An Acuris Company

An Acuris report on global M&A activity

Q3 2018 Monthly M&A Insider

mergermarket.com Mergermarket Monthly M&A Insider Q3 2018 2 Contents Contents

An Acuris report Welcome from Merrill Corporation 03 Middle East & Africa 33 Global Overview 04 Asia-Pacific (excluding Japan) 40 on global M&A US & Canada 12 Japan 47 activity for the third Central & South America 19 League Tables 54 quarter of 2018. Europe 26 About Merrill Corporation 55

mergermarket.com Mergermarket Monthly M&A Insider Q3 2018 3 Welcome

Welcome from Merrill Corporation

The Monthly M&A Insider explores the global sectors are faring better than others. Energy, buyout totals are still likely to outpace M&A market with respect to the numbers, Mining & Utilities had the highest deal value in every year since 2010 with the possible movements and trends, as well as revealing Q3 at US$196.8bn — 27% of the overall sector exception of a record-breaking 2017. the top financial and legal advisors — globally market share. Five of the top 10 deals of the Overall, it’s tough to predict if there will be and across six regions (US & Canada, Central quarter came for the sector including the an upswing in deals in the rest of 2018 and Mona Shah & South America, Europe, Middle East & Africa, headline-grabbing cross-border shale play beyond. The market could flourish, even hit new Regional Sales Director, Asia-Pacific, and Japan). which saw UK energy giant BP buy Petrohawk heights, if there is a favorable Brexit deal; if we Merrill Corporation for US$10.5bn. The deal bequeaths BP a Global M&A growth slowed in Q3 as fears over see PE putting their record funds to work; and bumper land package within the Permian protectionism, trade wars, and a no-deal Brexit if companies can get a grip on the protectionist Basin, which is at the heart of the shale boom gave dealmakers pause for thought. stances of numerous global regimes. However, in the US. all of that could present too much uncertainty This drop-off on value is something of a Technology, which was the second highest- for the M&A market. Time will tell. surprise given the amount of spare capital value sector this quarter, saw a solid rise in on corporate and private equity (PE) Sincerely, year-on-year value to finish at US$90.5bn. balance sheets and recent US corporate Much of this total came from the deal which tax cuts. However, the ongoing trade war saw semiconductor giant Broadcom announce between the US and China; a third interest that it would buy IT management software rate rise in the US in a year; and issues over company CA Technologies for US$17.9bn. Brexit are all contributing to dealmaking uncertainty — and, uncertainty is very much North America (NA) is once again the leading Mona Shah the enemy when it comes to M&A. region on the back of deals worth US$370.4bn Regional Sales Director for this quarter — up on Q3 2017. With the That said, it is worth noting the annual exception of North America, the Middle East deal total of US$2.8tr in 2018 has already and Africa was the only other region to record outstripped every year between 2010 and a year-on-year value increase in Q3. However, 2013 and, given the pipeline of strong deals, on a broader level, and despite fears over could well surpass the substantial sums tariffs and global protectionism, cross-border accumulated in 2016 and 2017. M&A was up 2.1% on the same period last year. Though deals are still getting done, they are Despite having record “dry powder” to flourishing at the top end of the market as deploy, PE buyout value also fell by 3% to opposed to the middle. Megadeals seem to US$121.9bn. However, by the end of 2018, be very much the order of the day. And some

mergermarket.com Mergermarket Monthly M&A Insider Q3 2018 4 Global Overview

An Acuris report on global M&A activity

Global Overview

mergermarket.com Mergermarket Monthly M&A Insider Q3 2018 5 Global Overview

Global Overview

Further information Growth in global deal activity slowed in Q3 recent of the megadeals, Canadian pipeline Global trade tensions have put some Get in touch or read more amid concerns about the trade fights sparked operator Enbridge agreed to buy the remaining dealmakers on edge, but cross-border M&A by the U.S. against China and the European shares it did not already own in master limited continued unabated last quarter. The value Union. M&A value decreased by 1% in the partnership (MLP) unit Enbridge Energy of cross-border deals increased 2% to Ezekiel Pfeifer quarter — compared to year-on-year gains Partners for US$9.2bn. The deal is meant to US$288.8bn in Q3, and six of the top 10 deals of 41% in Q2 and 23% in Q1 — and totaled simplify midstream giant Enbridge’s corporate involved companies from different countries. US$709.5bn. The pace slackened in part structure and consolidate its core assets within Elizabeth Lim because private equity (PE) buyout value a single publicly listed entity. It is also the latest declined for the second straight quarter, purchase of an MLP unit by its parent company indicating that financial buyers may be after a US tax change in March caused the struggling to find targets worthy of their structures to lose value. dry powder. North America was the leading region for M&A Energy, Mining & Utilities (EMU) led the way in the quarter, with deals valued at a total of among sectors in terms of deal value, with five US$370.4bn. Ten of the top 15 deals in Q3 of the quarter’s top 10 transactions involving involved US targets, including semiconductor an energy company. North America had the producer Integrated Device Technology (IDT), most M&A value of any region, boasting over which sold to Japan’s Renesas Electronics half the global market share. for US$7bn in September. Renesas is one of the world’s biggest suppliers of microchips Year-to-date M&A value in 2018 remains to the auto industry, and IDT makes chips for far ahead of the total from the same period autonomous driving systems, making the two last year. Deals valued at US$2.7trn were a natural pairing. announced in the first nine months of the year, a 23% increase over the total value in Q1-Q3 PE buyout value fell 3% in Q3 down to 2017. PE buyout value was also higher in the US$121.9bn. Financial acquirers still placed first three quarters of 2018, despite the down a number of big bets, however — there were quarter, growing by 2% to US$416.6bn. 30 buyout deals valued at US$1bn or more worldwide. A consortium led by Australian toll In Q3, EMU saw the most deal value of any road giant Transurban paid the largest price sector at US$196.8bn spread across 320 tag of any buyer in Q3 with its US$9.4bn transactions. More than half this total came acquisition of Sydney highway WestConnex. from five megadeals for oil and gas targets, Transurban already owned seven of the eight three in the midstream segment and two other toll roads in Sydney, the most populous in exploration and production. In the most city in Australia. mergermarket.com Mergermarket Monthly M&A Insider Q3 2018 6 Global Overview

Top Financial Advisor 3,918 deals Citi valued at US$709.5bn, down 1% by value with 1,043 fewer deals compared to 4,961 ranked first with 71 deals worth US$173.7bn, up deals worth US$718.1bn in Q3 2017. 50.3% in value with 20 more deals compared to 51 deals worth US$115.6bn in Q3 2017.

Top Legal Advisor Top Sector Energy, Mining Latham & Watkins ranked first with 52 deals worth US$97.8bn, up & Utilities 56.6% in value with 40 fewer deals compared to 92 deals worth US$62.5bn in Q3 2017. saw 320 deals valued at US$196.8n, up 60.9% by value with 76 fewer deals compared to 396 deals worth US$122.4bn in Q3 2017.

Mermergermarket.com- germarket.com Mergermarket Monthly M&A Insider Q3 2018 7 Global Overview

Global M&A trend Global private equity trend

4,000 20,000 600 4,000

18,000 3,500 3,500 US$ 500 1,199.6 16,000

3,000 3,000

US$ 14,000 824.7 US$ US$ 956.8 933.8 400 2,500 US$ 12,000 2,500 Number of deals 709.5 Number of deals US$ 870.3 2,000 US$ US$ 10,000 300 2,000 570.3 853.3 US$ US$ US$ US$ US$ 718 547.1 Value (US$bn) Value Value (US$bn) Value 873.3 537.5 533.6 US$ 8,000 500 US$ 1,500 US$ 460.9 1,500 1,093.6 US$ US$ US$ US$ US$ US$ 421.7 416.6 656.3 US$ 200 410.1 401.1 405.5 6,000 1,039.6 US$ 751 1,000 US$ US$ US$ 963.7 741.9 US$ 1,000 297.5 294.5 4,000 US$ 560.4 100 500 US$ 2,000 500 US$ US$ 932.5 US$ 760.6 US$ 758.1 US$ 570.7 627.9 444 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 Q3 2018 8 Global Overview

Regional Trends

Energy, Mining & Utilities Value: US$196.8bn Number of deals: 320 Market share: 27%

Middle East Technology Europe Value: US$90.5bn North America & Africa Number of deals: 600 US$15.2bn US$139.1bn Market share: 13% US$370.4bn 1,428 deals 79 deals Industrials & Chemicals 1,340 deals 2.1% 19.8% Value: US$83.8bn Number of deals: 826 52.2% Market share: 12%

Financial Services Value: US$72.6bn Number of deals: 310 Market share: 10%

Business Services Asia-Pacific Japan Value: US$50.1bn US$13bn Number of deals: 514 C&S America (excluding Japan) 96 deals Market share: 7% US$7.2bn 1.7% 93 deals US$164.6bn 1% 882 deals 23.2%

Domestic US$426.1bn -0.3% Cross-border US$283.9bn +2.1%

mergermarket.com Mergermarket Monthly M&A Insider Q3 2018 9 Global Overview

Top deals

Top 10 Announced Deals for Q3 2018

Value (US$m) Deal details Advisor details

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

59,612 1-Aug-18 Energy Transfer Partners Energy Transfer Equity Energy, Mining & Utilities FA: Barclays FA: Citi (97.64% stake) LA: Richards Layton & Finger; and Vinson & Elkins (Advising FA: Cleary LA: Latham & Watkins; and Potter Anderson & Corroon (Advising FA: White & Case) Gottlieb Steen & Hamilton)

17,987 11-Jul-18 CA Technologies Broadcom Inc Technology FA: Qatalyst Group FA: Bank of America Merrill Lynch; Barclays; Citi; Credit Suisse; Deutsche Bank; LA: Wilson Sonsini Goodrich & Rosati (Advising FA: Morrison & Foerster) JPMorgan; and Morgan Stanley LA: Niederer Kraft Frey; and Wachtell, Lipton, Rosen & Katz (Advising FA: Ropes & Gray)

16,262 13-Aug-18 APA Group Ltd Consortium for APA Energy, Mining & Utilities FA: Grant Samuel FA: Morgan Stanley Group LA: King & Wood Mallesons LA: Allens; and Freshfields Bruckhaus Deringer

10,500 26-Jul-18 Petrohawk Energy BP Plc Energy, Mining & Utilities FA: Bank of America Merrill Lynch; Barclays; Citi; and Goldman Sachs & Co FA: Morgan Stanley; Robey Warshaw; and UBS Investment Bank Corporation LA: Baker Botts; Herbert Smith Freehills; and Sullivan & Cromwell (Advising LA: Freshfields Bruckhaus Deringer FA: Shearman & Sterling)

9,480 31-Jul-18 Forest City Realty Trust Inc Brookfield Asset Real Estate FA: Goldman Sachs & Co; Lazard; and Morgan Stanley FA: Bank of America Merrill Lynch; Barclays; BMO Capital Markets; Citi; Deutsche Management Inc LA: Sullivan & Cromwell; and Wachtell, Lipton, Rosen & Katz Bank; Moelis; RBC Capital Markets; Scotiabank; and TD Securities LA: Skadden Arps Slate Meagher & Flom; Torys; and Weil Gotshal & Manges (Advising Debt Providers: Cleary Gottlieb Steen & Hamilton)

9,475 3-Jul-18 Wind Tre SpA (50% stake) CK Hutchison Holdings Telecommunications FA: LionTree Advisors FA: Goldman Sachs & Co; and Moelis & Company Limited LA: Allen & Overy LA: Freshfields Bruckhaus Deringer

