A mergermArket report on globAl m&A Activity Monthly M&A InsIder JUne 2010 · 2010-06-18 · hong...

Monthly M&A InsIderA mergermArket report on globAl m&A Activity

JUne 2010

Monthly M&A InsIdermergermarket

GlobAl overvIew 01

AmericAs: lAtin AmericA 05

north AmericA 13

AsiA-pAcific 23

eUrope 34

middle eAst & AfricA 43

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CONTENTS

Monthly M&A Insider

global overview

01

global overview

Head of Research – elias latsis

Editor – anna Henderson

For advertising opportunities contact:

Erik Wickman

Tel: + (1) 212 6863329

[email protected]

Global overview: Tom Coughlan

Latin America: Mathew albert and Jennifer ruiz

North America: Jason Cozza and Jennifer ruiz

Asia-Pacific: Shunsuke okano and anita wong

Europe: Samuel Tedjasukmana and Damien Julliard

Middle East & Africa: Sylvia Traganida andMarie-laure Keyrouz

a total of 732 M&a transactions were announced in the month of May across the globe, carrying an aggregate disclosed valuation of US$130.1bn. Compared to the same time period 12 months previous, deal valuations were up by 3% on an annual basis. and while activity was driven by large-cap deal making in the United States, it is significant that the top deal of the month was actually witnessed in the australian Mining sector.

The deal in question saw Newcrest Mining, australia’s largest gold miner, acquire its closest competitor lihir gold in a transaction valued at US$8.29bn. Despite the sheer size of the deal, its most remarkable feature is arguably the fact that it was announced just two days after australian Prime Minister Kevin rudd announced plans for a 40% tax on “super profits” generated by Mining firms. a number of industry figures have claimed that the proposed legislation will adversely impact upon australia’s competitiveness and threaten future investment in the Mining sector, although this was seemingly not enough to deter Newcrest in its bid to become a leading global player.

The second largest May transaction was witnessed in the beleaguered US aviation space with United airlines and Continental announcing a US$6.19bn all-stock merger, in the process creating the world’s largest airline. according to a press release, based on 2009 financial results, the combined entity would have annual revenues of US$29bn on a pro forma basis. The deal is also expected to deliver around US$1bn in

net annual synergies by 2013, broadly comparable to the one-off costs incurred by the companies as a result of the merger. The terms of the deal involve Continental shareholders receiving 1.05 shares of United airlines common stock for each share they own, resulting in United airlines shareholders owning 55% of equity post-deal.

elsewhere, one of the more significant deals came to the market in latin america with Norwegian company Norsk Hydro acquiring the aluminium operations of vale in a transaction valued at US$4.9bn. This deal is just the latest in a number of large-cap M&a transactions announced in brazil with 2010 already seeing eight US$1bn+ deals in the market. M&a investment in brazil has historically tended to lag behind that of China, india and, to a lesser extent, russia. However, there are signs that this dynamic is beginning to change, particularly at the top end of the market. indeed, casting an eye towards M&a valuations, brazil has so far in 2010 accounted for 32% of overall activity in the emerging briC countries, up from 25% in 2009.

Clearly, brazil is an emerging force on the global stage, largely thanks to the attractiveness of assets in its Mining and Chemicals sectors. with the domestic economy predicted to grow by 5.5% in 2010, outbound activity may also pick up as cash-rich acquisitive brazilian corporates increasingly look to expand outside of their own domestic market.

by Tom Coughlan, Remark, The Mergermarket Group

a ToTal oF 732 M&a TraNSaCTioNS were aNNoUNCeD iN THe MoNTH oF May aCroSS THe globe, CarryiNg aN aggregaTe DiSCloSeD valUaTioN oF US$130.1bN. CoMPareD To THe SaMe TiMe PerioD 12 MoNTHS PrevioUS, Deal valUaTioNS were UP by 3% oN aN aNNUal baSiS. aND wHile aCTiviTy waS DriveN by large-CaP Deal MaKiNg iN THe UNiTeD STaTeS, iT iS SigNiFiCaNT THaT THe ToP Deal oF THe MoNTH waS aCTUally wiTNeSSeD iN THe aUSTraliaN MiNiNg SeCTor.

Monthly M&A Insider 02

globAl overvieW

TrEND graPHS

GlobAl M&A quArterly trend

valUE vOlUME

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

Q210*

Q110

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GlobAl M&A quArterly MId-MArket trend

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Moving average trend line


globAl overvieW

TrEND graPHS

GlobAl M&A seCtor breAkdown ytd 2010

valUE vOlUME

9.9%

4.5%

17%

12.7%

3.3%

1.6%

2.9%

11.1%

0.4%0.8%

10.8%

23.6%

1.5% Industrials & Chemicals

TMT

Consumer

Business Services

Energy, Mining & Utilities

Financial Services

Pharma, Medical & Biotech

Construction

Leisure

Transportation

Real Estate

Agriculture

Defence

Industrials & Chemicals

TMT

Consumer

Business Services

Financial Services



Construction

Leisure

Transportation

Real Estate

Agriculture

Defence

12.4%

15.1%

18.1%

4.4%

3.7%

2.3%

2.6%

0.7%1.2%

10.5%

10.5%

11.1%

7.3%

GlobAl M&A quArterly PrIvAte equIty trend

valUE vOlUME

0

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Global buyouts

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0

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Global buyouts

Global exits


globAl overvieW

TrEND graPHS

GlobAl M&A deAl sIze breAkdown

valUE vOlUME

0

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H12010*

H22009

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H22006

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H22005

H12005

H22004

H12004

> $501m

$251m-$500m

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$5m-$14.9m

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H22005

H12005

H22004

H12004

> $501m

$251m-$500m

$101m-$250m

$15m-$100m

$5m-$14.9m

Value not disclosed

Num

ber

of d

eals

LATIN AM

ERICA

LATIN AMERICAA MERgERMARkET M&A REpoRT oN


Nowhere has this been more apparent over the last month than in peru, which bustled with an untypical level of activity as five transactions worth a collective US$137m came to market – and this, in a country where a total of just 10 deals worth US$288m have been announced in the year-to-date. Consolidation in the country’s rich fisheries and fish processing industry drove deal activity with all five transactions coming to market in the niche. Takeover activity is quickening following the peruvian government’s reforms last year, which imposed caps on fishing fleets and quotas in the sector, making M&A an attractive option for firms looking to boost market share and grow top line revenue.

pesquera Exalmar, a local trade player, was the most active buyer, acquiring three assets worth US$24m, in order to increase its presence in the anchovy niche, which is benefitting from a trend of increasing prices as global demand for fishmeal – a by-product of raw anchovies – is on the rise. The pacific waters off coastal peru are home to some of the world’s most abundant anchovy stocks and the country has become a world leader in production of the fish in recent years. As such, it is not surprising that foreign players are presently active in the peruvian market with Hong kong-based acquirers, through local subsidiaries, undertaking two deals in May.

Indeed, in the largest fisheries transaction brokered in Latin America this year, pacific Andes International Holdings, a Hong kong-based holding company, acquired pesquera Alejandria for US$95m through its peruvian subsidiary CFg Investment. Elsewhere, China Fishery group, which is partially owned by pacific Andes, acquired Deep Seas Fishing, a peruvian fisher active in the anchovy market, through its local subsidiary Epesca pisco for US$18m.

Meanwhile, further south in Chile, the deal market is also witnessing fairly brisk activity with four deals worth US$655m announced in May. In the year to date, the Chilean market has seen a total of 17 transactions worth US$3.70bn announced, making it the second most active regional M&A market after Brazil, responsible for around one-tenth of overall deal flow in Latin America. Not surprisingly, the Mining sector is the most active space for dealmaking in Chile, accounting for a quarter of deal volume and value this year. Moreover, Chile has the distinction of seeing the largest Mining transaction in Latin America in 2010 in a deal that saw Japan’s Mitsubishi Corporation move to acquire a 25% stake in Compania Minera del pacifico for a total consideration of US$924m in February.

