Issue 6 2019

Acquisition International - Issue 6 2019 109 Number and Aggregate Value (mil $) of Technology Deals Globally: 2006-2019 YTD (as at 31 May 2019) Deal quarterly value (Announced date) Number of deals Aggregate deal value (mil $) Q2 2019 2,238 65,750 Q1 2019 4,339 137,121 Q4 2018 4,689 176,792 Q3 2018 3,874 130,387 Q2 2018 4,440 163,522 Q1 2018 4,173 134,633 Q4 2017 4,250 117,791 Q3 2017 4,090 84,288 Q2 2017 3,971 97,766 Q1 2017 3,870 70,363 Q4 2016 3,808 106,873 Q3 2016 4,092 88,097 Q2 2016 4,042 128,680 Q1 2016 4,679 95,738 Q4 2015 4,842 222,282 Q3 2015 4,644 106,091 Q2 2015 4,674 95,745 Q1 2015 4,247 66,930 Q4 2014 4,119 65,336 Q3 2014 4,255 75,705 World region (target) Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Far East and Central Asia 1,595 1,448 1,296 1,093 837 North America 1,197 908 1,746 1,683 656 Western Europe 1,128 1,059 1,077 1,085 493 Oceania 161 180 185 153 87 South and Central America 117 48 155 135 60 Eastern Europe 142 161 129 105 39 Middle East 72 46 71 64 33 Number of Technology Deals by Region: 2006 - 2019 YTD (as at 31 May 2019) Bureau van Dijk 2019 is off to a quick start in terms of the aggregate value of deals targeting the chemicals sector, according to Zephyr, the M&A database published by Bureau van Dijk. So far, there have been 808 such deals worth a combined USD 125,915 million announced worldwide in 2019, compared to the 2,219 worth USD 156,819 million in 2018. Given that there are only five months of the year gone at the time of writing, on the face of it, value looks likely to have surpassed 2018 by the time the year comes to a close. It may also trump 2017 (USD 151,841 million) and 2016 (USD 212,620 million), which would make it the most valuable year on record for the sector. The bulk of 2019’s value to date is attributable to the first quarter of the year, when 582 deals worth a combined USD 100,072 million were announced, compared to the USD 25,745 million injected across 223 deals in the second quarter. Even allowing for the fact that there is still a month to go until the end of Q2 at the time of writing, this is a significant difference. This can be explained by the fact that Q1 was boosted significantly by a single transaction as Saudi Arabian Oil Company agreed to pay USD 69,100 million for a 70 per cent stake in Saudi Basic Industries Corporation. This deal alone accounted for 69 per cent of total value in Q1. No other deal even came close to this level. The second-largest transaction to have been announced in the sector since the start of 2019 was worth USD 6,500 million as Merck signed on the dotted line to acquire Versum Materials. This was followed by Natura Holding’s USD 4,230 million takeover of Avon Products, which was announced in late May. In all, six deals announced in the sector during 2019 to date broke the USD 3,000 million-barrier, with 15 in total coming in at over USD 1,000 million. In terms of the regions targeted, the Middle East topped the value rankings with USD 69,151 million, although this is almost entirely due to the Saudi Basic Industries Corporation deal worth USD 69,100 million. North America came next, with USD 23,879 million, while Western Europe was third with USD 15,911 million and the Far East and Central Asia placed fourth (USD 10,573 million). The latter actually topped the volume rankings with 312 deals, ahead of North America and Western Europe, with 228 and 206, respectively. To sum up, a single deal has resulted in 2019 to date being very impressive in terms of value. It remains to be seen whether any further deals of a similar size will be signed off during the rest of the year, but there is undoubtedly an appetite for sizeable investment in the sector, as evidenced by the 15 deals worth over USD 1,000 million. Chemicals Number and Aggregate Value (Mil $) of Technology Deals Globally byTarget Sector: 2006 - 2019YTD (as at 31 May 2019) Number and Aggregate Value (Mil $) of Technology Deals Globally by Deal Type: 2006-2019 YTD (as at 31 May 2019) Deal type Number of deals Aggregate deal value (mil USD) Acquisition 36,639 1,526,792 Minority stake 98,247 1,283,648 Institutional buy-out 2,495 464,304 Capital increase 13,490 259,924 Management buy-out 515 5,346 Merger 235 178 Demerger 67 88 Major sector (target) Number of deals Aggregate deal value (mil $) Other services 112,294 2,437,497 Publishing, printing 30,982 709,751 Machinery, equip- ment, furniture, recycling 6,390 361,607 Wholesale & retail trade 2,052 61,009 Gas, Water, Elec- tricity 11 16,025 Chemicals, rubber, plastics, non- metallic products 14 8,556 Primary Sector (agriculture, mining, etc.) 6 7,645 Insurance compa- nies 10 6,099 Post and telecom- munications 43 4,908 Transport 11 1,277 Education, Health 23 1,054 Construction 18 872 Food, beverages, tobacco 4 215 Hotels & restau- rants 6 164 Banks 2 61 Metals & metal products 7 58 Textiles, wearing apparel, leather 2 0