600m in created, which in turn owns 45% of the listed the Lower Zakum concession from Abu Vodafone Qatar. The deal further extends the Dhabi National Oil Company (ADNOC). The buoyant activity in Telecommunications from acquisition is in line with ADNOC strategy 2017 into 2018. This transaction ranks fifth of selling non-controlling stakes on its in the last 12 months in respect to telecom concessions to capitalize on UAE’s resources transactions in MEA. while also leveraging them to maintain close political and economic relationships with YTD domestic activity in the region has relevant countries. M&A activity in UAE has recorded 13 deals worth US$1.9bn, a 60.5% improved relative to the same period in 2017 decrease from last year’s US$4.7bn spread with six deals announced between January across 38 deals. The most active country has and February this year, amounting to US$1.3bn. been Israel with a 44% share, followed by UAE with 20.5%. Inbound dealmaking into the MEA region has been relatively low so far this year, decreasing Outbound activity also slowed down, 60.2% by deal value with foreign countries decreasing its value by 66.1% compared to only spending a total of US$1.6bn on 21 deals, the same YTD period last year, to a total of compared to the US$4bn across 40 deals US$3.3bn. The most relevant transaction came in YTD 2017. Europe contributed the most from Saudi Arabia’s Saudi Basic Industries transactions (13 deals, US$323m) while Asian Corporation, which struck a deal targeting a mergermarket.com Mergermarket Monthly M&A Insider March 2018 35 Middle East & Africa

13 deals Top Financial Advisor Kempen & Co valued at US$1.2bn, down 80% by value with 30 fewer deals compared to 43 deals ranked first with 1 deal worth US$1.7bn, worth US$5.9bn in February 2017. compared to 0 deals in February 2017.

Top Legal Advisor Top Sector Freshfields Bruckhaus Energy, Mining Deringer & Utilities ranked first with 1 deal worth US$1.7bn, compared saw 3 deals valued at US$700m, down 36.6% to 1 deal worth US$48m in February 2017. by value with 9 fewer deals compared to 12 deals worth US$1.1bn in February 2017.

Mergermarket.commergermarket.com Mergermarket Monthly M&A Insider March 2018 36 Middle East & Africa

Middle East & Africa M&A trend Middle East & Africa Private Equity trend

100 500 14 80

90 450 70 12

80 US$ 400 21.7 60 70 350 10

50 60 300 Number of deals Number of deals US$ US$ 8 15.5 11.1 US$ 50 34.8 250 US$ 40 24.5 US$ Value (US$bn) Value Value (US$bn) Value 11.6 US$ US$ 6 12.1 40 13.7 200 30 US$ US$ US$ 20.3 9.7 30 9.6 150 4 US$ 7.4 20 US$ US$ US$ 21.6 US$ US$ 20 6.1 24.6 100 6.7 5.8 US$ US$ US$ 19.3 US$ 4.8 US$ US$ 29.4 2 US$ US$ 4.7 9.4 3.9 3.8 3.9 10 10 50 US$ US$ 2.4 US$ US$ 12.4 US$ US$ US$ 0.5 US$ 7.2 8.4 9.5 3.5 0 0 0.1 0 0 2013 2014 2015 2016 2017 YTD 2018 2013 2014 2015 2016 2017 YTD 2018

Q1 value Q3 value Volume Buyout value Buyout volume Q2 value Q4 value Exit value Exit volume

mergermarket.com Mergermarket Monthly M&A Insider March 2018 37 Middle East & Africa

Regional Trends

Energy, Mining & Utilities Value: US$700m Number of deals: 3 Market share: 59%

Telecommunications United Arab Israel Value: US$374.3m US$73m Ghana Number of deals: 1 Market share: 31.5% Emirates 3 deals US$100m 6.1% 1 deal Industrials & Chemicals US$600m Value: US$49m 8.4% Number of deals: 3 2 deals Market share: 4.1%

50.5% Technology Value: US$46.8m Number of deals: 3 Market share: 3.9%

Financial Services Qatar Value: US$17m South Africa Number of deals: 2 US$23m US$374m Market share: 1.4% 1 deal 1 deal 1.9% 31.5% Domestic US$412.3m -82.8% Inbound US$774.8m -78.1% Outbound US$581.8m -93.4%

mergermarket.com Mergermarket Monthly M&A Insider March 2018 38 Middle East & Africa

