Issue 8 2020

Acquisition International - Issue 8 2020 45 Number and Aggregate Value (Mil USD) of M&A Deals Globally by Deal Type: 2006-2020 to date (as at 30th July 2020) Number and Aggregate Value (mil USD) of Healthcare Deals Globally: 2006-2020 YTD (as at 30th July 2020) Deal monthly value (Announced date) Number of deals Aggregate deal value (m USD) July 2020 115 7,298 June 2020 109 3,176 May 2020 126 1,118 April 2020 130 3,574 March 2020 169 1,398 February 2020 168 3,723 January 2020 151 2,621 December 2019 226 3,870 November 2019 184 3,778 October 2019 188 3,297 September 2019 213 4,310 August 2019 173 1,383 July 2019 157 6,322 June 2019 214 2,643 May 2019 225 3,428 April 2019 209 1,577 March 2019 230 20,232 February 2019 164 4,733 January 2019 171 3,003 December 2018 245 6,941 November 2018 184 4,129 October 2018 204 4,570 September 2018 174 2,943 BvD sectors (target) Number of deals Aggregate deal value (m USD) Public Administration, Education, Health Social Services 967 22,910 Biotechnology and Life Sciences 1 20 Wholesale 1 0 Construction 1 0 Industrial, Electric & Electronic Machinery 1 0 Chemicals, Petroleum, Rubber & Plastic 1 0 Number and Aggregate Value (Mil USD) of M&A Deals Globally by region: 2020 to date (as at 30th July 2020) Bureau van Dijk Zephyr shows that value in the first half of 2020 was boosted by a few sizeable deals. The largest of all was worth USD 9,500 million and took the form of an acquisition as Tesco sold its Thailand division, known as Tesco Stores (Thailand) to CP Group. This was followed by a USD 4,000 million purchase of Neiman Marcus Group by creditors and noteholders, which was announced in May after the company filed for bankruptcy protection. Four other deals which were signed off in the first half of the year broke the USD 1,000 million-barrier and these targeted Amazon, Chinos Holdings, Germany-based real GmbH and South Korea-headquartered SK Networks. We are just over a month into the second half of 2020 and there have already been a number of high-value deals targeting consumer retail businesses signed off globally. For example, Adevinta committed to pick up eBay’s classifieds business for USD 9,200 million last month, while Retail Investment Company is upping its stake in Japanese convenience store franchising company FamilyMart from just over 50 per cent to 100 per cent, in exchange for a USD 5,400 million investment. Two other deals worth over USD 1,000 million have been signed off in the industry since the end of June as Zalando announced a USD 1,177 million capital increase and Ascena Retail Group sold a 55 per cent stake to creditors for USD 1,000 million. This means that, in the first month of H2 2020, there have been four deals worth over USD 1,000 million announced in the sector, compared to six such deals in the whole of H1. The effects of the global coronavirus pandemic on activity in the sector cannot be understated as the outbreak has impacted on M&A activity worldwide in the year to date. The resulting social distancing measures forced many stores to close their doors in a bid to stop the spread – a move which undoubtedly had an adverse effect on M&A interest in the sector as the increased uncertainty made prospective acquirors think twice before targeting companies in the industry. Whether the relatively high number of large deals announced in H2 so far is a sign of a recovery remains to be seen. Consumer Retail Number and Aggregate Value (mil USD) of Healthcare Deals Globally by Region: July 2020 (as at 31st July 2020) Deal type Number of deals Aggregate deal value (m USD) Acquisition 8,710 298,660 Institutional buy-out 1,009 182,887 Minority stake 10,265 132,003 Capital increase 1,188 33,519 Management buy-out 87 3,991 Merger 102 1,214 Management buy-in 4 12 Demerger 10 0 MBI / MBO 2 0 World region (target) Number of deals Aggregate deal value (m USD) Western Europe 15 4,120 North America 60 1,756 Oceania 8 1,118 Far East and Central Asia 29 264 Africa 3 32 South and Central America 1 12 Eastern Europe 7 1 Number and Aggregate Value (mil USD) of Healthcare Deals Globally by Region: 2020 YTD (as at 31st July 2020) World region (target) Number of deals Aggregate deal value (m USD) North America 471 8,292 Western Europe 139 5,547 Oceania 113 3,946 Far East and Central Asia 188 3,801 South and Central America 20 645 Eastern Europe 32 342 Middle East 4 173 Africa 10 169