IN THE MoNTH oF MAy, LATIN AMERICA RECoRDED ITS FIRST yEAR-oN-yEAR INCREASE IN ANNoUNCED DEALS SINCE SLIppINg INTo A pATTERN oF DECLINE BACk IN oCToBER 2008. THE ToTAL MoNTHLy DEAL CoUNT AMoUNTED To 37 TRANSACTIoNS woRTH A CoMBINED US$13.34BN, Up 8.8% AND 77% CoMpARED To ACTIvITy ovER THE SAME TIMEFRAME 12 MoNTHS pREvIoUS. wHILE THE vIBRANCy oF THE REgIoN’S DEAL MARkET HAS BEEN MUCH HERALDED THIS yEAR, THE pACE oF RECovERy HAS NoT BEEN pARTICULARLy STRoNg oUTSIDE oF BRAzIL, AND To AN ExTENT, MExICo, wHERE A SpATE oF MEgA-MERgERS wERE ANNoUNCED AT THE BEgINNINg oF THE yEAR. THAT SAID, STIRRINgS oF STRoNgER DEAL ACTIvITy ARE Now BEgINNINg To EMERgE ELSEwHERE IN THE REgIoN.

06

LATIN AM

ERICA

Monthly M&A Insider

Target: Companhia de Alumina do para (61% stake)Alumina do Norte do Brasil SA (57% Stake)Aluminio Brasileiro SA (51% Stake)paragominas bauxite mine (60% Stake)

Announced: 2 May 2010

Bidder: Norsk Hydro ASA Deal value: US$4900m

Seller: vale SA Deal nature: Acquisition, Cross border, public

STRucTuRe:• Norsk Hydro ASA has signed a definitive agreement to

acquire the aluminium operations of vale SA.

• Aluminio Brasileiro SA, Alumina do Norte do Brasil SA and Companhia de Alumina do para, the Brazil based companies, are aluminium producers.

• paragominas bauxite mines, the Brazil based company, is a mine for extracting bauxite required to produce aluminium.

• vale SA, the listed Brazil based company headquartered in Rio de Janeiro, is engaged in the production of metallic and non metallic ores.

• Norsk Hydro ASA, the listed Norway based company headquartered in oslo, is a supplier of aluminium and aluminium product materials and a producer of energy from renewable resources.

TeRMS:• Norsk Hydro will acquire a 51% stake in Aluminio

Brasileiro SA; a 57% stake in Alumina do Norte do Brasil SA, a 61% stake in Companhia de Alumina do para, and a 60% stake in paragominas bauxite mines.

• As per the agreement, Norsk Hydro will pay US$405m in cash for the stakes in the aluminium producing companies.

• Norsk Hydro will also assume US$700m of the net debt of the three aluminium producers.

• In addition, the company will issue shares representing a 22% ownership of its oustanding shares to vale as a part of the consideration.

• The 60% stake in paragominas bauxite mines will be acquired by Norsk Hydro for a cash consideration of US$600m.

FInAncIng:• The transaction will be funded by Norsk Hydro through a

fully underwritten rights issue of Nok 10bn (US$1.75bn).

RATIonAle:• The acquisition is in line with Norsk Hydro’s strategy to

form a resource-rich and fully intergrated aluminium business. The company will also secure its bauxite supplies in a 100 year perspective.

PoST DeAl DeTAIlS:• vale will appoint one representative to Norsk Hydro’s

board.

• The company can not increase its interest in Norsk Hydro beyond 22%.

• Norsk Hydro’s stake in the acquired assets will increase from 34% to 91% with respect to Alunorte, and from 20% to 81% with respect to Companhia de Alumina.

• The company will also acquire the remaining 40% stake in the paragominas bauxite mines in equal tranches of 20% in 2013 and 2015, for US$200m each in cash.

• Around 3,600 vale employees will be transferred to Norsk Hydro.

exPecTeD coMPleTIon:• The transaction is expected to be completed in the fourth

quarter of 2010.

conDITIonS:• Approval of Norsk Hydro ASA shareholders.

• Regulatory approval.

• Approval of vale SA’s partners in the companies whose interests will be contributed to Norsk Hydro ASA.

DEAL oF THE MoNTH

07

LATIN AM

ERICA

Monthly M&A Insider

DEAL oF THE MoNTH

Advisers

Target/Seller Bidder

Financial - Financial Credit SuisseCitigroup Inc

legal Allen & overy LLpwikborg Rein & Co

legal ThommessenLatham & watkins LLpwiersholmSelmerveirano AdvogadosFreshfields Bruckhaus Deringer

PR - PR -

exit multiples – Y/e 31/12/2009 Premium analysis

Multiples Value ($m) offer price per share ($) -

Revenue 1.01x 1871.0 1 day before -

eBITDA 84.6x 22 1 month before -

eBIT - -179 1 day after -

earnings - 107 Pre-rumour -

08

LATIN AM

ERICA

Monthly M&A Insider

ToP 15 lATIn AMeRIcAn AnnounceD DeAlS YTD 2010Announced Status Target company Sector Bidder company Seller company exit multiples (x) Bid premia

1-day beforeDeal value

(uS$m)Revenue eBITDA P/e

13-Jan-10 p Carso global Telecom SAB de Cv

TMT America Movil SA de Cv 2.8% 19,358

11-Jan-10 p FEMSA Cerveza SA de Cv

Consumer Heineken Nv Fomento Economico Mexicano SAB de Cv

- 7,692

13-Jan-10 p Telmex Internacional SAB de Cv (39.30% stake)

TMT America Movil SA de Cv 2.6 10.6 23.6 2.2% 6,533

2-May-10 p Alumina do Norte do Brasil SA (57% stake); Aluminio Brasileiro SA (51% stake); Companhia de Alumina do para (61% stake); paragominas bauxite mine (60% stake)


Norsk Hydro ASA vale SA 1.0 84.6 - 4,900

22-Jan-10 p polibutenos SA Industrias Quimicas (33.33% stake); Quattor participacoes SA (60% stake);and Unipar Comercial e Distribuidora SA


Braskem SA Uniao de Industrias petroquimicas SA

- 4,238

27-Jan-10 p Bunge participacoes e Investimentos SA


vale SA Bunge Limited - 3,800

14-Mar-10 p Bridas Corporation (50% stake)


CNooC International Limited

Bridas Energy Holdings Ltd

- 3,100

28-Jan-10 p Fertilizantes Fosfatados SA (57.70% stake)


vale SA The Mosaic Company; yara Brasil Fertilizantes SA

7.2 - 2,878

3-May-10 p Agre Empreendimentos Imobiliarios SA

Real Estate pDg Realty SA Empreendimentos e participacoes

13.8 1.5% 1,955

18-May-10 p plena Transmissoras SA (Seven Brazilian transmission companies)


State grid Corporation of China

plena Transmissoras SA

- 1,721

15-Feb-10 p Comunicaciones Nextel de Mexico SA de Cv (30% stake)

TMT grupo Televisa SA de Cv NII Holdings Inc - 1,440

21-Feb-10 p Equipav SA Acucar e Alcool (50.79% stake)

Consumer Shree Renuka Sugars Limited

Equipav group - 1,184

18-May-10 p Itau Unibanco Holding SA (2.50% stake)

Financial Services

Itausa - Investimentos Itau SA

Bank of America Corporation

n/a n/a 15.0 12676.7% 1,115

12-Apr-10 p Devon Energy Corporation (gulf of Mexico Shelf Assets)


Apache Corporation Devon Energy Corporation

- 1,050

10-May-10 p Tivit Terceirizacao de processos Servicos e Tecnologia SA

TMT Apax partners LLp patria-Banco de Negocios ; votorantim Novos Negocios Ltda

1.8 8.9 22.4 7.4% 938

C = Completed; p = pending; L = Lapsed Source: mergermarket

Top DEALS & ExpECTED DEALS

LATIN AM

ERICA


Top deals & expecTed deals

Top 5 LATIn AMerIcAn Announced deALs of The MonTh (MAy 2010)Announced status Target company sector Bidder company seller company exit multiples (x) Bid premia

1-day beforedeal value

(us$m)revenue eBITdA p/e

2-May-10 p alumina do Norte do Brasil sa (57% stake); aluminio Brasileiro sa (51% stake); companhia de alumina do para (61% stake); paragominas bauxite mine (60% stake)