Top deals

Top 9 Announced Deals for February 2018

Value (US$m) Deal details Advisor details

Announcement Target Bidder Dominant sector Sell-side Buy-side date

600 10-Feb-18 Abu Dhabi National Oil Company ONGC Videsh Limited; Indian Oil Energy, Mining & Utilities FA: - FA: Rothschild (Lower Zakum Off Shore Concession) Corporation (IOC); and Bharat LA: - LA: - (10% stake) (UAE) PetroResources Limited (India)

374 26-Feb-18 Vodafone Qatar (22.95% stake) (Qatar) Qatar Foundation (Qatar) Telecommunications FA: - FA: - LA: - LA: -

100 19-Feb-18 Deepwater Tano Cape Three Points block Aker Energy AS (Norway) Energy, Mining & Utilities FA: - FA: - (50% stake) (Ghana) LA: - LA: -

68 23-Feb-18 Sembcorp Siza Water Co Pty Ltd (73.4% South African Water Works Pty Ltd Industrials & Chemicals FA: - FA: - stake); and Sembcorp Silulumanzi Pty Ltd (South Africa) LA: - LA: - (South Africa)

28 12-Feb-18 Elbit Vision Systems Ltd (Israel) Uster Technologies AG (Switzerland) Industrials & Chemicals FA: BDO FA: - LA: Yigal Arnon & Co LA: Homburger; and Meitar Liquornik Geva Leshem Tal

24 7-Feb-18 Sigma Designs Israel SDI Ltd (Israel) Integrated Silicon Solution Inc (USA) Technology FA: - FA: - LA: Pillsbury Winthrop Shaw Pittman LA: Wilson Sonsini Goodrich & Rosati; and Yigal Arnon & Co

23 9-Feb-18 XON Holdings Proprietary Limited NEC Corporation (Japan) Technology FA: - FA: - (34.1% stake) (South Africa) LA: - LA: -

21 4-Feb-18 IBR Ltd (Israel) Frutarom Industries Ltd (Israel) Industrials & Chemicals FA: - FA: - LA: - LA: -

17 26-Feb-18 Tamweel Group (Egypt) Undisclosed bidder Financial Services FA: - FA: - LA: - LA: -

Deal #10? FA: - FA: - LA: - LA: -

mergermarket.com Mergermarket Monthly M&A Insider March 2018 39 Middle East & Africa

League tables

Top 7 Financial Advisors - Value Top 7 Financial Advisors - Volume

Ranking February 2018 February 2017 Ranking February 2018 February 2017

February February Company name Value Deal count Value % Value February February Company name Value Deal count Deal count Deal count 2018 2017 (USD m) (USD m) change 2018 2017 (USD m) change

1 - Kempen & Co 1,675 1 - - 1 - Kempen & Co 1,675 1 - -

2 13 Rothschild 600 1 171 250.9% 2 5 Rothschild 600 1 2 -1

3 19 JPMorgan 497 1 1,008 -50.7% 3 25 JPMorgan 497 1 2 -1

4 10 Lazard 497 1 - - 4 9 Lazard 497 1 - -

5 - CBRE Group 62 1 - - 5 - CBRE Group 62 1 - -

6 134 BDO 28 1 59 -52.5% 6 29 BDO 28 1 1 0

7 1 Bank of America Merrill Lynch 0 1 171 -100.0% 7 18 Bank of America Merrill Lynch 0 1 1 0

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

Ranking February 2018 February 2017 Ranking February 2018 February 2017

February February Company name Value Deal count Value % Value February February Company name Value Deal count Deal count Deal count 2018 2017 (USD m) (USD m) change 2018 2017 (USD m) change

1 33 Freshfields Bruckhaus Deringer 1,675 1 48 3,389.6% 1 8 Yigal Arnon & Co 52 2 3 -1

2 - Morgan Lewis & Bockius 497 1 - - 2 36 Freshfields Bruckhaus Deringer 1,675 1 1 0

3 - Shardul Amarchand Mangaldas & Co 100 1 - - 3 - Morgan Lewis & Bockius 497 1 - -

4 21 Yigal Arnon & Co 52 2 145 -64.1% 4 - Shardul Amarchand Mangaldas & Co 100 1 - -

