The comprehensive review of mergers and acquisitions in the Asia Pacific region

HY 2020 Deal Drivers Asia Pacific

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The comprehensive Foreword 04 Energy, Mining, Oil & Gas 29 Asia-Pacific Heat Chart 05 Consumer 35 review of mergers and All Sectors 06 Technology, Media & Telecom 41 acquisitions in the Financial Services 17 Life Sciences & Healthcare 47 Asia Pacific region Industrials, Manufacturing & Engineering 23 About Datasite 54 throughout the first half of 2020.

mergermarket.com Mergermarket Deal Drivers HY 2020 4 Asia Pacific Foreword

Foreword

Welcome to the half-year 2020 edition of Deal to Bain & Co—as firms put new activity and Among the other hard-hit sectors was the Drivers APAC, published by Mergermarket in exits on hold to see how the response to energy, mining, oil & gas sector, which recorded association with Datasite. This report provides the pandemic developed. H1 2020 buyout a 28% annual drop in deal value, which came an overview of deal activity in the APAC region value and volume fell to US$124.4bn and 886 to US$21.5bn in H1 2020. The consumer sector, over the first six months of 2020 and looks deals respectively, from H1 2019’s totals of which has been hit hard by lockdown measures Desmond Chua into how the COVID-19 pandemic has affected US$266.1bn and 1,227 deals—declines of 53% and drops in discretionary spending, saw deal Head of Region, APAC merger and acquisition activity during the year by value and 28% by volume. Exit activity fell value fall 20% from year-to-year, registering Datasite as well as how the region is positioned going even further: value dropped 54% year-on- US$22.2bn in deal value in the first six months into the second half of 2020. year to US$74.4bn, while volume fell 34% to of 2020. 401 exits, from US$162.6bn and 607 exits. APAC was the first region that had to contend After a tough first half, dealmakers will be hoping with the coronavirus outbreak and the impact East Asia—which includes the dominant that activity stages a recovery in H2. Stock of lockdown measures on the economy and on economic hubs of the Greater China region markets have certainly rebounded in Q2 and the M&A activity. Despite a rebound following the and South Korea—delivered the bulk of the IMF expects that the region’s key economies, lifting of restrictions, the Asia Dow stock market region’s deal value and volume, with 967 deals including China and South Korea, will be index is still in the red for the year thus far, and valued at US$141.5bn. South Asia was the next well-placed to navigate the lifting of lockdowns the IMF is forecasting that Asia’s economy will biggest region by deal value with US$46.7bn and any second surges of the coronavirus. contract by 1.6% in 2020. from 191 deals, followed by Southeast Asia with There are, however, still challenges facing the US$29bn worth of value from 154 transactions. Deal activity has inevitably slowed against region. Growing tensions between China and this uncertain and volatile macro-economic With respect to sectors, the region’s thriving the West over issues including global trade, backdrop, yet the drop in both value and technology, media & telecom (TMT) industry politics and the provision of 5G technology by volume in the region was far less steep than was the largest contributor to deal value Chinese technology group Huawei could weigh the global figures. by some distance with US$59.2bn worth on activity, as could tighter rules on foreign of transactions, nearly double the size of M&A coming into force around the world. In the APAC region, total deal value for H1 2020 the next largest sector by value, industrials, has dropped 12% compared to the same period M&A in the APAC region is positioned to manufacturing & engineering (IME), with the year before, to US$255.1bn, while volume fell rally through the rest of 2020 and 2021— deals worth US$35.3bn. Financial services 13% to 1,744 deals. In contrast, global M&A value nonetheless, it could be a bumpy recovery. was the third biggest sector by value with collapsed by 53% year-on-year and volume fell transactions to the value of US$33.1bn. 32% over the same period. The IME sector, despite being the second Private equity, meanwhile, saw bigger declines largest sector by total value, was nevertheless in activity—despite sitting on a record among the most impacted sectors. Deal value US$388bn worth of dry powder, according fell 54% from H1 2019’s total of US$77.3bn. mergermarket.com Mergermarket Deal Drivers HY 2020 5 Asia Pacific Heat Chart

Asia-Pacific Heat Chart

Looking ahead to the next six months of APAC dealmaking, Heat Chart based on potential companies for sale the industrials, manufacturing & engineering (IME) sector and the technology, media, telecom (TMT) sector can be Sector East Asia South East Asia Australasia South Asia Japan Central Asia Total expected to see the greatest level of activity, according to Industrials, Manufacturing & Engineering 416 39 38 25 37 1 556 Mergermarket’s Heat Chart, which tracks “companies for Technology, Media & Telecom 265 76 83 55 43 522 sale” stories over the past six months. Consumer 166 51 65 38 22 2 344 There were 556 stories about IME firms coming to market Business Services 146 46 33 23 28 276 on Mergermarket’s intelligence tool during this period, the majority of which — 416 — were in the East Asia region. Financial Services 96 57 36 31 7 1 228 The TMT sector, which was the dominant one in the last Life Sciences & Healthcare 122 39 37 18 10 226 full-year edition of Deal Drivers: APAC, has come in second Energy, Mining, Oil & Gas 93 52 51 18 2 4 220 place in this edition, with 522 stories of companies for sale Construction 65 32 9 3 7 116 across APAC. Just over half of these were in the East Asia Leisure 58 22 14 13 6 113 region, although Australasia and Southeast Asia could also provide bright spots of deal activity for the sector. Real Estate 64 22 8 3 7 104 Transportation 48 28 14 6 3 99 Across all sectors, East Asia, which includes the Greater China region and South Korea, looks set to be the dominant Agriculture 21 11 4 1 1 38 M&A market in APAC by volume — with 1,567 “companies for Other 4 6 2 1 13 sale” stories published about the region over H1, over half of Government 1 4 1 1 7 the total such stories published in the region. Defense 2 2

Total 1,567 485 395 236 173 8 2,864

Hot Warm Cold

200 80 20

160 60 10

120 40 1

Note: The Intelligence Heat Charts are based on ‘companies for sale’ tracked by Mergermarket in the respective regions between 01/01/2020 and 30/06/2020. Opportunities are captured according to the dominant geography and sector of the potential target company. mergermarket.com Mergermarket Deal Drivers HY 2020 6 Asia Pacific All Sectors

Part of the Acuris report on global M&A activity

All Sectors

mergermarket.com Mergermarket Deal Drivers HY 2020 7 Asia Pacific All Sectors

All Sectors Overview

M&A around the world has witnessed a sizable The TMT sector, however, has been the standout Consumer deal value slid from US$27.7bn impact due to the COVID-19 pandemic, and the performer this year, with deal value actually in H1 2019 to US$22.2bn in H1 2020, even APAC region is no exception. increasing 40% from the US$42.1bn recorded though H1 2020 deal value totals received over H1 2019. Six of the region’s 20 largest a huge boost from grocer Tesco’s exit of Total M&A value in the first six months of deals were in the TMT sector, which delivered its Thai business in a US$10.6bn sale to 2020 came to US$255.1bn, compared to some sizable transactions, such as Facebook’s Charoen Pokphand Foods. The US$1.9bn US$290.6bn in H1 2019 and US$371.9bn in H2 US$5.7bn investment for a 9.99% minority stake take-private of Hong Kong’s global consumer 2019—a decline of 12% and 31%, respectively. in India’s Jio Platforms, a social networking goods logistics group Li & Fung was the In terms of deal volume, there were 1,744 platform owned by telecoms magnate Mukesh only other APAC consumer deal to break the transactions in H1, down 13% from 2,009 Ambani. Another standout TMT deal was the US$1bn threshold during H1 2020. transactions in H1 2019 and 28% below the US$7.6bn private equity-led take-private of 2,408 deals struck in H2 2019. Deal volume 58.com, a Chinese online classifieds business. and value figures for Q2 this year, meanwhile, The IME sector was the next largest sector represent the weakest quarterly totals since by value in the region, despite total value Q1 2014. more than halving from H1 2019’s total of The technology, media & telecom (TMT), US$77.3bn. This was almost certainly due to industrials, manufacturing & engineering (IME) a slump in deal activity at the top end of the and financial services sectors proved the market, as the drop in deal volumes for the most resilient through COVID-19 from an M&A sector was far less precipitous, falling only perspective, emerging as the three largest 19% to 337 deals. sectors by deal value. Deal value in financial services, meanwhile, TMT delivered 303 deals to the value of dropped by only 4% compared to H1 of US$59.2bn, followed by IME with US$35.3bn last year, driven in part by restructuring and from 337 transactions and financial services rescue deals in China’s banking sector. The with 160 deals worth US$33.1bn. second largest financial services deal in Asia, for example, saw Anbang Insurance Together these three sectors accounted sell a 35% stake in Chengdu Rural Bank in a for half of the overall deal value for H1 US$2.4bn deal to local government-backed 2020, as lockdowns saw activity in other investment vehicle Chengdu Xingcheng usually popular sectors like consumer and Investment Group—part of a years-long construction contract sharply. restructuring of Anbang.

mergermarket.com Mergermarket Deal Drivers HY 2020 8 Asia Pacific All Sectors

Top deals

Top 20 Announced Deals for Half Year Ending 30 June 2020 — Asia-Pacific Targets All Sectors

Announced Status Bidder Company Target Company Sector Vendor Company Deal Value Date (US$m)

9-Mar-20 P Charoen Pokphand Foods Public Company Limited; CP ALL Plc; and Tesco Stores (Thailand) Limited; and Tesco Stores (Malaysia) Sdn. Bhd. Consumer Tesco Plc; and Sime Darby Berhad 10,576 Charoen Pokphand Holding Co Ltd

22-Jan-20 P CapitaLand Mall Trust CapitaLand Commercial Trust Real Estate 8,007

15-Jun-20 P Consortium for 58.com 58.com Inc Technology, Media & Telecom 7,600

27-Feb-20 C Acquisition vehicle owned by Peter Woo Wheelock & Company Limited (32.51% stake) Real Estate 6,157

22-Apr-20 C Facebook Inc Jio Platforms Limited (9.99% stake) Technology, Media & Telecom 5,708

21-Mar-20 P Cred Holding Co Ltd Liaoning Zhongwang Group Co Ltd Industrials, Manufacturing & Engineering Liaoning Zhongwang Precision Investment Co Ltd; 5,345 and National Junmin Ronghe Industrial Investment Fund Co Ltd

31-Jan-20 C Hitachi Ltd Hitachi High-Tech Corporation (48.27% stake) Industrials, Manufacturing & Engineering 4,886

27-Feb-20 C Sichuan Railway Investment Group Co Ltd Sichuan Road & Bridge Co Ltd (9.32% stake) Construction 4,103

12-Jun-20 P Consortium for Yixin Group Ltd Yixin Group Limited (77.94% stake) Technology, Media & Telecom 3,860

19-May-20 C Sony Corporation Sony Financial Holdings Inc (34.96% stake) Financial Services 3,679

9-Jun-20 C UV Asset Reconstruction Company Limited; and Aircel Limited (Financial Aircel Limited Technology, Media & Telecom 2,632 creditors)

4-Mar-20 C Tencent Holdings Ltd; SB China Venture Capital Co Ltd; Sequoia Capital Tianjin Xiaowu Information Technology Co Ltd Technology, Media & Telecom 2,400 China; and Hillhouse Capital Management Ltd

11-Mar-20 P Chengdu Xingcheng Investment Group Co Ltd Chengdu Rural Commercial Bank Co Ltd (35% stake) Financial Services Anbang Insurance Group Co Ltd 2,372

17-Jan-20 P Shaanxi Yanchang Petroleum Chemical Engineering Co Ltd Shaanxi Construction Engineering Group Corporation Construction Shaanxi Construction Engineering Holding Group 2,267 Co Ltd; and Shaanxi Construction Engineering Industrial Co Ltd

18-May-20 P Vedanta Resources Limited Vedanta Limited (49.86% stake) Energy, Mining, Oil & Gas 2,151

10-Apr-20 P KB Financial Group Inc Prudential Life Insurance Company of Korea Ltd Financial Services Prudential Financial Inc 1,867

20-Mar-20 C Consortium for Li & Fung Limited Li & Fung Limited (67.67% stake) Consumer 1,857

9-Apr-20 C Toyota Motor Corporation Nippon Telegraph and Telephone Corporation (2.17% stake) Technology, Media & Telecom 1,840

10-Jan-20 C Macquarie Infrastructure and Real Assets AirTrunk Operating Pty Ltd (88% stake) Business Services Goldman Sachs & Co LLC; and TPG Capital LP 1,817

10-Mar-20 P Huida Asset Management Co Ltd; and Liaoning Financial Holding Group Co Ltd Bank of Jinzhou Co Ltd (44.34% stake) Financial Services 1,739

C= Completed; P= Pending; L= Lapsed mergermarket.com Mergermarket Deal Drivers HY 2020 9 Asia Pacific All Sectors

Mix of deals by geographic region Mix of deals by geographic region Value Deal count

Based on announced deals, excluding those that lapsed or were withdrawn. Geographic region is Based on announced deals, excluding those that lapsed or were withdrawn. Geographic region is determined with reference to the dominant location of the target. determined with reference to the dominant location of the target.

