An Acuris Company Finding the opportunities in mergers and acquisitions Global & Regional M&A Report H1 2018 Including League Tables of Financial Advisors mergermarket.com An Acuris Company Content Overview 03 Global 04 Europe 09 US 14 Latin America 19 AsiaPacific (excl. Japan) 24 Japan 29 Middle East & Africa 34 M&A and PE League Tables 39 Criteria & Contacts 74 mergermarket.com Mergermarket Global & Regional Global Overview 3 M&A Report H1 2018 Global Overview Regional M&A Comparison North America US$ 877.1bn +29.8% vs. H1 17 Inbound US$ 117.7bn -32.4% Outbound US$ 179bn -9.5% EMU US$ 161bn +0.7% Latin America US$ 45.6bn +62.3% vs. H1 17 Inbound US$ 18.4bn +38.4% 30.99% Outbound US$ 1.4bn -72.1% Ind. & Chem. US$ 21.4bn +624.5% Europe US$ 600.9bn +26.5% vs. H1 17 45.23% 0.88% Inbound US$ 284bn +38.4% 19.08% Outbound US$ 108.6bn -21.1% PMB US$ 121.9bn +127.1% 1.47% MEA US$ 28.4bn -27.7% vs. H1 17 Inbound US$ 22.7bn -36.9% Outbound US$ 18.7bn -22% EMU US$ 11.4bn +54.5% APac (ex. Japan) US$ 370bn +33.1% vs. H1 17 Inbound US$ 56.3bn +53.2% 2.35% Outbound US$ 82.9bn +52.1% Technology US$ 66.8bn +97.1% Japan US$ 17bn +17.3% vs. H1 17 Inbound US$ 1.3bn -76.7% Global M&A US$ 1.94tn +28.3% vs. H1 2017 Outbound US$ 111.4bn +229.1% Consumer US$ 4.4bn +295.9% Cross-border US$ 740.3bn +11.6% vs. H1 2017 The % values on the map indicate Top sector: EMU US$ 338.9bn +24.9% vs. H1 2017 market shares in global M&A mergermarket.com Mergermarket Global & Regional Global Analysis 4 M&A Report H1 2018 Global Value Deal details (US$bn) Announce- Bidder company Target company Target Target sector ment date geography US$ 1.94tn 79.7 8-May-18 Takeda Pharmaceutical Shire Plc Republic of Pharma, Medical & Company Limited Ireland Biotech Value of M&A in H1 2018, the strongest 67.9 8-Mar-18 Cigna Corporation Express Scripts USA Business Services first six months since the crisis Holding Company 58.9 29-Apr-18 T-Mobile USA Inc Sprint Corporation USA Telecoms 46.6 12-Mar-18 E.ON SE innogy SE Germany Energy, Mining & 28.3% 26 Utilities Value increase from H1 Number of megadeals 40.7 25-Apr-18 Comcast Corporation Sky Plc United Media Kingdom 2017 to H1 2018 (> US$ 10bn) announced in H1, four short of the FY 2017 total mergermarket.com Mergermarket Global & Regional Global Analysis 5 M&A Report H1 2018 Global • The momentum seen in Q1 2018 has carried over into the • Headline dealmaking has swung to more developed areas second quarter, pushing global M&A to its highest post-crisis so far this year with an increase in blockbuster consolidation. “It appears the stars are value on Mergermarket record with US$ 1.94tn (8,560 deals) Almost three-quarters of the global value has targeted the announced so far. Q2 (US$ 1.01tn) became the most active US and Europe this year, up from 64.9% in H1 2017 with the aligning for M&A in 2018. quarter since Q4 2016 (US$ 1.03tn) by value, breaching the top ten deals all targeting the two areas, while the respective US$ 1tn mark for only the fourth quarter since the crisis. A deal count share has remained steady. Acquisitions of Express Financing remains cheap buoyant M&A market has led to six deals above the US$ Scripts and Sprint have pushed US activity to US$ 807.9bn, its 20bn mark announced in Q2 including Takeda’s proposed third highest YTD value on record, with the country receiving while tech innovation US$ 79.7bn takeover of Shire – the year’s largest deal so far. It half of the top ten deals in the first half of the year. Meanwhile, appears that the stars are aligning for M&A in 2018. Financing Europe now accounts for just under a third of the global value is causing traditional remains cheap while tech innovation is causing traditional up from 22.4% in YTD 2017 following four deals above US$ corporates to fight back against newer, more innovative 20bn in Q2, including China Three Gorges/EDP (US$ 27.4bn) corporates to fight back firms and shareholder pressure is leading to more spin-offs, and Vodafone’s acquisition of Liberty Global’s German and divestment programmes, and transformational, sector-altering CEE assets (US$ 21.8bn). Asia has also seen an increase in against newer, more acquisitions. M&A compared to H1 2017, yet has seen its global share dip from 27% in YTD 2017 to 19.1% this year. innovative firms” • With dealmakers now having to contend with a greater level of political intervention and protectionism, the majority of the • The changing media landscape, with the introduction of increase in global M&A has been driven by domestic M&A. Netflix and Amazon’s move into the space in recent years, YTD deals conducted domestically this year have surpassed has caused a surge in Media M&A as traditional players such Jonathan Klonowski, US$ 1tn for only the third time on Mergermarket record with as Comcast