9,432 31-Aug-18 Sydney Motorway Sydney Transport Transportation FA: Goldman Sachs & Co FA: AquAsia; Macquarie Group Limited; Morgan Stanley; and UBS Investment Bank Corporation (51% stake) Partners LA: Allens; Ashurst; and Baker McKenzie LA: Herbert Smith Freehills; and King & Wood Mallesons

9,201 18-Sep-18 Enbridge Energy Partners Enbridge Inc Energy, Mining & Utilities FA: Evercore FA: Bank of America Merrill Lynch; and Scotiabank (66.06% stake) LA: Bracewell; and Morris Nichols Arsht & Tunnell LA: McCarthy Tretault; and Sullivan & Cromwell

9,116 14-Aug-18 Energen Corporation Diamondback Energy Inc Energy, Mining & Utilities FA: JPMorgan; and Tudor, Pickering, Holt & Co FA: Citi LA: Wachtell, Lipton, Rosen & Katz LA: Akin Gump Strauss Hauer & Feld (Advising FA: White & Case)

7,004 11-Sep-18 Integrated Device Renesas Electronics Technology FA: JPMorgan FA: Bank of America Merrill Lynch; Mizuho Financial Group; and Morgan Stanley Technology Inc Corporation LA: Latham & Watkins (Advising FA: Sullivan & Cromwell) LA: Covington & Burling; Morrison & Foerster; and Nagashima Ohno & Tsunematsu

mergermarket.com Mergermarket Monthly M&A Insider Q3 2018 10 Global Overview

League tables

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

Ranking Q3 2018 Q3 2017 Ranking Q3 2018 Q3 2017

Q3 2018 Q3 2017 Company name Value Deal count Value % Value Q3 2018 Q3 2017 Company name Value Deal count Deal count Deal count (USD m) (USD m) change (USD m) change

1 4 Citi 173,671 71 115,583 50.3% 1 7 Goldman Sachs & Co 156,117 80 74 6

2 3 Goldman Sachs & Co 156,117 80 142,313 9.7% 2 5 JPMorgan 123,074 76 86 -10

3 5 Barclays 142,690 48 87,530 63.0% 3 6 Rothschild & Co 25,251 75 78 -3

4 2 Morgan Stanley 140,316 60 180,234 -22.1% 4 12 Citi 173,671 71 51 20

5 1 JPMorgan 123,074 76 180,708 -31.9% 5 1 KPMG 4,558 70 110 -40

6 9 Bank of America Merrill Lynch 118,481 42 65,042 82.2% 6 4 EY 2,496 69 92 -23

7 11 Deutsche Bank 69,977 32 40,830 71.4% 7 2 PwC 3,476 68 104 -36

8 10 Credit Suisse 51,382 39 59,794 -14.1% 8 3 Deloitte 4,643 63 99 -36

9 8 UBS Investment Bank 49,983 38 67,716 -26.2% 9 8 Morgan Stanley 140,316 60 66 -6

10 15 Moelis & Company 42,387 31 31,857 33.1% 10 11 Lazard 30,197 51 55 -4

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

Ranking Q3 2018 Q3 2017 Ranking Q3 2018 Q3 2017

Q3 2018 Q3 2017 Company name Value Deal count Value % Value Q3 2018 Q3 2017 Company name Value Deal count Deal count Deal count (USD m) (USD m) change (USD m) change

1 9 Latham & Watkins 97,846 52 62,466 56.6% 1 2 Kirkland & Ellis 50,740 114 137 -23

2 5 White & Case 92,769 44 83,361 11.3% 2 3 Jones Day 23,415 107 102 5

3 4 Sullivan & Cromwell 88,268 35 102,618 -14.0% 3 1 DLA Piper 14,863 89 162 -73

4 6 Cleary Gottlieb Steen & Hamilton 84,683 21 71,813 17.9% 4 6 CMS 4,649 79 86 -7

5 49 Vinson & Elkins 76,164 29 12,811 494.5% 5 15 Allen & Overy 27,728 58 60 -2

6 12 Wachtell, Lipton, Rosen & Katz 67,890 17 55,949 21.3% 6 4 Latham & Watkins 97,846 52 92 -40

7 13 Freshfields Bruckhaus Deringer 61,946 36 52,875 17.2% 7 17 Weil Gotshal & Manges 27,439 48 58 -10

8 110 Richards Layton & Finger 60,887 2 4,010 1,418.4% 8 5 Baker McKenzie 17,824 46 88 -42

9 121 Potter Anderson & Corroon 59,737 2 3,473 1,620.0% 9 8 Goodwin Procter 7,777 45 71 -26

10 1 Kirkland & Ellis 50,740 114 129,130 -60.7% 10 9 White & Case 92,769 44 68 -24

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Mergermarket Monthly M&A Insider Q3 2018 12 US & Canada

An Acuris report on global M&A activity

US & Canada

mergermarket.com Mergermarket Monthly M&A Insider Q3 2018 13 US & Canada

US & Canada

Further information Deal value climbed higher in North America significant proportion as well. In the most largest buyout of the quarter, Carlyle Group Get in touch or read more last quarter as strategic and financial buyers recent of the major tie-ups, Canadian agreed to pay US$6.7bn to acquire insurance alike put capital to work amid steady economic integrated oil and gas company Husky Energy claims management business Sedgwick from growth in the region. The total value of announced a hostile US$4.8bn bid for debt- fellow PE firm KKR. Ezekiel Pfeifer announced M&A deals increased nearly laden Canadian rival MEG Energy. The deal Cross-border activity rebounded somewhat in 15% in the US & Canada compared to the could add value to the combined entity the quarter after a weak first half. Inbound deal third quarter last year, reaching US$359.6bn. by uniting MEG’s oil sands production with Philip Segal value went up 59% to US$66.5bn, although Activity in the Energy, Mining & Utilities (EMU) Husky’s refining capabilities. outbound value fell 16.5% to US$76.6bn. sector fueled much of this expansion — it led Technology made a strong showing in Q3 all sectors with US$136.4bn in deal value, and as well, with a total of 221 deals valued energy companies were targeted in four of at US$54.3bn, putting it in second place the top 10 deals of Q3. Private equity (PE) among sectors. Chipmaker Broadcom made buyout value, on the other hand, declined for the highest-value tech acquisition of the a second straight quarter, equaling the lowest quarter, making a foray into the enterprise quarterly total in nearly two years. software market with its US$17.9bn purchase Through the first three quarters of 2018, total of app development platform provider CA M&A value in the US & Canada is on pace to Technologies. In justifying the deal, Broadcom surpass the annual totals of each of the last argued that it will be able to cross-sell its two years. There were deals valued at US$1.2trn chip products to CA’s large list of enterprise through Q3 in the region, a 24% increase customers. The second-largest tech deal of compared to the same period last year. PE Q3 also involved a chipmaker — US-based buyout value, meanwhile, has fallen off the Integrated Device Technology, which was pace of last year, when a post-crisis high was bought by Japan’s Renesas Electronics reached. In Q1-Q3 2018, buyout value totaled Corporation for US$7bn. IDT produces chips US$164.2bn, a 2% drop year-on-year (YoY). used in autonomous driving systems, adding to Renesas’s robust automotive offerings. In the booming EMU sector, there were 122 deals valued at US$136.4bn announced in Q3. PE deal value fell 20% YoY in the quarter to The largest transaction of the quarter — Energy US$39.9bn, a further sign of weakening in the Transfer Equity’s US$59.6bn acquisition of buyout market after a YoY decline in Q2. There master limited partnership Energy Transfer were just nine PE deals for North American Partners — contributed more than 40% of targets valued at US$1bn or more in Q3, and this total, while other megadeals added a only two with value greater than US$5bn. In the

mergermarket.com Mergermarket Monthly M&A Insider Q3 2018 14 US & Canada

Top Financial Advisor 1,253 deals Citi valued at US$359.6bn, up 14.8% by value with 365 fewer deals compared to 1,618 ranked first with 53 deals worth US$165.7bn, deals worth US$313.1bn in Q3 2017. up 87.7% in value with 12 more deals compared to 41 deals worth US$88.2bn in Q3 2017.

Top Legal Advisor Top Sector Energy, Mining Latham & Watkins ranked first with 41 deals worth US$93.5bn, up & Utilities 96.4% in value with 34 fewer deals compared to 75 deals worth US$47.6bn in Q3 2017. saw 122 deals valued at US$136.4bn, up 68.4% by value with 40 fewer deals compared to 162 deals worth US$81bn in Q3 2017.

Mermergermarket.com- germarket.com Mergermarket Monthly M&A Insider Q3 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$ 526.7

5,000 1,400 1,000

US$ 200 US$ 514.9 375.5 1,200 US$ Number of deals 427.1 4,000 Number of deals US$ 800 474.5 US$ 1,000 359.6 US$ 150 297.2 US$ US$ Value (US$bn) Value Value (US$bn) Value 3,000 275 US$ US$ US$ 250.1 456.4 US$ US$ 600 800 438.8 313.1 253.4 253.5 US$ 210.6 US$ 100 600 US$ 436.1 US$ 2,000 US$ US$ 511.9 US$ 182.6 US$ 171.4 176.1 US$ 400 338.9 US$ 163.5 US$ 164.3 310.7 US$ 157 US$ US$ 144.7 400 415 343

US$ 1,000 50 193 200 200 US$ US$ US$ 421.4 367.3 US$ 357.1 US$ 271.2 US$ 235.6 196.6 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 Q3 2018 16 US & Canada

Regional Trends

Energy, Mining & Utilities Value: US$136.4bn Number of deals: 122 Market share: 37.9%

Technology Value: US$54.4bn Number of deals: 221 Market share: 15.1%

US Canada Industrials & Chemicals Value: US$37.4bn US$333.9bn US$25.7bn Number of deals: 228 1,134 deals 119 deals Market share: 10.4% Business Services 92.8% 7.2% Value: US$29.4bn Number of deals: 168 Market share: 8.2%

Financial Services Value: US$27.5bn Number of deals: 90 Market share: 7.6%

Domestic US$83.9bn +4.6% Inbound US$66.5bn +59.2% Outbound US$76.6bn -16.5%

mergermarket.com Mergermarket Monthly M&A Insider Q3 2018 17 US & Canada

Top deals

Top 10 Announced Deals for Q3 2018

Value (US$m) Deal details Advisor details

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

59,612 1-Aug-18 Energy Transfer Partners Energy Transfer Equity Energy, Mining & Utilities FA: Barclays FA: Citi (97.64% stake) LA: Richards Layton & Finger; and Vinson & Elkins (Advising FA: LA: Latham & Watkins; and Potter Anderson & Corroon (Advising FA: White & Case) Cleary Gottlieb Steen & Hamilton)

17,987 11-Jul-18 CA Technologies Broadcom Inc Technology FA: Qatalyst Group FA: Bank of America Merrill Lynch; Barclays; Citi; Credit Suisse; Deutsche Bank; LA: Wilson Sonsini Goodrich & Rosati (Advising FA: Morrison & JPMorgan; and Morgan Stanley Foerster) LA: Niederer Kraft Frey; and Wachtell, Lipton, Rosen & Katz (Advising FA: Ropes & Gray)

10,500 26-Jul-18 Petrohawk Energy BP Plc Energy, Mining & Utilities FA: Bank of America Merrill Lynch; Barclays; Citi; and Goldman FA: Morgan Stanley; Robey Warshaw; and UBS Investment Bank Corporation Sachs & Co LA: Freshfields Bruckhaus Deringer LA: Baker Botts; Herbert Smith Freehills; and Sullivan & Cromwell (Advising FA: Shearman & Sterling)