1.5% 0.1% 3% 9.4% 2.6% 7.8% 3%

15.4% 13.4%

2.6% 5.1% 2.1%

32.5% 3.2% 37.1%

31%

30.2%

Australasia Central Asia Japan Australasia Central Asia Japan East Asia South Asia South East Asia East Asia South Asia South East Asia

North America Europe RoW North America Europe RoW

mergermarket.com mergermarket.com Mergermarket of the target is Asia Pacific. Industry sector is based onthe dominant industry of the target. Based onannounced deals, excluding those that lapsed orwere withdrawn, where the dominant location Value Mix of deals by industry sector Value (US$bn) 60 40 50 30 20 55 45 35 25 10 15 0 5 US$ 35.3 Industrials, Manufacturing & Engineering US$ 33.1 Financial Services US$ 14.4 Business Services US$ 22.2 Consumer Asia Pacific Deal Drivers US$ 21.5 Energy, Mining, Oil & Gas US$ 59.2 Technology, Media & Telecom US$ Leisure 4.6 US$ Transportation 7.9 US$ Life Sciences & Healthcare 15 All Sectors 2020 HY US$ 13.8 Construction US$ 26.6 Real Estate US$

Agriculture 1 US$ Defense 0.4 of the target is Asia Pacific. Industry sector is based onthe dominant industry of the target. Based onannounced deals, excluding those that lapsed orwere withdrawn, where the dominant location Deal count Mix of deals by industry sector Number of deals 300 200 350 250 100 150 50 0 337 Industrials, Manufacturing & Engineering 160 Financial Services

Business Services 185

Consumer 170

Energy, Mining, Oil & Gas 148 303 Technology, Media & Telecom

Leisure 69

Transportation 60

Life Sciences & Healthcare 138

Construction 71

Real Estate 81

Agriculture 20

Defense 2 10 Mergermarket Deal Drivers HY 2020 11 Asia Pacific All Sectors

Buyouts Exits

Based on announced deals, excluding those that lapsed or were withdrawn, where the dominant Based on announced deals, excluding those that lapsed or were withdrawn, where the dominant location of the target is Asia Pacific. location of the target is Asia Pacific.

550,000 2,500 350,000 1,500

500,000 2,250 300,000 1,250 450,000 2,000

400,000 250,000 1,750 1,000 350,000 1,500 200,000 Volume 300,000 Volume

1,250 750 US$ 250,000 502,946 Value (US$m) Value Value (US$m) Value US$ 150,000 US$ US$ 298,198 US$ 300,067 US$ 442,706 1,000 287,545 US$ 384,258 US$ 269,988 200,000 US$ US$ US$ US$ 421,844 257,403 371,914 369,934 240,665 500 750 100,000 150,000

500 100,000 250 50,000 US$ US$ 124,381 50,000 250 74,352

0 0 0 0 2014 2015 2016 2017 2018 2019 H1 2020 2014 2015 2016 2017 2018 2019 H1 2020

Value Deal count Value Deal count

mergermarket.com Mergermarket Deal Drivers HY 2020 12 Asia Pacific All Sectors

M&A split by deal size M&A split by deal size Value Deal count

1,000 5,000 12 19 31 35 224 223 16 175 11 900 4,500 24 254 42 216 36 43 183 188 230 US$ 227 206 291.1 800 4,000 8 262 23 US$ 143 122.2 169 700 US$ 3,500 US$ 185.7 125.2 US$ US$ 89 600 US$ 111.3 3,000 US$ 144 107.1 US$ US$ US$ 3,375 136.3 118.2 123.6 3,444 500 2,500 3,134 US$ 3,152 91.6 3,068 Value (US$bn) Value US$ Number of deals of Number US$ 242.4 2,780 400 2,000 238.8 US$ 5 US$ 177.6 US$ US$ 181.7 197.7 9 160.8 87 82 300 1,500 US$ US$ US$ US$ US$ 84.2 105.2 US$ US$ 38 US$ 100.1 88.9 80.3 200 79.2 31.5 1,000 1,182 US$ 83.6 US$ US$ US$ US$ US$ US$ US$ 500 917 100 199.8 197 787 809 843 171.9 175.4 175.2 173.5 34.7 657 709 US$ 378 67.5 0 0 2014 2015 2016 2017 2018 2019 H1 2020 2014 2015 2016 2017 2018 2019 H1 2020

$5m - $250m $251m - $500m $501m - $2,000m Value not disclosed $5m - $250m $251m - $500m $2,001m - $5,000m > $5,001m $501m - $2,000m $2,001m - $5,000m > $5,001m

mergermarket.com Mergermarket Deal Drivers HY 2020 13 Asia Pacific All Sectors

Quarterly M&A activity Quarterly M&A activity Value Deal count

Based on announced deals, excluding those that lapsed or were withdrawn, where the dominant location Based on announced deals, excluding those that lapsed or were withdrawn, where the dominant location of the target is Asia Pacific. of the target is Asia Pacific.

350,000 1,500

300,000 1,250

250,000

1,000

200,000

750 Value (US$m) Value 150,000 deals of Number

500

100,000

250 50,000

0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2014 2015 2016 2017 2018 2019 2020 2014 2015 2016 2017 2018 2019 2020

Deal value Moving average trend line Deal count Moving average trend line

mergermarket.com Mergermarket Deal Drivers HY 2020 14 Asia Pacific All Sectors

League tables

Financial advisors by value Financial advisors by deal count

H1 2020 H1 2019 Company Name Value Number H1 2020 H1 2019 Company Name Value Number (USD m) of Deals (USD m) of Deals

1 3 Morgan Stanley 33,496 32 1 2 Deloitte 22,586 66

2 1 Goldman Sachs & Co 27,561 21 2 1 PwC 4,191 53

3 4 JPMorgan 26,748 21 3 5 EY 7,468 43

4 13 Deloitte 22,586 66 4 3 KPMG 2,916 35

5 18 HSBC 22,167 10 5 6 Nomura Holdings 14,778 33

6 2 Bank of America 15,927 18 6 4 Morgan Stanley 33,496 32

7 9 UBS Investment Bank 15,551 14 7 18 Sumitomo Mitsui Financial Group 2,800 23

8 15 Nomura Holdings 14,778 33 8 8 Goldman Sachs & Co 27,561 21

9 7 Credit Suisse 14,205 14 9 11 JPMorgan 26,748 21

10 24 China International Capital 13,891 21 10 16 China International Capital 13,891 21

The financial advisor mid-market league tables by value and volume have been run from 01/01/2020 to 30/06/2020 and exclude lapsed and withdrawn deals. The tables are based on advice to an Asia-based bidder, target or vendor and cover all sectors. Legal advisors by value Legal advisors by deal count

H1 2020 H1 2019 Company Name Value Number H1 2020 H1 2019 Company Name Value Number (USD m) of Deals (USD m) of Deals

1 24 Davis Polk & Wardwell 25,781 21 1 14 Cyril Amarchand Mangaldas 18,502 51

2 3 Shardul Amarchand Mangaldas & Co 22,669 40 2 8 Nishimura & Asahi 6,241 50

3 16 AZB & Partners 21,773 47 3 1 AZB & Partners 21,773 47

4 56 Weil, Gotshal & Manges 19,950 10 4 11 Mori Hamada & Matsumoto 17,525 43

5 17 Cyril Amarchand Mangaldas 18,502 51 5 3 Shardul Amarchand Mangaldas & Co 22,669 40

6 29 Mori Hamada & Matsumoto 17,525 43 6 4 Khaitan & Co 2,035 34

7 41 Fangda Partners 16,947 32 7 2 King & Wood Mallesons 8,116 33

8 8 Herbert Smith Freehills 16,494 30 8 15 Fangda Partners 16,947 32

9 13 Kirkland & Ellis 16,315 17 9 6 Kim & Chang 5,781 32

10 35 Skadden, Arps, Slate, Meagher & Flom 15,945 16 10 9 Herbert Smith Freehills 16,494 30

The legal advisor mid-market league tables by value and volume have been run from 01/01/2020 to 30/06/2020 and include lapsed and withdrawn deals. The tables are based on advice to an Asia-based bidder, target or vendor and cover all sectors. mergermarket.com Mergermarket Deal Drivers HY 2020 15 Asia Pacific All Sectors

League tables

Financial advisors by value — mid-market (US$5m – US$250m) Financial advisors by deal count — mid-market (US$5m – US$250m)

H1 2020 H1 2019 Company Name Value Number H1 2020 H1 2019 Company Name Value Number (USD m) of Deals (USD m) of Deals

1 1 PwC 2,502 34 1 1 PwC 2,502 34

2 3 Deloitte 1,410 25 2 2 Deloitte 1,410 25

3 6 Nomura Holdings 1,327 14 3 3 EY 1,250 21

4 8 Sumitomo Mitsui Financial Group 1,291 15 4 4 KPMG 868 20

5 2 EY 1,250 21 5 8 Sumitomo Mitsui Financial Group 1,291 15

6 15 Citi 1,087 6 6 7 Nomura Holdings 1,327 14

7 10 CITIC Securities Co 879 9 7 10 CITIC Securities Co 879 9

8 7 KPMG 868 20 8 11 Mizuho Financial Group 440 8

9 19 China Securities Co 815 5 9 5 Daiwa Securities Group / DC Advisory 810 7

10 5 Daiwa Securities Group / DC Advisory 810 7 10 9 Morgan Stanley 761 7

The financial advisor mid-market league tables by value and volume have been run from 01/01/2020 to 30/06/2020 and exclude lapsed and withdrawn deals. The tables are based on advice to an Asia-based bidder, target or vendor and cover all sectors. Legal advisors by value — mid-market (US$5m – US$250m) Legal advisors by deal count — mid-market (US$5m – US$250m)

H1 2020 H1 2019 Company Name Value Number H1 2020 H1 2019 Company Name Value Number (USD m) of Deals (USD m) of Deals

1 7 Nishimura & Asahi 2,515 23 1 4 Kim & Chang 1,735 25

2 2 AZB & Partners 1,753 18 2 10 Nishimura & Asahi 2,515 23

3 1 Kim & Chang 1,735 25 3 12 Cyril Amarchand Mangaldas 1,181 23

4 11 DLA Piper 1,638 18 4 3 Khaitan & Co 1,115 22

5 14 Fangda Partners 1,607 20 5 20 Fangda Partners 1,607 20

6 24 Shin & Kim 1,418 16 6 2 AZB & Partners 1,753 18

7 8 Mori Hamada & Matsumoto 1,253 18 7 9 DLA Piper 1,638 18

8 22 Cyril Amarchand Mangaldas 1,181 23 8 15 Mori Hamada & Matsumoto 1,253 18

9 5 Shardul Amarchand Mangaldas & Co 1,176 18 9 1 Shardul Amarchand Mangaldas & Co 1,176 18

