Global & Regional M&A Report H1 2018

[Pages:75]Finding the opportunities in mergers and acquisitions

An Acuris Company

Global & Regional M&A Report H1 2018

Including League Tables of Legal Advisors



Content

Overview

03

Global

04

Europe

09

US

14

Latin America

19

AsiaPacific (excl. Japan)

24

Japan

29

Middle East & Africa

34

M&A and PE League Tables

39

Criteria & Contacts

74



An Acuris Company

Mergermarket

Global & Regional

Global Overview

3

M&A Report H1 2018

Global Overview Regional M&A Comparison

45.23%

1.47%

2.35%

Global M&A

US$ 1.94tn

Cross-border US$ 740.3bn

Top sector: EMU US$ 338.9bn

+28.3% vs. H1 2017 +11.6% vs. H1 2017 +24.9% vs. H1 2017



North America Inbound Outbound EMU

US$ 877.1bn US$ 117.7bn US$ 179bn US$ 161bn

+29.8% vs. H1 17 -32.4% -9.5% +0.7%

30.99%

Latin America Inbound Outbound Ind. & Chem.

US$ 45.6bn US$ 18.4bn US$ 1.4bn US$ 21.4bn

+62.3% vs. H1 17 +38.4% -72.1% +624.5%

19.08%

0.88%

Europe Inbound Outbound PMB

US$ 600.9bn +26.5% vs. H1 17 US$ 284bn +38.4% US$ 108.6bn -21.1% US$ 121.9bn +127.1%

MEA Inbound Outbound EMU

US$ 28.4bn US$ 22.7bn US$ 18.7bn US$ 11.4bn

-27.7% vs. H1 17 -36.9% -22% +54.5%

APac (ex. Japan) US$ 370bn

Inbound

US$ 56.3bn

Outbound

US$ 82.9bn

Technology

US$ 66.8bn

+33.1% vs. H1 17 +53.2% +52.1% +97.1%

The % values on the map indicate market shares in global M&A

Japan Inbound Outbound Consumer

US$ 17bn US$ 1.3bn US$ 111.4bn US$ 4.4bn

+17.3% vs. H1 17 -76.7% +229.1% +295.9%

Mergermarket

Global & Regional

Global Analysis

4

M&A Report H1 2018

Global

Value (US$bn)

79.7

Deal details

Announcement date

8-May-18

Bidder company

Target company

Takeda Pharmaceutical Shire Plc Company Limited

Target geography

Republic of Ireland

Target sector

Pharma, Medical & Biotech

67.9

8-Mar-18

Cigna Corporation

Express Scripts

USA

Holding Company

Business Services

US$ 1.94tn

Value of M&A in H1 2018, the strongest first six months since the crisis

58.9

29-Apr-18

T-Mobile USA Inc

Sprint Corporation

USA

Telecoms

46.6

12-Mar-18

E.ON SE

innogy SE

40.7

25-Apr-18

Comcast Corporation Sky Plc

Germany

Energy, Mining & Utilities

United Kingdom

Media

28.3% 26

Value increase from H1 2017 to H1 2018

Number of megadeals (> US$ 10bn) announced in H1, four short of the FY 2017 total



Mergermarket

Global & Regional

Global Analysis

5

M&A Report H1 2018

Global

? The momentum seen in Q1 2018 has carried over into the second quarter, pushing global M&A to its highest post-crisis value on Mergermarket record with US$ 1.94tn (8,560 deals) announced so far. Q2 (US$ 1.01tn) became the most active quarter since Q4 2016 (US$ 1.03tn) by value, breaching the US$ 1tn mark for only the fourth quarter since the crisis. A buoyant M&A market has led to six deals above the US$ 20bn mark announced in Q2 including Takeda's proposed US$ 79.7bn takeover of Shire ? the year's largest deal so far. It appears that the stars are aligning for M&A in 2018. Financing remains cheap while tech innovation is causing traditional corporates to fight back against newer, more innovative firms and shareholder pressure is leading to more spin-offs, divestment programmes, and transformational, sector-altering acquisitions.

? With dealmakers now having to contend with a greater level of political intervention and protectionism, the majority of the increase in global M&A has been driven by domestic M&A. YTD deals conducted domestically this year have surpassed US$ 1tn for only the third time on Mergermarket record with US$ 1.12tn announced so far. The introduction of tariffs, the growing threat of trade wars and greater scrutiny over deals may be somewhat responsible for a drop in the impact of cross-border M&A. Earlier this year President Trump ensured that Qualcomm's pursuit of Broadcom did not take off and in the first six months of the year, only 38.2% of the global M&A value was generated by cross-border activity ? almost a six percentage-point drop compared to H1 2017. Six of the largest ten deals in H1 2018 were domestic deals, including T-Mobile's US$ 58.9bn takeover of Sprint, announced in late May. With governments around the world looking increasingly insular, this wave of domestic M&A may be a sign of further things to come in the second half of the year and beyond.

? Headline dealmaking has swung to more developed areas so far this year with an increase in blockbuster consolidation. Almost three-quarters of the global value has targeted the US and Europe this year, up from 64.9% in H1 2017 with the top ten deals all targeting the two areas, while the respective deal count share has remained steady. Acquisitions of Express Scripts and Sprint have pushed US activity to US$ 807.9bn, its third highest YTD value on record, with the country receiving half of the top ten deals in the first half of the year. Meanwhile, Europe now accounts for just under a third of the global value up from 22.4% in YTD 2017 following four deals above US$ 20bn in Q2, including China Three Gorges/EDP (US$ 27.4bn) and Vodafone's acquisition of Liberty Global's German and CEE assets (US$ 21.8bn). Asia has also seen an increase in M&A compared to H1 2017, yet has seen its global share dip from 27% in YTD 2017 to 19.1% this year.