9,480 31-Jul-18 Forest City Realty Trust Inc Brookfield Asset Real Estate FA: Goldman Sachs & Co; Lazard; and Morgan Stanley FA: Bank of America Merrill Lynch; Barclays; BMO Capital Markets; Citi; Deutsche Management Inc LA: Sullivan & Cromwell; and Wachtell, Lipton, Rosen & Katz Bank; Moelis; RBC Capital Markets; Scotiabank; and TD Securities LA: Skadden Arps Slate Meagher & Flom; Torys; and Weil Gotshal & Manges (Advising Debt Providers: Cleary Gottlieb Steen & Hamilton)

9,201 18-Sep-18 Enbridge Energy Partners Enbridge Inc Energy, Mining & Utilities FA: Evercore FA: Bank of America Merrill Lynch; and Scotiabank (66.06% stake) LA: Bracewell; and Morris Nichols Arsht & Tunnell LA: McCarthy Tretault; and Sullivan & Cromwell

9,116 14-Aug-18 Energen Corporation Diamondback Energy Inc Energy, Mining & Utilities FA: JPMorgan; and Tudor, Pickering, Holt & Co FA: Citi LA: Wachtell, Lipton, Rosen & Katz LA: Akin Gump Strauss Hauer & Feld (Advising FA: White & Case)

7,004 11-Sep-18 Integrated Device Renesas Electronics Technology FA: JPMorgan FA: Bank of America Merrill Lynch; Mizuho Financial Group; and Morgan Stanley Technology Inc Corporation LA: Latham & Watkins (Advising FA: Sullivan & Cromwell) LA: Covington & Burling; Morrison & Foerster; and Nagashima Ohno & Tsunematsu

6,709 6-Aug-18 Bemis Company Inc Amcor Limited Industrials & Chemicals FA: Goldman Sachs & Co FA: Moelis & Company; and UBS Investment Bank LA: Cleary Gottlieb Steen & Hamilton; Faegre Baker Daniels; LA: Herbert Smith Freehills; and Kirkland & Ellis and MinterEllison (Advising FA: Cravath, Swaine & Moore)

6,700 12-Sep-18 Sedgwick Claims The Carlyle Group Business Services FA: Bank of America Merrill Lynch FA: Morgan Stanley; and Sandler O'Neill & Partners Management Services Inc LA: Simpson Thacher & Bartlett LA: Kirkland & Ellis; and Wachtell, Lipton, Rosen & Katz (Undisclosed Majority stake)

6,524 8-Aug-18 Dun & Bradstreet Inc Thomas H. Lee Partners; Business Services FA: JPMorgan FA: Bank of America Merrill Lynch; Citi; and RBC Capital Markets Cannae Holdings Inc; and LA: Cleary Gottlieb Steen & Hamilton LA: Kirkland & Ellis; and Sullivan & Cromwell (Advising FA: Davis Polk & Wardwell) CC Capital

mergermarket.com Mergermarket Monthly M&A Insider Q3 2018 18 US & Canada

League tables

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

Ranking Q3 2018 Q3 2017 Ranking Q3 2018 Q3 2017

Q3 2018 Q3 2017 Company name Value Deal count Value % Value Q3 2018 Q3 2017 Company name Value Deal count Deal count Deal count (USD m) (USD m) change (USD m) change

1 4 Citi 165,665 53 88,243 87.7% 1 2 Goldman Sachs & Co 133,597 72 54 18

2 5 Barclays 136,446 41 81,575 67.3% 2 5 Citi 165,665 53 41 12

3 3 Goldman Sachs & Co 133,597 72 92,319 44.7% 3 1 JPMorgan 106,148 53 56 -3

4 2 JPMorgan 106,148 53 122,376 -13.3% 4 4 Morgan Stanley 98,280 46 42 4

5 8 Bank of America Merrill Lynch 102,745 35 50,056 105.3% 5 7 Barclays 136,446 41 39 2

6 1 Morgan Stanley 98,280 46 127,662 -23.0% 6 13 Bank of America Merrill Lynch 102,745 35 28 7

7 12 Deutsche Bank 56,461 21 35,155 60.6% 7 19 Evercore 35,595 35 25 10

8 9 Credit Suisse 43,633 26 49,976 -12.7% 8 6 Jefferies 18,312 34 41 -7

9 6 Evercore 35,595 35 67,138 -47.0% 9 3 Houlihan Lokey 8,058 33 46 -13

10 10 UBS Investment Bank 34,695 19 46,817 -25.9% 10 10 Moelis & Company 32,628 27 30 -3

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

Ranking Q3 2018 Q3 2017 Ranking Q3 2018 Q3 2017

Q3 2018 Q3 2017 Company name Value Deal count Value % Value Q3 2018 Q3 2017 Company name Value Deal count Deal count Deal count (USD m) (USD m) change (USD m) change

1 10 Latham & Watkins 93,481 41 47,602 96.4% 1 1 Kirkland & Ellis 49,076 105 130 -25

2 5 White & Case 88,970 19 73,093 21.7% 2 3 Jones Day 20,521 79 79 0

3 4 Sullivan & Cromwell 88,068 34 83,872 5.0% 3 2 DLA Piper 12,383 42 81 -39

4 7 Cleary Gottlieb Steen & Hamilton 82,415 14 59,238 39.1% 4 5 Goodwin Procter 7,713 42 61 -19

5 39 Vinson & Elkins 73,065 26 12,811 470.3% 5 4 Latham & Watkins 93,481 41 75 -34

6 9 Wachtell, Lipton, Rosen & Katz 67,890 17 55,949 21.3% 6 11 Cooley 3,179 38 42 -4

7 71 Richards Layton & Finger 60,887 2 4,010 1,418.4% 7 29 Sullivan & Cromwell 88,068 34 23 11

8 77 Potter Anderson & Corroon 59,737 2 3,473 1,620.0% 8 13 Sidley Austin 21,659 34 37 -3

9 1 Kirkland & Ellis 49,076 105 104,657 -53.1% 9 12 Stikeman Elliott 11,480 33 39 -6

10 20 Shearman & Sterling 35,581 25 26,408 34.7% 10 8 Weil Gotshal & Manges 23,572 32 45 -13

mergermarket.com Mergermarket Monthly M&A Insider Q3 2018 19 Central & South America

An Acuris report on global M&A activity

Central & South America

mergermarket.com Mergermarket Monthly M&A Insider Q3 2018 20 Central & South America

Central & South America

Further information Deal activity fell sharply in Latin America Brookfield Asset Management for US$1.8bn. chain GEM Assistencia Medica Especializada, Get in touch or read more last quarter as many countries in the region Ascenty runs eight data centers in major which was bought by US-based PE firm H.I.G. undergo dramatic political and economic metropolitan areas in Brazil and has contracts Capital in September for an undisclosed sum. change. The value of M&A deals in the region with US clients such as Oracle, Amazon, and Ezekiel Pfeifer Cross-border dealmaking declined in both fell 71% to US$7.2bn — the lowest quarterly Facebook. It was previously owned by US PE directions last quarter, even though six of the total in more than a decade. Private equity firm Great Hill Partners. top 10 deals involved buyers from outside (PE) buyout value declined for a third straight Lana Vilner Chile had the second-most M&A value of any Latin America. Inbound M&A value dropped quarter, while PE exit value increased for a country in the region last quarter, rising 66% 66% to US$4.8bn and outbound value went fourth quarter in a row. Business Services had YoY to reach US$1.5bn. The nation’s economy down 85% to US$357m. the most deal value of any sector at US$2.2bn, is one of the healthiest in the region, with followed by Energy, Mining & Utilities in second GDP growth of 4-4.5% expected this year, place at US$1.3bn. and two of the 10 largest deals in Q3 were Even with the sudden drop in dealmaking, for Chilean companies. In the more recent M&A value is 5% higher through the first three of the two, Canadian utility and construction quarters of 2018 compared to the same period company ATCO agreed to pay US$343m for a last year in Central & South America, thanks to 40% stake in Neltume Ports, which operates a strong first half, with transactions valued at terminals in Argentina, Brazil, Chile and a total of US$55.8bn announced in Q1-Q3. PE Uruguay. The deal represents ATCO’s second buyout value, on the other hand, is down 54% investment in Chile over the past three years — year-on-year (YoY) through three quarters, with in 2016, the company acquired a 50% stake a total of US$1.6bn. in Sabinco Soluciones Modulares, a builder of prefabricated housing for the mining industry. Brazil, the region’s largest market for M&A, saw deal value decrease by 72% in Q3 down PE buyout value fell 75% to US$400m — a to US$3.6bn. The country has stood in limbo value total contributed by just a single deal, ahead of a hotly contested presidential vote since it was the only buyout with disclosed held earlier this month, and its economy value in the quarter. Brazil-based IG4 Capital remains sluggish after emerging from the Investimentos paid US$400m to acquire a worst recession on record last year. The top majority stake in Novo Metropolitano, which deal of the quarter in Latin America involved a owns a concession to operate a hospital in target in Brazil, however: data-center operator the Brazilian city of Belo Horizonte. Several Ascenty, which sold to US-based real estate other PE deals in Q3 also involved healthcare investment trust Digital Realty and Canada’s targets, including Brazilian oncology clinic

mergermarket.com Mergermarket Monthly M&A Insider Q3 2018 21 Central & South America

Top Financial Advisor 93 deals Banco Bradesco BBI valued at US$7.2bn, down 71% by value with 60 fewer ranked first with 5 deals worth US$2.5bn, down deals compared to 153 deals worth US$25bn in Q3 2017. 10.3% in value with 2 more deals compared to 3 deals worth US$2.9bn in Q3 2017.

Top Legal Advisor Top Sector Lefosse Advogados Business Services ranked first with 4 deals worth US$2.2bn, saw 9 deals valued at US$2.2bn, up 3,663.5% down 64% in value with 1 more deal compared by value with 3 fewer deals compared to to 3 deals worth US$6bn in Q3 2017. 12 deals worth US$59m in Q3 2017.

Mermergermarket.com- germarket.com Mergermarket Monthly M&A Insider Q3 2018 22 Central & South America

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

140 800 12 80

700 120 70 US$ 28.6 10

600 60 100

8 500 US$ 50 Number of deals 38.1 Number of deals 80 US$ US$ 44.4 25.6 400 US$ 6 40 US$ 19.6 US$ Value (US$bn) Value Value (US$bn) Value 60 29.4 10.7 US$ US$ 300 US$ 7.2 9.1 30 22.4 US$ 4 US$ US$ US$ 39.9 US$ US$ 7.7 7.7 7.6 40 30.2 25 US$ US$ 21.2 US$ 24.2 200 20 5.9 US$ US$ 5.3 21.4 US$ 4.4 US$ US$ US$ 2 3.9 20 US$ 14 11.2 100 12.2 US$ 10 US$ 27.4 US$ US$ 24.8 US$ US$ US$ US$ 1.9 1.6 17.8 US$ 14.9 1.4 11.9 14.1 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 Q3 2018 23 Central & South America

Regional Trends

Business Services Value: US$2.2bn Number of deals: 9 Market share: 30.1%

Energy, Mining & Utilities Value: US$1.3bn Dominican Mexico Number of deals: 11 Brazil Market share: 18% US$3.6bn Republic US$693m US$500m 10 deals Agriculture 2 deals Value: US$839m 48 deals 9.3% Number of deals: 5 48.1% 6.7% Market share: 11.3% Pharma, Medical & Biotech Value: US$584m Number of deals: 14 Market share: 7.9%

Financial Services Ecuador Colombia Value: US$505m US$16m Argentina US$372m Number of deals: 4 1 deal US$301m Chile 0.2% 4 deals Market share: 6.8% 10 deals 5% 4.1% US$1.5bn 7 deals Domestic US$2.5bn -77.5% 20.3% Inbound US$4.8bn -66% Outbound US$357m -85.2%

mergermarket.com Mergermarket Monthly M&A Insider Q3 2018 24 Central & South America

