Issue 1 2019

Acquisition International - Issue 1 2019 45 Number and Aggregate Value (mil $) of M&A Deals Globally: 2006-2018 (as at 31 December 2018) Deal quarterly value (Announced date) Number of deals Aggregate deal value (mil $) Q4 2018 20,728 990,851 Q3 2018 22,355 1,088,864 Q2 2018 24,890 1,381,977 Q1 2018 24,287 1,366,065 Q4 2017 25,394 1,210,839 Q3 2017 23,685 990,581 Q2 2017 24,706 1,083,777 Q1 2017 24,085 1,064,276 Q4 2016 21,071 1,159,975 Q3 2016 20,561 1,082,064 Q2 2016 21,125 887,167 Q1 2016 22,889 827,718 Q4 2015 21,462 1,211,910 Q3 2015 23,287 1,213,758 Q2 2015 23,757 1,233,780 Q1 2015 21,093 1,102,395 Q4 2014 22,264 1,022,463 Q3 2014 21,740 1,011,085 Q2 2014 20,907 1,143,290 Q1 2014 20,880 776,508 Q4 2013 21,789 768,956 Q3 2013 19,428 867,063 World region (target) 2014 2015 2016 2017 2018 North America 1,688,257 1,759,416 1,614,504 1,335,318 1,576,063 Western Europe 1,037,037 1,308,326 1,075,331 1,248,843 1,477,618 Far East and Central Asia 695,397 1,132,933 819,409 1,235,144 1,147,109 South and Central America 221,014 212,629 162,740 187,121 239,769 Eastern Europe 143,398 121,149 110,304 102,824 136,859 Oceania 139,181 161,887 115,026 143,409 131,723 Middle East 26,373 30,718 61,162 42,700 54,531 Africa 36,548 41,329 26,608 55,860 54,352 Aggregate Value (mil USD) of M&A Deals Globally by World Region: 2006-2018 (as at 31 December 2018) Bureau van Dijk The value of deals targeting the energy and resources sector to have been announced globally in 2018 represents the highest recorded result in more than a decade as 6,153 deals worth USD 634,177 million were signed off in the 12 months under review, according to Zephyr, the M&A database published by Bureau van Dijk. Value improved 10 per cent in 2018 from USD 577,957 million, against a 14 per cent decline by volume (2017: 7,171) which was at its lowest level since 2015 (5,932 deals). The increase by value against the decrease by volume suggests buyers favoured single deals with higher valuations over prolific dealmaking in 2018, which is evidenced by eleven such transactions that exceeded USD 10,000 million, the top three of which were worth in excess of USD 20,000 million. Interestingly, total value for the year was supported by deals recorded in the opening half of 2018, with USD 340,053 million-worth of deals announced during the first six months. While H2 2018 was slightly lower in terms of value (USD 294,125 million), it still represented an improvement on H2 2017, when deals worth USD 253,292 million were signed off. Companies based in North America and Western Europe received the lion’s share of investment in 2018, with the former leading the way by value, while the latter was slightly ahead by volume. Western Europe was targeted in 1,491 deals worth an aggregate USD 205,167 million in the 12 months under review, while North America featured in 1,477 deals worth USD 236,494 million in the same timeframe. Targets in the Far East and Central Asia were third on both fronts, with 1,169 deals worth USD 73,574 million. It was followed by Oceania by volume (1,152 deals) and Eastern Europe by value (USD 54,024 million). Three deals worth more than USD 20,000 million together accounted for 17 per cent of total value for the energy and resources sector in 2018 (USD 634,117 million). The largest of these was worth USD 46,533 million and involved E.ON Verwaltungs picking up a 77 per cent stake in German electricity provider Innogy. Mahi acquired US-based petroleum products refining services provider Andeavor for USD 35,600 million in the second-largest of these deals, while Energy Transfer Equity paid USD 27,000 million for US natural gas pipeline operator Energy Transfer Partners in the third- biggest deal. In conclusion, the value of mergers and acquisitions in the energy and resources sector was at its highest-recorded level since 2007 (USD 909,421 million) due to a number of high-valued deals being recorded in the sector over the 12-month period. North America and Western Europe were the main targets of dealmaking during the year, accounting for nine of the top 10 deals by value. The only exception was QHG Oil Ventures selling a 20 per cent stake in Russian oil and gas explorer Neftyanaya Kompaniya Rosneft for USD 13,023 million. Energy and Resources Aggregate Value (mil $) of M&A Deals Globally by Sector: 2006-2018 (as at 31 December 2018) Number and Aggregate Value (mil $) of M&A Deals Globally: 2006-2018 (as at 31 December 2018) Deal yearly value (Announced date) Number of deals Aggregate deal value (m $) 2018 92,260 634,177 2017 97,870 577,957 2016 85,646 529,698 2015 89,599 539,190 2014 85,791 622,527 2013 77,575 438,048 2012 70,192 559,047 2011 66,662 564,956 Major sector (target) 2017 2018 Other services 1,161,797 1,513,004 Machinery, equip- ment, furniture, recycling 545,772 571,866 Chemicals, rubber, plastics, non-metal- lic products 355,741 449,209 Banks 314,613 263,502 Primary Sector (agriculture, mining, etc.) 259,470 242,468 Gas, Water, Electricity 225,736 238,991 Insurance compa- nies 149,718 192,592 Post and telecom- munications 100,009 183,054 Construction 257,290 177,495 Publishing, printing 130,142 174,455 Wholesale & retail trade 207,117 166,102 Transport 140,084 156,454 Food, beverages, tobacco 174,639 122,630 Metals & metal products 115,240 120,660 Education, Health 51,513 71,164 Hotels & restau- rants 52,015 66,558 Wood, cork, paper 15,274 36,702 Textiles, wearing apparel, leather 44,396 27,363