Issue 7 2019

Acquisition International - Issue 7 2019 81 Number and Aggregate Value (mil USD) of M&A Deals Globally: 2006-2019 YTD (as at 30th June 2019) Deal half yearly value (Announced date) Number of deals Aggregate deal value (mil $) H1 2019 50,862 2,564,297 H2 2018 62,017 2,605,115 H1 2018 54,783 3,055,102 H2 2017 54,167 2,458,915 H1 2017 52,828 2,355,852 H2 2016 52,782 2,719,536 H1 2016 60,462 2,229,512 H2 2015 64,080 3,159,284 H1 2015 54,292 2,872,480 H2 2014 53,168 2,493,197 H1 2014 49,991 2,318,291 H2 2013 49,594 2,038,075 H1 2013 43,405 1,666,905 H2 2012 43,683 1,822,860 H1 2012 41,806 1,509,132 H2 2011 42,368 1,588,694 H1 2011 42,282 1,895,871 H2 2010 42,007 1,818,576 H1 2010 41,507 1,694,251 H2 2009 39,580 1,787,969 World region (target) H1 2017 H2 2017 H1 2018 H2 2018 H1 2019 North America 13,643 12,044 12,383 19,102 16,653 Far East and Central Asia 15,708 17,747 16,769 17,754 14,993 Western Europe 13,901 14,454 16,130 16,436 12,721 Eastern Europe 4,793 4,644 4,649 3,163 2,245 Oceania 2,190 2,576 2,353 2,755 1,978 South and Central America 1,302 1,392 1,342 1,701 1,350 Africa 754 753 643 639 533 Number of M&A Deals by Region: 2006 - 2019 YTD (as at 30th June 2019) Bureau van Dijk The value of mergers and acquisitions targeting companies operating in the media industry in H1 2019 declined to the lowest- recorded for a six-month period since H1 2017 as 426 deals worth an aggregate USD 9,583 million were signed off in the first half of 2019, according to Zephyr, the M&A database published by Bureau van Dijk. Both volume and value in H1 2019 declined compared to H2 2018 and H1 2018, when 589 deals worth USD 20,979 million and 610 deals worth USD 127,514 million, respectively, were recorded. However, despite H1 2019 being the second-lowest recorded six-month period of the last seven years under review in terms of value, it was not completely stripped away and remained higher than the USD 9,203 million invested here in H1 2017, as well as an improvement on H1 2010, H2 2010 and H1 2011. The disappointing value result can be attributed to the lack of a ‘mega deal’ being signed off during the first half of 2019. In fact, no single deal was worth more than USD 1,000 million, with the largest of the year to date worth USD 921 million and involving financial magazine publisher Euromoney Institutional Investor diluting 49 per cent of its shares to certain stockholders, which comes after the Daily Mail and General Trust proposed the distribution to benefit both the company and its investors. Chinese cinema operator Wanda FilmHolding issued convertible bonds worth USD 580 million in the second- largest of these deals. Among the other targets were South Korean book publisher Woongjin Thinkbig, German décor printing services provider Interprint and Spanish publisher Grupo Santillana de Educacion Global. Due to the lack of high-value deals in the sector, companies based in North America were surprisingly not the main targets of investment in H1 2019 and actually placed third on both fronts behind the Far East and Central Asia and Western Europe. The Far East and Central Asia notched up 165 deals worth an aggregate EUR 3,575 million to take the top position, which is unsurprising given the region featured in two of the top three deals by value. Western Europe was a close second with 147 deals worth USD 3,515 million, followed by North America with 75 deals worth USD 1,462 million. The decline in the first half of 2019 is mainly due to the lack of deals exceeding USD 1,000 million. That being said, the timeframe under review was not completely disappointing as investment in the Far East and Central Asia improved from H2 2018 and the total volume and value of dealmaking in the media industry remained higher than H1 2017. It is unknown how the cards will fall during H2 2019; however, the sector needs to record a small number of high-valued deals in order to avoid a significant year-on-year decline. Media Number and Aggregate Value (Mil USD) of M&A Deals Globally byTarget Sector: 2006 - 2019 to date (as at 30th June 2019) Number and Aggregate Value (Mil USD) of M&A Deals Globally by Deal Type: 2006-2019 to date (as at 30th June 2019) Deal type Number of deals Aggregate deal value (mil USD) Acquisition 432,437 30,083,177 Minority stake 581,727 14,265,970 Capital increase 205,380 12,287,514 Institutional buy-out 24,032 4,340,058 Management buy-out 6,233 122,808 Demerger 1,842 89,403 Merger 4,927 45,004 BvD sectors (target) Number of deals Aggregate deal value (mil $) Banking, Insurance & Financial Ser- vices 133,534 11,989,016 Mining & Extraction 82,660 5,150,680 Chemicals, Petro- leum, Rubber & Plastic 63,529 4,782,743 Industrial, Electric & Electronic Ma- chinery 105,356 4,255,584 Computer Software 165,672 3,786,834 Utilities 27,566 3,313,421 Business Services 136,794 3,274,858 Communications 29,053 3,016,950 Transport, Freight & Storage 34,046 2,593,147 Construction 63,743 2,548,840 Food & Tobacco Manufacturing 33,342 2,227,306 Property Services 38,682 1,897,555 Retail 44,491 1,837,544 Media & Broad- casting 22,031 1,546,925 Travel, Personal & Leisure 41,037 1,447,324 Transport Manufac- turing 19,754 1,434,293 Metals & Metal Products 28,430 1,299,917 Wholesale 46,942 1,125,349