AI Magazine Issue 1 2017

Acquisition International - January 2017 55 Number and Aggregate Value (mil USD) of M&A Deals Globally: 2011-2016 (as at 31 December 2016) Number and Aggregate Value (mil USD) of M&A Deals Globally: 2006-2016 (as at 31 December 2016) Deal half yearly value (Announced date) Number of deals Aggregate deal value (mil $) H2 2016 46,950 2,606,413 H1 2016 51,008 2,146,354 H2 2015 54,143 3,102,665 H1 2015 53,060 2,907,165 H2 2014 52,586 2,495,738 H1 2014 49,597 2,304,152 H2 2013 49,254 2,032,468 H1 2013 43,142 1,659,370 H2 2012 43,439 1,820,312 H1 2012 41,804 1,506,985 H2 2011 42,228 1,585,006 H1 2011 42,157 1,892,874 Deal yearly value (Announced date) Number of deals Aggregate deal value (mil $) 2016 97,958 4,752,767 2015 107,203 6,009,830 2014 102,183 4,799,890 2013 92,396 3,691,838 2012 85,243 3,327,297 2011 84,385 3,477,880 2010 83,335 3,517,067 2009 75,360 3,752,670 2008 70,656 4,215,175 2007 79,968 5,644,374 2006 73,141 4,511,347 Number of M&A Deals Globally by Sector: 2012-2016 (as at 31 December 2016) Major Sector Target 2012 2013 2014 2015 2016 Other services 32,294 36,376 39,269 39,498 35,047 Machinery, equipment, furniture, recycling 9,748 9,883 11,550 12,740 10,903 Wholesale & retail trade 6,288 6,762 7,156 6,950 5,981 Chemicals, rubber, plastics, non-metallic products 4,533 4,758 5,626 6,048 5,471 Metals & metal products 5,753 5,164 5,177 5,500 5,399 Publishing, printing 2,201 3,053 4,592 6,084 5,304 Construction 3,256 3,762 4,128 4,319 3,524 Primary Sector (agriculture, mining, etc.) 3,678 3,514 3,746 3,318 3,089 Food, beverages, tobacco 2,200 2,219 2,523 2,710 2,173 Banks 1,558 1,884 1,941 1,911 2,149 Transport 1,931 2,093 2,075 2,241 2,021 Gas, Water, Electricity 1,671 2,041 2,007 2,104 1,788 Education, Health 1,553 1,565 1,683 1,747 1,557 Hotels & restaurants 1,159 1,402 1,537 1,510 1,349 Insurance companies 1,130 1,179 1,438 1,539 1,283 Post and telecommunications 1,085 1,105 1,162 1,488 1,135 Textiles, wearing apparel, leather 830 901 1,130 1,158 923 Wood, cork, paper 638 634 683 727 570 Public administration and defence 100 72 66 67 65 World region (target) 2012 2013 2014 2015 2016 Western Europe 21,319 23,506 22,901 27,001 27,626 Far East and Central Asia 19,125 20,215 25,345 30,713 26,881 North America 26,347 26,678 30,908 29,886 26,334 Eastern Europe 8,010 11,013 12,370 9,176 8,695 Oceania 5,925 5,725 5,066 4,912 3,985 South and Central America 2,728 2,833 3,134 2,976 2,249 Africa 886 1,228 1,610 1,602 1,279 Middle East 707 1,024 803 878 951 Number of M&A Deals Globally by World Region: 2012-2016 (as at 31 December 2016) Sector Talk 2016 failed to keep pace with the investment levels recorded in 2015 in terms of dealmaking targeting the energy and resources sector. According to Zephyr, the M&A database published by Bureau van Dijk, there were 7,196 deals worth a combined USD 537,274 million signed off over the 12 months. In keeping with overall trend for global M&A activity in 2016, although the energy and resources sector’s results did not reach the same levels as 2015 and were also surpassed by 2014, the result is more comparable with preceding years. In fact, value was higher than in 2013 (USD 436,775 million), 2009 (USD 504,474 million) and 2008 (EUR 446,862 million). Given that 2015 was an impressive year in terms of dealmaking across the board, it was always going to be unlikely that 2016 would be able to keep up this level of investment. Many will be hoping that investors have just taken a breather in 2016 with a view to digging deep again next year. That being said, there were a number of large deals announced in 2016. The largest to target a company in the energy and resources sector was worth USD 28,000 million as Enbridge agreed to pick up US crude oil pipeline operator Spectra Energy. This was followed by the USD 21,318 million purchase of Energy Transfer Partners by Sunoco Logistics Partners. Given that both of these deals featured US targets it is unsurprising to see North America top the regional rankings by value in 2016 with total investment of USD 267,522 million. This placed it well ahead of its nearest rival – Western Europe with USD 88,828 million – while the Far East and Central Asia placed third with USD 76,783 million. North America and Western Europe also featured at the top of the volume rankings with 2,560 and 1,599 deals, respectively. As such, although the energy and resources sector has not matched the record dealmaking levels of 2015, there is still plenty to be positive about as a number of large deals were signed off and 2016 still surpassed a number of other years in terms of aggregate investment levels. The way 2017 unfolds will determine whether this is the beginning of a more pronounced decline or simply a temporary blip while dealmakers catch their breath after a big year in 2015. Energy and Resources