5 - Homburger 28 1 - - 5 - Homburger 28 1 - -

6 28 Meitar Liquornik Geva Leshem Tal 28 1 105 -73.3% 6 33 Meitar Liquornik Geva Leshem Tal 28 1 1 0

7 - Pillsbury Winthrop Shaw Pittman 24 1 - - 7 - Pillsbury Winthrop Shaw Pittman 24 1 - -

8 29 Wilson Sonsini Goodrich & Rosati 24 1 105 -77.1% 8 34 Wilson Sonsini Goodrich & Rosati 24 1 1 0

9 - DSK Legal 23 1 - - 9 - DSK Legal 23 1 - -

10 - Bredin Prat 22 1 - - 10 - Bredin Prat 22 1 - -

mergermarket.com Mergermarket Monthly M&A Insider March 2018 40 Asia-Pacific (excluding Japan)

Part of the Acuris report on global M&A activity

Asia-Pacific (excluding Japan)

mergermarket.com Mergermarket Monthly M&A Insider March 2018 41 Asia-Pacific (excluding Japan)

Asia-Pacific (excluding Japan)

Further information Asia-Pacific (excluding Japan) recorded a In the past month, Asia-Pacific (excluding last February’s US$3.5bn (33 deals). Meanwhile, Get in touch or read more lucrative February value this year, hitting the Japan) outbound M&A witnessed 28 deals PE exits in the region plummeted by 32.2% second highest number on Mergermarket worth US$4.1bn, up 65.6% on value compared to US$1.9bn across 15 deals in February this record (since 2001). The region saw 210 to the same month last year (US$2.4bn, 36 year compared to the same period last year at Jasmine Wu deals worth US$44.2bn, up 74.4% on value deals). Driven in large part by the top 10 US$2.9bn (14 deals). compared to last February’s US$25.4bn, while megadeals, some which were conducted intra- deal count dropped by 35 from 245 deals. regionally this February, regional domestic The huge leap on value was secured by the M&A reached US$40.3bn across 176 deals, regional top ten megadeals, which totaled up by 148.6% on value versus February 2017’s US$18.6bn, representing 52% of the month’s US$16.2bn (199 deals). Moreover, domestic total amount. Likewise, though deal count Chinese deals contributed eight out of the top noted 43 fewer transactions, the regional 10 intra-regional megadeals, accounting for M&A value from January-February this year 84.6% of total value, significantly larger than reached US$95.1bn, up by 20.2% on value last year’s 11.6%. among 478 deals versus the same period last Within Asia-Pacific (excluding Japan), China year (521 deals, US$79.1bn). was once again the most targeted territory by Technology replaced Energy, Mining & Utilities global investors, reaching US$32.3bn, which (EMU) to stand as February’s most attractive accounted 73% of the whole regional market sector on value this year, marking a 4.6x share across 97 deals in February 2018, up by increase on value and 13 more deals, reaching 3.2x on value and 25 deals compared to last to US$8bn and 41 deals compared to last February (US$7.6bn, 72 deals). Hong Kong February (US$1.4bn, 28 deals). Meanwhile, was another region that witnessed both value Industrials & Chemicals was the most active and deal count increases in the past month sector in the past month by deal count (US$1.3bn, 11 deals), up 3.3x on value with four (US$7.1bn, 43 deals), up 10.8% versus the more deals versus the equivalent period in same period last year (US$6.4bn, 45 deals). 2017 (US$292m, seven deals). The US$2.5bn acquisition of JD Logistics In terms of private equity activity, Asia-Pacific (China) by an investor group led by China (excluding Japan) buyouts in the past month hit Life Insurance helped Transportation fetch the historical record (US$10.5bn, 27 deals) by US$5.7bn among seven deals this February, value since Mergermarket started tracking deals an uptick of 3.9x by value compared to last in 2001, growing 195.1% on value compared to February (US$1.2bn, 11 deals).

mergermarket.com Mergermarket Monthly M&A Insider March 2018 42 Asia-Pacific (excluding Japan)

210 deals Top Financial Advisor CITIC Securities valued at US$44.2bn, up 74.4% by value with 35 fewer deals compared to 245 deals ranked first with 5 deals worth US$5.3bn, compared worth US$25.4bn in February 2017. to 1 deal worth US$253m in February 2017.