Top deals

Top 10 Announced Deals for Q3 2018

Value (US$m) Deal details Advisor details

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

1,800 24-Sep-18 Ascenty Data Centers e Brookfield Asset Management Inc; Business Services FA: DH Capital FA: Bank of America Merrill Lynch Telecomunicacoes SA and Digital Realty Trust Inc LA: Choate Hall & Stewart LA: Demarest Advogados; and Latham & Watkins

809 6-Aug-18 Empresas AquaChile SA Agrosuper Comercializadora de Agriculture FA: - FA: - Alimentos Ltda LA: CMS LA: -

507 26-Sep-18 Corporacion Lindley SA (38.52% stake) Arca Continental SAB de CV Consumer FA: - FA: - LA: - LA: -

400 21-Jul-18 Novo Metropolitano SA (51% stake) IG4 Capital Investimentos Ltda Business Services FA: - FA: - LA: - LA: -

379 4-Jul-18 Block BM-S-8 (10% stake) Equinor ASA Energy, Mining & Utilities FA: - FA: Banco Itaú BBA LA: Tauil & Chequer Advogados in association with Mayer Brown LA: Mattos Filho, Veiga Filho, Marrey Jr. e Quiroga Advogados

343 12-Sep-18 Neltume Ports (40% stake) ATCO Group Transportation FA: BNP Paribas FA: Morgan Stanley LA: - LA: Cariola Diez Perez-Cotapos Abogados

330 14-Aug-18 Banco Dominicano del Progreso SA Scotiabank Financial Services FA: - FA: - LA: - LA: Tor ys

293 6-Sep-18 Brennand Cimentos SA (50% stake) Buzzi Unicem SpA Construction FA: Banco Bradesco BBI FA: - LA: Pinheiro Neto Advogados LA: Machado Associados; and Tosetto Weigmann e Associati

280 28-Aug-18 Galaxy Resources (Northern package of POSCO Energy, Mining & Utilities FA: JPMorgan FA: - tenements of Sal de Vida project) LA: - LA: Marval, O'Farrell & Mairal; and Norton Rose Fulbright

245 24-Sep-18 Banco Panameno de la Vivienda SA Global Bank Corporation Financial Services FA: Lazard FA: - (99.97% stake) LA: Arias, Aleman & Mora LA: Alfaro, Ferrer & Ramirez

mergermarket.com Mergermarket Monthly M&A Insider Q3 2018 25 Central & South America

League tables

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

Ranking Q3 2018 Q3 2017 Ranking Q3 2018 Q3 2017

Q3 2018 Q3 2017 Company name Value Deal count Value % Value Q3 2018 Q3 2017 Company name Value Deal count Deal count Deal count (USD m) (USD m) change (USD m) change

1 7 Banco Bradesco BBI 2,580 5 2,877 -10.3% 1 8 Banco Bradesco BBI 2,580 5 3 2

2 9 Morgan Stanley 2,503 2 1,857 34.8% 2 2 Banco Itau BBA 647 4 8 -4

3 1 JPMorgan 2,440 2 9,875 -75.3% 3 57 LXG Capital 26 3 1 2

4 - Rabobank 2,160 2 - - 4 21 Vinci Partners - 3 2 1

5 5 Bank of America Merrill Lynch 2,089 2 3,755 -44.4% 5 9 Morgan Stanley 2,503 2 3 -1

6 - DH Capital 1,800 1 - - 6 3 JPMorgan 2,440 2 5 -3

7 8 Banco Itau BBA 647 4 2,469 -73.8% 7 - Rabobank 2,160 2 - -

8 11 BNP Paribas 513 2 1,490 -65.6% 8 6 Bank of America Merrill Lynch 2,089 2 4 -2

9 3 Banco BTG Pactual 420 2 8,329 -95.0% 9 14 BNP Paribas 513 2 2 0

10 - Lazard 245 1 - - 10 1 Banco BTG Pactual 420 2 10 -8

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

Ranking Q3 2018 Q3 2017 Ranking Q3 2018 Q3 2017

Q3 2018 Q3 2017 Company name Value Deal count Value % Value Q3 2018 Q3 2017 Company name Value Deal count Deal count Deal count (USD m) (USD m) change (USD m) change

1 3 Lefosse Advogados 2,160 4 5,997 -64.0% 1 3 Demarest Advogados 1,860 9 8 1

2= - Davis Polk & Wardwell 2,160 1 - - 2 1 Mattos Filho, Veiga Filho, Marrey Jr. e 701 9 17 -8 Quiroga Advogados 2= 36 Linklaters 2,160 1 920 134.8% 3 2 Pinheiro Neto Advogados 453 9 10 -1 4 - Choate Hall & Stewart 1,970 2 - - 4 5 Lobo de Rizzo Advogados 71 6 8 -2 5 25 Demarest Advogados 1,860 9 1,190 56.3% 5 20 Lefosse Advogados 2,160 4 3 1 6 67 Latham & Watkins 1,800 1 90 1,900.0% 6 - Norton Rose Fulbright 681 3 - - 7 37 CMS 809 1 849 -4.7% 7 66 Marval, O'Farrell & Mairal 280 3 1 2 8 5 Mattos Filho, Veiga Filho, Marrey Jr. e 701 9 4,986 -85.9% Quiroga Advogados 8 16 Philippi Prietocarrizosa, Ferrero DU & Uria 143 3 4 -1

9 - Norton Rose Fulbright 681 3 - - 9 14 Estudio Muniz, Ramirez, Perez-Taiman & 45 3 4 -1 Olaya Abogados 10 9 Pinheiro Neto Advogados 453 9 2,172 -79.1% 10= 112 Hogan Lovells International - 3 1 2

10= 8 Stocche Forbes Advogados - 3 6 -3 mergermarket.com Mergermarket Monthly M&A Insider Q3 2018 26 Europe

An Acuris report on global M&A activity

Europe

mergermarket.com Mergermarket Monthly M&A Insider Q3 2018 27 Europe

Europe

Further information Europe saw US$139.1bn changing hands US$51.5bn competing offer for Sky announced the aforementioned Shire-Takeda deal, closely Get in touch or read more across 1,428 deals in Q3 of 2018, marking the in May represented just over 30% of the US’s followed by Energy, Mining & Utilities, which has lowest quarter since Q1 2013 (US$136.3bn). total investment into Europe so far this year. seen two deals over US$10bn in 2018 so far. Nevertheless, the strong M&A activity in the Olivier Gilkinet Firms from the Middle East were also relatively PE remained active in the last quarter, too. first half has spurred dealmaking value to its active, recording 39 deals into Europe valued Investment reached a total US$37.4bn highest year-to-date (YTD) level since 2008 at US$12.3bn, an increase of 8.5% from the across 289 buyouts. While this was a 27.1% (US$785.9bn), recording 5,187 deals worth a US$11.4bn across 36 transactions that were decrease in value from Q2, it accounted for total US$792.7bn this year. The first half of the witnessed during the same period last year. 30.1% of the European-targeted M&A in Q3 year witnessed 11 deals worth over US$10bn, Moreover, the Middle East contributed 4.3% (US$139.1bn) — and a 16.6% share for YTD accounting for 41.3% of the deal value to the deal count targeting Europe, increasing 2018. Amid competitive markets across the announced so far this year, whereas none its share of European M&A by volume slightly, continent and investors looking to deploy have been announced in the last three months. from 3.4% in YTD 2017 and 4.1% in YTD 2016. vast amounts of dry powder, PE equity activity This has prompted the share of European M&A carried on from last year’s record-high level, over global M&A to fall to 19.8% for the quarter, Following six consecutive quarters above the increasing a further 6.6% compared to YTD the lowest share by quarter in terms of value US$100bn mark, intra-European M&A slipped 2017 (US$123.2bn), reaching US$139.1bn since Q2 2009 (19.7%). to US$59bn in Q3. This represented a 58.9% across 1,050 buyouts so far this year. This drop in value compared to the US$143.6bn The largest transaction this quarter was year has also seen growth in the number of recorded in Q2. It was the lowest quarterly Hong Kong-based CK Hutchison’s US$9.5bn large-cap buyouts, as illustrated by the 40 value since Q1 of 2016, which saw US$56.2bn acquisition (including debt) of a 50% stake transactions valued over US$1bn — worth a spread across 1,426 deals. in Italian telecom Wind Tre. This will see CK combined US$104.4bn — announced so far Hutchison becoming the sole shareholder Financial Services grabbed most of the this year. The same period last year saw only of the joint-venture it set up with VEON two activity by value in Q3, recording 105 deals 29 deals valued at a combined US$74.1bn. years ago. valued at US$23.1bn. Insurance companies are witnessing buoyant dealmaking activity Inbound activity recorded 909 transactions amid changes in regulations and incremental worth a total of US$381.4bn, the highest YTD technology disruption across industries. value on Mergermarket record. Even excluding Most of the largest transactions in the space the US$79.7bn offer for Shire in May, it announced during Q3 involved private equity represents an 8.3% increase compared to the (PE) firms, either leading the acquisition same period last year despite 141 fewer deals. or supporting their portfolio company’s The activity was primarily driven by Asian and expansion. On a YTD basis, Pharma, Medical & US investments, accounting for a combined Biotech was the top sector by value, thanks to 43.3% of the region’s YTD M&A value. Comcast’s

mergermarket.com Mergermarket Monthly M&A Insider Q3 2018 28 Europe

1,428 deals Top Financial Advisor Goldman Sachs & Co valued at US$139.1bn, down 21.4% by value with 467 fewer deals compared to 1,895 ranked first with 28 deals worth US$63.1bn, compared deals worth US$177.1bn in Q3 2017. to 23 deals worth US$48.7bn in Q3 2017.

Top Legal Advisor Top Sector Freshfields Bruckhaus Financial Services Deringer saw 105 deals valued at US$23.1bn, up 24.9% ranked first with 30 deals worth US$42bn, compared by value with 10 more deals compared to to 52 deals worth US$36.5bn in Q3 2017. 115 deals worth US$18.5bn in Q3 2017.