Industrials & chemicals

Norsk Hydro asa Vale sa 1.0 84.6 - 4,900

3-May-10 p agre empreendimentos Imobiliarios sa

Real estate pdG Realty sa empreendimentos e participacoes

13.8 1.5% 1,955

18-May-10 p plena Transmissoras sa (seven Brazilian transmission companies)

energy, Mining & Utilities

state Grid corporation of china

plena Transmissoras sa

- 1,721

18-May-10 p Itau Unibanco Holding sa (2.50% stake)

Financial services

Itausa - Investimentos Itau sa

Bank of america corporation

n/a n/a 15.0 12676.7% 1,115

10-May-10 p Tivit Terceirizacao de processos servicos e Tecnologia sa

TMT apax partners llp patria-Banco de Negocios ; Votorantim Novos Negocios ltda

1.8 8.9 22.4 7.4% 938

c = completed; p = pending; l = lapsed source: mergermarket

pIpeLIne of expecTed deALs situation Target

companysector potential bidder

companyfinancial adviser to bidder (B); target (T); seller (s)

seller company Market cap/ est. value ($m)

comments

auction aguas Nuevas

energy, Mining & Utilities

Macquarie capital, Morgan stanley Infrastructure or Marubeni

Banco santander Us$350m Banco santander is negotiating with a few buyers on the sale of aguas Nuevas, the chilean utility, and it is close to sealing a deal, said a source close to the situation. In February, Banco santander sent out an information memorandum on aguas Nuevas and bids were expected the following month, as previously reported by this news service. likely buyers are infrastructure funds such as Macquarie capital and Morgan stanley Infrastructure, also previously reported. a published report in december 2009 tagged Japanese conglomerate Marubeni as a potential buyer. The source could not comment on a potential deal value, but it has been reported that aguas Nuevas could be worth Us$350m. The utility has 356,000 customers and an 8.8% share of the chilean water market.santander Infrastructure Fund II, which specializes in infrastructure assets, acquired the chilean utility last year from Grupo solari.

Rumoured takeover target

express de santiago Uno

Transportation Grupo Rios Us$34m (target revenue)

It was reported that Grupo Rios, the colombia-based conglomerate, is in talks to acquire chilean mass transportation company express de santiago Uno. according to the article sources say Grupo Rios is currently restructuring the conglomerate’s management and is preparing a strategy to spur growth in chile through acquisitions. It also states the group is already in advanced negotiations and, following the deal, may seek to merge express de santiago Uno with alsacia, its mass transportation subsidiary. express santiago Uno, the operator of the Troncal 4 bus line, has annual revenues of Us$34m.

expected deals based on confirmed announcements by companies involved

10

LATIN AM

ERICA

Monthly M&A Insider

LEAgUE TABLES

vALUEYTD

31-May-10house Value

(uS$m)Deal count

1 Credit Suisse 46,080 16

2 Citigroup 14,382 5

3 Bank of America Merrill Lynch 11,482 10

4 Rothschild 9,671 8

5 Allen & Company 9,132 2

6 Deutsche Bank 7,899 5

7 Morgan Stanley 5,777 3

8 JpMorgan 5,312 5

9 Banco Bradesco 4,254 2

10 Hopu Investment Management 3,100 1

11 Banco Comercial portugues 2,726 3

12 HSBC Bank 2,576 5

13 Standard Chartered 2,500 1

14 Santander global Banking and Markets 1,963 3

15 Singular partners 1,955 1Source: mergermarket

voLUME

The financial adviser league tables by value and volume have been run from 01 January 2010 to 31 May 2010 and exclude lapsed and withdrawn deals. The tables cover all sectors andare based on the geography of either the target, bidder or seller being Latin America

YTD 31-May-10

house Value (uS$m)

Deal count


2 Bank of America Merrill Lynch 11,482 10




6 JpMorgan 5,312 5

7 HSBC Bank 2,576 5

8 UBS Investment Bank 1,060 5

9 goldman Sachs 1,949 4

10 patria-Banco de Negocios 1,049 4


12 Banco Comercial portugues 2,726 3

13 Santander global Banking and Markets 1,963 3

14 Lazard 1,462 3

15 Caixa Banco de Investimento 1,221 3Source: mergermarket

ToP 15 FInAncIAl ADVISeRS – lATIn AMeRIcA

vALUEYTD


(uS$m)Deal count

1 Dewey & LeBoeuf 25,931 3

2 Cleary gottlieb Steen & Hamilton 15,611 6

3 Allen & overy 14,742 3

4 Freshfields Bruckhaus Deringer 12,592 2

5 Skadden Arps Slate Meagher & Flom 10,236 5

6 gibson Dunn & Crutcher 8,281 2

7 Simpson Thacher & Bartlett 7,822 4

8 Loyens & Loeff 7,692 1

9 Ulhoa Canto, Rezende e guerra - Advogados 6,678

2

10 veirano Advogados 6,181 3

11 Tozzini Freire Teixeira E Silva Advogados 5,768 7

12 Barbosa, Mussnich & Aragao 5,173 3

13= Latham & watkins 4,900 1

13= Thommessen 4,900 1

13= wikborg Rein & Co 4,900 1Source: mergermarket

voLUME

The legal adviser leue tables by value and volume have been run from 01 January 2010 to 31 May 2010 and include lapsed and withdrawn deals. The tables cover all sectors andare based on the geography of either the target, bidder or seller being Latin America

YTD 31-May-10

house Value (uS$m)

Deal count

1 pinheiro Neto Advogados 2,519 8

2 Estudio Muniz, Ramirez, perez-Taiman & olaya Abogados

461 8

3 Tozzini Freire Teixeira E Silva Advogados 5,768 7


5 Machado Meyer Sendacz e opice 2,197 6


7 Uria Menendez 1,802 5

8 Mattos Filho, veiga Filho, Marrey Jr. e Quiroga Advogados

1,535 5

9 Linklaters 1,284 5


11 Demarest e Almeida 1,093 4



14 veirano Advogados 6,181 3

15 Barbosa, Mussnich & Aragao 5,173 3Source: mergermarket

ToP 15 legAl ADVISeRS – lATIn AMeRIcA

11

LATIN AM

ERICA

Monthly M&A Insider

TREND gRApHS

lATIn AMeRIcAn M&A quARTeRlY TRenD

vALUE voLUME

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Num

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eals


lATIn AMeRIcAn M&A quARTeRlY MID-MARkeT TRenD

vALUE voLUME

0

1,000

2,000

3,000

4,000

5,000

6,000

Q210*

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Q104

Valu

e (U

S$m

)

0

20

40

60

80

100

Q210*

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Q104

Num

ber

of d

eals

12

LATIN AM

ERICA

Monthly M&A Insider

TREND gRApHS

lATIn AMeRIcAn M&A SecToR BReAkDown YTD 2010

vALUE voLUME

22%

14.4%

14.1%

0.8%0.3%1.8%

0.3%

38.1%

4.9%0.6%



Consumer

Financial Services

Business Services

TMT


Agriculture

Leisure

Transport



Consumer

Financial Services

Business Services

TMT

Leisure


Agriculture

Transport

15.5%

21.6%

1%

1.4%

2.7%4.7%

5.4%

8.8%

10.8%14.2%

5.4%

8.1%



Consumer

Financial Services

Business Services

TMT


Agriculture

Leisure

Transport

Construction

Real Estate

lATIn AMeRIcAn M&A quARTeRlY PRIVATe equITY TRenD

vALUE voLUME

0

3

6

9

12

15

Q210*

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Q104

Num

ber

of d

eals

Latin American buyouts

Latin American exits

0

500

1,000

1,500

2,000

2,500

Q210*

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Q104

Valu

e (U

S$m

)

Latin American buyouts

Latin American exits

NORTH

AMERICA

NORTH AMERICAA MERgERMARkET M&A REpORT ON

13Monthly M&A Insider

HIgHlIgHT:

In May, pabst Brewing Company, the fifth largest beer supplier in the US, signed a definitive agreement to be acquired by C. Dean Metropoulos, the consumer food investor that is known for managing popular brands such as Chef Boyardee, from California-based kalmanovitz Charitable Foundation, for an approximate consideration of US$250m. pabst Brewing is a supplier of more than 25 beer brands, including Schiltz and Colt 45 Malt liquor.

