An Acuris Company An Acuris report on global M&A activity March 2018 Monthly M&A Insider mergermarket.com Mergermarket Monthly M&A Insider March 2018 2 Contents An Acuris report on global M&A activity Contents Global Overview 4 US & Canada 12 Central & South America 19 Europe 26 Middle East and Africa 33 Asia-Pacific (excluding Japan) 40 Japan 47 mergermarket.com Mergermarket Monthly M&A Insider March 2018 3 Welcome Welcome from Merrill Corporation The Monthly M&A Insider explores the global takeover offer for TDC Group, a Denmark- in value and 24.3% in volume compared to M&A market with respect to the numbers, based and listed telecom provider. This was the same period last year. Backed by an movements, and trends, as well as revealing followed by aerospace and defense company exceptionally strong performance in 2017, the top financial and legal advisors – globally General Dynamics acquiring US IT services these early indications, with large deals such and across six regions (North America, Central company CSRA Inc. for US$9.5bn. as Blackstone’s US$20bn buyout of a 55% Donald Davis and South America, Europe, Middle East and stake in Thomson Reuters’ Financial and Risk By region, North America achieved the largest Vice President, Advisor Sales Africa, Asia-Pacific, and Japan). Unit, suggest another boom year may be in market share by value (45.3%), with 311 deals Merrill Corporation store for PE. February’s M&A activity saw value totals worth US$80.1bn. Europe contributed 28.2% comparable to the same month last year, but to market share by value with 306 deals at Sincerely, from far fewer deals. Overall, there were 914 US$49.9bn. However, both were down on deals worth US$183.7bn – a 1.4% fall in value, deal value and volume when compared to but a 35.5% decline in volume year-on-year February 2017. (1,419 deals worth US$186.4bn). Meanwhile, But it was Asia Pacific (excluding Japan) global cross-border deals in February saw a that provided a shining example, posting 34% drop versus the same period in 2017, with Donald Davis the second-highest value on Mergermarket a total value of US$57.9bn. Domestic deals, Vice President, Advisor Sales record (since 2001), with 210 deals worth however, saw an 18.1% surge worth US$125.8bn. US$44.2bn. This allowed the region to account The most active sector globally was Energy, for 25% of global market share by value, and Mining & Utilities with 80 deals worth also represented an increase of 74.4% on US$29.5bn, accounting for 15.9% of market value compared to the US$25.4bn recorded share by value. This was closely followed by in February 2017. This strong performance the Consumer sector, which earned 14.9% was fueled by the purchase of 69.23% stake of global market share by value through 96 (US$4.2bn) in HNA Group Finance by a deals worth US$27.5bn. consortium that included HNA Group, Hainan Airlines Commercial Holdings, Haikou Meilan The two largest deals for the month occurred International Airport Company Limited, and in the fifth-ranked Technology, Media and HNA Technology Group. Telecommunications sector. Denmark’s DK Telekommunikation, backed by a consortium Private equity continues to post a strong comprised of pension funds PFA, PKA, and performance with 409 buyout deals worth ATP as well as Macquarie Infrastructure & Real US$68.5bn occurring through February this Assets Europe, led the way with a US$10.4bn year. This represents an increase of 68.3% mergermarket.com Mergermarket Monthly M&A Insider March 2018 4 Global Overview Part of the Acuris report on global M&A activity Global Overview mergermarket.com Mergermarket Monthly M&A Insider March 2018 5 Global Overview Global Overview Further information As we enter the third month of 2018, the It was a slow month across the majority of Dallas-based mortgage company Nationstar Get in touch or read more disparity between value and volume in regions. Out of all regional volume and value Mortgage Holdings. global dealmaking is, once again, the major statistics in February 2018, only deal value The overall drop in global deal activity was M&A story. February saw 914 deals valued in Asia (excluding Japan) and deal count in Kate Jenkinson most acutely illustrated in cross-border at US$183.7bn – a drop of only 1.4% in value Central and South America increased when transactions, which experienced a 34% but a fall of 35.5% in volume on February compared with February 2017. drop on the same time in the previous year, 2017’s tally (US$186.4bn, 1,419 deals). Philip Segal Energy, Mining & Utilities was the best with a deal value of US$57.9bn. Conversely, Regionally, North America contributed performing sector with 80 deals worth domestic deals saw an 18.1% value surge with the largest market share of value (45.3%) US$29.5bn, accounting