10 6 Khaitan & Co 1,115 22 10 5 King & Wood Mallesons 1,066 17

The legal advisor mid-market league tables by value and volume have been run from 01/01/2020 to 30/06/2020 and include lapsed and withdrawn deals. The tables are based on advice to an Asia-based bidder, target or vendor and cover all sectors. mergermarket.com Mergermarket Deal Drivers HY 2020 16 Asia Pacific All Sectors

League tables

PR advisors by value PR advisors by deal count

H1 2020 H1 2019 Company Name Value Number H1 2020 H1 2019 Company Name Value Number (USD m) of Deals (USD m) of Deals

1 1 Brunswick Group 12,100 11 1 1 Sard Verbinnen & Co 7,634 14

2 80 Christensen Investor Relations 7,795 5 2 3 Brunswick Group 12,100 11

3 3 Sard Verbinnen & Co 7,634 14 3 2 FTI Consulting 1,987 7

4 - Gagnier Communications 4,079 2 4 80 Christensen Investor Relations 7,795 5

5 6 Kekst CNC (Publicis) 3,679 5 5 4 Kekst CNC (Publicis) 3,679 5

6 7 Edelman 2,996 4 6= 9 Citadel Magnus 2,054 5

7= 8 Citadel Magnus 2,054 5 6= 11 Domestique Consulting 2,054 5

7= 14 Domestique Consulting 2,054 5 8 5 Edelman 2,996 4

9 5 FTI Consulting 1,987 7 9 31 The Piacente Group 1,386 4

10 92 Teneo 1,857 2 10 14 ICR 636 4

The PR advisor league tables by value and volume have been run from 01/01/2020 to 30/06/2020 and exclude lapsed and withdrawn deals. The tables are based on advice to an Asia-based bidder, target or vendor and cover all sectors. PR advisors by value — mid-market (US$5m – US$250m) PR advisors by deal count — mid-market (US$5m – US$250m)

H1 2020 H1 2019 Company Name Value Number H1 2020 H1 2019 Company Name Value Number (USD m) of Deals (USD m) of Deals

1 1 Sard Verbinnen & Co 787 6 1 1 Sard Verbinnen & Co 787 6

2 - Longview Communications & Public Affairs 492 1 2 9 Brunswick Group 282 4

3 42 Adfactors PR 379 3 3 10 FTI Consulting 195 4

4 46 GRACosway 347 2 4 26 Adfactors PR 379 3

5 34 ICR 326 3 5 12 ICR 326 3

6 9 Brunswick Group 282 4 6 6 Citadel Magnus 277 3

7 21 Citadel Magnus 277 3 7 - Christensen Investor Relations 195 3

8 - Burson Marsteller 237 1 8 28 Cannings Purple 81 3

9 - Concept Agencia de Comunicacao 205 1 9 48 GRACosway 347 2

10 16 The Piacente Group 200 1 10 58 Media & Capital Partners 135 2

The PR advisor mid-market league tables by value and volume have been run from 01/01/2020 to 30/06/2020 and exclude lapsed and withdrawn deals. The tables are based on advice to an Asia-based bidder, target or vendor and cover all sectors. mergermarket.com Mergermarket Deal Drivers HY 2020 17 Asia Pacific Financial Services

Part of the Acuris report on global M&A activity

Financial Services

mergermarket.com Mergermarket Deal Drivers HY 2020 18 Asia Pacific Financial Services

Financial Services Overview

The financial services sector was one of the especially among highly acquisitive businesses In the third biggest financial services deal of few industries to see deal activity hold up like Anbang. H1 this year in the region, Prudential Financial through the course of COVID-19 lockdowns. off-loaded its Prudential Life Insurance Another significant Chinese deal involving business in South Korea to KB Financial for There were 160 financial services deals restructuring was the US$1.7bn capital injection US$1.9bn. The deal saw Prudential exit the worth US$33.1bn recorded during the first into troubled regional lender Bank of Jinzhou Asian market after three decades. For KB six months of 2020, only marginally down on by two government-backed bodies, Huida Financial, the deal gives it further scale in its 2019 year-on-year deal value of US$34.5bn Asset Management—a special purposed vehicle core market, which will make its life insurance from 169 transactions. owned by the central government-backed business more competitive. People’s Bank of China (PBOC)—and Liaoning Deal activity in the industry has proven resilient Financial Holding—an investment vehicle set up India has also proved a fertile market for despite a period of volatility. This is in large part by the Liaoning provincial government, where financial services deals through H1 2020, with down to the growing maturity and expansion of Bank of Jinzhou is located. The transaction— a government program in place to encourage the industry across Asia during the last decade, announced in March—was for a 44.3% equity consolidation of the country’s banking market with China, the region’s largest economy, stake in the bank and came eight months after driving Union Bank of India’s US$978m driving this growth. China’s banking industry ICBC, one of China’s largest banks, injected purchase of Corporation Bank, Punjab alone is now larger than that of Europe’s, US$436.2m into the business. National Bank’s acquisition of Oriental Bank according to analysis from Deloitte, and it of Commerce for US$953m and a US$801m boasts four of the world’s 10 largest banks. But although China accounted for six of the 15 deal by Canara Bank for Syndicate Bank. largest financial services deals in H1 2020 in A substantial amount of deal value in the sector APAC, deal activity was observed elsewhere in in H1, however, was due to restructuring activity, the region as well. especially among Chinese financial institutions. The largest of these was the US$2.4bn sale The largest financial services deal for the of a 35% stake in Chengdu Rural Bank to period, for example, was in Japan where Sony Chengdu Xingcheng Investment Group, a local Corporation announced in May its plan to government-backed investment group. The deal buy out the 35% stake it doesn’t already own comes after extensive restructuring of seller in Sony Financial Holdings in a US$3.7bn Anbang Insurance, which saw fraud investigation transaction. Sony Financials offers a range of into its former chairman and regulator China banking, insurance and credit card services and Insurance Regulatory Commission (CIRC) seize by acquiring the company outright Sony would control of the business for two years. have the opportunity to strengthen its position in the fintech market and pivot away from The Chinese government’s intervention into relying exclusively on low-margin consumer Anbang was part of a campaign to crack down electronics for the bulk of its revenues. on risky debt among Chinese corporates, mergermarket.com Mergermarket Deal Drivers HY 2020 19 Asia Pacific Financial Services

Top deals

Top 15 Announced Deals for Half Year Ending 30 June 2020 — Asia-Pacific Targets Financial Services Sector

Announced Status Bidder Company Target Company Vendor Company Deal Value Date (US$m)

19-May-20 C Sony Corporation Sony Financial Holdings Inc (34.96% stake) 3,679

11-Mar-20 P Chengdu Xingcheng Investment Group Co Ltd Chengdu Rural Commercial Bank Co Ltd (35% stake) Anbang Insurance Group Co Ltd 2,372

10-Apr-20 P KB Financial Group Inc Prudential Life Insurance Company of Korea Ltd Prudential Financial Inc 1,867

10-Mar-20 P Huida Asset Management Co Ltd; and Liaoning Financial Holding Group Co Ltd Bank of Jinzhou Co Ltd (44.34% stake) 1,739

31-Mar-20 P Xiandai Investment Co Ltd Hunan Changshaolou Highway Co Ltd Hunan Metro Group Co Ltd 1,510

14-Jan-20 P Bailian Group Co Ltd Shanghai Securities Co Ltd (50% stake) Guotai Junan Securities Co Ltd; Shanghai International Group Corporation 1,487 Limited; and Shanghai SITICO Assets Management Co Ltd

31-Jan-20 C Brookfield Business Partners LP IndoStar Capital Finance Limited (62.77% stake) IndoStar Capital Mauritius 1,455

15-Mar-20 C State Bank of India; Federal Bank Ltd; Housing Development Finance Corporation Ltd; Yes Bank Ltd (79.68% stake) 1,350 Kotak Mahindra Bank Limited; ICICI Bank Limited; Axis Bank Ltd; IDFC First Bank; and Bandhan Bank Limited

12-May-20 P Kohlberg Kravis Roberts & Co LP Colonial First State Investment Limited (55% stake) Commonwealth Bank of Australia 1,238

23-Mar-20 P Chengdu Hi-tech Investment Group Co Ltd; and Chengdu Wuhou Industry Investment Chengdu Rural Commercial Bank Co Ltd (20.5% stake) Anbang Insurance Group Co Ltd 1,226 & Development Group Co Ltd

5-Mar-20 C Union Bank of India Corporation Bank 978

5-Mar-20 P Punjab National Bank Oriental Bank of Commerce 953

5-Mar-20 C Canara Bank Syndicate Bank 801

30-Mar-20 P Undisclosed bidder Shanghai Longhua International Aviation Investment Co Ltd (55% stake) Shanghai Civil Aviation Investment Development Corporation 720

5-Mar-20 C Punjab National Bank United Bank of India 663

C= Completed; P= Pending; L= Lapsed

mergermarket.com mergermarket.com Mergermarket Value M&A splitby deal size Value (US$bn) 100 110 60 90 40 50 30 80 20 70 $2,001m -$5,000m $5m -$250m 10 0 2014 US$ US$ US$ US$ 25.2 18.2 9.2 14 2015 US$ US$ US$ US$ US$ 42.1 16.7 21.7 15 12 Asia Pacific Deal Drivers > $5,001m $251m -$500m 2016 US$ US$ US$ US$ US$ 34.7 18.1 8.9 14 17 2017 20.3 US$ US$ US$ US$ 21.6 15.9 6.1 $501m -$2,000m 2018 US$ US$ US$ US$ US$ 10.4 33.7 14.2 16.9 14 Financial Services 2020 HY 2019 US$ US$ US$ US$ US$ 23.3 14.3 16.3 25.1 5.9 H1 2020 US$ US$ US$ 17.2 6.1 6 US$ 3.9 Deal count M&A splitby deal size Number of deals 400 300 200 350 250 100 150 $501m -$2,000m Value not disclosed 50 0 2014 175 20 43 21 5 2015 216 48 38 31 3 5 $2,001m -$5,000m $5m -$250m 2016 226 32 53 23 2 5 2017 227 48 16 21 6 > $5,001m $251m -$500m 2018 242 24 57 27 1 5 2019 248 62 22 16 1 7 H1 2020 105 29 15 9 2 20 mergermarket.com Mergermarket of the target is Asia Pacific. Based onannounced deals, excluding those that lapsed orwere withdrawn, where the dominant location Value Quarterly M&Aactivity Value (US$m) 60,000 40,000 50,000 30,000 20,000 55,000 45,000 35,000 25,000 10,000 15,000 5,000 Deal value 0 Q1 Q2 2014 Q3 Q4 Moving average trend line Q1 Q2 2015 Q3 Asia Pacific Deal Drivers Q4 Q1 Q2 2016 Q3 Q4 Q1 Q2 2017 Q3 Q4 Q1 Q2 Financial Services 2020 HY 2018 Q3 Q4 Q1 Q2 2019 Q3 Q4 Q1 2020 Q2 of the target is Asia Pacific. Based onannounced deals, excluding those that lapsed orwere withdrawn, where the dominant location Deal count Quarterly M&Aactivity Number of deals Deal count 100 140 130 120 110 60 90 40 50 30 80 20 70 10 0 Q1 Q2 2014 Q3 Q4 Moving average trend line Q1 Q2 2015 Q3 Q4 Q1 Q2 2016 Q3 Q4 Q1 Q2 2017 Q3 Q4 Q1 Q2 2018 Q3 Q4 Q1 Q2 2019 Q3 Q4 Q1 2020 Q2 21 Mergermarket Deal Drivers HY 2020 22 Asia Pacific Financial Services

League tables

Financial advisors by value Financial advisors by deal count

H1 2020 H1 2019 Company Name Value Number H1 2020 H1 2019 Company Name Value Number (USD m) of Deals (USD m) of Deals