The US subsidiary of Rakuten, the listed Japan based internet services company, announced its acquisition of Massachusetts based Buy.com. The mid-market acquisition also had a consideration of US$250m, and reflects Rakuten’s strategy to expand its presence in the US market.

UAl Corporation’s agreement to merge with Continental Airlines for approximately US$6.2bn marked the largest North American deal in May. The airline deal, which is expected to close in the fourth quarter, could put pressure on other US airliners to merge as the industry continues to see increased consolidation.

MId-MArket deAls: On the rIse

NORTH AMERICAN MID-MARkET DEAlS CONTINUE TO BE RIFE THIS yEAR-TO-DATE. WITH A TOTAl DEAl vAlUE OF US$32BN, 2010 MID-MARkET DEAlS HAvE AlREADy SURpASSED THE vAlUE OF MID-MARkET DEAlS IN THE FIRST HAlF OF 2009, WHICH HAD AN AppROxIMATE TOTAl vAlUE OF US$28.5BN.

14

NORTH

AMERICA

Monthly M&A Insider

target: Continental Airlines Inc Announced: 3 May 2010

Bidder: UAl Corporation deal value: US$6.19bn

seller: deal nature: Acquisition, Cross border, public

structure:• UAl Corporation has signed a definitive agreement to be

acquired by Continental Airlines.

• UAl Corporation and Continental Airlines, the US based companies, are airline operators.

• Continental, a US based company headquartered in Houston, Tx, is the world’s fifth largest airline.

• UAl, a US based company headquartered in Chicago, Il, is a holding company engaged in airline-related activities, its principal operating subsidiary being United Air lines.

terMs:• 1.05 shares of UAUA per share of CAl.

• This represents a value of US$22.68 for each CAl share.

• The offer provides a premium of 1.48% based on CAl’s closing share price on 30 April 2010 of US$22.35 and a discount of 2.45% based on the pre rumor closing share price on 20 April 2010 of US$23.25.

• The implied equity value of the transaction is approx. US$3.2bn.

• If a superior offer were to emerge for CAl, the company would be required to give UAUA at least 5 business days to make adjustments to its current offer before CAl’S board of directors could effect a change of recommendation of the deal.

rAtIOnAle:• The merger is expected to see targeted annual net

synergies of US$1.0 to $1.2bn. Approximately 75% of the synergies are expected to be achieved in the second year, with full run-rate expected to be achieved in year three.

expected cOMpletIOn:

• The transaction is expected to close in the fourth quarter of 2010.

cOndItIOns:• HSR (USA)

• EC (Europe)

• FAA (USA)

• DOT (USA)

• CAl EgM

• UAUA EgM

DEAl OF THE MONTH

15

NORTH

AMERICA

Monthly M&A Insider

DEAL OF THE MONTH

Exit multiples – Y/E 31/12/2009 Premium analysis

Multiples Value ($m) Offer price per share ($) 22.68

Revenue 0.5x 12,586 1 day before 22.35

EBITDA 17.8x 348 1 month before 22.08

EBIT - -146 1 day after 20.53

Earnings - -282 Pre-rumour 23.25

Advisers


Financial Morgan StanleyLazardUBS Investment Bank

Financial Goldman SachsJPMorgan

Legal Gibson Dunn & Crutcher (Advising Morgan Stanley, Lazard)Jones DayBlake Cassels & GraydonVinson & ElkinsFreshfields Bruckhaus Deringer

Legal Cravath Swaine & Moore Fried Frank Harris Shriver & Jacobson (Advising Goldman Sachs, JPMorgan)Howrey

PR PR

16

NORTH

AMERICA

Monthly M&A Insider

tOp 15 nOrth AMerIcAn AnnOunced deAls FOr Ytd 31 MAY 2010 Announced status target company sector Bidder company seller company exit multiples (x) Bid premia


(us$m)revenue eBItdA p/e

22-Apr-10 p Qwest Communications International Inc

TMT Centurylink 1.8 5.2 15.9 15.0% 22,216

8-Mar-10 p American life Insurance Company

Financial Services

Metlife Inc American International group Inc

n/a n/a - 15,544

25-Feb-10 p Coca-Cola Enterprises Inc (North American operations)

Consumer The Coca-Cola Company

Coca-Cola Enterprises Inc

- 12,200

21-Feb-10 p Smith International Inc Energy, Mining & Utilities

Schlumberger limited

1.5 12.7 67.4 18.1% 12,198

19-Jan-10 p The Williams Companies Inc (certain gas pipeline and domestic midstream businesses)


Williams partners lp

The Williams Companies Inc

- 11,750

11-Feb-10 p Allegheny Energy Inc Energy, Mining & Utilities

FirstEnergy Corp 2.6 7.4 12.0 31.6% 8,899

9-Mar-10 p Intervet/Schering-plough Animal Health;and Merial limited

pharma, Medical & Biotech

Sanofi-Aventis SA/Merck & Co Inc Jv

Merck & Co Inc; and Sanofi-Aventis SA

- 8,250

28-Apr-10 p E.ON US llC Energy, Mining & Utilities

ppl Corporation E.ON Ag - 7,625

11-Mar-10 p Devon Energy Corporation (Assets in the deepwater gulf of Mexico, Brazil and Azerbaijan)


Bp plc Devon Energy Corporation

- 7,000

28-Feb-10 p Millipore Corporation pharma, Medical & Biotech

Merck kgaA 4.1 16.3 34.0 13.3% 6,760

11-Feb-10 p Airgas Inc Industrials & Chemicals

Air products & Chemicals Inc

1.5 8.8 19.2 -2.1% 6,544

3-May-10 p Continental Airlines Inc Transportation UAl Corporation 0.492 17.7925 1.5% 6,192

12-Apr-10 p Syncrude Canada ltd (9.03% stake)


Sinopec International petroleum Exploration and production Corporation

Conocophillips Company

- 4,650

15-Feb-10 l Terra Industries Inc Industrials & Chemicals

yara International ASA

2.7 10.4 26.9 23.6% 4,204

15-Apr-10 p Mariner Energy Inc Energy, Mining & Utilities

Apache Corporation

4.1 6.7 7.8 44.9% 3,854

5-Jan-10 C kraft Foods (frozen pizza business)

Consumer Nestle SA kraft Foods Inc 1.8 12.5 - 3,700

C = Completed; p = pending; l = lapsed Source: mergermarket

TOp DEAlS & ExpECTED DEAlS

17

NORTH

AMERICA

Monthly M&A Insider

TOp DEAlS & ExpECTED DEAlS

situation target company sector potential bidder company

Financial adviser to bidder (B); target (t); seller (s)

seller company

Market cap/ est. value (us$m)

comments

Expected Deal Novell Inc TMT Elliott Associates

(T)JpMorgan 2,084 Elliott Associates, l.p. (together with funds under common management), a significant institutional stockholder of Novell, Inc., offered to purchase the entire company for US$5.75 per share in cash, which implies an enterprise value net of cash of US$1.0bn. The firm sent a letter to the Board of Directors of the Company explaining its offer.

Expected Deal Dollar Thrifty Automotive group


Avis Budget group, Inc

(B)Citigroup 1,281 Avis Budget group would like to make a substantially higher offer to acquire Dollar Thrifty. Dollar Thrifty had recently signed a definitive agreement to be acquired by Hertz for approximately US$41 per share.

Expected Deal Argon St Inc Industrials & Chemicals

Undisclosed Bidder

(T) Stone key partners

552 Argon St Inc has retained Stone key partners to assist the company in evaluating strategic alternatives, including acquisitions, mergers, sale of the company or other transactions.

Expected Deal California pizza kitchen Inc.

leisure Undisclosed Bidder

(B)Moelis & Company

439 California pizza kitchen, Inc. (CpkI) announced that its Board of Directors has authorized management to consider a wide range of financial and strategic alternatives to enhance shareholder value. The Company has engaged Moelis & Company, a global investment bank, to be its exclusive financial advisor in this review. California pizza kitchen , a US based company headquartered in lA, CA, is a casual dining restaurant chain with a particular focus on the pizza segment.

