AI Issue 6 2018

Acquisition International - Issue 6 2018 67 Number and Aggregate Value (mil USD) of Technology Deals Globally: 2006-2018 YTD (as at 29 May 2018) Deal quarterly value (Announced date) Number of deals Aggregate deal value (mil $) Q2 2018 2,227 102,582 Q1 2018 3,762 129,318 Q4 2017 3,869 109,321 Q3 2017 3,870 81,762 Q2 2017 4,059 103,671 Q1 2017 4,056 74,064 Q4 2016 4,016 106,957 Q3 2016 4,337 91,697 Q2 2016 4,028 123,732 Q1 2016 4,018 86,786 Q4 2015 4,056 205,703 Q3 2015 4,565 106,345 Q2 2015 4,623 93,570 Q1 2015 4,200 67,446 Q4 2014 4,098 65,594 Q3 2014 4,243 76,155 Q2 2014 3,819 64,507 Q1 2014 3,578 80,172 Q4 2013 3,570 55,916 Q3 2013 3,314 87,895 Q2 2013 3,026 53,371 World region (target) 2014 2015 2016 2017 2018 Western Europe 314 397 599 636 256 Far East and Central Asia 751 823 678 770 237 North America 281 299 291 220 69 Eastern Europe 120 106 92 94 29 Oceania 27 32 44 21 14 South and Central America 39 40 43 43 13 Middle East 7 7 14 17 6 Africa 15 26 31 20 5 Number and Aggregate Value (mil USD) of Chemicals Deals Globally: 2006-2018 YTD (as at 29th May 2018) Bureau van Dijk So far in Q2 2018, there have been 212 deals worth an aggregate USD 27,472 million signed off, which in comparison to Q2 2017’s 484 deals worth USD 56,295 million, means there is some way to go if value is to exceed the corresponding timeframe of last year. However, there is still just over a month left of the quarter at the time of writing and, as we have seen numerous times in the past, a small number of large transactions in the sector can make all the difference between whether a year-on-year increase or decrease is recorded. 2018 has already seen deals worth USD 78,851 million announced in the chemical industry (as of 29th May). This already represents an improvement on the USD 37,152 million signed off in the same timeframe in 2017. In fact, it was the last part of Q2 2017 which saw a number of significant deals being signed off, thereby increasing 2017 value to over USD 80,000 million by 30th June. If this is any indication of the month to come, the chemical industry could see some significant investments that may boost overall value for the quarter and the year-to-date. Zephyr shows that five deals each worth more than USD 4,000 million have helped improve M&A in 2018 to date and together represented 46 per cent of total value injected into the chemical industry this year. The largest such deal involved private equity firm Carlyle Group and GIC agreeing to acquire the speciality chemicals unit of Netherlands-based Akzo Nobel for USD 12,576 million. This was followed by two deals valued at more than USD 7,000 million each, the first of which took the form of a minority stake purchase by Yantai Wanhua Chemical in China’s Wanhua Chemical Group worth USD 7,500 million, while the second was a share buy-back by UK-based cleaning goods manufacturer Unilever worth USD 7,154 million. To conclude, 2018 has started promisingly, with Q1 2018 surpassing both Q1 2017 and Q1 2015 in terms of M&A value in the chemicals sector; however, Q2 has some way to go if it wants to reach levels recorded in previous years, with 2017 and 2016 each recording deals worth more than an aggregate USD 80,000 million by the end of H1. That being said, there have been some large transactions in the industry announced this year, including the sale of Akzo Nobel’s speciality chemical unit, and if similar deals continue to take place, 2018 could prove to be a record year for M&A investment in the sector. Chemicals Number and Aggregate Value (Mil USD) of Technology Deals Globally by Target Sector: 2006 - 2018 YTD (as at 29 May 2018) Number and Aggregate Value (Mil USD) of Chemicals Deals Globally by Deal Type: 2006-2018 YTD (as at 29th May 2018) Deal type Number of deals Aggregate deal value (mil $) Acquisition 6,532 793,615 Minority stake 10,811 457,823 Institutional buy-out 603 101,028 Share buy back 1 7,154 Management buy-out 128 1,187 Demerger 23 438 Major sector (target) Number of deals Aggregate deal value (m USD) Other services 98,798 2,004,747 Publishing, printing 26,232 569,903 Machinery, equip- ment, furniture, recycling 5,542 334,297 Wholesale & retail trade 1,869 54,448 Gas, Water, Elec- tricity 11 16,025 Chemicals, rubber, plastics, non-metallic products 15 8,206 Primary Sector (agri- culture, mining, etc.) 6 7,200 Post and telecommu- nications 39 6,613 Insurance compa- nies 10 6,407 Transport 10 1,277 Education, Health 19 1,035 Food, beverages, tobacco 4 215 Hotels & restaurants 6 164 Construction 13 73 Food & Tobacco Manufacturing 44 5,306 Metals & Metal Products 20,820 1,606,796