Mermergermarket.com- germarket.com Mergermarket Monthly M&A Insider Q3 2018 29 Europe

Europe M&A trend Europe Private equity trend

1,000 8,000 200 1,600

900 180 7,000 1,400

800 US$ 213.8 160 US$ US$ 6,000 293.3 193.4 US$ 1,200 700 139.1 140 US$ 225.1 5,000 1,000 600 US$ Number of deals Number of deals 120 US$ 203.8 US$ 157.9 177.1 US$ 500 4,000 179.7 100 800 US$ US$ US$ 177.9 384.7 US$ 186.6 Value (US$bn) Value Value (US$bn) Value US$ 177.6 US$ 400 158.9 167.5 US$ 3,000 80 US$ 166.5 US$ 600 US$ 145.5 149.8 US$ US$ US$ 268.2 136.2 US$ 300 309.8 128.9 131.3 US$ 60 262.6 US$ US$ 198 2,000 US$ 108.2 US$ US$ 400 200.6 96.4 200 91.4 40

US$ 1,000 100 US$ 268.9 200 US$ US$ 208 20 180.7 US$ US$ 164 174.2 136.3 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 Q3 2018 30 Europe

Regional Trends

Financial Services Value: US$23.1bn Number of deals: 105 Market share: 16.6%

Energy, Mining & Utilities Germany Value: US$22bn United Kingdom US$14.6bn Italy Number of deals: 75 Market share: 15.8% US$43.8bn 208 deals US$20.3bn 9.8% 131 deals Industrials & Chemicals 314 deals Value: US$18.4bn 13.7% Number of deals: 320 29.4% Market share: 13.2%

Business Services Value: US$13.7bn Number of deals: 215 Market share: 9.9%

Telecommunications Spain Value: US$13.7bn France Number of deals: 11 US$6.3bn US$20.5bn Market share: 9.8% 159 deals 99 deals 4.3% 13.8% Domestic US$59bn -42.8% Inbound US$80.1bn +8.4% Outbound US$39bn +9.6%

mergermarket.com Mergermarket Monthly M&A Insider Q3 2018 31 Europe

Top deals

Top 10 Announced Deals for Q3 2018

Value (US$m) Deal details Advisor details

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

9,475 3-Jul-18 Wind Tre SpA (50% stake) CK Hutchison Holdings Limited Telecommunications FA: LionTree Advisors FA: Goldman Sachs & Co; and Moelis & Company LA: Allen & Overy LA: Freshfields Bruckhaus Deringer

6,711 18-Sep-18 Jardine Lloyd Thompson Group Plc Marsh & McLennan Companies Inc Financial Services FA: JPMorgan FA: Goldman Sachs & Co LA: Clifford Chance; and Linklaters LA: Slaughter and May; and Wachtell, Lipton, Rosen & Katz (Advising FA: Sullivan & Cromwell; and Weil Gotshal & Manges)

5,865 19-Sep-18 Hornsea 1 (50% stake) Global Infrastructure Partners Energy, Mining & Utilities FA: Citi FA: - LA: Slaughter and May LA: Clifford Chance

5,842 5-Jul-18 Praxair Inc (Industrial gases & related Taiyo Nippon Sanso Corporation Industrials & Chemicals FA: Credit Suisse; Deutsche Bank; and Goldman Sachs & Co FA: Mizuho Financial Group machinery and equipment businesses) LA: McDermott Will & Emery LA: A&L Goodbody; Cuatrecasas; Eubelius; Greenberg Traurig; Nishimura & Asahi; and Vinge

5,367 24-Sep-18 Randgold Resources Limited Barrick Gold Corporation Energy, Mining & Utilities FA: Barclays; and CIBC World Markets FA: Klein and Company; and Morgan Stanley LA: Norton Rose Fulbright; Ogier; and Stikeman Elliott LA: Carey Olsen; Cravath, Swaine & Moore; Davies Ward Phillips & Vineberg; and Freshfields Bruckhaus Deringer (Advising FA: Borden Ladner Gervais)

5,065 31-Aug-18 Costa Limited The Coca-Cola Company Leisure FA: Deutsche Bank; Goldman Sachs & Co; Morgan Stanley FA: Rothschild & Co LA: Cravath, Swaine & Moore; and Slaughter and May LA: Clifford Chance (Advising FA: Ashurst)

4,099 27-Jul-18 Itinere Infraestructuras SA (55.6% stake) Globalvia Inversiones SAU Construction FA: Societe Generale FA: - LA: Uria Menendez LA: Allen & Overy

3,434 10-Sep-18 Itinere Infraestructuras SA (21.3% stake) Corsair Capital; and APG Group NV Construction FA: - FA: Deutsche Bank LA: - LA: Ashurst

3,245 16-Jul-18 VTG AG (71% stake) Morgan Stanley Infrastructure Inc Transportation FA: Rothschild & Co FA: JPMorgan; and Morgan Stanley LA: Freshfields Bruckhaus Deringer; and Hengeler Mueller LA: Sullivan & Cromwell

2,946 17-Sep-18 Testa Residencial Blackstone Group Real Estate FA: Banco Bilbao Vizcaya Argentaria FA: Morgan Stanley LA: - LA: Perez-Llorca; and Simpson Thacher & Bartlett

mergermarket.com Mergermarket Monthly M&A Insider Q3 2018 32 Europe

League tables

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

Ranking Q3 2018 Q3 2017 Ranking Q3 2018 Q3 2017

Q3 2018 Q3 2017 Company name Value Deal count Value % Value Q3 2018 Q3 2017 Company name Value Deal count Deal count Deal count (USD m) (USD m) change (USD m) change

1 3 Goldman Sachs & Co 63,130 28 48,786 29.4% 1 3 Rothschild & Co 23,739 67 69 -2

2 2 Morgan Stanley 36,681 19 49,545 -26.0% 2 4 EY 1,376 55 69 -14

3 1 JPMorgan 36,085 32 59,901 -39.8% 3 2 PwC 2,730 52 73 -21

4 7 Barclays 29,050 17 27,235 6.7% 4 5 Deloitte 4,177 46 62 -16

5 12 Citi 25,704 18 16,240 58.3% 5 1 KPMG 2,761 43 80 -37

6 4 Rothschild & Co 23,739 67 37,042 -35.9% 6 6 JPMorgan 36,085 32 40 -8

7 11 Deutsche Bank 23,555 15 20,155 16.9% 7 7 Lazard 10,166 32 37 -5

8 6 Bank of America Merrill Lynch 22,953 12 27,590 -16.8% 8 12 Goldman Sachs & Co 63,130 28 23 5

9 5 Credit Suisse 16,232 12 29,066 -44.2% 9 15 Lincoln International 1,655 27 21 6

10 9 UBS Investment Bank 14,166 15 21,737 -34.8% 10 14 Houlihan Lokey 4,391 24 21 3

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

Ranking Q3 2018 Q3 2017 Ranking Q3 2018 Q3 2017

Q3 2018 Q3 2017 Company name Value Deal count Value % Value Q3 2018 Q3 2017 Company name Value Deal count Deal count Deal count (USD m) (USD m) change (USD m) change

1 4 Freshfields Bruckhaus Deringer 41,973 30 36,528 14.9% 1 2 CMS 3,729 77 86 -9

2 16 Sullivan & Cromwell 25,407 8 14,727 72.5% 2 1 DLA Piper 4,708 62 107 -45

3 2 Clifford Chance 25,106 36 42,914 -41.5% 3 8 Allen & Overy 24,236 53 50 3

4 7 Allen & Overy 24,236 53 25,690 -5.7% 4 6 Eversheds Sutherland 2,104 41 52 -11

5 1 Linklaters 22,861 25 44,484 -48.6% 5 12 Jones Day 8,509 40 37 3

6 19 Slaughter and May 21,705 7 11,445 89.6% 6 3 Baker McKenzie 6,984 40 58 -18

7 83 Cravath, Swaine & Moore 17,862 9 2,236 698.8% 7 9 Clifford Chance 25,106 36 46 -10

8 8 Ashurst 13,989 18 21,609 -35.3% 8 5 Freshfields Bruckhaus Deringer 41,973 30 52 -22

9 21 Shearman & Sterling 13,459 12 10,721 25.5% 9 11 White & Case 4,355 28 38 -10

10 - Baker Botts 13,087 5 - - 10 4 Linklaters 22,861 25 53 -28

mergermarket.com Mergermarket Monthly M&A Insider Q3 2018 33 Middle East & Africa

An Acuris report on global M&A activity

Middle East & Africa

mergermarket.com Mergermarket Monthly M&A Insider Q3 2018 34 Middle East & Africa

Middle East & Africa

Further information Middle Eastern and African M&A activity YTD was for Orbotech, a company engaged reversing what had been a slow start to the Get in touch or read more recorded healthy numbers in the last three in automated inspection systems, which was year. Among these, Vodacom’s 6.23% stake months, lifting year-to-date (YTD) figures acquired by US-based equipment giant KLA- sale for US$1.3bn, announced in June, is to US$47.5bn across 273 deals. During Q3, Tencor for US$3.1bn. part of the Broad-Based Black Economic Mohamed Rais 79 deals were announced for a total of Empowerment initiative, a program launched The Middle East (excl. Israel) recorded US$15.2bn, marking five consecutive quarters by the government aimed at distributing wealth US$14.2bn across 72 deals on a YTD basis, to where MEA captured more than US$10bn in across a spectrum of previously disadvantaged which Q3 contributed 15 deals and US$1.9bn. terms of M&A. Deal count, however, has been sectors of the South African society. So far this year, the UAE has received the most going down every quarter this year. This trend deals in the region, recording 41 transactions hints toward a slowdown in dealmaking that worth US$10.5bn, making the country second could be rooted in the strengthening US dollar in terms of YTD value in MEA. This was largely and the pick-up in developed market bond due to a number of minority divestments yields, which in turn makes funding costlier for carried out by the Abu Dhabi National Oil emerging markets companies. Company, the sovereign oil holding. The firm The region’s largest deal during Q3 targeted has been involved in seven such announced Israel, where SodaStream, the carbonated transactions this year, amounting to a total of beverage machine company, was acquired US$6.2bn. These deals are thought to have by PepsiCo for US$3.2bn. The acquisition been aimed at strengthening the country’s showcases Pepsi’s intentions to shift to a finances, with the proceeds being used to healthier product offering. The deal also marks invest towards more longer-term, value- the fourth largest targeting MEA’s Consumer accretive projects. industry on Mergermarket record (since 2001). Africa saw 135 deals worth US$11.9bn M&A targeting Israel has performed strongly announced so far this year, with South Africa in terms of value, recording US$21.3bn across contributing the most value after a significant 66 deals so far this year. Five deals above the uptick in activity during Q3. A total 19 deals US$1bn mark have helped drive value figures, worth US$3.2bn were recorded in South with this year now on course to break the Africa this past quarter, bringing YTD figures country’s record full-year total of US$25.3bn up to US$4.9bn and 49 deals. This makes it from 2017. Israeli Technology keeps luring the third most active country in MEA by value foreign investors in, with the announcement of in 2018. After months of turmoil rooted in a 16 deals worth US$4.1bn in the sector so far shift in political dynamics, two deals above this year. The largest transaction in this space the US$1bn mark have provided an uptick,

mergermarket.com Mergermarket Monthly M&A Insider Q3 2018 35 Middle East & Africa

Top Financial Advisor 79 deals Goldman Sachs & Co valued at US$15.2bn, up 29.3% by value with 40 fewer deals compared to 119 deals worth US$11.8bn in Q3 2017. ranked first with 4 deals worth US$5.7bn, compared to 3 deals worth US$3.9bn in Q3 2017.

Top Legal Advisor Top Sector Meitar Liquornik Consumer Geva Leshem Tal saw 12 deals valued at US$4.3bn, up 235% ranked first with 5 deals worth US$4.6bn, compared by value with 1 fewer deal compared to 13 to 6 deals worth US$1.2bn in Q3 2017. deals worth US$1.3bn in Q3 2017.