Expected Deal galleon Energy Energy, Mining & Utilities

Undisclosed Bidder

(T)Cormark Securities, gMp Securities, Macquarie Capital Markets Canada

410 galleon Energy’s (TSE: gO) financial advisors are already talking with potential buyers. galleon announced it had retained gMp Securities, Cormark and Macquarie Capital to review strategic alternatives, which will include a number of options, including an outright sale or disposal of a material portion of its assets.

Expected deals are based on confirmed announcements by companies involved.

pIpelIne OF nOrth AMerIcAn expected deAls

tOp 5 nOrth AMerIcAn AnnOunced deAls OF the MOnth (MAY 2010) Announced status target company sector Bidder company seller company exit multiples (x) Bid premia

1-day before

deal value

(us$m)revenue eBItdA p/e

3-May-10 p Continental Airlines Transportation UAl Corporation 0.5 17.8 1.5% 6,192

4-May-10 p Interactive Data Corporation

Business Services Interactive Data Consortium

4.2 11.6 23.0 2.6% 3,159

17-May-10 p psychiatric Solutions Inc pharma, Medical & Biotech

Universal Health Inc 1.7 9.9 1.6 3.4% 3,083

21-May-10 p Michael Foods Inc (80%) Consumer gS Capital partners Thomas H lee partners

1.1 7.8 17.3 - 1,460

24-May-10 p Sterling Commerce TMT IBM Corporation - 1,400C = Completed; p = pending; l = lapsed Source: mergermarket

18

NORTH

AMERICA

Monthly M&A Insider

lEAgUE TABlES

vAlUEWYtd


(us$m)deal count


2 Barclays Capital 90,951 42



5 JpMorgan 77,986 45


7 Bank of America Merrill lynch 71,955 49

8 lazard 55,886 32

9 Citigroup Inc 53,060 28


11 Evercore partners Inc 35,833 8

12 perella Weinberg partners 33,876 8

13 Blackstone group Holdings 29,479 10

14 HSBC Bank 17,847 8

15 greenhill & Co 16,302 10

16 Allen & Company 15,292 5

17 Tudor, pickering, Holt & Co 14,712 6

18 RBC Capital Markets 13,084 30


20 Scotia Capital 9,640 8Source: mergermarket

vOlUME

The financial adviser league tables by value and volume have been run from 01 January 2010 to 31 May 2010 and exclude lapsed and withdrawn deals. The tables cover all sectors andare based on the geography of either the target, bidder or seller being USA and Canada

Ytd 31-May-10

house Value (us$m)

deal count




4 Bank of America Merrill lynch 71,955 49

5 JpMorgan 77,986 45




9 lazard 55,886 32


11 RBC Capital Markets 13,084 30


13 Jefferies & Company 9,251 28

14 TD Securities 7,042 23

15 Houlihan lokey 5,534 23

16 CIBC World Markets 4,239 18

17 lincoln International 460 16

18 Macquarie group 2,789 15

19 Raymond James & Associates 1,753 15

20 Harris Williams & Co 227 15

Source: mergermarket

tOp 20 FInAncIAl AdVIsers – nOrth AMerIcA

vAlUEYtd


(us$m)deal count



3 Sullivan & Cromwell 81,584 36


5 Weil gotshal & Manges 76,683 38

6 Wachtell, lipton, Rosen & katz 74,881 27

7 Cravath Swaine & Moore 66,466 19

8 latham & Watkins 65,895 43

9 Debevoise & plimpton 64,133 14

10 Dewey & leBoeuf 60,747 36

11 Davis polk & Wardwell 54,880 24

12 Shearman & Sterling 48,205 30

13 Blake, Cassels & graydon 43,574 37

14 Baker Botts 41,101 19

15 Herbert Smith/gleiss lutz/Stibbe 39,929 10

16 Slaughter and May 36,533 6

17 Norton Rose 35,500 5

18 Fried Frank Harris Shriver & Jacobson 32,910 15

19 Jones Day 32,188 58

20 paul Weiss Rifkind Wharton & garrison 31,001 23Source: mergermarket

vOlUME

The legal adviser league tables by value and volume have been run from 01 January 2010 to 31 May 2010 and include lapsed and withdrawn deals. The tables cover all sectors andare based on the geography of either the target, bidder or seller being USA and Canada

Ytd 31-May-10

house Value (us$m)

deal count

1 Jones Day 32,188 58

2 kirkland & Ellis 13,314 55


4 DlA piper 2,950 46

5 latham & Watkins 65,895 43


7 Weil gotshal & Manges 76,683 38

8 Blake, Cassels & graydon 43,574 37

9 Sullivan & Cromwell 81,584 36


11 gibson Dunn & Crutcher 30,679 34

12 Wilson Sonsini goodrich & Rosati p.C. 3,512 33


14 O'Melveny & Myers 17,340 30

15 Stikeman Elliott 14,411 30


17 Morgan lewis & Bockius 8,724 28

18 Wachtell, lipton, Rosen & katz 74,881 27

19 Richards layton & Finger, pA 22,870 25

20 Davis polk & Wardwell 54,880 24


tOp 20 legAl AdVIsers – nOrth AMerIcA

19

NORTH

AMERICA

Monthly M&A Insider

lEAgUE TABlES

vAlUE vOlUME

The private equity buyout activity tables by value and volume are based on private equity firms advising the bidder on buyout deals where the dominant geography of the target company is USA and Canada The tables by value and volume have been run from 01 January 2010 to 31 May 2010 and exclude lapsed and withdrawn deals

ActIVItY tABle OF prIVAte equItY FIrMs On nOrth AMerIcAn BuYOuts

vAlUE

Ytd 31-May-10

house Value (us$m)

deal count

1 kohlberg kravis Roberts & Co lp 4,700 1

2 Apax partners llp 3,009 1

3 Thomas H lee partners lp 2,560 2

4 Bridgepoint Capital limited 1,544 1

5 The Carlyle group llC 1,440 3Source: mergermarket

vOlUME

The private equity exit activity tables by value and volume are based on private equity firms advising the vendor on exit deals where the dominant geography of the target company is USA and Canada The tables by value and volume have been run from 01 January 2010 to 31 May 2010 and exclude lapsed and withdrawn deals

Ytd 31-May-10

house Value (us$m)

deal count

1 Denham Capital Management lp 921 5

2 Foundation Capital - 5

3 Highland Capital partners Inc 435 4

4 The Carlyle group llC 1,440 3

5 Advent International Corporation 305 3


ActIVItY tABle OF prIVAte equItY FIrMs On nOrth AMerIcAn exIts

Ytd 31-May-10

house Value (us$m)

deal count

1 Warburg pincus 5,078 8

2 Silver lake partners 3,159 3

3 Bain Capital 3,157 7

4 Advent International 2,468 4

5 Blackstone group Holdings 2,196 4Source: mergermarket

Ytd 31-May-10

house Value (us$m)

deal count

1 Warburg pincus 5,078 8

2 Bain Capital 3,157 7

3 The Carlyle group 1,357 7

4 HIg Capital 174 7

5 Sun Capital partners 360 6


20

NORTH

AMERICA

Monthly M&A Insider

TREND gRApHS

nOrth AMerIcAn M&A quArterlY trend

0

100,000

200,000

300,000

400,000

500,000

600,000

Q210*

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Q104

Valu

e (U

S$m

)

0

200

400

600

800

1,000

1,200

1,400

Q210*

Q110

Q 09

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Q104

Volu

me

of d

eals

nOrth AMerIcAn M&A quArterlY MId-MArket trend

vAlUE vOlUME

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

Q210*

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Q104

Valu

e (U

S$m

)

0

100

200

300

400

500

600

Q210*

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Q104

Num

ber

of d

eals


vAlUE vOlUME

21

NORTH

AMERICA

Monthly M&A Insider

TREND gRApHS

nOrth AMerIcAn M&A sectOr BreAkdOwn Ytd 2010

vAlUE vOlUME

34%

7%

10%

7%

9%

16%

1%2%

0.21%

1%

10%

1%

2%


Financial services

Business services

Consumer

Energy, Mining & Utilites

TMT

Leisure

Transportation


Construction

Agriculture

Real Estate

Defence

13%

12%

9%

12%

9%3%

3%1.28%

1.06%

0.98%

0.45%

15%

21%


Financial services



Consumer

Construction

Leisure

Transportation

Defence

Real Estate

Agriculture

TMT

Business services

nOrth AMerIcAn M&A quArterlY prIVAte equItY trend

0

25,000

50,000

75,000

100,000

125,000

150,000

175,000

200,000

225,000

Q210*

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Q104

Valu

e (U

S$m

)

