Monthly M&A Insider

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Monthly M&A Insider A mergermArket report on globAl m&A Activity Monthly M&A InsIder AUgUSt 2010 CONTENTS GlobAl overvIew 01 AmericAS: Latin AmericA 05 North AmericA 12 ASiA-Pacific 23 eUrope 34 middle eASt & AfricA 46 mergermarket Monthly M&A InsIder Part of the mergermarket group www.mergermarket.com 80 Strand 895 broadway #4 Suite 2401-3 london, Wc2r 0rl new york, ny 10003 grand millennium plaza United kingdom USA 181 Queen’s road, central hong kong t: +44 (0)20 7059 6100 t: +1 212 686-5606 t: +852 2158 9700 f: +44 (0)20 7059 6101 f: +1 212 686-2664 f: +852 2158 9701 [email protected] [email protected] [email protected] global overview GLobAL ovERvIEW global overview global THe ToP end oF the global M&a MarKeT HaS SeeN SigNiFiCant activiTy iN reCent weeks with a number oF HigH ProFile Transactions announceD. NoTably, Two oF the three largest DealS oF 2010 Have CoMe To MarKeT Since the beginniNg oF JUly, indiCaTiNg thaT CaSH-riCH CorPoraTe aND PrivaTe eqUiTy bUyerS Feel iNCreaSiNgly well PlaCeD To MaKe a reTUrN To broKeriNg large-CaP M&a. The top deal was announced in the Canadian industrials & outside of the corporate M&a sphere, it is also telling that Chemicals space with bHP billiton launching a US$41.91bn private equity houses have also been busying themselves over hostile takeover bid for Potash Corporation of Saskatchewan, the summer break. after months of predominantly scouring the world’s largest fertiliser company by capacity. The outcome targets in the mid-market space, it seems that financial of the situation is uncertain after Potash’s board rejected investors are increasingly eager to target sizeable firms in bHP’s US$130.00 per share offer, claiming that it undervalues the public arena. indeed, four of the top five take privates of the company and does not reflect its future growth prospects. 2010 have been announced in July and august with all major while bHP still has to convince Potash shareholders and regional M&a markets witnessing significant transactions, Canadian antitrust regulators over the merits of the deal, driven exclusively by North american investors on the the proposed tie-up would accelerate bHP’s entry into the buy-side. fertiliser industry. Furthermore, Potash’s mining operations Casting an eye to specific individual transactions, the largest are thought to be a natural fit with thea ustralian mining take private deal currently stands as blackstone group’s giant’s existing greenfield holdings in Saskatchewan. US$4.85bn acquisition of Dynergy, the US-based provider of interestingly, bHP’s bid for Potash is indicative of a wider wholesale power, capacity and ancillary services. elsewhere, trend that has seen a number of hostile offers announced in in a deal valued at US$4.77bn, the european market saw recent weeks. The european M&a market is also witnessing onex Partners and Canadian Pension Plan investment board another ongoing high profile situation after Korea National take private UK engineering firm Tomkins. US private equity oil Corporation moved to make a US$2.92bn bid for Dana heavyweights Carlyle group and TPg Capital have also Petroleum, the UK-based oil and gas exploration and been acquisitive in recent weeks with the firms acquiring production company. in total, a remarkable eight hostile bids Healthscope, the listed australia-based hospitals operator, via have come to the market since the beginning of July, carrying a cash scheme of arrangement. valued at US$2.35bn, the deal an aggregate disclosed valuation figure of US$48.90bn. Put stands as the largest private equity buyout announced in the into context, the preceding 6 months of 2010 witnessed just 19 asia-Pacific region so far in 2010. hostile situations, illustrating to good effect the recent marked by Tom Coughlan, Remark, The Mergermarket Group uptick in activity. Head of