Issue 10 2019

Acquisition International - Issue 10 2019 59 Number and Aggregate Value (mil USD) of M&A Deals Globally: 2006-2019 YTD (as at 30 September 2019) Deal quarterly value (Announced date) Number of deals Aggregate deal value (mil $) Q3 2019 20,782 918,050 Q2 2019 30,143 1,475,597 Q1 2019 31,163 1,341,596 Q4 2018 36,995 1,395,549 Q3 2018 25,990 1,215,145 Q2 2018 28,192 1,547,848 Q1 2018 27,420 1,532,895 Q4 2017 28,812 1,329,233 Q3 2017 26,062 1,123,971 Q2 2017 26,739 1,184,548 Q1 2017 26,344 1,170,108 Q4 2016 27,038 1,408,464 Q3 2016 26,028 1,288,550 Q2 2016 26,507 1,112,751 Q1 2016 34,253 1,118,447 Q4 2015 35,963 1,707,194 Q3 2015 28,317 1,453,616 Q2 2015 29,037 1,547,588 Q1 2015 25,392 1,327,093 Q4 2014 27,045 1,254,537 Q3 2014 26,208 1,239,715 Q2 2014 25,181 1,383,749 Q1 2014 939 91,787 Q3 2014 992 182,785 Q2 2014 1,008 119,739 World region (target) Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Far East and Central Asia 8,379 8,979 8,577 9,554 7,870 8,747 7,616 Western Europe 7,996 8,208 7,731 8,795 7,596 6,737 5,218 North America 6,268 6,153 5,439 13,734 11,508 11,213 5,048 Oceania 1,134 1,266 1,451 1,400 1,117 1,272 1,168 Eastern Europe 2,433 2,273 1,696 1,768 1,660 969 778 South and Central America 658 699 634 1,088 867 708 519 Africa 311 334 256 388 305 300 235 Middle East 228 228 178 254 224 180 171 Number of M&A Deals by Region: 2015 - 2019 YTD (as at 30 September 2019) Bureau van Dijk Both the volume and value of mergers and acquisitions (M&A) targeting telecommunications companies declined in the third quarter of 2019, when compared to Q2 2019, according to Zephyr, the M&A database published by Bureau van Dijk. In all, there were 299 deals worth a combined USD 13,907 million announced during the three months under review. Q3 2019’s volume represents a 40 per cent decline on the 496 deals announced during the second quarter of this year, while value slipped 67 per cent from USD 41,560 million over the same timeframe. It was a similar result in a year-on-year comparison, albeit to a lesser extent, as volume and value were down from 402 and USD 30,255 million, respectively, over the 12 months. In fact, the last time volume was this low was in Q3 2011, when 298 deals were announced, while value has not previously plumbed such depths. The disappointing result comes despite a number of sizeable announcements during the quarter. The largest deal of Q3 was worth USD 2,947 million and saw TNB Power Generation picking up multiple Malaysian subsidiaries of electricity provider Tenaga Nasional. This was one of two deals to break the USD 2,000 million-barrier. The second involved Applied Materials acquiring Japan-based Kokusai Electric Corporation for USD 2,200 million. One other transaction was worth in excess of USD 1,000 million in the month under review as Norges Bank injected USD 1,604 million into UK-headquartered Vodafone Group in exchange for a 3 per cent shareholding. The decline in activity targeting the telecommunications industry witnessed in Q3 can partly be explained by the fact that the period spans the traditionally quieter holiday months of July and August. It is also worth noting that September 2018 was the quietest month of 2018 in terms of value, while volume was only higher than January 2018. This means we could see something of an upturn in activity as we move into the final quarter of 2019. Telecomms Number of M&A Deals Globally by Target Sector: 2015 - 2019 to date (as at 30 September 2019) Number and Aggregate Value (mil USD) of M&A Deals Globally: 2006-2019 YTD (as at 30 September 2019) Deal yearly value (Announced date) Number of deals Aggregate deal value (m USD) 2019 231 14,287 2018 291 38,443 2017 778 33,294 2016 254 109,819 2015 285 50,794 2014 910 33,092 2013 278 17,775 Major sector (target) Q2 2019 Q3 2019 Other services 11,273 8,010 Machinery, equipment, furniture, recycling 3,957 2,192 Chemicals, rubber, plastics, non- metallic products 1,790 1,144 Wholesale & retail trade 1,866 1,140 Metals & metal products 1,143 951 Publishing, printing 1,313 950 Construction 954 830 Primary Sector (agriculture, mining, etc.) 687 513 Food, beverages, tobacco 661 447 Gas, Water, Electricity 702 412 Transport 619 370 Banks 607 349 Education, Health 492 314 Insurance companies 536 283 Hotels & restaurants 400 229 Textiles, wearing apparel, leather 295 215 Post and telecommunications 359 192 Wood, cork, paper 172 135