Top Legal Advisor Top Sector Technology JiaYuan Law Offices ranked first with 3 deals worth US$3.5bn, compared saw 41 deals valued at US$8bn, up 461.4% to 1 deal worth US$271m in February 2017. by value with 13 more deals compared to 28 deals worth US$1.4bn in February 2017.

Mergermarket.commergermarket.com Mergermarket Monthly M&A Insider March 2018 43 Asia-Pacific (excluding Japan)

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

900 4,000 140 500

800 450 3,500 120 US$ 295.3 400 700 3,000

100 350 600 US$ US$ 245.6 2,500 176.5 Number of deals Number of deals 300 US$ 500 US$ 80 171.9 156.9 2,000 250 US$ 400 127.3 Value (US$bn) Value Value (US$bn) Value US$ 171.2 60 US$ US$ US$ 172 200 115.1 139.8 1,500 US$ 300 US$ 232.7 93.3 US$ 90.4 150 US$ 40 1,000 US$ US$ 118.1 US$ 73.3 200 US$ 150.7 US$ 70.6 169.4 140.4 US$ 100 51.9 US$ US$ US$ 44.9 107.9 500 20 41.9 US$ 100 US$ US$ 30.7 34.1 196 US$ US$ 50 US$ 140.3 136.4 US$ US$ US$ 114.9 95.1 15.6 US$ 68.5 0 0 8.5 0 0 2013 2014 2015 2016 2017 YTD 2018 2013 2014 2015 2016 2017 YTD 2018

Q1 value Q3 value Volume Buyout value Buyout volume Q2 value Q4 value Exit value Exit volume

mergermarket.com Mergermarket Monthly M&A Insider March 2018 44 Asia-Pacific (excluding Japan)

Regional Trends

Technology Value: US$8bn Number of deals: 41 Market share: 18.2%

Industrials & Chemicals Value: US$7.1bn China Australia Number of deals: 43 US$32.3bn US$3.8bn Market share: 16% Transportation 97 deals 34 deals Value: US$5.7bn India Number of deals: 7 73% 8.7% US$2.1bn Market share: 12.8% 20 deals Financial Services 4.7% Value: US$5.3bn Number of deals: 23 Market share: 12.1%

Hong Kong Consumer US$1.3bn Value: US$5.3bn 11 deals Number of deals: 18 2.8% South Korea Market share: 11.9% US$2.6bn 21 deals 5.8% Domestic US$40.3bn +148.6% Inbound US$3.9bn -57.6% Outbound US$4.1bn +65.6%

mergermarket.com Mergermarket Monthly M&A Insider March 2018 45 Asia-Pacific (excluding Japan)

Top deals

Top 10 Announced Deals for February 2018

Value (US$m) Deal details Advisor details

Announcement Target Bidder Dominant sector Sell-side Buy-side date

4,181 6-Feb-18 HNA Group Finance Co Ltd (69.23% stake) HNA Group Co Ltd; Hainan Airlines Commercial Holdings Financial Services FA: - FA: - Co Ltd; Haikou Meilan International Airport Company LA: - LA: - Limited; and HNA Technology Group Co Ltd

2,500 14-Feb-18 JD Logistics (18.6% stake) China Life Insurance Co Ltd; Tencent Holdings Ltd; China Transportation FA: - FA: - Merchants Group Limited; ICBC International Holdings LA: Orrick Herrington & Sutcliffe LA: Fangda Partners Limited; Sequoia Capital China; China Development Bank Capital Corporation Limited; Hillhouse Capital Management; and China Structural Reform Fund Co Ltd

2,062 11-Feb-18 Beijing Easyhome Investment Holding An investor group led by Alibaba Group Holding Ltd Consumer FA: - FA: - Group (36% stake) LA: - LA: -

2,017 1-Feb-18 Baotou Aluminum Co Ltd (25.67% stake); Aluminum Corporation of China Limited Industrials & Chemicals FA: - FA: CITIC Securities Chalco Shandong Co Ltd (30.8% stake); LA: - LA: JiaYuan Law Offices Chalco Zhongzhou Aluminum Co Ltd (36.9% stake); and Chalco Mining Co Ltd (81.14% stake)