1 58 Goldman Sachs & Co 5,997 4 1 4 EY 4,110 8

2 12 Deloitte 4,156 5 2 12 Nomura Holdings 2,710 6

3 1 Morgan Stanley 4,156 3 3 2 Deloitte 4,156 5

4 18 EY 4,110 8 4 25 Goldman Sachs & Co 5,997 4

5 19 China International Capital 4,087 3 5 29 RBSA Advisors 3,144 4

6 25 Plutus Consulting Co 3,867 2 6 1 Morgan Stanley 4,156 3

7 14 RBSA Advisors 3,144 4 7 10 China International Capital 4,087 3

8 30 Nomura Holdings 2,710 6 8 16 UBS Investment Bank 1,997 3

9 60 Bank of America 2,238 2 9 8 Citi 566 3

10 8 UBS Investment Bank 1,997 3 10 33 Plutus Consulting Co 3,867 2

The financial advisor league tables by value and volume have been run from 01/01/2020 to 30/06/2020 and exclude lapsed and withdrawn deals. The tables are based on advice to an Asia-based bidder, target or vendor and are based on the following sector: Financial Services. Legal advisors by value Legal advisors by deal count

H1 2020 H1 2019 Company Name Value Number H1 2020 H1 2019 Company Name Value Number (USD m) of Deals (USD m) of Deals

1 7 Cyril Amarchand Mangaldas 5,828 13 1 4 Cyril Amarchand Mangaldas 5,828 13

2 23 Mori Hamada & Matsumoto 4,934 6 2 1 AZB & Partners 3,625 8

3 81 Nagashima Ohno & Tsunematsu 4,073 3 3 6 Mori Hamada & Matsumoto 4,934 6

4= 27 Cleary Gottlieb Steen & Hamilton 3,679 1 4 8 Kim & Chang 2,778 5

4= 45 Davis Polk & Wardwell 3,679 1 5 62 Allens 1,825 5

4= - Oh-Ebashi LPC & Partners 3,679 1 6 7 Nishimura & Asahi 1,446 5

7 2 AZB & Partners 3,625 8 7 3 Shardul Amarchand Mangaldas & Co 238 4

8 - Guantao Law Firm 3,598 2 8 81 Nagashima Ohno & Tsunematsu 4,073 3

9 11 Kim & Chang 2,778 5 9 16 White & Case 876 3

10= 42 Debevoise & Plimpton 1,867 1 10 43 Kirkland & Ellis 509 3

10= 19 Yulchon 1,867 1

The legal advisor league tables by value and volume have been run from 01/01/2020 to 30/06/2020 and include lapsed and withdrawn deals. The tables are based on advice to an Asia-based bidder, target or vendor and are based on the following sector: Financial Services. mergermarket.com Mergermarket Deal Drivers HY 2020 23 Asia Pacific Industrials, Manufacturing & Engineering

Part of the Acuris report on global M&A activity

Industrials, Manufacturing & Engineering

mergermarket.com Mergermarket Deal Drivers HY 2020 24 Asia Pacific Industrials, Manufacturing & Engineering

Industrials, Manufacturing & Engineering Overview

Industrials, manufacturing & engineering (IME) was the second largest sector by deal value The sector has been directly exposed to in APAC in H1 2020 despite suffering a large decline in activity year-on-year. disruption in global supply chains caused Deal value for the sector came in at US$35.3bn in H1 2020, less than half the US$77.3bn total by COVID-19 and simmering trade tension, for H1 2019. Deal volume fell 19% to 337 deals over the same period. particularly between China and the US. Lockdowns and economic contraction around the world have dampened demand M&A, however, could prove to be an important Technologies subsidiary for US$4.9bn. Hitachi for chemicals, with petrochemical producers lever in the response to the challenges posed wants to bring the two businesses together to also affected by the supply glut and falling by both the pandemic and trade issues, with enhance its Internet of Things platform, Lumada. prices in oil markets. Demand for manufactured businesses turning to deals to consolidate Private equity firm Bain Capital, meanwhile, goods has also slumped, with uncertainty market positions and supply chains in key bought out Showa Aircraft Industry for around order books and challenges keeping domestic markets. US$858m from Mitsui, which was selling to factories operational in the event of further China, the region’s industrials powerhouse, secure funds and strengthen its balance sheet. COVID-19 flare ups—causing knock-on effects has accounted for all but two of the 15 on industrials. largest IME deals. These include the The sector has been directly exposed to US$5.34bn deal involving aluminum producer disruption in global supply chains caused Zhongwang Group, one of the world’s largest by COVID-19 and simmering trade tension, manufacturers of aluminum products used particularly between China and the US. by the transport, electronic and construction industries. In the proposed deal, Zhongwang After agreeing a Phase 1 trade deal early in will combine with listed entity Cred Holding the year, China and the US are now at risk in a reverse takeover so that it can be traded of seeing the agreement falter following as a public company on the Shanghai Stock tensions over Hong Kong, the handling of the Exchange. This will help the aluminum business coronavirus and provision of equipment for 5G to secure funding independently. infrastructure by China’s Huawei. The UK has also blocked Huawei as a supplier for its 5G Japan accounted for the two top 15 deals that network and attention has now turned to how didn’t involve China, with Hitachi acquiring the the EU will react. shares it didn’t already own in its Hitachi High-

mergermarket.com Mergermarket Deal Drivers HY 2020 25 Asia Pacific Industrials, Manufacturing & Engineering

Top deals

Top 15 Announced Deals for Half Year Ending 30 June 2020 — Asia-Pacific Targets Industrials, Manufacturing & Engineering Sector

Announced Status Bidder Company Target Company Vendor Company Deal Value Date (US$m)

21-Mar-20 P Cred Holding Co Ltd Liaoning Zhongwang Group Co Ltd Liaoning Zhongwang Precision Investment Co Ltd; and National Junmin 5,345 Ronghe Industrial Investment Fund Co Ltd

31-Jan-20 C Hitachi Ltd Hitachi High-Tech Corporation (48.27% stake) 4,886

12-Jun-20 P Yangquan Coal Chemical Group Co Ltd Shanxi Yangmei Fengxi Fertilizer Industry (Group) Co Ltd; Hebei Yangmei Zhengyuan Yangmei Chemical Co Ltd 1,297 Chemical Group Co Ltd; Yangmei Group Shouyang Chemical Industry Co Ltd; and Yangmei Group Shenzhou Chemical Co Ltd (54.6% stake)

3-Jan-20 C A group of 8 investors led by BOC Financial Asset Investment Co Ltd Inner Mongolia Baogang Metal Manufacturing Co Ltd (25.69% stake) 1,110

29-Apr-20 P Hefei Construction Investment Holding (Group) Co Ltd; Anhui High Technology NIO (Anhui) Holding Ltd (24.1% stake) NIO Inc 989 Industry Investment Co Ltd; and CMG-SDIC Capital Co Ltd

23-Jan-20 C Bain Capital LP Showa Aircraft Industry Co Ltd Mitsui E&S Holdings 858

29-May-20 P Volkswagen (China) Investment Company Ltd Guoxuan High-tech Co Ltd (23.08% stake) 840

15-Jun-20 P Mr. Jie Han (Private investor) China XD Plastics Company Limited (50.61% stake) 815

26-Feb-20 P Yidian Holding Group (Luoyang) Nonferrous Metals Co Ltd Yingkou Zhongwang Aluminium Material Co Ltd China Zhongwang Holdings Limited 653

30-Apr-20 P TCL Technology Group Corporation Wuhan China Star Optoelectronics Technology Co Ltd (39.95% stake) Wuhan Optics Valley Industrial Investment Co Ltd 597

23-Apr-20 P HBIS Company Limited HBIS Leting Iron & Steel Co Ltd Xuanhua Iron & Steel Group Company Co Ltd 511

23-May-20 P Hangzhou Iron and Steel Co Ltd Zhejiang Metallurgical Materials Co Ltd; Zhejiang Hanggang International Trade Co Zhejiang Fuchuen Company Limited; Zhejiang Hanggang Trading Group 437 Ltd (99.5% stake); Zhejiang Dongling Trading Co Ltd; and Zhejiang Fucheun Company Co Ltd; and Zhejiang Dongling Co Ltd Limited (Operating Assets of Commerce and Trading Unit)

18-Jan-20 P Qinghai Huixin Asset Management Co Ltd Qinghai Salt Lake Industry Co Ltd (Asset Package) Qinghai Salt Lake Industry Co Ltd 437

14-Jan-20 P Chongqing Nanfang Industrial Equity Investment Fund Partnership LP; Nanjing Chongqing Changan New Energy Automobile Technology Co Ltd (51.05% stake) 412 Runke Industry Investment Co Ltd; Chongqing Changxin Equity Investment Fund Partnership LP; and Chongqing Liangjiang New District Chengwei Equity Investment Fund Partnership

31-Jan-20 P Yanfeng Automotive Trim Systems Co Ltd Yanfeng Global Automotive Interior Systems Co Ltd (30% stake) Adient plc 369

C= Completed; P= Pending; L= Lapsed

mergermarket.com Mergermarket Deal Drivers HY 2020 26 Asia Pacific Industrials, Manufacturing & Engineering

M&A split by deal size M&A split by deal size Value Deal count

2 150 1,000 1 4 1 4 32 28 2 1 6 45 32 9 US$ 900 46 15 5 42 27 48 48 42 125 800 1 US$ US$ 3 8.7 22 US$ 23 28.6 26 US$ US$ 7.6 6 700 US$ 100 20.8 US$ US$ US$ 14 14 12.4 600 US$ 13.8 720 US$ US$ US$ US$ 43.4 500 745 75 US$ US$ 29.4 33 698 656 9.9 31.6 32.5 682 Value (US$bn) Value

Number of deals of Number 579

US$ 400 2 23.2 US$ 50 US$ US$ 18.6 US$ 8 18.8 US$ 12 18.7 19 17 300 US$ 12.4 US$ 10.2 200 247 25 US$ US$ US$ US$ US$ 41.1 US$ 7.2 US$ 37.4 37.2 38.6 37.4 US$ 31.5 4.3 100 176 162 139 129 140 130 US$ 13.6 67 0 0 2014 2015 2016 2017 2018 2019 H1 2020 2014 2015 2016 2017 2018 2019 H1 2020

$5m - $250m $251m - $500m $501m - $2,000m Value not disclosed $5m - $250m $251m - $500m $2,001m - $5,000m > $5,001m $501m - $2,000m $2,001m - $5,000m > $5,001m

mergermarket.com mergermarket.com Mergermarket of the target is Asia Pacific. Based onannounced deals, excluding those that lapsed orwere withdrawn, where the dominant location Value Quarterly M&Aactivity Value (US$m) 40,000 50,000 30,000 20,000 45,000 35,000 25,000 10,000 15,000 5,000 Deal value 0 Q1 Q2 2014 Q3 Q4 Moving average trend line Q1 Q2 2015 Q3 Asia Pacific Deal Drivers Q4 Q1 Q2 2016 Q3 Q4 Q1 Q2 2017 Q3 Q4 Q1 Q2 & Engineering Industrials, Manufacturing 2020 HY 2018 Q3 Q4 Q1 Q2 2019 Q3 Q4 Q1 2020 Q2

of the target is Asia Pacific. Based onannounced deals, excluding those that lapsed orwere withdrawn, where the dominant location Deal count Quarterly M&Aactivity Number of deals Deal count 300 200 250 100 325 225 150 275 125 175 50 25 75 0 Q1 Q2 2014 Q3 Q4 Moving average trend line Q1 Q2 2015 Q3 Q4 Q1 Q2 2016 Q3 Q4 Q1 Q2 2017 Q3 Q4 Q1 Q2 2018 Q3 Q4 Q1 Q2 2019 Q3 Q4 Q1 2020 Q2 27 Mergermarket Deal Drivers HY 2020 28 Asia Pacific Industrials, Manufacturing & Engineering

