AI Magazine Issue 1 2018

Acquisition International - Issue 1 2018 55 Number and Aggregate Value (mil USD) of Deals Globally (as at 31 December 2017) Deal half yearly value (Announced date) Number of deals Aggregate deal value (mil $) H2 2017 41,998 2,151,921 H1 2017 47,416 2,109,965 H2 2016 47,732 2,512,464 H1 2016 50,026 1,939,347 H2 2015 44,319 2,468,495 H1 2015 44,566 2,349,581 H2 2014 43,698 2,027,236 H1 2014 41,564 1,908,377 H2 2013 41,019 1,627,953 H1 2013 36,206 1,365,379 H2 2012 35,716 1,472,791 H1 2012 34,188 1,182,219 H2 2011 33,642 1,253,968 H1 2011 32,851 1,479,899 H2 2010 33,749 1,413,275 H1 2010 33,303 1,195,174 H2 2009 31,064 1,332,884 H1 2009 28,888 1,536,765 H2 2008 27,844 1,874,903 H1 2008 29,197 1,722,105 H2 2007 30,742 2,049,961 World region (target) 2013 2014 2015 2016 2017 Far East and Central Asia 14,839 19,111 24,302 26,774 25,126 Western Europe 20,653 20,276 23,958 27,030 24,612 North America 22,772 26,400 24,550 26,558 23,383 Eastern Europe 10,061 11,227 8,145 9,255 8,328 Oceania 4,812 4,180 3,959 3,987 3,672 South and Central America 2,077 1,991 1,899 2,043 2,104 Africa 977 1,331 1,300 1,245 1,270 Middle East 920 713 734 904 772 Number of Deals by Region: 2013 - 2017 (as at 31 December 2017) Round-up of 2017 In keeping with the overall global pattern, dealmaking in the energy and resources sector declined in 2017, as both volume and value dropped in comparison with last year, according to Zephyr, the M&A database published by Bureau van Dijk. In all, there were 6,568 deals worth an aggregate USD 545,409 million announced during 2017. The year’s results are particularly disappointing in terms of value, which has reached its lowest level since 2013, when deals worth USD 434,974 million were announced. The figure also represented a 23 per cent decline on 2016’s USD 563,660 million. Value was also down year-on-year, declining from 7,564 deals in 2016 to 6,568 in 2017. However, this is still higher than the 5,924 transactions signed off in 2015. Of 2017’s four quarters, only one managed to surpass the corresponding timeframe of last year; in Q1, dealmaking totalled USD 209,584 million, compared to USD 110,032 million in Q1 2016. Nevertheless, there were still a few sizeable transactions announced during 2017. The largest of all was worth USD 23,143 million and involved Devarshi Commercials, among other investors, taking a 36 per cent stake in Reliance Industries. This was followed by a USD 20,474 million acquisition of US electricity distributor Calpine by a consortium led by Energy Capital Partners, via an acquisition vehicle known as Volt Parent. North America attracted the most investment of all world regions in 2017, having been targeted in 2,089 deals worth a combined USD 243,593 million. This placed it ahead of Western Europe, which placed second by volume and value with 1,312 deals worth USD 117,226 million. The Far East and Central Asia came third by value, with dealmaking of USD 92,278 million, while Oceania placed third by volume, with 1,151 deals. North America’s position at the head of both rankings is unsurprising given that, of the year’s top 20 deals by value, 12 featured targets based in the region. In conclusion, 2017 was a fairly disappointing year in terms of the volume and value of deals featuring targets operating in the energy and resources sector. However, it is worth noting that the declines recorded during the year under review were reflected on a global scale over the 12 months. Nevertheless, many will be hoping to see an upturn in activity as we move into 2018. Energy and Resources Number of Deals Globally by Target Sector: 2016 - 2017 (as at 31 December 2017) Number and Aggregate Value (Mil USD) Deals Globally: 2012-2017 (as at 31 December 2017) Deal yearly value (Announced date) Number of deals Aggregate deal value (mil $) 2017 89,414 4,261,886 2016 97,758 4,451,812 2015 88,885 4,818,076 2014 85,262 3,935,613 2013 77,225 2,993,332 2012 69,904 2,655,010 Major sector (target) 2016 2017 Other services 35,288 33,019 Machinery, equipment, furniture, recycling 10,914 9,167 Wholesale & retail trade 5,812 5,464 Publishing, printing 5,450 4,765 Chemicals, rubber, plastics, non-metallic products 5,411 4,636 Metals & metal products 5,275 4,440 Construction 3,433 3,210 Primary Sector (agriculture, mining, etc.) 2,967 2,405 Food, beverages, tobacco 2,148 1,960 Banks 2,130 1,890 Transport 2,014 1,691 Education, Health 1,589 1,661 Gas, Water, Electricity 1,741 1,635 Insurance companies 1,293 1,165 Post and telecommunications 1,149 1,083 Hotels & restaurants 1,299 1,071 Textiles, wearing apparel, leather 905 816