1,710 5-Feb-18 Shenzhen Chiwan Wharf Holdings Limited China Merchants Group Limited Transportation FA: - FA: - (66.1% stake) LA: UBS Investment Bank LA: -

1,369 1-Feb-18 Shanghai Xunmeng Information Sequoia Capital; Tencent Holdings Ltd; and Banyan Technology FA: - FA: - Technology Co Ltd Capital Partners LA: - LA: Fangda Partners

1,238 6-Feb-18 Wanda Film Holding Co Ltd (12.77% stake) Cultural Investment Holdings Co Ltd; and Hangzhou Leisure FA: - FA: - Zhenxi Investment Management Co Ltd LA: - LA: Fangda Partners

1,233 13-Feb-18 CITIC Networks Co Ltd (49% stake) Beijing Yingtong Technology Co Ltd Telecommunications FA: - FA: - LA: - LA: -

1,158 8-Feb-18 BBMG Corporation (10 subsidiaries); Jinyu Jidong Cement (Tangshan) Co Ltd Construction FA: First Capital Securities; and Great Wall Securities FA: - and Tangshan Jidong Cement Company LA: Haiwen & Partners (Advising First Capital Securities: LA: - Limited (22 subsidiaries) Great Wall Securities); and JiaYuan Law Offices

1,150 2-Feb-18 Ping An Medical and Healthcare SoftBank Group Corp; SBI Holdings Inc; and IDG Capital Technology FA: - FA: - Management Co Ltd LA: - LA: -

mergermarket.com Mergermarket Monthly M&A Insider March 2018 46 Asia-Pacific (excluding Japan)

League tables

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

Ranking February 2018 February 2017 Ranking February 2018 February 2017

February February Company name Value Deal count Value % Value February February Company name Value Deal count Deal count Deal count 2018 2017 (USD m) (USD m) change 2018 2017 (USD m) change

1 37 CITIC Securities 5,300 5 253 1,994.9% 1 58 CITIC Securities 5,300 5 1 4

2 - UBS Investment Bank 3,264 5 - - 2 - UBS Investment Bank 3,264 5 - -

3 66 Deutsche Bank 2,402 2 55 42,67.3% 3 4 Morgan Stanley 1,734 3 5 -2

4 1 Morgan Stanley 1,734 3 8,485 -79.6% 4 5 Citi 1,423 3 5 -2

5 - Lazard 1,623 2 - - 5 8 Rothschild 1,201 3 4 -1

6 7 Citi 1,423 3 632 125.2% 6 72 Huatai Securities 909 3 1 2

7 - GBS Finanzas 1,268 1 - - 7 6 KPMG 897 3 5 -2

8 15 Rothschild 1,201 3 468 156.6% 8= - Well Link International Capital 284 3 - -

9= - First Capital Securities 1,158 1 - - 8= - Zhongtai Securities 284 3 - -

9= 99 Great Wall Securities 1,158 1 7 16,442.9% 10 80 Deutsche Bank 2,402 2 1 1

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

Ranking February 2018 February 2017 Ranking February 2018 February 2017

February February Company name Value Deal count Value % Value February February Company name Value Deal count Deal count Deal count 2018 2017 (USD m) (USD m) change 2018 2017 (USD m) change

1 42 JiaYuan Law Offices 3,457 3 271 1,175.6% 1 26 Fangda Partners 2,702 6 3 3

2 13 Fangda Partners 2,702 6 908 197.6% 2 1 King & Wood Mallesons 778 6 11 -5

3 156 Orrick Herrington & Sutcliffe 2,500 1 0 - 3 13 Baker McKenzie 1,457 4 6 -2

4 9 Shin & Kim 1,680 3 1,162 44.6% 4 12 AZB & Partners 823 4 6 -2

5 78 Baker McKenzie 1,457 4 120 1,114.2% 5 70 Hogan Lovells International 143 4 1 3

6 91 Freshfields Bruckhaus Deringer 1,449 3 48 2,918.8% 6 73 JiaYuan Law Offices 3,457 3 1 2