for 16.1% of market US$125.8bn in deals. to the global tally, with 311 deals worth share by value. This was closely followed by the For the year to date, private equity activity has US$80.1bn. Contributing to this was the Consumer sector, bringing in 14.9% of market tallied 409 buyout deals, valued at US$68.5bn month’s second-largest deal, when US share through 96 deals worth US$27.4bn. In – an increase of 68.3% in value and 24.3% aerospace and defense company General January 2018, we noted that the consumer in volume. Exit activity has also risen in value Dynamics Corporation purchased CSRA industry bucked the general decline in 2017, when compared to the same period in 2017. Inc. for US$9.5bn. This merger creates and as we reach the third month of 2018 it So far, 2018 has seen US$51.2bn-worth of exits the second-largest government IT and appears to continue to grow in strength. (an increase of 8.47%) across 294 deals (down professional services player in the industry. There were two Consumer deals in the top 10 by 2.64%). Europe contributed 28.2% to global market deals for the month globally – the purchase of share by value with 306 deals at US$49.9bn. Blue Buffalo Pet Products by US food company However, both were down in terms of deal General Mills for US$7.9bn, and US grocery value and volume when compared to February giant Albertsons’ acquisition of the remaining 2017. The month’s largest transaction was 2,500 stores owned by US drugstore chain from Europe: the US$10.4bn takeover bid by Rite Aid that were not transferred to Walgreens Denmark’s DK Telekommunikation, a company in an earlier deal executed in September 2017. controlled by a consortium comprising Business Services placed third overall by three Danish pension funds and Australia’s value for the month thanks to 119 deals Macquarie Infrastructure and Real Assets, worth US$22bn, representing 12% of global for Denmark’s largest telecommunications market share by value. The sector witnessed company, TDC A/S. The telecoms firm rejected the fourth-largest deal by value globally this the first bid from the consortium earlier in the month, as US insurance firm WMIH Corp. month, and then announced its own takeover announced its US$6.4bn bid to merge with of Sweden’s Modern Times Group, which it later withdrew. mergermarket.com Mergermarket Monthly M&A Insider March 2018 6 Global Overview Top Financial Advisor 914 deals Morgan Stanley valued at US$183.7bn, down 1.4% by value ranked first with 20 deals worth US$29.8bn, with 505 fewer deals compared to 1,419 deals down 54% in value with 3 fewer deals compared worth US$186.4bn in February 2017. to 23 deals worth US$65bn in February 2017. Top Legal Advisor Top Sector Energy, Mining Debevoise & Plimpton ranked first with 5 deals worth US$17.6bn, up & Utilities 215% in value with 3 fewer deals compared to 2 deals worth US$5.6bn in February 2017. saw 80 deals valued at US$29.5bn, down 31.5% by value with 38 fewer deals compared to 118 deals worth US$40bn in February 2017. Mergermarket.commergermarket.com Mergermarket Monthly M&A Insider March 2018 7 Global Overview Global M&A trend Global Private Equity trend 4,000 20,000 600 3,500 18,000 3,500 3,000 US$ 500 1,199.9 16,000 3,000 US$ 827.2 US$ US$ 14,000 2,500 1,029.6 936.6 US$ 896.3 400 2,500 12,000 Number of deals of Number Number of deals of Number US$ 2,000 872.1 2,000 US$ 10,000 US$ US$ US$ 300 571.4 861.2 US$ 725.1 723.7 US$ US$ US$ Value (US$bn) Value Value (US$bn) Value 869.5 536.3 532.3 US$ 519.8 1,500 8,000 490.3 1,500 US$ 452.3 US$ US$ US$ 200 US$ 416.2 658 US$ 407.7 401.6 1,040.4 6,000 US$ US$ 1,000 794.9 794.3 1,000 US$ US$ US$ 965 US$ 740.2 298.8 294.9 4,000 US$ 561.6 100 500 500 2,000 US$ US$ 761.6 US$ US$ 750 US$ US$ 568.1 626.2 US$ 446.7 457.6 68.5 US$ 51.3 0 0 0 0 2013 2014 2015 2016 2017 YTD 2018 2013 2014 2015 2016 2017 YTD 2018 Q1 value Q3 value Volume Buyout value Buyout volume Q2 value Q4 value Exit value Exit volume mergermarket.com Mergermarket Monthly M&A Insider March 2018 8 Global Overview Regional Trends Energy, Mining & Utilities Value: US$29.5bn Number of deals: 80 Market share: 16.1% Consumer C&S America Asia-Pacific Value: US$27.5bn North America US$4.9bn (excluding Japan) Number of deals: 96 Market share: 14.9% US$80.1bn 38 deals US$44.2bn 2.8% 210 deals Business Services 311 deals Value: US$22bn 25% Number of deals: 119 45.3% Market share: 12% Industrials & Chemicals Value: US$18bn Number of deals: 206 Market share: 9.8% Telecommunications Japan Europe Value: US$15.1bn US$3.4bn Number of deals: 9 Middle East 36 deals US$49.9bn Market share: 8.2% and Africa 1.9% US$1.2bn 306 deals 13 deals 0.7% 28.2% Domestic US$125.8bn +18.1% Cross-border US$57.9bn -34% mergermarket.com Mergermarket Monthly M&A Insider March 2018 9 Global Overview