? The changing media landscape, with the introduction of Netflix and Amazon's move into the space in recent years, has caused a surge in Media M&A as traditional players such as Comcast and Disney look to protect their market share. The battle for Sky continues to rumble on and the sector has reached US$ 78.9bn so far this year, its highest YTD figure on Mergermarket record. With the DOJ approving the AT&T/Time Warner merger and Amazon's ongoing pursuit of sporting TV rights - including Premier League football and the ATP World Tour - the uptick seen in the space shows no sign of abating and the sector is on course to breach the US$ 100bn barrier for the third successive year. Industrials & Chemicals has been the most targeted sector by the number of deals, while seeing a considerable 21.9% increase in the value. The sector is also going through large-scale changes with areas such as artificial intelligence, machine learning, IoT, and driverless cars all pushing corporates to invest.

"It appears the stars are aligning for M&A in 2018. Financing remains cheap while tech innovation is causing traditional corporates to fight back against newer, more innovative firms"

Jonathan Klonowski, Research Editor (EMEA)



Mergermarket

Global & Regional

Global Analysis

6

M&A Report H1 2018

US$ 1.12tn

Value of domestic M&A in H1 2018, the highest YTD value on Mergermarket record (since 2001)

59.7%

Tech (US$ 178.5bn) value increase compared to H1 2017 (US$ 111.8bn)

2.1x

Pharma, Medical & Biotech (US$ 212.8bn) value increase compared to

H2 2017 (US$ 100.4bn)

72.7%

Share of global M&A value targeting Europe and the US, up

from around 65% in H1 2017

US$ 271.7bn

US$1tn

Q2 2018 value, 9.1% higher than Q1

Value of private equity buyouts so far this year, the highest YTD value on record

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Mergermarket

Global & Regional

Global Analysis

7

M&A Report H1 2018

Deal Value (US$bn) Deal Value (US$bn)

Chart title 1 ChaGrltotbitalel Q2uarterly Breakdown Trend

2013 - 2018

4000 3500

3000

2500

2000

571.7

1500

658.2

1000 500 0

561.2 447.1 2013

1,201.0

827.1

1,030.1

921.3

853.7

873.3

872.4

717.3

964.2

1,039.4

739.6

758.3

568.5 2014

762.2 2015

626.8 2016

752.7 2017

20000

18000 16000

14000 12000

10000

1011.8

8000 6000

927.3

4000 2000

0 2018

Q1

Q2

Q3

Q4

Deal Count



Deal Count

Chart title 1 ChGarltotbitalleS2ector Breakdown Trend

H1 2017 - H1 2018

800

700 600 500

400

300 200

100

0

Energy,

Industrials

Mining & Utilities & Chemicals

Pharma, Medical & Biotech

H1 2017

H1 2018

Business Services

Technology

Other

Mergermarket

Global & Regional

Global Analysis

8

M&A Report Q1 2018

Global League tables

Legal advisor league table by value

Ranking

H1 2018

H1 2017

Company name

1

4

Davis Polk & Wardwell

2

1

Skadden Arps Slate Meagher & Flom

3

8

Freshfields Bruckhaus Deringer

4

10

Linklaters

5

7

Latham & Watkins

6

2

Cravath, Swaine & Moore

7

6

Simpson Thacher & Bartlett

8

24

Fried Frank Harris Shriver & Jacobson

9

5

Cleary Gottlieb Steen & Hamilton

10

15

Wachtell, Lipton, Rosen & Katz

11

9

Sullivan & Cromwell

12

29

Allen & Overy

13

14

White & Case

14

25

Slaughter and May

15

13

Weil Gotshal & Manges

16

20

Gibson Dunn & Crutcher

17

17

Herbert Smith Freehills

18

3

Kirkland & Ellis

19

18

Paul Weiss Rifkind Wharton & Garrison

20

19

Clifford Chance

H1 2018

Value (US$m)

314,327 284,820 272,445 248,833 232,522 231,864 224,084 217,645 215,103 207,604 196,092 184,052 176,890 165,466 160,327

153,831 152,822 148,135 132,638 130,918

H1 2017

Deal count

Value (US$m)

Regional ranking comparison

% Value change

Europe

US

Asia

Pacific

73 206,804

52.0%

3

104 256,476

11.1%

21

102 172,058

58.3%

1

90 142,439

74.7%

2

171 175,639

32.4%

8

33 245,515

-5.6%

23

78 180,572

24.1%

39

45

68,441

218.0%

13

38 186,646

15.2%

14

46

124,619

66.6%

199

76

166,912

17.5%

41

122

59,869

207.4%

7

107

129,341

36.8%

35

34

68,172

142.7%

4

99

137,584

16.5%

36

59

84,824

81.4%

19

84

98,372

55.4%

5

278 214,886

-31.1%

18

71

97,579

35.9%

48

96

93,357

40.2%

6

5

18

1

58

16

11

36

3

10

42

3

-

4

24

11

20

7

372

2

409

6

12

21

26

9

78

54

40

8

35

17

19

26

10

13

25

12

71

48

32

Japan

3 18 38 8 2 20 24

1 19 25 36 26 16 6 14 27 43 37 35 97

Middle East & Africa

7= 130

23 28 49 19= 53 7=

1 4 19= 11 12 54 2 142 14 135 45 5

Latin America

5 46 174 19 41 173 22

24

66 62

3 318 10 63 27

81 101



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