7 3 Kim & Chang 1,352 3 3,235 -58.2% 7 17 Shin & Kim 1,680 3 4 -1

8 - RRP Advogados 1,268 1 - - 8 104 Freshfields Bruckhaus Deringer 1,449 3 1 2

9 - Haiwen & Partners 1,158 1 - - 9 6 Kim & Chang 1,352 3 8 -5

10 11 Zhong Lun Law Firm 1,087 2 998 8.9% 10 8 Herbert Smith Freehills 910 3 8 -5

mergermarket.com Mergermarket Monthly M&A Insider March 2018 47 Japan

Part of the Acuris report on global M&A activity

Japan

mergermarket.com Mergermarket Monthly M&A Insider March 2018 48 Japan

Japan

Further information M&A targeting Japan in February 2018 saw this year China has provided three deals aimed to last February (US$424.2m, three deals). Get in touch or read more both value and deal count drop to US$3.4bn at Japanese targets totaling US$1.8bn. Looking year-on-year, PE exits in Japan have and 36 deals, representing a 33.7% decrease achieved similarly gloomy results to buyouts in In terms of individual sector performance, and 10 fewer deals compared to the same January-February 2018 (US$36.1m, three deals). Jasmine Wu Industrials & Chemicals in Japan received the month last year (US$5.2bn, 46 deals). While Overall, exits in Japan are down 98.7% by value most investments by both value (US$2bn) and the total was dragged lower by January’s through eight fewer deals versus the first two deal count (16 deals), marking a 72.9% increase performance (US$3.4bn, 34 deals), M&A months of last year (US$2.8bn, 11 deals). in value and four more deals versus February activity for January-February 2018 dropped 2017 (US$1.1bn, 12 deals). This US$2bn only 6.2% to US$6.8bn across 70 deals versus accounted for more than half of Japan’s the same period last year (US$7.3bn, 77 deals). monthly M&A value total. The Media sector, In the past month Japan’s outbound M&A also however, which had recorded six transactions experienced a slump in both value and deal worth US$754.3m a year ago in February 2017, count, accumulating US$2.7bn through 19 did not attract any investors in this past month. deals, compared to the same month last year The growth in the Industrials & Chemicals (US$4.6bn, 23 deals). Nonetheless, secured sector can be largely attributed to the by Fujifilm’s US$8.6bn acquisition of Xerox Mitsubishi Corporation targeting an additional (USA) in January this year, outbound M&A 10.75% percent stake in Mitsubishi Motors surged during the first two months of this year, via a tender offer. Valued at US$1.1bn, this increasing 23.9% to US$14.7bn through 36 represented the largest transaction in Japan transactions compared to last year (US$11.9bn, last month. Two other top 10 deals for the 55 deals). Moreover, due to this megadeal, month – Toyo Seikan Group’s acquisition of a Japan outbound activity in the Technology 52.47% stake in Toyo Kohan, and Taiyo Yuden’s sector reached US$12.7bn in January-February 53.37% stake in Elna – also helped fuel the 2018, accounting for a 52.5x increase in value surge in sector value. compared to last year’s US$236.7m. The first two months of 2018 were largely quiet While the US remained the most targeted regarding private equity buyout and exit activity country by Japanese dealmakers in both value in Japan. Buyout activity targeting Japan in (US$10.1bn) and deal count (12 deals) so far January-February 2018 (US$460m, eight deals) in 2018, value has decreased by 2.2% through experienced a 73.4% drop in value compared nine fewer deals compared to the same period to the equivalent period last year (US$1.7bn, last year (US$10.3bn, 21 deals). On the other five deals). Meanwhile, only two buyout deals hand, in comparison with zero recorded were recorded in the past month compared transactions in the first two months of 2017, mergermarket.com Mergermarket Monthly M&A Insider March 2018 49 Japan

Top Financial Advisor 36 deals Sumitomo Mitsui valued at US$3.4bn, down 33.7% by value Financial Group with 10 fewer deals compared to 46 deals worth US$5.2bn in February 2017. ranked first with 8 deals worth US$1.9bn, compared to 5 deals worth US$2.6bn in February 2017.

Top Legal Advisor Top Sector Mori Hamada & Industrials & Chemicals Matsumoto saw 16 deals valued at US$2bn, up 72.9% ranked first with 3 deals worth US$1.5bn, compared by value with 4 more deals compared to to 9 deals worth US$1.3bn in February 2017. 12 deals worth US$1.1bn in February 2017.