League tables

Financial advisors by value Financial advisors by deal count

H1 2020 H1 2019 Company Name Value Number H1 2020 H1 2019 Company Name Value Number (USD m) of Deals (USD m) of Deals

1 10 Morgan Stanley 6,051 6 1 1 PwC 841 19

2 7 Nomura Holdings 5,767 5 2 3 Deloitte 4,968 14

3 - Lianchu Securities Co 5,495 2 3 5 KPMG 341 8

4 - Minsheng Securities Co 5,345 1 4 2 CITIC Securities Co 1,521 7

5 9 Deloitte 4,968 14 5 8 Morgan Stanley 6,051 6

6 29 China International Capital 2,026 4 6 13 EY 331 6

7 1 CITIC Securities Co 1,521 7 7 4 Nomura Holdings 5,767 5

8 58 Daiwa Securities Group / DC Advisory 1,394 4 8 25 China International Capital 2,026 4

9 26 Citi 1,240 3 9 19 Daiwa Securities Group / DC Advisory 1,394 4

10 - Centerview Partners 1,031 1 10 36 JPMorgan 972 4

The financial advisor league tables by value and volume have been run from 01/01/2020 to 30/06/2020 and exclude lapsed and withdrawn deals. The tables are based on advice to an Asia-based bidder, target or vendor and cover the following sectors: Automotive; Chemicals & Materials; Industrials — electronics, automation and products and services; and Manufacturing — other. Legal advisors by value Legal advisors by deal count

H1 2020 H1 2019 Company Name Value Number H1 2020 H1 2019 Company Name Value Number (USD m) of Deals (USD m) of Deals

1 28 Mori Hamada & Matsumoto 5,896 6 1 5 Nishimura & Asahi 436 12

2 43 Anderson Mori & Tomotsune 5,744 3 2 47 Fangda Partners 1,366 7

3 88 Commerce and Finance Law Offices 5,345 1 3 8 Grandall Law Firm 1,089 7

4 1 King & Wood Mallesons 1,541 5 4 10 Khaitan & Co 111 7

5 2 Zhong Lun Law Firm 1,400 6 5 13 Mori Hamada & Matsumoto 5,896 6

6 93 Fangda Partners 1,366 7 6 2 Zhong Lun Law Firm 1,400 6

7 8 Cyril Amarchand Mangaldas 1,318 4 7 43 Nagashima Ohno & Tsunematsu 1,104 6

8 103 Ropes & Gray 1,238 2 8 7 AZB & Partners 664 6

9 65 Nagashima Ohno & Tsunematsu 1,104 6 9 1 King & Wood Mallesons 1,541 5

10 30 Grandall Law Firm 1,089 7 10 3 Kim & Chang 784 5

The legal advisor league tables by value and volume have been run from 01/01/2020 to 30/06/2020 and include lapsed and withdrawn deals. The tables are based on advice to an Asia-based bidder, target or vendor and cover the following sectors: Automotive; Chemicals & Materials; Industrials — electronics, automation and products and services; and Manufacturing — other. mergermarket.com Mergermarket Deal Drivers HY 2020 29 Asia Pacific Energy, Mining, Oil & Gas

Part of the Acuris report on global M&A activity

Energy, Mining, Oil & Gas

mergermarket.com Mergermarket Deal Drivers HY 2020 30 Asia Pacific Energy, Mining, Oil & Gas

Energy, Mining, Oil & Gas Overview

Falling oil prices, volatile commodities markets Other European players have also seen owned Mining Industry to comply with and supply imbalances have seen energy, attractive dynamics in APAC’s power networks. Indonesian rules that oblige foreign owners mining, oil & gas deal activity slide around Spain’s Iberdrola announced a proposal to of mining assets to reduce ownership the world. APAC has been no exception. acquire Australia’s Infigen Energy for US$991m stakes to 49% or less within a decade of and Electricite de France (EDF) acquired a commencing operations. Deal value in the sector fell from US$29.8bn 37.5% stake in China Energy Group Dongtai in H1 2019 to US$21.5bn in H1 2020, a 28% for US$1.1bn. decline. Deal volume also fell, though far less precipitously, from 163 deals to 148 deals over Iberdrola has a long-term strategy to expand the same period, a 9% drop. its clean energy portfolio and the Infigen deal strengthens its position in Australia’s thriving But although global oil and commodity markets renewable energy industry. EDF has similar have taken a toll on energy, mining & utilities ambitions to build its renewable energy portfolio deals in the APAC region, the drop in activity and the Dongtai transaction allows it to expand hasn’t been as steep as in other regions— its offshore wind portfolio beyond Europe and global value in the sector plummeted by 68% into China’s fast-growing wind farm industry. year-on-year, while volume fell 33%—with a The deal is the first offshore wind power project number of high profile utilities deals keeping in China to include an overseas investor. activity levels ticking over. A few mining transactions have also been India, for example, has seen a number of power prominent. The largest deal in the sector providers change hands, driven in part by the saw India’s Vedanta Resources delist its shift to less carbon-intensive sources of energy. publicly traded subsidiary Vedanta Limited in Power utility NTPC acquired two hydropower a US$2.15bn transaction. The deal was done plants from the government of India—THDC primarily for operational and organizational India and North Eastern Electric Power—in deals reasons, but with stock prices falling there was worth US$1.5bn and US$1.4bn, respectively. also a window to execute the transaction at an Other energy deals to proceed in India included attractive valuation. French energy multinational Total investing in In Indonesia another mining deal saw Vale Wardha Solar as part of a joint venture with Canada and Sumitomo Metal sell a 20% Adani Green Energy in a US$519m deal. The stake of PT Vale Indonesia to Mining Industry deal is part of Total’s strategy to expand its solar Indonesia in a US$428m transaction. Vale portfolio and invest in countries where there is Canada and Sumitomo Metal sold to state- opportunity to diversify the energy mix.

mergermarket.com Mergermarket Deal Drivers HY 2020 31 Asia Pacific Energy, Mining, Oil & Gas

Top deals

Top 15 Announced Deals for Half Year Ending 30 June 2020 —Asia-Pacific Targets Energy, Mining, Oil & Gas Sector

Announced Status Bidder Company Target Company Vendor Company Deal Value Date (US$m)

18-May-20 P Vedanta Resources Limited Vedanta Limited (49.86% stake) 2,151

26-Mar-20 C NTPC Limited THDC India Ltd (74.45% stake) Government of India 1,505

26-Mar-20 C NTPC Limited North Eastern Electric Power Corporation Limited Government of India 1,437

7-Feb-20 P Prime Metro Power Holdings Corp. Manila Water Company Inc (72% stake) 1,402

26-Feb-20 P Electricite de France SA China Energy Group Dongtai Offshore Wind Power Co Ltd (37.5% stake) 1,136

17-Jun-20 P Iberdrola SA Infigen Energy Limited 991

3-Jun-20 C Consortium formed by AC Energy Group and UPC Renewable Group Infigen Energy Limited (87.18% stake) 881

1-Jun-20 P China Huadian Corporation Ltd Huadian Fuxin Energy Corporation Limited 829

17-Feb-20 L JSW Energy Limited GMR Kamalanga Energy Ltd GMR Energy Limited 659

8-Jun-20 P Zijin Mining Group Co Ltd Tibet Julong Copper Co Ltd (50.1% stake) Zangge Holding Company Limited; Tibet Zhongsheng Mining Co Ltd; Shenzhen 549 Chenfang Asset Management Co Ltd; Tibet Huibaihong Industrial Co Ltd; and Tibet Zangge Venture Capital Group Co Ltd

6-Feb-20 C Total SA Wardha Solar (Maharashtra) Pvt Ltd (50% stake); Adani Green Energy (UP) Limited Adani Green Energy Ltd 519 (50% stake); Parampujya Solar Energy Private Limited (50% stake); Prayatna Developers Private Limited (50% stake); Adani Renewable Energy (RJ) Ltd (50% stake); Kodangal Solar Parks Pvt Ltd (50% stake); Adani Green Energy (Tamil Nadu) Limited (50% stake); Kamuthi Renewable Energy Limited (50% stake); Kamuthi Solar Power Limited (50% stake); Ramnad Renewable Energy Limited (50% stake); and Ramnad Solar Power Limited (50% stake)

30-Mar-20 C GAIL (India) Limited Konkan LNG Limited (28.13% stake) IFCI Limited; State Bank of India; IDBI Bank (formerly known as Industrial 507 Development Bank of India); ICICI Bank Limited; and Canara Bank

22-Jun-20 P Adani Properties Private Limited Adani Power Limited (25.03% stake) 431

18-Jun-20 P Mining Industry Indonesia PT Vale Indonesia Tbk (20% stake) Vale Canada Limited; and Sumitomo Metal Mining Co Ltd 428

28-Feb-20 C Sprng Energy Pvt Ltd ACME Cleantech Solutions Pvt Ltd (600MW solar portfolio) ACME Cleantech Solutions Pvt Ltd 414

C= Completed; P= Pending; L= Lapsed

mergermarket.com Mergermarket Deal Drivers HY 2020 32 Asia Pacific Energy, Mining, Oil & Gas

M&A split by deal size M&A split by deal size Value Deal count

150 400 1 1 1 6 4 3 5 4 19 7 26 33 7 5 12 350 19 11 23 7 27 125 21 22 32

300 US$ 20 65.2

100 US$ 6.7 250 US$ 6.6 US$ 24.1 US$ 31.5 75 200 295 US$ 302 US$ 23.6 280 US$ 288 276 Value (US$bn) Value 22.4 US$ 22.6 6.8 deals of Number 229

US$ 150 US$ 12.4 9 10 50 US$ 18.1 37.2 US$ US$ 22.6 27.7 US$ US$ 21.5 32.1 US$ 100 17.5 US$ 113 US$ 12.3 US$ 25 11.5 US$ 10.4 US$ US$ 8.6 US$ 8.6 4.4 US$ 50 8.2 11 US$ US$ US$ US$ US$ US$ 52 46 45 18.9 US$ 19.2 18.3 4.3 35 43 37 13.2 16.2 17.3 US$ 6.2 16 0 0 2014 2015 2016 2017 2018 2019 H1 2020 2014 2015 2016 2017 2018 2019 H1 2020

$5m - $250m $251m - $500m $501m - $2,000m Value not disclosed $5m - $250m $251m - $500m $2,001m - $5,000m > $5,001m $501m - $2,000m $2,001m - $5,000m > $5,001m

mergermarket.com mergermarket.com Mergermarket of the target is Asia Pacific. Based onannounced deals, excluding those that lapsed orwere withdrawn, where the dominant location Value Quarterly M&Aactivity Value (US$m) 60,000 40,000 50,000 30,000 20,000 55,000 45,000 35,000 25,000 10,000 15,000 5,000 Deal value 0 Q1 Q2 2014 Q3 Q4 Moving average trend line Q1 Q2 2015 Q3 Asia Pacific Deal Drivers Q4 Q1 Q2 2016 Q3 Q4 Q1 Q2 2017 Q3 Q4 Q1 Q2 Oil &Gas Energy, Mining, 2020 HY 2018 Q3 Q4 Q1 Q2 2019

Q3 Q4 Q1 2020 Q2 of the target is Asia Pacific. Based onannounced deals, excluding those that lapsed orwere withdrawn, where the dominant location Deal count Quarterly M&Aactivity Number of deals Deal count 100 140 130 120 110 60 90 40 50 30 80 20 70 10 0 Q1 Q2 2014 Q3 Q4 Moving average trend line Q1 Q2 2015 Q3 Q4 Q1 Q2 2016 Q3 Q4 Q1 Q2 2017 Q3 Q4 Q1 Q2 2018 Q3 Q4 Q1 Q2 2019 Q3 Q4 Q1 2020 Q2 33 Mergermarket Deal Drivers HY 2020 34 Asia Pacific Energy, Mining, Oil & Gas