Mermergermarket.com- germarket.com Mergermarket Monthly M&A Insider Q3 2018 36 Middle East & Africa

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

100 500 14 90

90 450 80 12

80 US$ 400 22.1 70

70 350 10 60

60 300 Number of deals Number of deals US$ US$ 8 15.5 10.9 50 US$ 50 34.9 250 US$ 24.5 US$ Value (US$bn) Value Value (US$bn) Value 11.8 US$ 40 US$ 6 12.1 40 US$ 200 13.7 15.2 US$ US$ US$ 20.5 9.7 30 30 9.6 150 4 US$ US$ 13.8 7.4 US$ US$ US$ 6.7 21.6 US$ US$ 20 20 6.1 24.7 100 US$ US$ 5.6 US$ 19.3 US$ US$ 4.9 US$ 29.6 2 US$ 4.7 9.4 3.9 3.9 US$ US$ US$ 10 US$ 50 US$ 3.1 3.2 3.2 10 18.5 US$ 2.4 12.4 US$ US$ US$ 7.5 8.5 9.6 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 Q3 2018 37 Middle East & Africa

Regional Trends

Consumer Value: US$4.3bn Number of deals: 12 Market share: 28.3%

Energy, Mining & Utilities Kuwait Value: US$3.4bn US$1.1bn Mauritius Number of deals: 14 Israel Market share: 22.3% US$7.8bn 2 deals US$1.2m 7.5% 1 deal Industrials & Chemicals Value: US$2.1bn 23 deals 7.9% Number of deals: 9 51.6% Market share: 13.5% Financial Services Value: US$1.8bn Number of deals: 10 Market share: 12.1%

Pharma, Medical & Biotech South Africa Value: US$1.4bn Jordan Number of deals: 6 US$500m US$3.2bn Market share: 9.5% 2 deals 19 deals 3.3% 20.7% Domestic US$4.4bn -14.9% Inbound US$10.8bn +64.6% Outbound US$5.6bn +151.9%

mergermarket.com Mergermarket Monthly M&A Insider Q3 2018 38 Middle East & Africa

Top deals

Top 10 Announced Deals for Q3 2018

Value (US$m) Deal details Advisor details

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

3,174 20-Aug-18 SodaStream International Ltd PepsiCo Inc Consumer FA: Perella Weinberg Partners FA: Centerview Partners; and Goldman Sachs & Co LA: Meitar Liquornik Geva Leshem Tal; and White & Case LA: Davis Polk & Wardwell; Gibson Dunn & Crutcher; and Herzog, Fox (Advising FA: Shearman & Sterling) and Neeman

1,644 23-Jul-18 Mototolo Joint Venture (39% stake) Anglo American Platinum Ltd Energy, Mining & Utilities FA: - FA: - LA: - LA: -

1,340 20-Sep-18 Mazor Robotics Ltd (88.69% stake) Medtronic plc Pharma, Medical & FA: Duff & Phelps; and JPMorgan FA: Goldman Sachs & Co; and Perella Weinberg Partners Biotech LA: Kirkland & Ellis; and Luchtenstein Levy Wiseman Law Offices LA: Meitar Liquornik Geva Leshem Tal; and Ropes & Gray (Advising FA: Latham & Watkins)

1,300 2-Sep-18 Africa Israel Investments Ltd Moti Ben-Moshe Real Estate FA: - FA: - (Private investor) LA: - LA: Erdinast, Ben Nathan Toledano & Co

1,200 20-Jul-18 UPL Corporation Limited (22% stake) TPG Capital; and Abu Dhabi Industrials & Chemicals FA: Evercore; and JPMorgan FA: Credit Suisse Investment Authority LA: J Sagar Associates; and Jones Day LA: Cleary Gottlieb Steen & Hamilton; and Platinum Partners

862 13-Sep-18 Aspen Pharmacare Holdings Limited Groupe Lactalis SA Consumer FA: Centerview Partners FA: Rothschild & Co (Global nutritionals business) LA: - LA: Dentons

849 24-Sep-18 Kuwait Energy plc United Energy Group Limited Energy, Mining & Utilities FA: Tudor, Pickering, Holt & Co FA: JPMorgan LA: Allen & Overy LA: Slaughter and May

684 28-Jul-18 Leumi Card Ltd Warburg Pincus Financial Services FA: Goldman Sachs & Co FA: UBS Investment Bank LA: - LA: Gornitzky & Co

524 5-Sep-18 Bank Leumi le-Israel BM (5.32% stake) Citi Financial Services FA: Rand Merchant Bank; and Rothschild & Co FA: Absa Bank; and BDO LA: - LA: Cliffe Dekker Hofmeyr (Advising FA: Allen & Overy)

502 23-Jul-18 Arab Potash Company Ltd (27.96% stake) SDIC Capital Co Ltd Industrials & Chemicals FA: Bank of America Merrill Lynch; and Goldman Sachs & Co FA: HSBC LA: Jones Day LA: -

mergermarket.com Mergermarket Monthly M&A Insider Q3 2018 39 Middle East & Africa

League tables

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

Ranking Q3 2018 Q3 2017 Ranking Q3 2018 Q3 2017

Q3 2018 Q3 2017 Company name Value Deal count Value % Value Q3 2018 Q3 2017 Company name Value Deal count Deal count Deal count (USD m) (USD m) change (USD m) change

1 1 Goldman Sachs & Co 5,700 4 3,938 44.7% 1 5 PwC 212 7 5 2

2 - Perella Weinberg Partners 4,514 4 - - 2 14 JPMorgan 3,533 5 2 3

3 13 Centerview Partners 4,036 2 885 356.0% 3 6 Rothschild & Co 1,244 5 4 1

4 3 JPMorgan 3,533 5 3,053 15.7% 4 9 Goldman Sachs & Co 5,700 4 3 1

5 - Evercore 3,437 4 - - 5 - Perella Weinberg Partners 4,514 4 - -

6 4 Morgan Stanley 1,612 3 2,478 -34.9% 6 - Evercore 3,437 4 - -

7 - Duff & Phelps 1,340 1 - - 7 10 Morgan Stanley 1,612 3 3 0

8 16 Rothschild & Co 1,244 5 831 49.7% 8 25 Credit Suisse 1,200 3 1 2

9 15 Credit Suisse 1,200 3 847 41.7% 9 11 Jefferies 713 3 3 0

10= - Kotak Investment Banking 1,000 1 - - 10 34 KPMG 157 3 1 2

10= - Mizuho Financial Group 1,000 1 - -

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

Ranking Q3 2018 Q3 2017 Ranking Q3 2018 Q3 2017

Q3 2018 Q3 2017 Company name Value Deal count Value % Value Q3 2018 Q3 2017 Company name Value Deal count Deal count Deal count (USD m) (USD m) change (USD m) change

1 12 Meitar Liquornik Geva Leshem Tal 4,643 5 1,219 280.9% 1 1 Webber Wentzel 356 7 11 -4

2 34 Herzog, Fox and Neeman 3,511 4 598 487.1% 2 5 Meitar Liquornik Geva Leshem Tal 4,643 5 6 -1

3 25 Shearman & Sterling 3,219 3 714 350.8% 3 10 Jones Day 1,951 5 5 0

4 13 White & Case 3,211 3 1,161 176.6% 4 4 Allen & Overy 1,341 5 7 -2

5 - Gibson Dunn & Crutcher 3,174 2 - - 5 14 Herzog, Fox and Neeman 3,511 4 4 0

6 16 Davis Polk & Wardwell 3,174 1 885 258.6% 6 18 Linklaters 773 4 3 1

7 - Platinum Partners 2,200 2 - - 7 15 Norton Rose Fulbright 239 4 4 0

8 11 Jones Day 1,951 5 1,472 32.5% 8 27 Shearman & Sterling 3,219 3 2 1

9 24 Latham & Watkins 1,440 3 753 91.2% 9 6 White & Case 3,211 3 6 -3

10 - Cleary Gottlieb Steen & Hamilton 1,425 3 - - 10 23 Latham & Watkins 1,440 3 3 0

mergermarket.com Mergermarket Monthly M&A Insider Q3 2018 40 Asia-Pacific (excluding Japan)

An Acuris report on global M&A activity

Asia-Pacific (excluding Japan)

mergermarket.com Mergermarket Monthly M&A Insider Q3 2018 41 Asia-Pacific (excluding Japan)

Asia-Pacific (excluding Japan)

Further information Following a strong first half of the year, M&A Energy, Mining & Utilities the was top sector Canada has become a key Chinese target for Get in touch or read more in Asia-Pacific (excl. Japan) experienced a in Q3 by value with US$28.5bn, largely as a energy assets in place of the US, as eight deals significant downturn in the third quarter amid result of two large deals in Australia. As well as worth US$2.2bn were announced in YTD 2018 trade tension between China and the US. the aforementioned APA Group acquisition, compared to US$390.1m in YTD 2017. Jasmine Wu Largely owing to the absence of big-ticket the quarter saw the US$2.2bn takeover of oil Private equity activity has remained active, transactions, the region dipped to 882 deals and gas developer Quadrant Energy Australia registering US$103.5bn (355 buyouts) and worth US$164.6bn in Q3 2018, 176 deals by Australian energy company Santos Ltd. Melissa Yan rising 8.2% from last year (US$95.6bn, 351 fewer compared to 1,058 deals (US$171.3bn) Notably, after a surge in the first six months of deals). The takeover of Ant Financial, along in Q3 2017. Only one megadeal (>US$10bn) the year, Technology M&A deals saw a 17.4% with Blackstone Group’s US$3.1bn takeover of was announced in Q3 — a Hong Kong-based decline in Q3 value to US$19.3bn compared to Australia REIT Investa Office Fund, meant that consortium’s US$16.3bn acquisition of listed US$23.4bn during the same period last year. Financial Services has been the most active Australian energy infrastructure company Inbound M&A deal value declined by 14.6% in sector for buyouts in 2018. The sector has APA Group. Q3 2018 to US$20.3bn, from US$23.8bn in Q3 seen 27 buyouts worth US$23.7bn, up 3.7x by Despite Q3’s sharp drop, the US$551.8bn (2,861 2017. India has become an emerging investment value from the same period last year. Moreover, deals) registered so far this year represented hotspot, witnessing 119 announced deals worth in August, the China Banking and Insurance a 22.3% rise by value compared to the same US$33.8bn this year, contributing 43.2% to the Regulatory Commission (CBIRC) decided to period of 2017 (US$451.1bn, 2,856 deals), region’s overall inbound activity. One underlying cancel and revise certain regulations on foreign marking the second highest year-to-date (YTD) reason for this recent interest relates to how investment in the banking sector to help open value on Mergemarket record. This result was the new Indian bankruptcy law has created new up the sector. The sector is therefore likely to largely driven by the remarkable performance opportunities for some investors. see continued levels of high activity as firms of the first half, which reached US$382.3bn. look to break into the market. Meanwhile, the region’s outbound M&A soared With the region experiencing a transformation to US$128.9bn, increasing 73.9% versus YTD from a low-cost manufacturer into an 2017 (US$74.1bn), despite a slight dip in the economy powered by high-tech products in number of deals. With Trump’s controversial fields such as robotics, Industrials & Chemicals trade policies and the Chinese government’s has remained the most attractive sector by capital outflow curb continuing to cast a value in the region so far this year. The sector shadow on the relationship between the two has notched US$93.1bn across 599 deals powerhouses, Chinese dealmaker interest in so far this year, accounting for 16.9% of the the US has continued to fall, recording a 54.7% region’s M&A value, 51.6% ahead of YTD 2017’s drop by value with 20 fewer deals versus YTD value (US$61.4bn). 2017 (US$5.9bn, 49 deals). On the contrary,

mergermarket.com Mergermarket Monthly M&A Insider Q3 2018 42 Asia-Pacific (excluding Japan)

882 deals Top Financial Advisor Goldman Sachs & Co valued at US$164.6bn, down 17.8% by value with 176 fewer deals compared to 1,058 ranked first with 17 deals worth US$55.1bn, compared deals worth US$171.3bn in Q3 2017. to 14 deals worth US$31.6bn in Q3 2017.

Top Sector Top Legal Advisor Energy, Mining King & Wood Mallesons ranked first with 33 deals worth US$40.8bn, & Utilities compared to 30 deals worth US$11.1bn in Q3 2017. saw 72 deals valued at US$28.5bn, up 202.3% by value with 1 fewer deal compared to 73 deals worth US$9.4bn in Q3 2017.