North American buyouts

North American exits

0

25

50

75

100

125

150

175

200

225

250

275

Q210*

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Q104

Num

ber

of d

eals

North American buyouts

North American exits

vAlUE vOlUME

22

NORTH

AMERICA

Monthly M&A Insider

TREND gRApHS

nOrth AMerIcAn M&A deAl sIze BreAkdOwn

vAlUE vOlUME

0

100

200

300

400

500

600

700

800

900

1,000

H12010*

H22009

H12009

H22008

H12008

H22007

H12007

H22006

H12006

H22005

H12005

H22004

H12004

> $501m

$251m-$500m

$101m-$250m

$15m-$100m

$5m-$14.9m

Valu

e (U

S$bn

)

0

500

1,000

1,500

2,000

2,500

3,000

H12010*

H22009

H12009

H22008

H12008

H22007

H12007

H22006

H12006

H22005

H12005

H22004

H12004

Num

ber

of d

eals

> $501m

$251m-$500m

$101m-$250m

$15m-$100m

$5m-$14.9m

Value not disclosed

ASIA-PAcIfIc

A mergermArket m&A report on


ASIA-pAcIfIc

prudential had been in talks with American International group Inc (AIg), the listed US based insurance provider, to acquire AIA group since early 2009. prudential, whose shareholders believed that the deal was overpriced, had proposed a US$5bn cut and lowered the offer to US$30.375m in June 2010. they began having difficulties when AIg claimed that the lower price for its Asian insurance business would not be acceptable. consequently, prudential announced its termination of the agreement after AIg insisted on adhering to the original terms of its agreement with prudential. prudential estimated the cost of the failed AIA transaction at approximately £450m, which includes a break-up fee of £152.6m.

prudential launched a US$21bn rights issue to finance the acquisition of AIA. Investors expressed concern about the deal price, with the extensive expansion into Asia creating one of the major sticking points. “the size of prudential was just so small that the amount of money that they had to borrow was greater than their market cap,” said former AIg head maurice “Hank” greenberg.

AIg is expected to raise funds in order to repay a US$182.3bn government bailout that the company received two years ago, and they are expected to embark on the original plan to list AIA group in Hong kong. However, there are still doubts whether an Ipo could obtain the same valuation as offered by prudential.

JApAn mUllS lower corporAte tAx

According to the report released by the ministry of economy, trade and Industry, Japan is now considering to lower its corporate tax to match the standard in Asia in a hope to invite the foreign investment inflow and to stimulate the corporate activity in Japan.

while many countries actively lowered the corporate tax in the past decade, Japan has maintained its high level of tax. the report points out that the Japanese tax is approximately 15% higher than the Asian average of 25% or eU average of 27%. the gap in tax rates has encouraged some firms to relocate their headquarters away from Japan, and at the same time discouraged overseas companies from setting up companies. the ministry hopes a change in the tax system will lead to more investment in the domestic market.

In past years, Japanese companies sought acquisitions abroad and the number of outbound deals was over 100 each year. conversely, inbound activities were slow with an average of 30 deals annually. Between 2003 and 2009, Japanese companies spent approximately US$100bn more on outbound acquisition than overseas companies used on inbound transactions, according to the mergermarket data. while the tax cannot be the only cause of a lack in inbound investment, it is likely the high corporate tax does not aid the cause of making Japanese companies more attractive.

nevertheless, there is no consensus among the new government about the tax policy. while the minister of economy supports the report and argues that lower corporate tax should begin next year, the new prime minister is reported to be skeptical of its effect on corporate activities.

PrudentIAl/AIA deAl lAPses

on 3 JUne 2010, prUdentIAl plc, tHe lISted Uk BASed fInAncIAl ServIceS provIder, AnnoUnced tHAt ItS US$35Bn BId for AmerIcAn InternAtIonAl ASSUrAnce compAny lImIted (AIA groUp) HAS collApSed. tHe AcqUISItIon woUld HAve mAde prUdentIAl tHe lArgeSt foreIgn InSUrer In ASIA And gIven prUdentIAl ABoUt 30 mIllIon cUStomerS In ASIA.

ASIA PAcIfIc


target: lihir gold limited Announced: 04 may 2010

Bidder: newcrest mining limited deal value: US$8.29bn

seller: deal nature: recommended

• newcrest mining limited, the listed largest gold miner in Australia, has agreed to acquire lihir gold limited, a smaller listed domestic counterpart, via a scrip and cash scheme of arrangement.

terMs:• 0.111 newcrest shares plus A$0.225 cash will be

exchanged for each lihir share. It represents an implied offer price of A$3.87 per lihir share (based on newcrest closing price of A$32.82 on 31 mar 10, prior to the pre-announcement day).

• the offer price presents a premium of 27.7% over the closing price of A$3.03 on 31 mar 2010, last trading day prior to the pre-announcement day.

FInAncIng• the maximum cash consideration is A$533m (USd 491m)

based on the cash component of A$0.225 per lihir share.

• newcrest will issue 263.19m of new shares based on the share component of 0.111 newcrest shares per lihir share, representing a 35% dilution in newcrest.

BAckground:• on 4 may 2010, newcrest mining announced a revised

offer of 0.1186 newcrest shares plus A$0.225 cash per lihir share. It represents an implied offer price of A$4.03 per lihir share (based on newcrest closing price of A$32.06 on 3 may 10, the last trading day prior to the formal announcement).

revIsed oFFer:• the revised offer on 4 may represents a premium of 9.75%

over the closing price of A$3.67 on 3 may 2010, the last trading day prior to the formal announcement.

• the new offer also implies a premium of 4.08% over the previous indicative proposal from newcrest mining on 1 mar 2010.

• the revised total cash consideration will range from A$522m to A$1.0bn, subject to scale back on a pro-rata basis if required.

rAtIonAle:• the merger is expected to create a world-class

portfolio of long life, high margin gold assets, increase geographical and asset diversification and improve newcrest mining’s financial strength.

Post deAl detAIl:• Upon completion of the scheme, lihir shareholders will

hold approximately 35.5% to 36.8% of the merged entity.

condItIons:• Approval from lihir Board of the scheme of arrangement

• Approval from the foreign Investment review Board obtained

• Approval from the Australian competition and consumer commission

• Approval from lihir shareholders at egm (min 75% votes req)

deAl of tHe montH

25

ASIA PAcIfIc

Monthly M&A Insider

deAl of tHe montH

Advisers

target/seller Bidder

Financial macquarie group greenhill caliburn

Financial lazardBank of America merrill lynch

legal Blake dawson legal Sidley Austin llp Allens Arthur robinson

Pr Pr kreab gavin Anderson

Mergermarket/dealreporter Intelligence

22-April-10 lihir gold: talk of newmont interest may be overplayed; rival bids from north American majors seen as unlikely

30-April-10 lihir gold has not granted newcrest access to data room

06-May-10 lihir gold: newmont interested although wary of price tag, source says

exit multiples – Y/e 31/12/2009 Premium analysis

Multiples value ($m) offer price per share ($) 3.65

revenue 8.5x 976.49 1 day before 9.54%

eBItdA 19.9x 416.67 1 month before -0.5%

eBIt 33.0x 251.08 1 day after 7.2%

earnings 54.2x 160.47 Pre-rumour -

timetable and expected events

regulatory date completed notes

Accc Approval of the Australian competition and consumer commission, 30/45 calendar days for phase 1 decision for formal authorisation, further 60 calendar days if referred to tribunal (normally 2 to 12 weeks under informal clearance procedure)

fIrB Approval of foreign Investment regulatory Board; decision period of 30 calendar days (extra 10 calendar days for notification; 90 calendar days extendable)

offer timetable

SoA doc issued late June, from company; publication of Scheme of Arrangement Booklet registered with Australian Securities & Investments commission and filed with the Australian Securities exchange

Scheme meeting expected August; from company; reference the approval of the scheme; minimum 75% vote required

court approval reference sanction of proposed scheme of arrangement by Supreme court

effective date expected Sep, from co; ref implementation of the Scheme, normally next trading day from court approval

