AI Magazine Issue 7 2018

Acquisition International - Issue 7 2018 87 Number and Aggregate Value (mil USD) of M&A Deals Globally: 2006-2018 YTD (as at 25 June 2018) Deal quarterly value (Announced date) Number of deals Aggregate deal value (mil $) H1 2018 44,951 2,905,804 H2 2017 51,280 2,475,894 H1 2017 51,639 2,353,360 H2 2016 52,072 2,727,067 H1 2016 53,539 2,186,565 H2 2015 56,066 2,992,919 H1 2015 54,060 2,877,567 H2 2014 53,052 2,492,047 H1 2014 49,980 2,320,068 H2 2013 49,543 2,038,388 H1 2013 43,393 1,665,645 H2 2012 43,661 1,817,520 H1 2012 41,800 1,509,137 H2 2011 42,392 1,588,844 H1 2011 42,257 1,894,310 H2 2010 41,990 1,825,768 H1 2010 41,533 1,694,353 H2 2009 39,548 1,787,282 H1 2009 35,991 1,967,368 H2 2008 34,028 2,136,439 H1 2008 36,849 2,081,495 World region (target) H1 2016 H2 2016 H1 2017 H2 2017 H1 2018 Western Europe 13,883 14,946 13,658 14,063 13,360 Far East and Central Asia 14,609 15,497 15,112 15,939 12,982 North America 15,399 12,644 13,549 11,917 11,455 Eastern Europe 5,181 4,262 4,675 4,473 3,531 Oceania 2,160 2,281 2,095 2,268 1,572 South and Central America 1,146 1,292 1,286 1,344 1,093 Africa 693 661 748 729 516 Middle East 490 508 439 458 383 Number of M&A Deals by Region: 2006 - 2018 YTD (as at 25 June 2018) Bureau van Dijk The value of mergers and acquisitions targeting companies operating in the media industry reached its highest recorded level for a six-month period in the first half of 2018 as USD 123,102 million was invested across 495 deals, according to Zephyr, the M&A database published by Bureau van Dijk. In terms of value, H1 2018 is the largest six-month period on record and also represents a significant improvement compared to both H2 2017 and H1 2017 when value of USD 35,535 million and USD 17,363 million was recorded, respectively. However, by volume, the first half of 2018 represented a 16 per cent decrease from 591 deals in H2 2017 and a 24 per cent decrease from 651 deals on a year-on-year comparison, to the lowest recorded result since H2 2011, when 472 deals were announced. The increase by value against the decline by volume suggests there were single deals with higher valuations signed off in H1 2018. A large portion of the value recorded during the last six months can be attributed to a single transaction as the Walt Disney Company increased its offer for Twenty-First Century Fox to USD 85,100 million, representing 69 per cent of total value for the period and the largest announced transaction since AT&T agreed to acquire Time Warner for USD 108,700 billion last year. The second largest deal was worth USD 20,000 million and involved a consortium of the Blackstone Group, Canada Pension Plan Investment Board and GIC agreeing to buy Thomson Reuters’ financial and risk business. This also represents one of the largest deals signed off in the media industry on record and accounts for 16 per cent of total value for H1. Four more deals exceeded USD 1,000 million during the six months and targeted companies in the UK, South Korea, the US and China. Unsurprisingly, North American companies have received the most investment in the first half of the year, recording USD 108,761 million, 97 per cent of which can be attributed to the two largest deals in H1 2018. Companies operating in the Far East and Central Asia were second by value with USD 7,325 million, followed by Western Europe (USD 6,207 million) and South and Central America (USD 177 million). In terms of volume, the Far East and Central Asia was top with 176 deals, ahead of Western Europe (174 deals), North America (65 deals) and Eastern Europe (45 deals). The first half 2018 has broken previous records and has potentially set up the rest of the year to do the same. Two deals accounted for the lion’s share of investment in the media industry during H1 and shows that a smaller number of sizeable transactions is all it takes to change the outcome of any given timeframe. Q2 2018 (208 deals worth USD 92,016 million) was worth significantly more than Q1 2018 (287 deals worth USD 31,086 million), and accounts for the increase in H1, despite volume being down both quarter-on- quarter and year-on-year. Media Number and Aggregate Value (Mil USD) of M&A Deals Globally by Target Sector: 2006 - 2018 to date (as at 25 June 2018) Number and Aggregate Value (Mil USD) of M&A Deals Globally by Deal Type: 2018 to date (as at 25 June 2018) Deal type Number of deals Aggregate deal value (mil $) Acquisition 15,180 1,632,015 Minority stake 21,563 655,442 Capital increase 7,091 403,070 Institutional buy-out 910 210,192 Share buy back 2 7,438 Demerger 32 5,325 Major sector (target) Number of deals Aggregate deal value (m USD) Banking, Insurance & Financial Services 176,550 13,759,959 Personal, Leisure & Business Services 216,050 8,907,245 Industrial, Electric & Electronic Machinery 132,269 6,124,731 Mining & Extraction 84,614 5,794,474 Computer, IT and Internet services 184,078 5,660,631 Utilities 38,696 5,012,264 Chemicals, Petro- leum, Rubber & Plastic 58,008 4,086,562 Communications 29,934 4,056,239 Property Services 68,115 3,966,238 Wholesaling 82,846 3,930,495 Transport, Freight, Storage & Travel Services 52,640 3,861,761 Retailing 56,792 3,038,461 Biotechnology, Phar- maceuticals and Life Sciences 28,530 2,575,163 Food & Tobacco Manufacturing 34,845 2,423,872 Metals & Metal Products 42,724 2,229,953