AI Magazine Issue 9 2018

Acquisition International - Issue 9 2018 77 Number and Aggregate Value (mil USD) of Energy, Environmental and Cleantech Deals Globally: 2006-2018 YTD (as at 28 August 2018) Deal quarterly value (Announced date) Number of deals Aggregate deal value (mil $) Q3 2018 468 125,689 Q2 2018 890 164,107 Q1 2018 899 154,263 Q4 2017 999 111,598 Q3 2017 874 105,030 Q2 2017 1,037 96,641 Q1 2017 978 191,238 Q4 2016 1,148 186,149 Q3 2016 809 124,308 Q2 2016 801 94,926 Q1 2016 953 94,878 Q4 2015 942 117,477 Q3 2015 927 147,312 Q2 2015 944 137,898 Q1 2015 792 90,245 Q4 2014 988 147,194 Q3 2014 990 199,986 Q2 2014 1,011 119,992 Q1 2014 936 84,689 Q4 2013 1,120 112,491 Q3 2013 950 74,573 World region (target) Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 North America 66,544 41,499 46,144 81,241 66,165 Eastern Europe 643 2,617 2,432 7,074 18,592 Western Europe 23,287 29,191 75,547 58,438 15,381 Oceania 2,382 3,203 9,335 1,248 12,880 Far East and Central Asia 11,543 23,118 12,945 13,042 9,649 South and Central America 454 7,549 1,205 3,025 2,723 Africa 101 1,436 1,639 557 12 Middle East 17 1,267 1,104 319 0 Aggregate Value (mil USD) of Energy, Environmental and Cleantech Deals by Region: 2006 - 2018 YTD (as at 28 August 2018) Bureau van Dijk Value has recorded a month-on-month improvement by value since April when USD 67,187 million-worth of deals were announced (May: USD 131,764 million; June: USD 146,515 million; July: USD 161,530 million). Despite volume being the lowest recorded since October 2010 (1,152 deals) and value being the lowest result since February 2017 (USD 44,010 million), with only two days left until the month-end at the time of writing, it follows a significant four weeks in terms of M&A value. The second- and third-largest deals signed off in 2018 to date were recorded in July, both of which, interestingly, targeted UK- based broadband provider Sky. The first involves US-based cable company Comcast offering USD 42,347 million to acquire the company, while Twenty-First Century Fox, recently acquired by the Walt Disney Company, is bidding USD 28,171 million for the remaining 61 per cent stake in Sky. Only one of these deals will go ahead, once the target has decided which offer would be in the best interest of the business. The largest deal of the year so far is Disney’s USD 85,100 million agreement to acquire Twenty- First Century Fox. Disney faced competition with Comcast for the US-based film and television producer and will once again be in a bidding war with the firm for Sky once Fox comes under ownership. Five of the top 20 deals by value have exceeded USD 20,000 million in 2018; these included targets such as Hungary-based cable television services provider UPC Magyarorszag Telekommunikacios, UPC Romania, Unitymedia in Germany and UPC Ceska Republika were picked up by Vodafone for USD 21,824 million, while the Blackstone Group, GIC and Canada Pension Plan Investment Board agreed to acquire Thomson Reuters’ financial and risk business for USD 20,000 million. Such deals have ensured the opening three quarters of 2018 have been successful by both volume and value. There have been 3,089 deals worth USD 209,086 million signed off in Q3 2018 to date with still an entire month to go until the end of the quarter at the time of writing. Q2 recorded 6,134 deals worth USD 345,466 million, while Q1 had 5,973 deals worth USD 290,089 million, both of which represented a significant year-on- year increase by value, with Q3 well on its way to exceeding the USD 248,553 million recorded in Q3 2017. In conclusion, despite dealmaking in August slowing down compared to previous months, the high demand for TMT deals is still strong as the opening six months of 2018 broke all other previous records for any H1 period. For H2 to continue on the same trajectory, just a small number of high valued deals would need to be signed off in the industry and if the large number of USD 20,000 million-plus rumoured acquisitions are any indication, H2 could also prove to be promising for TMT targets. TMT Number and Aggregate Value (Mil $) of Energy, Environmental and Cleantech Deals Globally by Target Sector: 2018 YTD (as at 28 August 2018) Number and Aggregate Value (Mil USD) of Healthcare Deals Globally by Deal Type: 2006-2018 to date (as at 24 July 2018) Deal monthly value (Announced date) Number of deals Aggregate deal value (mil $) August 2018 169 65,819 July 2018 299 59,870 June 2018 285 21,087 May 2018 280 59,845 April 2018 325 83,175 March 2018 300 83,822 Zephus classification (target) Number of deals Aggregate deal value (m $) Utilities 1,391 286,463 Mining & Extraction 748 174,840 Chemicals, Petro- leum, Rubber & Plastic 147 104,329 Transport, Freight, Storage & Travel Services 54 77,096 Wholesaling 171 36,076 Retailing 74 26,635 Personal, Leisure & Business Services 176 20,850 Banking, Insurance & Financial Services 52 13,023 Computer, IT and Internet services 25 5,547 Construction 49 4,887 Communications 77 3,331 Industrial, Electric & Electronic Machinery 43 1,854 Public Administra- tion, Education, Health Social Services 7 1,117 Biotechnology, Phar- maceuticals and Life Sciences 5 901 Metals & Metal Products 12 402