Mermergermarket.com- germarket.com Mergermarket Monthly M&A Insider Q3 2018 43 Asia-Pacific (excluding Japan)

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

900 4,500 140 500

800 4,000 450 120 US$ 293.5 400 700 3,500

100 350 600 3,000 US$ US$ 245.6 178 Number of deals Number of deals 300 US$ 500 US$ 2,500 80 169.2 152.7 US$ 164.6 250 400 2,000 US$ Value (US$bn) Value Value (US$bn) Value US$ 128.3 173.8 US$ 60 US$ US$ 171.3 200 113.7 139.4 US$ US$ US$ 103.5 102.5 300 1,500 US$ US$ 232.3 94.8 US$ 93.2 223.8 150 40 US$ US$ US$ 116.3 US$ 74 200 US$ 1,000 71.2 US$ 151.4 139.7 168.9 US$ 58.8 100 US$ US$ 44.7 US$ 20 42 100 107.8 500 US$ US$ US$ 33.2 US$ 29.4 50 194 US$ US$ 163.3 US$ 140.9 140.2 US$ 114.9 65.9 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 Q3 2018 44 Asia-Pacific (excluding Japan)

Regional Trends

Energy, Mining & Utilities Value: US$28.5bn Number of deals: 72 Market share: 18%

Industrials & Chemicals Value: US$23.6bn China India Number of deals: 176 US$81.6bn US$12.3bn Market share: 14.3% Technology 441 deals 94 deals Value: US$19.3bn South Korea Number of deals: 170 46.7% 7% US$7.1bn Market share: 11.7% 89 deals Financial Services 4.1% Value: US$15.3bn Number of deals: 72 Market share: 9.3%

Hong Kong Real Estate US$7.6bn Value: US$13.4bn 42 deals Number of deals: 38 4.3% Australia Market share: 8.2% US$44.2bn 155 deals 25.3% Domestic US$144.3bn -2.1% Inbound US$20.3bn -14.6% Outbound US$42bn +116%

mergermarket.com Mergermarket Monthly M&A Insider Q3 2018 45 Asia-Pacific (excluding Japan)

Top deals

Top 10 Announced Deals for Q3 2018

Value (US$m) Deal details Advisor details

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

16,262 13-Aug-18 APA Group Ltd Consortium for APA Group Energy, Mining & Utilities FA: Grant Samuel FA: Morgan Stanley LA: King & Wood Mallesons LA: Allens; and Freshfields Bruckhaus Deringer

9,432 31-Aug-18 Sydney Motorway Corporation (51% stake) Sydney Transport Partners Transportation FA: Goldman Sachs & Co FA: AquAsia; Macquarie Group Limited; Morgan Stanley; LA: Allens; Ashurst; and Baker McKenzie and UBS Investment Bank LA: Herbert Smith Freehills; and King & Wood Mallesons

6,325 30-Aug-18 TPG Telecom Limited VHA Pty Limited Telecommunications FA: Macquarie Group FA: Bank of America Merrill Lynch; and Deutsche Bank LA: Herbert Smith Freehills LA: Allens; and Norton Rose Fulbright

4,336 12-Sep-18 Shengyue Network Technology (Shanghai) Co Ltd Zhejiang Century Huatong Group Technology FA: - FA: Changjiang Financing Services Co Ltd LA: - LA: King & Wood Mallesons

3,850 28-Sep-18 PT Freeport Indonesia (41.87% stake) Indonesia Asahan Aluminium PT Energy, Mining & Utilities FA: - FA: Morgan Stanley (Inalum) LA: - LA: -

3,436 15-Sep-18 Tianshan Aluminum Co Ltd Xiamen Unigroup Xue Co Ltd Industrials & Chemicals FA: - FA: Huatai United Securities LA: - LA: King & Capital Law Firm

2,654 15-Sep-18 Shanghai Caohejing Fengxian Construction Shanghai Lingang Holdings Co Ltd Real Estate FA: - FA: Guotai Junan Securities Development Co Ltd (45% stake); Shanghai Caohejing LA: - LA: Grandall Innovation Park Development Co Ltd (15% stake); Huawan International Logistics (Shanghai) Co Ltd (55% stake); Shanghai High-tech Zone United Development Co Ltd (65% stake); Shanghai Caohejing Economic Zone High-tech Park Development Co Ltd; and Shanghai Technology Lvzhou Development Co Ltd (10% stake)

2,201 29-Sep-18 Jiangsu Runxing Financing Leasing Co Ltd Zhuhai Shengze Investment Financial Services FA: Dongguan Securities FA: - (40% stake) Management Center Co Ltd LA: Tian Yuan LA: -

2,178 15-Aug-18 Beijing OmniVision Technologies Co Ltd (96.08% Will Semiconductor Co Ltd Shanghai Technology FA: - FA: Deutsche Bank; and Guosen Securities stake); and Beijing SuperPix Micro Technology Co LA: - LA: Tian Yuan Ltd (85.31% stake)

2,150 22-Aug-18 Quadrant Energy Australia Limited Santos Ltd Energy, Mining & Utilities FA: Citi; Goldman Sachs & Co; and Macquarie Group FA: UBS Investment Bank LA: Clayton Utz; Gilbert + Tobin; Allens; and King & LA: Herbert Smith Freehills Wood Mallesons

mergermarket.com Mergermarket Monthly M&A Insider Q3 2018 46 Asia-Pacific (excluding Japan)

League tables

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

Ranking Q3 2018 Q3 2017 Ranking Q3 2018 Q3 2017

Q3 2018 Q3 2017 Company name Value Deal count Value % Value Q3 2018 Q3 2017 Company name Value Deal count Deal count Deal count (USD m) (USD m) change (USD m) change

1 4 Goldman Sachs & Co 55,122 17 31,610 74.4% 1 11 UBS Investment Bank 41,075 19 11 8

2 2 Morgan Stanley 48,096 13 35,430 35.7% 2 2 KPMG 1,021 18 27 -9

3 7 UBS Investment Bank 41,075 19 19,170 114.3% 3 7 Goldman Sachs & Co 55,122 17 14 3

4 38 Moelis & Company 22,706 11 1,623 1,299.0% 4 5 JPMorgan 18,866 17 17 0

5 13 Macquarie Group 21,674 11 6,087 256.1% 5 6 Deloitte 3,030 14 17 -3

6 11 Bank of America Merrill Lynch 20,511 6 8,831 132.3% 6 1 PwC 776 14 28 -14

7 1 JPMorgan 18,866 17 37,247 -49.3% 7 3 Morgan Stanley 48,096 13 18 -5

8 21 Grant Samuel 16,794 2 2,702 521.5% 8 15 Citi 16,392 12 8 4

9 5 Citi 16,392 12 30,391 -46.1% 9 4 EY 1,071 12 18 -6

10 52 Barclays 15,684 6 887 1,668.2% 10 18 Moelis & Company 22,706 11 7 4

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

Ranking Q3 2018 Q3 2017 Ranking Q3 2018 Q3 2017

Q3 2018 Q3 2017 Company name Value Deal count Value % Value Q3 2018 Q3 2017 Company name Value Deal count Deal count Deal count (USD m) (USD m) change (USD m) change

1 13 King & Wood Mallesons 40,848 33 11,076 268.8% 1 2 King & Wood Mallesons 40,848 33 30 3

2 10 Herbert Smith Freehills 40,002 24 14,076 184.2% 2 1 Herbert Smith Freehills 40,002 24 30 -6

3 9 Freshfields Bruckhaus Deringer 39,597 8 15,628 153.4% 3 7 AZB & Partners 1,927 19 18 1

4 78 Allens 32,332 16 941 3,335.9% 4 8 Ashurst 11,876 17 18 -1

5 16 Sullivan & Cromwell 25,338 6 9,998 153.4% 5 12 Fangda Partners 3,754 17 17 0

6 37 Allen & Overy 13,795 11 3,800 263.0% 6 27 Cyril Amarchand Mangaldas 3,121 17 11 6

7 29 Ashurst 11,876 17 5,057 134.8% 7 11 Shardul Amarchand Mangaldas & Co 1,619 17 18 -1

8 46 Baker McKenzie 11,778 13 2,408 389.1% 8 28 Allens 32,332 16 11 5

9 58 Shearman & Sterling 11,497 3 1,612 613.2% 9 23 Clayton Utz 2,256 14 12 2

10 - Baker Botts 10,800 2 - - 10 10 Gilbert + Tobin 1,329 14 18 -4

mergermarket.com Mergermarket Monthly M&A Insider Q3 2018 47 Japan

An Acuris report on global M&A activity

Japan

mergermarket.com Mergermarket Monthly M&A Insider Q3 2018 48 Japan

Japan

Further information In contrast to the trends seen globally in the With the Japanese government picking August, Japan Tobacco conducted its second Get in touch or read more third quarter, dealmaking targeting Japan up the pace on airport privatizations, investment outside the country this year with witnessed an upswing with US$13bn (96 deals) more landmark deals are expected with its US$1.5bn bid for Bangladesh-based United announced, the first time it has breached the Hokkaido airport concession also in a Dhaka Tobacco. Jasmine Wu the US$10bn mark so far this year. Several bidding process. In respect of the most- The absence of deals involving private equity big-ticket deals drove the country’s activity favored sector by value, there has been an firms has been felt this year, with buyout including the Fukuoka Airport concession obvious swing towards technology targets, Danni Sun dealmaking totaling 35 deals worth US$712m, and Yahoo Japan share buyback deals. So far with a 5x jump from US$1.2bn in YTD 2017 down 95.1% by value from YTD 2017 (US$14.4bn, this year there have been 322 deals worth a (36 deals) to US$6bn in YTD 2018 (51 deals), 31 deals). This represents Japan’s lowest YTD total US$30.7bn, indicating that the country’s with investors embracing the increasingly buyout value since 2002, yet the deal count M&A activity in 2018 may not reach the levels digitalized environment. figure remains robust. While PE investors have seen in 2017 (US$45.6bn, 468 deals) and 2016 With Abenomics coming into its sixth year, been quiet so far this year, there are reportedly (US$62.9bn, 464 deals). However, it appears companies investing abroad are seeing several ongoing processes, such as TS Group, that after going through the uncertainty before the benefits of quantitative easing with the which has shortlisted six domestic and foreign June when the Japan corporate governance low cost of borrowing. Outbound activity PEs, according to Mergermarket intelligence. code was still under revision, which led to a has pushed to US$128.1bn with 216 deals Japan has also recorded 22 PE exits worth relatively slack first half of the year, transactions announced so far, jumping 130.1% from US$1.5bn so far this year. The largest in Q3 was in Japan are gradually seeing an uptick in H2. US$55.7bn in YTD 2017 and more than double the US$196m sale of Fasford Technology by Following a stagnant 2017, year-to-date (YTD) the YTD 2016 value (US$62.3bn). The total was Advantage Partners. The deal was the second domestic deals have grabbed the headlines aided significantly by the Takeda/Shire deal. largest exit this year following Innovation again contributing US$28.8bn across 301 deals, With US$24.9bn (72 deals) announced in Q3, Network Corporation of Japan’s US$762m already 39.6% ahead of 2017’s full-year value Japanese outbound M&A has now reached the partial exit from Renesas Electronics in March. (US$20.6bn, 420 deals). The third quarter was US$10bn mark in each of the last nine quarters. particularly active, recording US$12.9bn over As the six largest outbound deals in Q3 all 93 deals, up 63.4% by value in comparison with surpassed the US$1bn mark, it appears that Q2 2018 (88 deals, US$7.9bn). This was largely large industry players are becoming more driven by the US$4.4bn takeover of a 30-year aggressive in pursuing valuable assets overseas. concession for Fukuoka Airport by Fukuoka Renesas Electronics’ US$7bn takeover of the Airport HD Group, the second largest airport US-based Integrated Device Technology and concession transaction on Mergermarket Taiyo Nippon Sanso’s US$5.8bn takeover of record following the US$13.9bn ORIX & VINCI the industrial gases business from Praxair were consortium/Kansai & Osaka International both announced in the last three months. In Airport deal in 2015. mergermarket.com Mergermarket Monthly M&A Insider Q3 2018 49 Japan

96 deals Top Financial Advisor Mizuho Financial Group valued at US$13bn, down 34.2% by value with 17 fewer deals compared to 113 deals ranked first with 20 deals worth US$18.9bn, worth US$19.7bn in Q3 2017. compared to 9 deals worth US$1.1bn in Q3 2017.