and Disney look to protect their market share. US$ 1.12tn announced so far. The introduction of tariffs, the The battle for Sky continues to rumble on and the sector has Research Editor (EMEA) growing threat of trade wars and greater scrutiny over deals reached US$ 78.9bn so far this year, its highest YTD figure on may be somewhat responsible for a drop in the impact of Mergermarket record. With the DOJ approving the AT&T/Time cross-border M&A. Earlier this year President Trump ensured Warner merger and Amazon’s ongoing pursuit of sporting TV that Qualcomm’s pursuit of Broadcom did not take off and in rights - including Premier League football and the ATP World the first six months of the year, only 38.2% of the global M&A Tour - the uptick seen in the space shows no sign of abating value was generated by cross-border activity – almost a six and the sector is on course to breach the US$ 100bn barrier percentage-point drop compared to H1 2017. Six of the largest for the third successive year. Industrials & Chemicals has ten deals in H1 2018 were domestic deals, including T-Mobile’s been the most targeted sector by the number of deals, while US$ 58.9bn takeover of Sprint, announced in late May. With seeing a considerable 21.9% increase in the value. The sector governments around the world looking increasingly insular, is also going through large-scale changes with areas such as this wave of domestic M&A may be a sign of further things to artificial intelligence, machine learning, IoT, and driverless cars come in the second half of the year and beyond. all pushing corporates to invest. mergermarket.com Mergermarket Global & Regional Global Analysis 6 M&A Report H1 2018 US$ 1.12tn 59.7% 2.1x Tech (US$ 178.5bn) value increase Pharma, Medical & Biotech (US$ compared to H1 2017 (US$ 111.8bn) 212.8bn) value increase compared to Value of domestic M&A in H1 H2 2017 (US$ 100.4bn) 2018, the highest YTD value on Mergermarket record (since 2001) US$ 271.7bn 72.7% US$1tn Value of private equity buyouts so far this year, the highest YTD value on record Share of global M&A value Q2 2018 value, 9.1% higher than Q1 targeting Europe and the US, up from around 65% in H1 2017 mergermarket.com Mergermarket.com Mergermarket Global & Regional Global Analysis 7 M&A Report H1 2018 Chart title 1 Chart title 1 ChartGlobal title Quarterly2 Breakdown Trend ChartGlobal title Sector 2 Breakdown Trend 2013 - 2018 H1 2017 - H1 2018 800 4000 20000 700 18000 3500 1,201.0 16000 600 3000 827.1 1,030.1 921.3 14000 500 2500 12000 873.3 Count Deal 400 2000 571.7 853.7 10000 872.4 717.3 8000 (US$bn) Value Deal 300 Deal Value (US$bn) Value Deal 1500 1011.8 658.2 1,039.4 758.3 6000 964.2 1000 739.6 200 561.2 4000 500 927.3 100 762.2 752.7 2000 568.5 626.8 447.1 0 0 2013 2014 2015 2016 2017 2018 0 Energy, Industrials Pharma, Business Technology Other Mining & Utilities & Chemicals Medical Services & Biotech Q1 Q2 Q3 Q4 H1 2017 H1 2018 Deal Count mergermarket.com Mergermarket Global & Regional Global Analysis 8 M&A Report Q1 2018 Global League tables Financial advisor league table by value Ranking H1 2018 H1 2017 Regional ranking comparison H1 H1 Company name Value Deal Value % Value Europe US Asia Japan Middle Latin 2018 2017 (US$m) count (US$m) change Pacific East & America Africa 1 1 Goldman Sachs & Co 663,221 190 438,517 51.2% 1 1 3 1 1 4 2 2 Morgan Stanley 650,733 148 318,882 104.1% 2 2 1 3 2 3 3 4 JPMorgan 511,920 146 275,986 85.5% 3 3 2 2 5 10 4 5 Citi 395,591 120 243,100 62.7% 4 9 5 6 16 9 5 3 Bank of America Merrill Lynch 324,741 96 284,942 14.0% 6 4 4 17 3 1 6 6 Lazard 294,538 98 188,256 56.5% 5 10 6 26 12 12 7 15 Evercore 276,068 75 83,844 229.3% 7 5 26 4 67 17 8 7 Credit Suisse 243,347 89 163,495 48.8% 11 6 17 9 9 11 9 9 Deutsche Bank 212,962 62 148,668 43.2% 13 12 9 11 17 26 10 11 Barclays 197,396 91 126,034 56.6% 10 8 12 14 6 16 11 12 Centerview Partners 187,387 22 104,527 79.3% 30 7 354 10 80 - 12 10 Rothschild 148,478 144 135,163 9.9% 8 20 18 19 11 15 13 28 PJT Partners 124,119 13 26,828 362.6% 18 11 146 12 - - 14 8 UBS Investment Bank 113,262 71 148,722 -23.8% 9 21 7 16 8 69 15 31 Nomura Holdings 96,616 42 24,253 298.4% 12 57 32 5 92 82 16 17 RBC Capital Markets 69,004 53 61,527 12.2% 26 16 27 - 84 28 17 13 Perella Weinberg Partners 68,824 18 87,596 -21.4% 19 25 207 154 88 - 18 64 Sumitomo Mitsui Financial Group 66,940 28 8,507 686.9% 622 14 377 7 - - 19 26 Robey Warshaw 65,964 3 30,503 116.3% 14 17 340 146 - - 20 81 Mizuho Financial Group 62,197 20 4,943 1158.3% 699 15 204 8 - - mergermarket.com Mergermarket Global & Regional Europe Analysis 9 M&A Report Q1 2018 Europe Value Deal details (US$bn) Announce- Bidder company Target company Target Target sector ment date geography US$ 600.9bn 79.7 8-May-18 Takeda Pharmaceutical Shire Plc Republic