League tables

Financial advisors by value Financial advisors by deal count

H1 2020 H1 2019 Company Name Value Number H1 2020 H1 2019 Company Name Value Number (USD m) of Deals (USD m) of Deals

1 - SBI Capital Markets 2,942 2 1 5 PwC 559 6

2 2 Goldman Sachs & Co 1,945 4 2 3 EY 650 5

3 19 Deloitte 1,638 4 3 9 Goldman Sachs & Co 1,945 4

4 30 RBSA Advisors 1,437 1 4 1 Deloitte 1,638 4

5 - Lazard 971 2 5 - Hartleys 452 4

6 40 Nomura Holdings 971 1 6 10 Credit Suisse 759 3

7 - China International Capital 900 2 7 56 Scotiabank 545 3

8 13 Somerley Capital 829 1 8 8 JPMorgan 450 3

9 3 Credit Suisse 759 3 9 4 KPMG 321 3

10 11 UBS Investment Bank 720 2 10 - SBI Capital Markets 2,942 2

The financial advisor league tables by value and volume have been run from 01/01/2020 to 30/06/2020 and exclude lapsed and withdrawn deals. The tables are based on advice to an Asia-based bidder, target or vendor and are based on the following sector: Energy; Mining; Oil; and Gas . Legal advisors by value Legal advisors by deal count

H1 2020 H1 2019 Company Name Value Number H1 2020 H1 2019 Company Name Value Number (USD m) of Deals (USD m) of Deals

1 18 Cyril Amarchand Mangaldas 4,443 12 1 21 Cyril Amarchand Mangaldas 4,443 12

2 62 Trilegal 2,942 3 2 3 AZB & Partners 905 7

3 65 Gilbert + Tobin 1,953 6 3 29 Gilbert + Tobin 1,953 6

4 10 Herbert Smith Freehills 1,825 5 4 1 Herbert Smith Freehills 1,825 5

5 14 King & Wood Mallesons 1,442 5 5 6 King & Wood Mallesons 1,442 5

6= - AnJie Law Firm 1,136 1 6 65 Baker McKenzie 897 5

6= 47 JunHe 1,136 1 7 28 Kim & Chang 573 5

8 54 DLA Piper 1,084 3 8 7 Allens 954 4

9 21 Allens 954 4 9 18 Allen & Overy 799 4

10 35 Fangda Partners 952 2 10 38 Trilegal 2,942 3

The legal advisor league tables by value and volume have been run from 01/01/2020 to 30/06/2020 and include lapsed and withdrawn deals. The tables are based on advice to an Asia-based bidder, target or vendor and are based on the following sector: Energy; Mining; Oil; and Gas . mergermarket.com Mergermarket Deal Drivers HY 2020 35 Asia Pacific Consumer

Part of the Acuris report on global M&A activity

Consumer

mergermarket.com Mergermarket Deal Drivers HY 2020 36 Asia Pacific Consumer

Consumer Overview

Despite delivering the largest transaction in APAC in H1 2020—Charoen Pokphand Foods’ Consumer companies have been among US$10.57bn takeover of retailer Tesco’s Thailand business—consumer deal activity has still come the most impacted by COVID-19 lockdowns, in down on levels seen a year ago. Deal value for the sector fell 20% from with consumers unable to get to shops US$28.4bn in H1 2019 to US$22.8bn in H1 2020. Year-on-year deal volume was down and tightening their personal budgets. 19% from 218 deals to 174. coronavirus uncertainty, because of the Consumer companies have been among long-term outlook for the business. the most impacted by COVID-19 lockdowns, with consumers unable to get to shops and Li & Fung Limited, the iconic Hong Kong tightening their personal budgets. According to supply chain and logistics company, also went research from McKinsey discretionary spending ahead with a US$1.9bn take-private led by in Asia has dropped by as much as 90% in a consortium including its controlling family some retail categories, while a survey of 3,600 shareholders despite COVID-19 uncertainty. consumers in China, India and Indonesia by The business’s take-private—the second the consultancy in early May showed that largest consumer sector deal in the region in more than half of those polled in each of the H1—was done to help the company adjust to countries planned to delay large purchases. online shopping trends and digitalize its own supply chain networks. But although this backdrop has put many deals on hold, there have been a number Japan saw two of the five largest consumer of notable consumer deals that have deals in Asia. US-based PE firm KKR sold nevertheless progressed. AlphaTheta, a maker of DJ equipment, to photo processing equipment business Noritsu Koki PepsiCo, for example, forged ahead with its for US$605m five years after carving the US$735m acquisition of Hangzhou Haomusi company out of Pioneer, while retailer Arcland Food from Haoxiangni Health Food Co., in the Sakamoto bought a stake in home goods third largest deal of the sector in H1. The deal retailer LIXIL Viva in a US$483m transaction. sees Pepsi take ownership of Be & Cheery, an The deal allows seller Lixil to focus on its core online snacking business in the fast-growing business of making high-end toilets, kitchen Chinese snacks segment. Pepsi is willing to units and furniture. proceed with the proposed deal, despite mergermarket.com Mergermarket Deal Drivers HY 2020 37 Asia Pacific Consumer

Top deals

Top 15 Announced Deals for Half Year Ending 30 June 2020 — Asia-Pacific Targets Consumer Sector

Announced Status Bidder Company Target Company Vendor Company Deal Value Date (US$m)

9-Mar-20 P Charoen Pokphand Foods Public Company Limited; CP ALL Plc; and Charoen Pokphand Holding Co Ltd Tesco Stores (Thailand) Limited; and Tesco Stores (Malaysia) Sdn. Bhd. Tesco Plc; Sime Darby Berhad 10,576

20-Mar-20 C Consortium for Li & Fung Limited Li & Fung Limited (67.67% stake) 1,857

24-Feb-20 P PepsiCo Inc Hangzhou Haomusi Food Co Ltd Haoxiangni Health Food Co Ltd 735

2-Mar-20 C Noritsu Koki Co Ltd AlphaTheta Corporation Kohlberg Kravis Roberts & Co LP; and Pioneer Corporation 605

9-Jun-20 P Arcland Sakamoto Co Ltd Lixil Viva Corporation (45.45% stake) 483

27-Mar-20 C Coatue Management LLC; and Hillhouse Capital Management Ltd Shenzhen Mexixi Restaurant Management Co Ltd 400

27-Mar-20 C Chongqing General Trading Group Co Ltd Chongqing Department Store Co Ltd (9.36% stake) 395

25-Feb-20 P China Resources Vanguard Co Ltd Tesco Plc / China Resources Vanguard JV (20% stake) Tesco Plc 357

29-Jun-20 P TCL Industries Holdings (HK) Limited Moka International Limited TCL Electronics Holdings Limited 353

8-May-20 P China International Travel Service Corporation Limited Hainan Duty Free Co Ltd (51% stake) China National Travel Service Group Co Ltd 292

28-May-20 P Shanghai Yuyuan Tourist Mart (Group) Co Ltd Jinhui Liquor Co Ltd (29.99% stake) Gansu Yatter Investment Group Co Ltd 257

15-Apr-20 C Meiji Holdings Co Ltd Austasia Investment Holdings Pte Ltd (25% stake) Japfa Limited 254

24-May-20 P ITC Limited Sunrise Foods Private Limited 238

31-Jan-20 P Ajinomoto Co Inc Ajinomoto Co (Thailand) Ltd (6% stake) Thanachart Capital Public Company Limited 230

21-May-20 P Nanjing Dele Business Management Co Ltd; and Nanjing Xingyue Business Management Partnership LP Nanjing DELE Science & Technology Co Ltd Suzhou Victory Precision Manufacture Co Ltd 186

C= Completed; P= Pending; L= Lapsed

mergermarket.com Mergermarket Deal Drivers HY 2020 38 Asia Pacific Consumer

M&A split by deal size M&A split by deal size Value Deal count

110 550 1 3 23 100 500 2 1 4 23 10 1 20 90 450 21 19 2 3 1 5 1 3 15 US$ 12 17 80 46.7 400 15 25 23

70 US$ US$ 350 15.8 11.8

US$ 329 60 300 7.5 US$ US$ 10.6 23 314 US$ 323 13.9 50 US$ 250 268 260 252 Value (US$bn) Value US$

15 deals of Number 295 19.1 US$ US$ 5 40 6.2 US$ 200 US$ US$ 24.2 1 3.1 US$ 19.7 3 16.3 US$ US$ US$ 6 30 14.6 9.8 18.2 150

US$ US$ 98 US$ US$ 7.3 9.3 20 7.5 US$ 7.9 US$ 100 8.9 US$ 8.3 10.6 US$ 3.2 140 113 121 118 US$ US$ 111 10 US$ US$ US$ 50 88 17.2 US$ 17 18.6 17.5 US$ 14.1 13.6 2.3 62 US$ 6.2 0 0 2014 2015 2016 2017 2018 2019 H1 2020 2014 2015 2016 2017 2018 2019 H1 2020

$5m - $250m $251m - $500m $501m - $2,000m Value not disclosed $5m - $250m $251m - $500m $2,001m - $5,000m > $5,001m $501m - $2,000m $2,001m - $5,000m > $5,001m

mergermarket.com Mergermarket Deal Drivers HY 2020 39 Asia Pacific Consumer

Quarterly M&A activity Quarterly M&A activity Value Deal count

Based on announced deals, excluding those that lapsed or were withdrawn, where the dominant location Based on announced deals, excluding those that lapsed or were withdrawn, where the dominant location of the target is Asia Pacific. of the target is Asia Pacific.

50,000 140

130 45,000 120

40,000 110

100 35,000

90 30,000 80

25,000 70 Value (US$m) Value Number of deals of Number 60 20,000 50

15,000 40

30 10,000

20 5,000 10

0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2014 2015 2016 2017 2018 2019 2020 2014 2015 2016 2017 2018 2019 2020

Deal value Moving average trend line Deal count Moving average trend line

mergermarket.com Mergermarket Deal Drivers HY 2020 40 Asia Pacific Consumer

League tables

Financial advisors by value Financial advisors by deal count

H1 2020 H1 2019 Company Name Value Number H1 2020 H1 2019 Company Name Value Number (USD m) of Deals (USD m) of Deals

1 - Huatai Securities Co 11,872 3 1 3 PwC 2,069 15

2 23 CITIC Securities Co 10,886 2 2 4 Deloitte 3,257 12

3 1 HSBC 7,521 3 3 5 KPMG 1,780 7

4= 30 China Securities Co 5,041 1 4 51 EY 1,034 6

4= - Tianfeng Securities Co 5,041 1 5 9 Morgan Stanley 2,079 5

6 38 Deloitte 3,257 12 6 13 UBS Investment Bank 2,063 5

7 - Lazard 2,175 3 7 1 Nomura Holdings 1,642 5

8 10 Morgan Stanley 2,079 5 8 33 Deutsche Bank 1,998 4

9 21 PwC 2,069 15 9 - Huatai Securities Co 11,872 3

10 4 UBS Investment Bank 2,063 5 10 6 HSBC 7,521 3

The financial advisor league tables by value and volume have been run from 01/01/2020 to 30/06/2020 and exclude lapsed and withdrawn deals. The tables are based on advice to an Asia-based bidder, target or vendor and are based on the following sector: Consumer — retail, food and other. Legal advisors by value Legal advisors by deal count

H1 2020 H1 2019 Company Name Value Number H1 2020 H1 2019 Company Name Value Number (USD m) of Deals (USD m) of Deals

1 117 Freshfields Bruckhaus Deringer 12,790 3 1 13 Nishimura & Asahi 1,053 9

2 27 Allen & Overy 10,659 3 2 48 Nagashima Ohno & Tsunematsu 242 5

3 10 Herbert Smith Freehills 10,576 3 3 1 Kim & Chang 241 5

4= - Adnan Sundra & Low 10,576 1 4 14 Mori Hamada & Matsumoto 150 4

4= 5 Linklaters 10,576 1 5 117 Freshfields Bruckhaus Deringer 12,790 3

6 - Davis Polk & Wardwell 2,340 2 6 33 Allen & Overy 10,659 3

7 76 Kirkland & Ellis 2,295 2 7 3 Herbert Smith Freehills 10,576 3

8 80 Slaughter and May 1,887 2 8 - Mattos Filho, Veiga Filho, Marrey Jr. e Quiroga Advogados 717 3