Mergermarket.commergermarket.com Mergermarket Monthly M&A Insider March 2018 50 Japan

Japan M&A trend Japan Private Equity trend

70 500 18 60

16 60 US$ 50 35.3 US$ 400 15.2 14

50

12 40

300 Number of deals Number of deals 40 US$ 17.1 US$ 10 10.4 30 US$ US$ Value (US$bn) Value Value (US$bn) Value 7.3 30 8 16.1 US$ US$ 21.6 200 US$ 9.4 4.8 US$ US$ 13.5 18.8 6 US$ 20 US$ 11.4 20 5.1

US$ 4 US$ 15.2 US$ 100 7.7 US$ 9.1 US$ US$ 10.8 6.5 10 10 5.3 US$ US$ 17.1 US$ US$ US$ 2 4 4.7 4.2 3.7 US$ US$ US$ US$ US$ US$ US$ 9.1 8.9 US$ 2.6 8.1 7.1 6.8 2.1 0.5 US$ 0 0 36m 0 0 2013 2014 2015 2016 2017 YTD 2018 2013 2014 2015 2016 2017 YTD 2018

Q1 value Q3 value Volume Buyout value Buyout volume Q2 value Q4 value Exit value Exit volume

mergermarket.com Mergermarket Monthly M&A Insider March 2018 51 Japan

Regional Trends

Industrials & Chemicals Value: US$2bn Number of deals: 16 Market share: 57.3%

Technology Value: US$738m Number of deals: 5 Market share: 21.5%

Energy, Mining & Utilities Value: US$306m Number of deals: 2 Market share: 8.9% Outbound Inbound Domestic US$1.1bn Consumer US$2.7bn US$2.4bn Value: US$157m -59.2% Number of deals: 3 -41.1% -8.7% Market share: 4.6%

Financial Services Value: US$137m Number of deals: 1 Market share: 4%

mergermarket.com Mergermarket Monthly M&A Insider March 2018 52 Japan

Top deals

Top 10 Announced Deals for February 2018

Value (US$m) Deal details Advisor details

Announcement Target Bidder Dominant sector Sell-side Buy-side date

1,117 20-Feb-18 Mitsubishi Motors Corporation Mitsubishi Corporation Industrials & Chemicals FA: Morgan Stanley FA: Sumitomo Mitsui Financial Group (10.76% stake) LA: Mori Hamada & Matsumoto LA: Nishimura & Asahi

700 27-Feb-18 Giosis Pte Ltd (Japan Business) eBay Inc Technology FA: - FA: - LA: - LA: -

406 7-Feb-18 Toyo Kohan Co Ltd (52.47% stake) Toyo Seikan Group Holdings Ltd Industrials & Chemicals FA: Plutus Consulting; and Sumitomo Mitsui Financial Group FA: Daiwa Securities Group LA: Takai & Partners LA: Mori Hamada & Matsumoto

194 26-Feb-18 Green Power Tsugaru GK Pattern Energy Group Inc Energy, Mining & Utilities FA: - FA: Evercore LA: - LA: -

164 26-Feb-18 Elna Co Ltd (53.37% stake) Taiyo Yuden Co Ltd Industrials & Chemicals FA: Mizuho Financial Group FA: - LA: Wadakura Gate Law Office LA: TMI Associates

137 1-Feb-18 Nissay Asset Management Corporation Nippon Life Insurance Company Financial Services FA: - FA: JPMorgan (10% stake) LA: - LA: Nishimura & Asahi

134 19-Feb-18 Wonder Corporation RIZAP Group Inc Consumer FA: YAMADA Consulting Group FA: Nomura Holdings LA: Kitahama Partners LA: -

112 26-Feb-18 GK Green Power Futtsu (47.69% stake); Pattern Energy Group Inc Energy, Mining & Utilities FA: - FA: Evercore Otsuki Wind Power Corporation; GK Green LA: - LA: - Power Kanagi; and GK Green Power Otsuki

81 7-Feb-18 Toei Reefer Line Ltd Ocean K.K. Transportation FA: KPMG FAS FA: es Networks LA: STW & Partners LA: -

