AI Issue 4 2017

Acquisition International - April 2017 75 Number and Aggregate Value (mil USD) of M&A Deals Globally: 2012-2017 YTD (as at 31 March 2017) Deal half yearly value (Announced date) Number of deals Aggregate deal value (mil $) Q1 2017 22,093 1,100,655 Q4 2016 25,172 1,467,778 Q3 2016 24,790 1,411,308 Q2 2016 25,062 1,113,368 Q1 2016 26,796 1,030,342 Q4 2015 27,145 1,539,854 Q3 2015 27,365 1,500,829 Q2 2015 28,402 1,580,696 Q1 2015 24,934 1,330,928 Q4 2014 26,605 1,253,269 Q3 2014 25,943 1,239,078 Q2 2014 24,972 1,382,610 Q1 2014 24,660 927,297 Q4 2013 26,032 962,329 Q3 2013 23,226 1,073,824 Q2 2013 22,374 923,025 Q1 2013 20,780 736,989 Q4 2012 23,076 1,085,177 Q3 2012 20,351 734,795 Q2 2012 20,643 805,316 Q1 2012 20,992 700,526 World region (target) Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 North America 8,388 6,459 6,141 6,105 6,346 Western Europe 6,603 7,024 7,181 7,428 6,133 Far East and Central Asia 7,073 6,910 7,184 7,387 5,986 Eastern Europe 2,609 2,444 1,987 2,117 1,819 Oceania 975 1,144 1,109 992 767 South and Central America 572 524 583 634 504 Africa 344 334 305 333 339 Middle East 237 239 301 193 217 Number of M&A Deals by Region: 2016 - 2017 YTD (as at 31 March 2017) M&A Deals Q1 Round-Up In keeping with the overall pattern detected across global M&A activity in Q1 2017, both the volume and value of deals targeting companies in the industrials sector declined over the three months. According to Zephyr, the M&A database published by Bureau van Dijk, there were 4,823 such deals worth $226,782 million announced over the course of the quarter. In terms of value, the result represents a 37% decline on the $361,688 million invested in Q4 2016, while value dropped at the slower rate of 26% from $306,374 million in Q1 2016. Volume was also down from 5,694 and 6,128, respectively, over the same timeframes. The quarter has proven to be the sector’s slowest for some time; the last time value plumbed such depths was in Q3 2014, when deals worth $201,340 million were announced. Volume has not been so low since the 4,733 transactions signed off in Q2 2014. The disappointing showing comes despite a few significant deals being signed off in the sector over the three months, the largest of which was a US Dollars 21,825 million investment in Chinese semiconductor maker Tsinghua UniGroup by China Development Bank and Sino-IC Capital. Given the aforementioned deal, as well as the fact that 10 of the year’s top 25 deals in the sector featured targets based there, it is no surprise to see the Far East and Central Asia top the regional rankings by volume and value with 1,700 deals worth “106,370 million. It placed well ahead of second-placed Western Europe ($71,980 million across 1,358 deals) on both fronts, while North America was third with 1,087 transactions worth $34,008 million. In conclusion, and in keeping with the overall pattern detected in M&A deals, although volume and value declined in Q1, one can be encouraged by the high value transactions announced in the Far East and Asia over the three months. If similar levels of deal making can be recorded in other regions in the coming months 2017 may develop more positively than initial indications suggest it will. Industrials M&A activity Number and Aggregate Value (Mil USD) of M&A Deals Globally by Target Sector: 2017 to date (as at 31 March 2017) Number and Aggregate Value (Mil USD) of M&A Deals Globally by Deal Type: 2006-2017 to date (as at 31 March 2017) Deal type Number of deals Aggregate deal value (mil $) Acquisition 350,237 24,426,720 Minority stake 431,260 10,641,970 Capital increase 166,480 10,616,662 Institutional buy-out 18,774 3,339,474 Management buy-out 5,531 117,742 Demerger 1,717 54,271 Zephus classification (target) Number of deals Aggregate deal value (mil $) Banking, Insurance & Financial Services 3,307 199,495 Personal, Leisure & Business Services 4,235 190,199 Mining & Extraction 1,364 164,265 Industrial, Electric & Electronic Machinery 2,219 142,549 Utilities 746 123,458 Computer, IT and Internet services 4,422 113,781 Chemicals, Petro- leum, Rubber & Plastic 1,132 108,700 Property Services 1,571 85,256 Food & Tobacco Manufacturing 538 82,573 Biotechnology, Phar- maceuticals and Life Sciences 520 73,272 Transport, Freight, Storage & Travel Services 1,352 64,712 Communications 414 46,273 Retailing 956 40,388 Wholesaling 1,137 39,817 Textiles & Clothing Manufacturing 220 30,383 Metals & Metal Products 665 24,509