9 30 Nishimura & Asahi 1,053 9 9 23 Fangda Partners 416 3

10 - Baer & Karrer 1,033 1 10 10 Anderson Mori & Tomotsune 298 3

The legal advisor league tables by value and volume have been run from 01/01/2020 to 30/06/2020 and include lapsed and withdrawn deals. The tables are based on advice to an Asia-based bidder, target or vendor and are based on the following sector: Consumer — retail, food and other. mergermarket.com Mergermarket Deal Drivers HY 2020 41 Asia Pacific Technology, Media & Telecom

Part of the Acuris report on global M&A activity

Technology, Media & Telecom

mergermarket.com Mergermarket Deal Drivers HY 2020 42 Asia Pacific Technology, Media & Telecom

Technology, Media & Telecom Overview

Not only was technology, media & telecom (TMT) Asia’s best-performing sector for M&A There was US$59.2bn worth of TMT deal by some distance in H1 2020, but deal value in the sector even saw an uptick, despite value recorded in Asia in H1 2020, a 40% disruption and uncertainty stemming from the COVID-19 pandemic. rise on deal value in H1 2019, demonstrating There was US$59.2bn worth of deal value recorded in Asia in H1 2020, a 40% rise on deal the resiliency of the sector. value in H1 2019, demonstrating the resiliency 9.99% stake in Jio Platforms in a US$5.7bn broken down sector silos and encouraged of the sector, as lockdowns around the world transaction. Jio is the digital technology arm of a multidisciplinary approach to mobility forced workforces to work remotely and other Relience Industries, a telecoms conglomerate and connectivity. forms of entertainment and recreation were controlled by Indian billionaire Mukesh Ambani. shut down—although deal count fell slightly Jio Platforms has a portfolio of digital assets from 305 to 303 deals over the same period. that includes Reliance Jio, a mobile network A US$7.6bn private equity (PE)-led take-private that has seen user numbers swell to 388 of 58.com, the Chinese online classifieds million since its launch around four years ago. business, was the largest TMT deal in the first The deal will see a commercial partnership with half of 2020. The deal, led by PE firms Warburg Facebook’s messaging service WhatsApp and Pincus and General Atlantic, could be one give the US-based social networking company of many more such delistings, as PEs take a foothold in the fast-growing market in India. advantage of undervalued public companies. In addition to Facebook’s investment, a Moreover, US-listed Chinese firms in particular number of PE firms and institutional investors, could be receptive to take-private offers, including KKR, Vista Equity Partners, the Public as geopolitical and trade tensions escalate Investment Fund and Mubadala, also took up between the two countries. small stakes in Jio Platforms. Chinese tech giant Tencent, for example, The largest Japanese TMT deal, meanwhile, recently led a consortium that took Chinese involved automaker Toyota and telco Nippon car price comparison website Bitauto private Telegraph and Telephone (NTT), who have in a deal that valued the firm at US$1.1bn in invested in each other to build a data platform implied equity value. that will be used to build a suite of smart city India delivered the sector’s second largest infrastructure and services. The deal—worth deal for H1 2020 as Facebook took a US$1.8bn—illustrates how technology has mergermarket.com Mergermarket Deal Drivers HY 2020 43 Asia Pacific Technology, Media & Telecom

Top deals

Top 15 Announced Deals for Half Year Ending 30 June 2020 — Asia-Pacific Targets Technology, Media & Telecom Sector

Announced Status Bidder Company Target Company Vendor Company Deal Value Date (US$m)

15-Jun-20 P Consortium for 58.com 58.com Inc 7,600

22-Apr-20 C Facebook Inc Jio Platforms Limited (9.99% stake) 5,708

12-Jun-20 P Consortium for Yixin Group Ltd Yixin Group Limited (77.94% stake) 3,860

9-Jun-20 C UV Asset Reconstruction Company Limited; and Aircel Limited (Financial creditors) Aircel Limited 2,632

4-Mar-20 C Tencent Holdings Ltd; SB China Venture Capital Co Ltd; Sequoia Capital China; and Tianjin Xiaowu Information Technology Co Ltd 2,400 Hillhouse Capital Management Ltd

9-Apr-20 C Toyota Motor Corporation Nippon Telegraph and Telephone Corporation (2.17% stake) 1,840

21-May-20 C Kohlberg Kravis Roberts & Co LP Jio Platforms Limited (2.32% stake) 1,512

8-May-20 C Vista Equity Partners Management LLC Jio Platforms Limited (2.32% stake) 1,512

18-Jun-20 C Public Investment Fund Jio Platforms Limited (2.32% stake) 1,489

5-Jun-20 C Al Nahdha Investments LLC; and Mubadala Investment Company PJSC Jio Platforms Limited (1.85% stake) 1,209

15-Jun-20 P Ningbo Shanshan Co Ltd LG Chem Ltd (LCD polarizer business) (70% stake) LG Chem Ltd 1,100

8-May-20 P A group of 22 investors led by Three Gorges Capital Holdings Co Ltd Unisoc Technologies Inc (13.39% stake) Beijing Ziguang Zhanxun Investment Management Co Ltd 1,041

7-Feb-20 P Alibaba Health Information Technology Ltd Ali JK ZNS Limited Ali JK Nutritional Products Limited 1,040

4-Mar-20 C SoftBank Vision Fund LP Beijing Ziroom Information Technology Co Ltd Xiong Lin (Private investor) 1,000

17-May-20 C General Atlantic Service Company LP Jio Platforms Limited (1.34% stake) 878

C= Completed; P= Pending; L= Lapsed

mergermarket.com Mergermarket Deal Drivers HY 2020 44 Asia Pacific Technology, Media & Telecom

M&A split by deal size M&A split by deal size Value Deal count

180 900 5 5 3 38 4 160 800 5 52 57 1 5 US$ US$ 9 35 52 8 59 33 31 32 140 700 43 31 27 442 32 US$ US$ US$ 25 13.9 120 44.5 13.9 600 30 US$ US$ 7 15.3

100 500 US$ 31.3 US$ 16.8 US$ 56.8 639 US$ US$ US$ 550 583

Value (US$bn) Value 80 6.6 40.8 26.3 400 561 Number of deals of Number 519

US$ 483 US$ 2 37.3 3 60 US$ 32 300 20 US$ US$ 15 24.7 28.7 US$ US$ 13.3 22.2 22.5 US$ US$ US$ 8.9 40 US$ 12.6 12.6 200 US$ 13.7 201 12.5 US$ 19.2 US$ US$ 20 US$ 37.3 US$ US$ US$ 100 33.1 32.8 35.9 US$ 138 29.9 27.2 5.9 125 121 93 108 109 US$ 62 11.8 0 0 2014 2015 2016 2017 2018 2019 H1 2020 2014 2015 2016 2017 2018 2019 H1 2020

$5m - $250m $251m - $500m $501m - $2,000m Value not disclosed $5m - $250m $251m - $500m $2,001m - $5,000m > $5,001m $501m - $2,000m $2,001m - $5,000m > $5,001m

mergermarket.com Mergermarket Deal Drivers HY 2020 45 Asia Pacific Technology, Media & Telecom

Quarterly M&A activity Quarterly M&A activity Value Deal count

Based on announced deals, excluding those that lapsed or were withdrawn, where the dominant location Based on announced deals, excluding those that lapsed or were withdrawn, where the dominant location of the target is Asia Pacific. of the target is Asia Pacific.

90,000 250

80,000 225

200 70,000

175 60,000

150 50,000

125 Value (US$m) Value

40,000 deals of Number 100

30,000 75

20,000 50

10,000 25

0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2014 2015 2016 2017 2018 2019 2020 2014 2015 2016 2017 2018 2019 2020

Deal value Moving average trend line Deal count Moving average trend line

mergermarket.com Mergermarket Deal Drivers HY 2020 46 Asia Pacific Technology, Media & Telecom

League tables

Financial advisors by value Financial advisors by deal count

H1 2020 H1 2019 Company Name Value Number H1 2020 H1 2019 Company Name Value Number (USD m) of Deals (USD m) of Deals

1 1 Morgan Stanley 19,815 15 1 3 Morgan Stanley 19,815 15

2 30 Houlihan Lokey 7,923 3 2 2 Deloitte 933 12

3 24 Bank of America 7,643 5 3 7 KPMG 278 7

4 65 Oaklins 3,868 3 4 8 EY 691 6

5 2 Goldman Sachs & Co 3,074 2 5 1 PwC 86 6

6= - Moelis & Company 2,900 1 6 27 Bank of America 7,643 5

6= - The Bank Street Group 2,900 1 7 16 Citi 2,135 5

8 10 Citi 2,135 5 8 13 Sumitomo Mitsui Financial Group 656 5

9 12 China International Capital 1,787 4 9 12 China International Capital 1,787 4

10 13 JPMorgan 1,386 4 10 17 JPMorgan 1,386 4

The financial advisor league tables by value and volume have been run from 01/01/2020 to 30/06/2020 and exclude lapsed and withdrawn deals. The tables are based on advice to an Asia-based bidder, target or vendor and are based on the following sectors: Computer — software, hardware and semiconductors; Telecommunications — hardware; Internet/e-Commerce; Media; and Telecommunications — carriers. Legal advisors by value Legal advisors by deal count

H1 2020 H1 2019 Company Name Value Number H1 2020 H1 2019 Company Name Value Number (USD m) of Deals (USD m) of Deals

1 1 Davis Polk & Wardwell 17,773 14 1 1 Shardul Amarchand Mangaldas & Co 17,249 19

2 2 Shardul Amarchand Mangaldas & Co 17,249 19 2 2 AZB & Partners 15,639 15

3 3 AZB & Partners 15,639 15 3 3 Davis Polk & Wardwell 17,773 14

4 4 Skadden, Arps, Slate, Meagher & Flom 14,050 10 4 4 Fangda Partners 9,479 13

5 5 Paul, Weiss, Rifkind, Wharton & Garrison 11,876 6 5 5 Skadden, Arps, Slate, Meagher & Flom 14,050 10

6 6 White & Case 10,413 5 6 6 Latham & Watkins 3,891 10

7 7 Kirkland & Ellis 10,250 7 7 7 Nishimura & Asahi 1,434 9

8 8 Fangda Partners 9,479 13 8 8 DLA Piper 878 9

9 9 Weil, Gotshal & Manges 8,150 7 9 9 Khaitan & Co 360 8

10 10 Conyers Dill & Pearman 7,923 3 10 10 Kirkland & Ellis 10,250 7

The legal advisor league tables by value and volume have been run from 01/01/2020 to 30/06/2020 and include lapsed and withdrawn deals. The tables are based on advice to an Asia-based bidder, target or vendor and are based on the following sectors: Computer — software, hardware and semiconductors; Telecommunications — hardware; Internet/e-Commerce; Media; and Telecommunications — carriers. mergermarket.com Mergermarket Deal Drivers HY 2020 47 Asia Pacific Life Sciences & Healthcare

Part of the Acuris report on global M&A activity

Life Sciences & Healthcare

mergermarket.com Mergermarket Deal Drivers HY 2020 48 Asia Pacific Life Sciences & Healthcare