80 14-Feb-18 CCS Inc (36.46% stake) OPTEX GROUP Company Limited Industrials & Chemicals FA: - FA: YAMADA Consulting Group LA: Yodoyabashi & Yamagami LA: Nishimura & Asahi

mergermarket.com Mergermarket Monthly M&A Insider March 2018 53 Japan

League tables

Top 10 Financial Advisors - Value Top 11 Financial Advisors - Volume

Ranking February 2018 February 2017 Ranking February 2018 February 2017

February February Company name Value Deal count Value % Value February February Company name Value Deal count Deal count Deal count 2018 2017 (USD m) (USD m) change 2018 2017 (USD m) change

1 5 Sumitomo Mitsui Financial Group 1,859 8 2,621 -29.1% 1 4 Sumitomo Mitsui Financial Group 1,859 8 5 3

2 1 Morgan Stanley 1,117 1 7,047 -84.1% 2 7 Mizuho Financial Group 205 4 2 2

3= - Highbury Partnership 520 1 - - 3 2 Daiwa Securities Group 463 3 7 -4

3= 33 Rothschild 520 1 0 - 4 1 Nomura Holdings 177 3 9 -6

3= - UBS Investment Bank 520 1 - - 5 20 Deloitte 48 3 1 2

6 8 Daiwa Securities Group 463 3 1,091 -57.6% 6 15 Evercore 306 2 1 1

7 18 Plutus Consulting 406 1 101 302.0% 7 - YAMADA Consulting Group 214 2 - -

8 3 Evercore 306 2 3,300 -90.7% 8 3 Morgan Stanley 1,117 1 5 -4

9 - YAMADA Consulting Group 214 2 - - 9= - Highbury Partnership 520 1 - -

10 2 Mizuho Financial Group 205 4 3,437 -94.0% 9= 33 Rothschild 520 1 1 0

9= - UBS Investment Bank 520 1 - -

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

Ranking February 2018 February 2017 Ranking February 2018 February 2017

February February Company name Value Deal count Value % Value February February Company name Value Deal count Deal count Deal count 2018 2017 (USD m) (USD m) change 2018 2017 (USD m) change

1 20 Mori Hamada & Matsumoto 1,530 3 1,325 15.5% 1 1 Nishimura & Asahi 1,391 6 9 -3

2 17 Nishimura & Asahi 1,391 6 1,556 -10.6% 2 2 Mori Hamada & Matsumoto 1,530 3 9 -6

3= - Allens 520 1 - - 3 9 Anderson Mori & Tomotsune 56 2 3 -1

3= 67 Herbert Smith Freehills 520 1 0 - 4= - Allens 520 1 - -

5 - Takai & Partners 406 1 - - 4= 67 Herbert Smith Freehills 520 1 1 0

6= 76 TMI Associates 164 1 0 - 6 - Takai & Partners 406 1 - -

6= - Wadakura Gate Law Office 164 1 - - 7= 76 TMI Associates 164 1 1 0

8 - Kitahama Partners 134 1 - - 7= - Wadakura Gate Law Office 164 1 - -

9 - STW & Partners 81 1 - - 9 - Kitahama Partners 134 1 - -

10 - Yodoyabashi & Yamagami LPC 80 1 - - 10 - STW & Partners 81 1 - -

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Criteria Contacts

The following notes pertain to data contained Data underlying the League Tables are based Head of Research Global Advertising Opportunities in this publication: on deals where the bidder, target or parent Giovanni Amodeo Kate Jenkinson and Philip Segal Erik Wickman geography of either is that of the geography [email protected] Deals are included where the deal value is Americas US & Canada in focus. + (1) 212 686 3329 greater than or equal to US$5m. Lana Vilner Kate Jenkinson and

Aram Hovsepian Where no deal value has been disclosed, deals Mid-market is defined as US$10m - US$250m. Asia-Pacific are included if the turnover of the target is Gerry Tee Central & South America greater than or equal to US$10m. All data included is correct as of February 28, Kate Jenkinson and EMEA 2018. Jonathan DelCegno Kathleen Van Aerden Deals are included in the graphs and Top Europe Deals in each section based on thedominant For a full version of the Mergermarket M&A Frederik Pedersen geography and dominant sector of the deal database inclusion and league target company. table criteria, go to http://www.Mergermarket. Middle East & Africa com/pdf/deal_criteria.pdf. Mohamed Rais

Asia-Pacific (excluding Japan) Jasmine Wu

Japan Jasmine Wu

mergermarket.com Mergermarket Monthly M&A Insider March 2018 57

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