Settlement date normally latest 1m after effective date (as stipulated for Australian public offers)

end date 31 december 2010, from company; reference the latest legal date for the merger to be effective

company events

completion of due diligence

08-Jun-10 y completed, from company; reference the completion of due diligence inquiries by newcrest on lihir

lgl ex-egm rights late July, from company; last day to purchase lihir shares to be eligible to vote at the Scheme meeting. ex-right date 4 trading days prior to record date and record date 2 trading days prior to Scheme meeting

ncm prelim 10 results expected mid August, reference year ended 30 Jun 10

ncm ex-div expected mid September, reference estimated final dividend of A$0.15

lgl H1 results expected late August, reference 6m ended 30 Jun 10

lgl ex-div expected early november, reference estimated interim dividend of A$0.01458

ASIA PAcIfIc


toP 15 AsIA-PAcIFIc Announced deAls For Ytd 31 MAY 2010Announced status target company sector Bidder company seller company exit multiples (x) Bid premia


(us$m)revenue eBItdA P/e

1-mar-10 l American International Assurance company limited

financial Services

prudential plc American International group Inc

n/a n/a 20.2 - 35,500

30-mar-10 p AxA Asia pacific Holdings (Asian businesses)

financial Services

AxA SA AxA Asia pacific Holdings limited

n/a n/a 24.7 - 8,645

4-may-10 p lihir gold limited energy, mining & Utilities

newcrest mining limited

8.5 19.9 54.2 9.5% 8,286

10-mar-10 p Shanghai pudong development Bank (20% stake)

financial Services

china mobile group guangdong co ltd

n/a n/a 11.1 -13.1% 5,831

25-Jan-10 c Jupiter telecommunications co ltd (37.8% stake)

tmt kddI corporation liberty global Inc

3.6 8.3 32.6 64.5% 4,014

21-may-10 p piramal Healthcare Solutions business

pharma, medical & Biotech

Abbott laboratories piramal Healthcare limited

8.3 - 3,720

30-mar-10 p AxA Asia pacific Holdings limited

financial Services

national Australia Bank limited

n/a n/a 21.8 1.3% 3,579

22-mar-10 p Arrow energy limited energy, mining & Utilities

consortium comprising royal dutch Shell and petrochina

36.9 7.4 10.5 -11.2% 3,352

18-may-10 p denway motors limited Industrials & chemicals

guangzhou Automobile group co ltd

62.1 (loss) 23.6 53.0% 3,293

6-may-10 p Hua xia Bank co limited (27.15% stake)

financial Services

deutsche Bank Ag; Shougang group corp; and State grid corporation of china

n/a n/a 14.9 - 3,042

17-mar-10 c Astro All Asia networks plc

tmt Astro Holdings Sdn Bhd

3.0 (loss) (loss) 20.3% 2,649

18-Jan-10 c orient overseas developments limited

real estate capitaland lmited orient overseas (International) limited

n/a n/a (loss) - 2,200

21-may-10 p Agricultural Bank of china (Undisclosed stake)

financial Services

national council for Social Security fund

n/a n/a - 2,198

12-mar-10 p Siam city Bank plc financial Services

Bank of nova Scotia; and thanachart capital public company limited

financial Institutions development fund

n/a n/a 16.9 4.8% 2,109

6-Jan-10 c San miguel corporation consumer top frontier Investment Holdings Inc

0.5 1.2 4.0 12.0% 2,014

c = completed; p = pending; l = lapsed Source: mergermarket

top deAlS & expected deAlS

ASIA PAcIfIc


toP 5 AsIA-PAcIFIc Announced deAls oF the Month (MAY 2010)Announced status target company sector Bidder company seller company exit multiples (x) Bid premia


(us$m)revenue eBItdA P/e

4-may-10 p lihir gold limited energy, mining & Utilities

newcrest mining limited 8.5 19.9 54.2 9.5% 8,286

21-may-10 p piramal Healthcare Solutions business


Abbott laboratories piramal Healthcare limited

8.3 - 3,720

18-may-10 p denway motors limited


guangzhou Automobile group co ltd

62.1 (loss) 23.6 53.0% 3,293

6-may-10 p Hua xia Bank co limited (27.15% stake)

financial Services

deutsche Bank Ag; Shougang group corp; and State grid corporation of china

n/a n/a 14.9 - 3,042

21-may-10 p Agricultural Bank of china (Undisclosed stake)

financial Services

national council for Social Security fund

n/a n/a - 2,198


top deAlS

28

ASIA PAcIfIc

Monthly M&A Insider

PIPelIne oF AsIA-PAcIFIc exPected deAlssituation target company sector Potential bidder

companyFinancial adviser to bidder (B); target (t); seller (s)

seller company Market cap/ est. value (us$m)

comments

expected deal

transurban group

construction canada pension plan Investment Board (cppIB); and ontario teachers’ pension plan (otpp)

lazard (t); UBS Investment Bank (t); goldman Sachs (B); Jpmorgan (B)

6,500 transurban group in november received a conditional and non-binding joint takeover proposal from cppIB and otpp. the Board then evaluated the proposal and rejected it on the original terms. the future fund Board of guardians has subsequently considered supporting the proposal by cppIB and otpp. However, transurban continues to insist a bona fide proposal is needed before talks can proceed.

expected deal

chuo mitsui trust Holdings Inc

financial Services

Sumitomo trust & Banking

5,709 chuo mitsui trust and Sumitomo trust have announced a plan to consolidate the business by creating a holding company by April 2011.

expected deal

Healthscope ltd pharma, medical & Biotech

Undisclosed bidders

1,537 on 14 may 2010, Healthscope received an indicative take private proposal from a private equity consortium for AUd 5.50 each share. on 31 may 2010, Healthscope ltd received two additional competitive proposals, both at an indicative price of AUd 5.80 per share, from undisclosed parties.

expected deal

Hunan nonferrous metals corporation


china minmetals corporation

china International capital corporation (B); evolution watterson Securities (t)

State-owned Assets Supervision and Administration commission of Hunan provincial people's government

817 china minmetals has announced to acquire a 51% stake in Hunan nonferrous metals with the possibility to trigger mandatory unconditional cash offer.

expected deal

Boom logistics limited

transport Archer capital 355 Boom is reported to have received highly conditional, confidential and incomplete proposal from Archer at an indicative price of 52 cents per share.

expected deal

Sigma pharmaceuticals limited


Aspen pharmacare Holdings limited

342 Sigma receives non-binding, indicative and conditional proposal from Aspen to acquire all issued share capital for an indicative price of AUd 0.60.

expected deAlS

29

ASIA PAcIfIc

Monthly M&A Insider

leAgUe tABleS

vAlUeYtd

31-May-10house value

(us$m)deal count

1 Jpmorgan 29,740 19

2 morgan Stanley 29,740 18


4 deutsche Bank 23,524 19

5 macquarie group 21,533 15


7 Barclays capital 16,163 8

8 nomura Holdings 15,143 6

9 Bnp paribas 14,425 5

10 Standard chartered 14,196 6

11 HSBc 13,619 8

12 Bank of America merrill lynch 13,331 10

13 credit Suisse 11,675 14

14 china International capital 11,457 7

15= global Investment House 10,700 1

15= State Bank of India 10,700 1

17 lazard 9,624 2

18 greenhill caliburn 8,377 2

19 citigroup 8,271 12

20 cImB group 6,856 13Source: mergermarket

volUme

the financial adviser league tables by value and volume have been run from 01 January 2010 to 31 may 2010 and exclude lapsed and withdrawn deals. the tables cover all sectors andare based on the geography of either the target, bidder or seller being Asia-pacifc excluding Japan.