Life Sciences & Healthcare Overview

The life sciences & healthcare sector has its pharmaceutical business to domestic PE better diagnosis of chronic diseases and rising been on the frontlines of the response to firm IMM Private Equity; CVC Capital Partners incomes. Governments across the region the COVID-19 pandemic. investing in HealthCare Global Enterprises in are upping investment in their healthcare India; and BGH Capital backing Healius Primary systems and pharmaceuticals industries. The scale of the virus and its impact on Care in Australia. These programs have become an even greater societies and economies has highlighted priority in the face of COVID-19, supporting the importance of long-term investment The strong interest from local and international favourable long-term fundamentals for in healthcare and pharmaceuticals PE firms in healthcare deals in Asia is a trend dealmakers to invest behind. infrastructure, which bodes well for that has been mirrored globally. Buyout houses sustained M&A activity in the sector. have doubled down on healthcare as it provides downside risk as well as growth potential. The positive outlook for investment in the industry limited the decline in deal activity Despite the dominant role of PE in the in life sciences & healthcare through the sector this year, strategics were not entirely course of H1 2020—deal volume was nearly inactive. The largest deal of the sector in H1 unchanged from 144 deals recorded in was a corporate restructuring effort between H1 2019 to 138 in the same period this different corporate entities of South Korean year. Deal value for the first six months firm Aprogen. Conglomerate Aprogen KIC has this year came in at US$15bn, 17% down proposed to take private its listed subsidiary on the US$18bn posted in H1 2019. Aprogen Inc, which develops generic drugs for rheumatic arthritis, for US$1.7bn, in order Private equity (PE) firms were particularly to streamline corporate structure. active in the sector. Bain Capital has bid US$1.5bn for Japanese nursing home China also saw a few corporate M&A operator Nichiigakkan, while Chinese deals announced this year. Chongqing investment firms IDG Capital and China Pharmaceutical Group announced plans Renaissance led a US$1bn funding round to carve out biological medicine group into gene-sequencing equipment group Tasly Medicine Distribution out of its parent MGI Tech, and Japan’s Polaris Capital Group company for US$695m and Southern acquired pharmacy group and healthcare Shuanglin Bio-pharmacy struck a deal to outsourcer SOGO Medical for US$858m. acquire biotech business Harbin PAFC Biotech in a US$460m deal, pending Other PE deals included US-based Carlyle regulatory and shareholder approval. Group taking a 20% stake in medicine manufacturer Piramal Pharma in India; South Demand for healthcare in Asia is expected to Korean conglomerate Kolmar Korea selling continue growing, driven by aging populations, mergermarket.com Mergermarket Deal Drivers HY 2020 49 Asia Pacific Life Sciences & Healthcare

Top deals

Top 15 Announced Deals for Half Year Ending 30 June 2020 — Asia-Pacific Targets Life Sciences & Healthcare Sector

Announced Status Bidder Company Target Company Vendor Company Deal Value Date (US$m)

24-Apr-20 P Aprogen KIC Inc Aprogen Inc 1,693

8-May-20 P Bain Capital LP Nichiigakkan Co Ltd 1,526

28-May-20 C IDG Capital; China Renaissance Holdings Limited; CITIC Private Equity Funds Management MGI Tech Co Ltd (Undisclosed stake) 1,000 Co Ltd; Shanghai Dingfeng Asset Management; Green Pine Capital Partners Co Ltd; Co-Stone Asset Management Co Ltd; GTJA Innovation Investment Co Ltd; GF Xinde Investment Management Co Ltd; Huatai Zijin Investment Co Ltd; CITIC Goldstone Fund Management Co Ltd; Shanghai Sailing M&A Investment Fund Partnerships; TI-Capital; Shanghai Growth-FOF Co Ltd; and Beka Asset Management SGIIC SA

5-Feb-20 C Polaris Capital Group Co Ltd Sogo Medical Holdings Co Ltd (90.86% stake) 858

13-Jun-20 P Chongqing Pharmaceutical (Group) Co Ltd Tianjin Tasly Medicine Distribution Group Co Ltd An investor group led by Tasly Pharmaceutical Group Co Ltd 695

27-Jun-20 P The Carlyle Group Piramal Pharma Ltd (20% stake) 490

15-May-20 P Southern Shuanglin Bio-pharmacy Co Ltd Harbin PAFC Biotech Co Ltd 460

27-May-20 P IMM Private Equity Inc Kolmarpharma Co Ltd (62.1% stake); and Korea Kolmar Co Ltd Korea Kolmar Holdings Co Ltd; and Korea Kolmar Co Ltd 416 (Pharmaceutical business)

13-Jun-20 P Beijing Strong Biotechnologies Inc; and China National Pharmaceutical Investment Co Ltd Maxim Biotechnologies Co Ltd (95.55% stake) Taikang Insurance Group Co Ltd; CDH Investments; Guangzhou De Fu 350 Equity Investment Fund Partners; and GL Instrument Investment LP

15-Jun-20 P BGH Capital Healius Primary Care Healius Ltd 343

2-Apr-20 P Shouyi Medical Health Investment Management Co Ltd Shougang Hospital Co Ltd (55% stake) 304

27-Mar-20 P Henan Gaoling Huaying Enterprise Management Consulting Partnership LP; and Xinxiang Hualan Biological Bacterin Co Ltd (15% stake) CYBER CREATOR LIMITED 298 Chenyi Qiming Management Consulting Partnership LP

4-Jun-20 P CVC Capital Partners Limited HealthCare Global Enterprises Ltd (55.16% stake) 294

11-Jun-20 P Celltrion Inc Takeda Pharmaceutical Company Limited (APAC primary care business) Takeda Pharmaceutical Company Limited 278

12-Feb-20 C Dr. Reddy’s Laboratories Limited Wockhardt Limited (branded generics business) 259

C= Completed; P= Pending; L= Lapsed

mergermarket.com Mergermarket Deal Drivers HY 2020 50 Asia Pacific Life Sciences & Healthcare

M&A split by deal size M&A split by deal size Value Deal count

45 400

1 40 US$ 1 14 7.4 US$ 350 2 US$ 7 1 5.6 11.7 16 17 17 9 3 17 35 US$ 17 15 5.9 300 12 1 3 30 US$ 8 3.7 US$ US$ 250 14.6 15.3 US$ 25 US$ 14.8 6.5 US$ 7.8 US$ 200 261 4 258 249 Value (US$bn) Value 20 250 224 US$ deals of Number 2.3 US$ US$ US$ 6.4 7.2 US$ 5.8 150 210 5 US$ 6.6 3.8 US$ 15 5.1 9 US$ 5.8 100 10 100 US$ US$ US$ US$ US$ 3.3 14 US$ 14.3 US$ 13.6 13.3 12.9 12.3 50 5 65 US$ 59 54 61 6 45 48 24 0 0 2014 2015 2016 2017 2018 2019 H1 2020 2014 2015 2016 2017 2018 2019 H1 2020

$5m - $250m $251m - $500m $501m - $2,000m Value not disclosed $5m - $250m $251m - $500m $2,001m - $5,000m > $5,001m $501m - $2,000m $2,001m - $5,000m > $5,001m

mergermarket.com mergermarket.com Mergermarket of the target is Asia Pacific. Based onannounced deals, excluding those that lapsed orwere withdrawn, where the dominant location Value Quarterly M&Aactivity Value (US$m) 10,000 14,000 12,000 16,000 18,000 4,000 2,000 8,000 6,000 Deal value 0 Q1 Q2 2014 Q3 Q4 Moving average trend line Q1 Q2 2015 Q3 Asia Pacific Deal Drivers Q4 Q1 Q2 2016 Q3 Q4 Q1 Q2 2017 Q3 Q4 Q1 Q2 & Healthcare Life Sciences 2020 HY 2018 Q3 Q4 Q1 Q2 2019

Q3 Q4 Q1 2020 Q2 of the target is Asia Pacific. Based onannounced deals, excluding those that lapsed orwere withdrawn, where the dominant location Deal count Quarterly M&Aactivity Number of deals Deal count 100 110 60 90 40 50 30 80 20 70 10 0 Q1 Q2 2014 Q3 Q4 Moving average trend line Q1 Q2 2015 Q3 Q4 Q1 Q2 2016 Q3 Q4 Q1 Q2 2017 Q3 Q4 Q1 Q2 2018 Q3 Q4 Q1 Q2 2019 Q3 Q4 Q1 2020 Q2 51 Mergermarket Deal Drivers HY 2020 52 Asia Pacific Life Sciences & Healthcare

League tables

Financial advisors by value Financial advisors by deal count

H1 2020 H1 2019 Company Name Value Number H1 2020 H1 2019 Company Name Value Number (USD m) of Deals (USD m) of Deals

1= - Callisto 5,525 1 1 2 Deloitte 1,742 7

1= - Lazard 5,525 1 2 5 Nomura Holdings 3,124 5

3 7 Nomura Holdings 3,124 5 3 4 JPMorgan 2,762 5

4 4 JPMorgan 2,762 5 4 9 EY 301 5

5 17 Deloitte 1,742 7 5 12 China International Capital 1,510 3

6 44 Rothschild & Co 1,595 2 6 6 China Renaissance Holdings 1,241 3

7 8 China International Capital 1,510 3 7 1 PwC 1,110 3

8 9 China Renaissance Holdings 1,241 3 8 52 Sinolink Securities Co 394 3

9 5 PwC 1,110 3 9 18 CEC Capital 313 3

10 1 Bank of America 1,103 2 10 22 Sumitomo Mitsui Financial Group 85 3

The financial advisor league tables by value and volume have been run from 01/01/2020 to 30/06/2020 and exclude lapsed and withdrawn deals. The tables are based on advice to an Asia-based bidder, target or vendor and are based on the following sectors: Biotechnology; Medical; and Pharmaceuticals. Legal advisors by value Legal advisors by deal count

H1 2020 H1 2019 Company Name Value Number H1 2020 H1 2019 Company Name Value Number (USD m) of Deals (USD m) of Deals

1 - Weil, Gotshal & Manges 11,050 1 1 68 White & Case 2,496 6

2 50 Clifford Chance 5,789 3 2 22 Mori Hamada & Matsumoto 2,414 5

3 - Cleary Gottlieb Steen & Hamilton 5,789 2 3 7 Nishimura & Asahi 902 5

4 74 Latham & Watkins 5,712 3 4 3 Cyril Amarchand Mangaldas 831 5

5 - Dechert 5,547 2 5 110 Cooley 830 4

6= - Bredin Prat 5,525 1 6 24 Sidley Austin 573 4

6= 55 Goodwin Procter 5,525 1 7 66 Clifford Chance 5,789 3

8 52 White & Case 2,496 6 8 81 Latham & Watkins 5,712 3

9 38 Mori Hamada & Matsumoto 2,414 5 9 10 Ropes & Gray 1,819 3

10 21 Ropes & Gray 1,819 3 10 12 AZB & Partners 803 3

The legal advisor league tables by value and volume have been run from 01/01/2020 to 30/06/2020 and include lapsed and withdrawn deals. The tables are based on advice to an Asia-based bidder, target or vendor and are based on the following sectors: Biotechnology; Medical; and Pharmaceuticals. mergermarket.com Marketing your deal in a remote-working M&A world

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mergermarket.com Mergermarket Deal Drivers HY 2020 55 Asia Pacific

Criteria Advertising Opportunities

The following notes pertain to data contained in this publication: Transactions exclude property transactions and restructurings Simon Elliott where the ultimate shareholders’ interests are not changed. [email protected] Deals are included where the deal value is greater than or equal +44 20 3741 1060 to US$5m. Mid-market is defined as US$5m - US$250m.

Where no deal value has been disclosed, deals are included if All data included is correct as of 14 July 2020. the turnover of the target is greater than or equal to US$10m. League Tables correct as of 14 July 2020. Deals are included in the graphs and Top Deals in each section based on the dominant geography and dominant sector of the Top deals correct as of 28 July 2020. target company. For a full version of the Mergermarket M&A deal database Data underlying the League Tables are based on deals where inclusion and league table criteria, go to: the bidder, target or seller geography of either is that of the www.mergermarket.com/pdf/deal_criteria.pdf geography in focus.

mergermarket.com Mergermarket Deal Drivers HY 2020 56 Asia Pacific

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