Top Legal Advisor Top Sector Transportation Nishimura & Asahi ranked first with 20 deals worth US$12.8bn, saw 1 deal valued at US$4.4bn, up 3.2x compared to 21 deals worth US$13.5bn in Q3 2017. by value with 5 fewer deals compared to 6 deals worth US$1bn in Q3 2017.

Mermergermarket.com- germarket.com Mergermarket Monthly M&A Insider Q3 2018 50 Japan

Japan M&A trend Japan Private equity trend

80 500 18 60

450 70 16

50 400 14 60 US$ 35.3 US$ 350 15.2 12 40 50 300 Number of deals Number of deals

10 US$ 40 US$ 250 30 17.1 11.4 US$ Value (US$bn) Value Value (US$bn) Value 8 16.3 US$ 200 7.3 30 US$ US$ 21.6 US$ 9.4 6 US$ 20 US$ US$ 4.8 US$ 150 11.4 13.5 19.7 13 US$ 20 5.1 4 US$ US$ 100 7.6 15.2 US$ US$ US$ US$ 9.1 US$ 8.6 6.5 10 10.8 5.5 10 US$ US$ US$ US$ US$ 17.1 50 2 4 4.7 4.3 3.7 US$ US$ US$ US$ US$ US$ 2.6 US$ US$ 2.1 712m US$ 8.1 7.1 9.1 9 9.1 1.5 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 Q3 2018 51 Japan

Regional Trends

Transportation Value: US$4.4bn Number of deals: 1 Market share: 33.7%

Technology Value: US$4.3bn Number of deals: 18 Market share: 32.9%

Industrials & Chemicals Value: US$952m Number of deals: 19 Market share: 7.3% Outbound Inbound Domestic US$77.4m Energy, Mining & Utilities US$24.9bn US$12.9bn Value: US$924.1m -99.4% Number of deals: 2 +22.4% +81.1% Market share: 7.1%

Media Value: US$903m Number of deals: 5 Market share: 7%

mergermarket.com Mergermarket Monthly M&A Insider Q3 2018 52 Japan

Top deals

Top 10 Announced Deals for Q3 2018

Value (US$m) Deal details Advisor details

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

4,370 1-Aug-18 30-year Concession for Fukuoka Airport HD Group Transportation FA: - FA: Mizuho Financial Group Fukuoka Airport LA: - LA: Nishimura & Asahi

1,980 9-Jul-18 Yahoo Japan Corporation Yahoo Japan Corporation Technology FA: Goldman Sachs & Co; JPMorgan; Nomura Holdings; and Morgan Stanley FA: - (10.73% stake) LA: Mori Hamada & Matsumoto; Morrison & Foerster; Skadden Arps Slate LA: - Meagher & Flom; Hibiya Park Law Offices; and Nakamura, Tsunoda & Matsumoto

851 6-Aug-18 D.A.Consortium Inc Hakuhodo DY Holdings Inc Media FA: Sumitomo Mitsui Financial Group FA: Nomura Holdings (51.03% stake) LA: TMI Associates LA: Mori Hamada & Matsumoto

714 2-Aug-18 Kakaku.com Inc (16.68% stake) KDDI Corporation Technology FA: Nomura Holdings FA: - LA: Nagashima Ohno & Tsunematsu; and Mori Hamada & Matsumoto LA: Nishimura & Asahi

675 6-Jul-18 X-ELIO Energy, S.L. (187MW Consortium formed by Japanese Energy, Mining & Utilities FA: Nomura Holdings FA: Japanese solar assets portfolio) institutional investors LA: Morrison & Foerster LA: Mori Hamada & Matsumoto

529 14-Sep-18 Vitec Holdings Co Ltd UKC Holdings Corporation Technology FA: Plutus Consulting FA: Daiwa Securities Group (99.99% stake) LA: Mori Hamada & Matsumoto LA: Anderson Mori & Tomotsune

423 23-Aug-18 JOLED Inc Denso Corporation; Sumitomo Technology FA: Morgan Stanley FA: Mizuho Financial Group Chemical Co Ltd; Toyota Tsusho LA: - LA: Nagashima Ohno & Tsunematsu Corporation; and SCREEN Finetech Solutions Co Ltd

373 31-Jul-18 Hawk One Corporation Open House Co Ltd Construction FA: - FA: Clear Consulting LA: - LA: -

249 8-Aug-18 Eneres Co Ltd (70.01% stake) Consortium for Eneres Co Ltd Energy, Mining & Utilities FA: Sumitomo Mitsui Financial Group FA: Nomura Holdings LA: Mori Hamada & Matsumoto LA: Nagashima Ohno & Tsunematsu; and Nishimura & Asahi

238 28-Aug-18 ES-CON JAPAN Ltd Chubu Electric Power Co Inc Real Estate FA: - FA: - (33.3% stake) LA: - LA: Mori Hamada & Matsumoto

mergermarket.com Mergermarket Monthly M&A Insider Q3 2018 53 Japan

League tables

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

Ranking Q3 2018 Q3 2017 Ranking Q3 2018 Q3 2017

Q3 2018 Q3 2017 Company name Value Deal count Value % Value Q3 2018 Q3 2017 Company name Value Deal count Deal count Deal count (USD m) (USD m) change (USD m) change

1 12 Mizuho Financial Group 18,987 20 1,144 1,559.7% 1 4 Mizuho Financial Group 18,987 20 9 11

2 3 Morgan Stanley 12,936 8 12,985 -0.4% 2 2 Nomura Holdings 7,788 18 17 1

3 64 JPMorgan 10,978 4 0 - 3 1 Sumitomo Mitsui Financial Group 3,180 13 20 -7

4 1 Goldman Sachs & Co 8,989 5 18,052 -50.2% 4 17 GCA Corporation 103 11 2 9

5 2 Nomura Holdings 7,788 18 15,491 -49.7% 5 6 Deloitte 2,598 10 9 1

6 7 Bank of America Merrill Lynch 7,004 1 2,498 180.4% 6 8 Morgan Stanley 12,936 8 7 1

7 6 Credit Suisse 6,954 5 3,365 106.7% 7 5 Daiwa Securities Group 1,828 7 9 -2

8 24 Deutsche Bank 5,842 1 435 1,243.0% 8 3 Goldman Sachs & Co 8,989 5 9 -4

9 4 Sumitomo Mitsui Financial Group 3,180 13 4,136 -23.1% 9 15 Credit Suisse 6,954 5 2 3

10 25 Deloitte 2,598 10 379 585.5% 10 64 JPMorgan 10,978 4 1 3

Top 13 Legal Advisors - Value Top 10 Legal Advisors - Volume

Ranking Q3 2018 Q3 2017 Ranking Q3 2018 Q3 2017

Q3 2018 Q3 2017 Company name Value Deal count Value % Value Q3 2018 Q3 2017 Company name Value Deal count Deal count Deal count (USD m) (USD m) change (USD m) change

1 2 Nishimura & Asahi 12,813 20 13,508 -5.1% 1 1 Nishimura & Asahi 12,813 20 21 -1

2 1 Morrison & Foerster 12,509 9 15,473 -19.2% 2 2 Nagashima Ohno & Tsunematsu 9,220 20 16 4

3 3 Nagashima Ohno & Tsunematsu 9,220 20 6,275 46.9% 3 4 Mori Hamada & Matsumoto 6,018 14 10 4

4 - Sullivan & Cromwell 7,454 2 - - 4 3 Morrison & Foerster 12,509 9 11 -2

5 60 Latham & Watkins 7,004 3 291 2,306.9% 5 6 Anderson Mori & Tomotsune 859 9 7 2

6 - Covington & Burling 7,004 1 - - 6 8 Herbert Smith Freehills 1,189 4 6 -2

7 23 Mori Hamada & Matsumoto 6,018 14 1,217 394.5% 7 12 TMI Associates 1,040 4 4 0

8= 41 A&L Goodbody 5,842 1 550 962.2% 8 75 Squire Patton Boggs 170 4 1 3

8= - Cuatrecasas 5,842 1 - - 9 33 Latham & Watkins 7,004 3 2 1

8= - Eubelius 5,842 1 - - 10 21 Linklaters 3,157 3 3 0

8= - Greenberg Traurig 5,842 1 - -

8= 52 McDermott Will & Emery 5,842 1 427 1,268.1%

8= - Vinge 5,842 1 - - mergermarket.com Mergermarket Monthly M&A Insider Q3 2018 54 League Tables

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About Merrill Contacts Corporation

Merrill Corporation provides technology- US & Canada Europe and Middle East enabled platforms for secure content sharing, & Africa Andover; Atlanta; Boston; regulated communications and disclosure Chicago; Dallas; Denver; Grove Frankfurt; London; Paris services. Clients trust Merrill’s innovative City; Houston; Irvine; La Mirada; +44 20 3031 6300 applications and deep subject expertise to Los Angeles; Minneapolis; New successfully navigate the secure sharing of York; Oregon City; Palo Alto; Asia-Pacific their most sensitive content, perfect and Philadelphia; Sartell; Seattle; distribute critical financial and regulatory Chennai; Coimbatore; St. Cloud; St. Paul; Toronto; disclosures, and create customised Hong Kong; Japan; Troy; Union; Washington DC communications across stakeholders. With Shenzhen; Singapore +888 311 4100 more than 3,800 people in 41 locations +44 20 3031 6300 worldwide, clients turn to Merrill when their C&S America need to manage complex content intersects with the need to collaborate securely around Mexico City the globe. +52 55 9171 2237

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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 Ezekiel Pfeifer and Elizabeth Lim 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 Ezekiel Pfeifer and Philip Segal Mid-market is defined as US$10m - US$250m. Where no deal value has been disclosed, deals Asia-Pacific Central & South America are included if the turnover of the target is All data included is correct as of September 30, Gerry Tee Ezekiel Pfeifer and Lana Vilner greater than or equal to US$10m. 2018. EMEA Europe Deals are included in the graphs and Top For a full version of the Mergermarket M&A Andrea Putaturo Olivier Gilkinet Deals in each section based on thedominant deal database inclusion and league table Middle East & Africa geography and dominant sector of the criteria, go to http://www.Mergermarket.com/ Mohamed Rais target company. pdf/deal_criteria.pdf. Asia-Pacific (excluding Japan Jasmine Wu and Melissa Yan

Japan Jasmine Wu and Danni Sun

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Mergermarket is an Acuris company

In M&A, information is the most valuable currency. Mergermarket reports EMEA Americas Asia on deals 6-24 months before they become public knowledge, giving our 10 Queen Street Place 330 Hudson St. 16/F, Grand Millennium Plaza subscribers a powerful competitive advantage. With the largest network London 4th Floor 181 Queen’s Road Central of dedicated M&A journalists and analysts, Mergermarket offers the most EC4R 1BE New York, NY 10013 Hong Kong comprehensive M&A intelligence service available today. Our reporters United Kingdom USA + 852 2158 9790 are based in 67 locations across the Americas, Europe, Asia-Pacific, the +44 203 741 1000 +1 212 500 7537 Middle East and Africa.

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