Research – elias latsis Global overview: Tom Coughlan Editor – rory McNeil Latin America: Mathew albert North America: Jason Cozza For advertising opportunities contact: Asia-Pacific:Shunsuke okano and anita wong Erik Wickman Europe: Samuel Tedjasukmana and Damien Julliard Tel: + (1) 212 6863329 Middle East & Africa: Marie-laure Keyrouz and lars lundqvist [email protected] Monthly M&A Insider 01 TrEND graPHS GLOBAl M&A quArterly trend glob valUE vOlUME A l overvie 1,400,000 4,500 4,000 1,200,000 W 3,500 1,000,000 3,000 m) $ 800,000 2,500 600,000 2,000 alue (US V olume of deals V 1,500 400,000 1,000 200,000 500 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 04 04 04 04 05 05 05 05 06 06 06 06 07 07 07 07 08 08 08 08 09 09 09 09 10 10 10* 04 04 04 04 05 05 05 05 06 06 06 06 07 07 07 07 08 08 08 08 09 09 09 09 10 10 10* GLOBAl M&A quArterly MId-MArket trend valUE vOlUME 140,000 2,000 120,000 1,500 100,000 m) $ 80,000 1,000 60,000 alue (US V Number of deals 40,000 500 20,000 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 04 04 04 04 05 05 05 05 06 06 06 06 07 07 07 07 08 08 08 08 09 09 09 09 10 10 10* 04 04 04 04 05 05 05 05 06 06 06 06 07 07 07 07 08 08 08 08 09 09 09 09 10 10 10* Moving average trend line Monthly M&A Insider 02 TrEND graPHS GLOBAl M&A quArterly PrIvAte equIty trend glob valUE vOlUME A l overvie 400,000 800 350,000 700 W 300,000 600 250,000 500 200,000 400 alue (US$m) V Number of deals 150,000 300 100,000 200 50,000 100 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 04 04 04 04 05 05 05 05 06 06 06 06 07 07 07 07 08 08 08 08 09 09 09 09 10 10 10* 04 04 04 04 05 05 05 05 06 06 06 06 07 07 07 07 08 08 08 08 09 09 09 09 10 10 10* Global buyouts Global buyouts Global exits Global exits GLOBAl M&A seCtor breAkdown ytd 2010 valUE vOlUME 1.0% 2.2% 1.3% 3.3% 0.5% 0.5% 1.8% 3.2% 10.7% 2.9% Industrials & Chemicals 3.5% 18.0% Industrials & Chemicals 1.4% TMT 4.1% TMT 10.4% Consumer Consumer 16.9% 7.5% Business Services Business Services Energy, Mining & Utilities Energy, Mining & Utilities 14.9% Financial Services Financial Services 11.4% 10.6% Pharma, Medical & Biotech Pharma, Medical & Biotech 9.4% Construction Construction Leisure Leisure Tr ansportation 10.8% 12.3% Tr ansportation 6.4% Real Estate Real Estate 23.6% 11.4% Agriculture Agriculture Defence Defence Monthly M&A Insider 03 TrEND graPHS GLOBAl M&A deAl sIze breAkdown glob A valUE vOlUME l overvie 2,500 9,000 8,000 W 2,000 7,000 6,000 1,500 5,000 4,000 alue (US$bn) 1,000 V Number of deals 3,000 2,000 500 1,000 0 0 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 2004 2004 2005 2005 2006 2006 2007 2007 2008 2008 2009 2009 2010 2010* 2004 2004 2005 2005 2006 2006 2007 2007 2008 2008 2009 2009 2010 2010* > US$501m > US$501m US$251m-US$500m US$251m-US$500m US$101m-US$250m US$101m-US$250m US$15m-US$100m US$15m-US$100m US$5m-US$14.9m US$5m-US$14.9m Value not disclosed Monthly M&A Insider 04 A MERgERMARkET M&A REpoRT oN LATIN AMERICA IN July, ThE Latin American M&A market saw one oF ThE Most fraughT and drawn-out deals oF LATIN AMERICA LATIN RECENT TIMES WRAppED Up. ThE transactioN, ThE SECoND LARgEST BRokERED IN ThE REgIoN ThIS yEAR, saw SpANISh TELECoMS gIANT TELEFónica BRokER A DEAL To acqUIRE poRTUgAL TELECoM’S (pT) 50.00% stakE IN JoINT VENTURE Brasilcel, A hoLDINg CoMpANy WITh A CoNTRoLLINg INTEREST IN Brazil’S largest wireless operatoR Vivo. Months of tough negotiations and even threats of arbitration It is not surprising that Telefónica and pT are set on staying to dissolve the JV ended when the portuguese government – in the region. Latin America has been a hot spot for overseas which enjoys de facto veto power over such plays as a bearer investors eager to offset languid business activity in home of golden shares in pT – finally relented, allowing the telco markets blighted by recession and sluggish recoveries.
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