Ytd 31-May-10

house value (us$m)

deal count




4 deutsche Bank 23,524 19


6 deloitte 6,157 16

7 macquarie group 21,533 15


9 cImB group 6,856 13

10 pricewaterhousecoopers 1,652 13


12 kpmg 3,076 12


14 rothschild 6,221 10

15 ernst & young 647 9


17 HSBc 13,619 8

18 china International capital 11,457 7


20 Standard chartered 14,196 6Source: mergermarket

toP 20 FInAncIAl AdvIsers – AsIA-PAcIFIc excl JAPAn

toP 15 legAl AdvIsers – AsIA-PAcIFIc excl JAPAnvAlUe

Ytd 31-May-10

house value (us$m)

deal count

1 Herbert Smith/gleiss lutz/Stibbe 48,884 5

2 Slaughter and may 38,683 4

3 norton rose 38,029 13

4 Simpson thacher & Bartlett 37,422 6

5 cravath Swaine & moore 36,988 2

6 Sullivan & cromwell 36,077 4

7 cleary gottlieb Steen & Hamilton 35,950 3

8 debevoise & plimpton 35,922 2

9 weil gotshal & manges 35,571 2

10 davis polk & wardwell 30,765 7

11 Allens Arthur robinson 23,014 11

12 linklaters 20,270 11

13 Allen & overy 15,698 14

14 mallesons Stephen Jaques 14,762 20

15 AZB & partners 14,262 24

16 freehills 13,701 19

17 Blake dawson 10,645 12

18 Baker & mckenzie 10,283 15

19 Sidley Austin 8,661 4

20 Blake, cassels & graydon 6,692 3Source: mergermarket

volUme

the legal adviser league tables by value and volume have been run from 01 January 2010 to 31 may 2010 and include lapsed and withdrawn deals. the tables cover all sectors andare based on the geography of either the target, bidder or seller being Asia-pacifc excluding Japan.

Ytd 31-May-10

house value (us$m)

deal count


2 mallesons Stephen Jaques 14,762 20

3 freehills 13,701 19

4 wongpartnership 3,566 19

5 Jones day 3,099 19

6 kim & chang 3,148 18

7 freshfields Bruckhaus deringer 4,963 16

8 clayton Utz 3,712 16

9 minter ellison 1,410 16


11 dlA piper 484 15

12 Allen & overy 15,698 14

13 clifford chance 3,219 14


15 Allen & gledhill 3,850 13

16 Blake dawson 10,645 12

17 Allens Arthur robinson 23,014 11


19 Skadden Arps Slate meagher & flom 5,063 10

20 king & wood 1,411 10Source: mergermarket

30

ASIA PAcIfIc

Monthly M&A Insider

leAgUe tABleS

vAlUe

Ytd 31-May-10

house value (us$m)

deal count

1 nomura Holdings 7,915 262 Jpmorgan 7,434 73 Bank of America merrill lynch 5,131 34 citigroup 4,440 45 UBS Investment Bank 4,014 16 goldman Sachs 3,671 47 lazard 3,301 28 centerview partners 3,301 19 morgan Stanley 2,543 510 mizuho financial group 1,798 2111 Sumitomo mitsui financial group 1,476 1212= deutsche Bank 1,226 112= greenhill & co 1,226 114 mitsubishi UfJ Securities 1,025 515 celfin capital 924 1


volUme

the financial adviser league tables by value and volume have been run from 01 January 2010 to 31 may 2010 and exclude lapsed and withdrawn deals. the tables cover all sectors andare based on the geography of either the target, bidder or seller being Japan

Ytd 31-May-10

house value (us$m)

deal count


2 mizuho financial group 1,798 21

3 Sumitomo mitsui financial group 1,476 12

4 daiwa Securities group 465 9

5 Jpmorgan 7,434 7

6 gcA Savvian 622 7


8 mitsubishi UfJ Securities 1,025 5

9 kpmg 678 5

10 pricewaterhousecoopers 335 5




14 rothschild 270 3

15 A.g.S. consulting 221 3Source: mergermarket

toP 15 FInAncIAl AdvIsers – JAPAn

vAlUe

Ytd 31-May-10

house value (us$m)

deal count

1 mori Hamada & matsumoto 8,082 19


3 nishimura & Asahi 5,819 11


5 gibson dunn & crutcher 5,131 3

6 Anderson mori & tomotsune 4,187 10

7 latham & watkins 4,035 2

8 morrison & foerster 3,668 6

9 nagashima ohno & tsunematsu 3,487 11

10 dewey & leBoeuf 3,301 1

11 ropes & gray 1,807 2

12 tmI Associates 1,784 8


14 morgan lewis & Bockius 1,356 1

15 Abe, Ikubo & katayama 582 2Source: mergermarket

volUme

the legal adviser league tables by value and volume have been run from 01 January 2010 to 31 may 2010 and include lapsed and withdrawn deals. the tables cover all sectors andare based on the geography of either the target, bidder or seller being Japan

Ytd 31-May-10

house value (us$m)

deal count

1 mori Hamada & matsumoto 8,082 19

2 nagashima ohno & tsunematsu 5,420 14

3 nishimura & Asahi 5,819 11

4 Anderson mori & tomotsune 4,187 10

5 tmI Associates 1,784 8


7 morrison & foerster 3,668 6

8 kitamura & Hiraga 323 5


10 Baker & mckenzie 278 4

11 Sato & partners 118 4

12 gibson dunn & crutcher 5,131 3

13 oh-ebashi lpc & partners 343 3

14 freshfields Bruckhaus deringer 163 3

15 cuatrecasas, goncalves pereira 7 3Source: mergermarket

toP 15 legAl AdvIsers – JAPAn

31

ASIA PAcIfIc

Monthly M&A Insider

trend grApHS

AsIA-PAcIFIc M&A quArterlY trend

vAlUe volUme

0

50,000

100,000

150,000

200000

Q210*

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Q104

Valu

e (U

S$m

)

0

100

200

300

400

500

600

700

800

Q2 10*

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Q104

Num

ber

of d

eals

AsIA-PAcIFIc M&A quArterlY MId-MArket trend

vAlUe volUme

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

Q210*

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q2 04

Q104

Valu

e (U

S$m

)

0

100

200

300

400

500

Q210*

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Q104

Num

ber

of d

eals

moving average trend line

32

ASIA PAcIfIc

Monthly M&A Insider

trend grApHS

AsIA-PAcIFIc M&A sector BreAkdown Ytd 2010

vAlUe volUme

11.2%

14%

7.4%

15.1%27.2%

6.5%

1.4%

3%

6.8%

4%

1.6%1.7%


TMT

Consumer


Financial Services

Business Services


Construction

Real Estate

Transport

Leisure

Agriculture

20.4%

13.8%

11.3%

6.7%

9.4%

2.6%

10.6%

6.5%

6%

5.4%

3.7%3.7%


TMT

Consumer


Financial Services

Business Services


Construction

Real Estate

Transport

Leisure

Agriculture

AsIA-PAcIFIc M&A quArterlY PrIvAte equItY trend

vAlUe volUme

0

5,000

10,000

15,000

20,000

25,000

Q210*

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Q104

Valu

e (U

S$m

)

Asia-Pacificbuyouts

Asia-Pacificexits

0

20

40

60

80

100

Q210*

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q 07

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Q104

Num

ber

of d

eals

Asia-Pacificbuyouts

Asia-Pacificexits

33

ASIA PAcIfIc

Monthly M&A Insider

trend grApHS

AsIA-PAcIFIc M&A geogrAPhIc BreAkdown Ytd 2010

vAlUe volUme

Australia

China

Hong Kong

India

Indonesia

Japan

Malaysia

Singapore

South Korea

Taiwan

Other

24.4%7.5%

8.7%

1.5%

4.7%

12.9%

2.9%

5.8%

1.2%

22.3%

8.2%

26.6%

11.1%

12.1%

14.9%

18%

4.6%

4.4%

3.9%2.4% 1.9%

China

Japan

Australia

South Korea

India

Hong Kong

Malaysia

Singapore

Indonesia

Taiwan

AsIA-PAcIFIc M&A deAl sIZe BreAkdown

vAlUe volUme

0

50

100

150

200

250

300

H12010*

H22009

H12009

H22008

H12008

H22007

H12007

H22006

H12006

H22005

H12005

H22004

H12004

> $501m

$251m-$500m

$101m-$250m

$15m-$100m

$5m-$14.9m

Valu

e (U

S$bn

)

0

300

600

900

1,200

1,500

H12010*

H22009

H12009

H22008

H12008

H22007

H12007

H22006

H12006

H22005

H12005

H22004

H12004

> $501m

$251m-$500m

$101m-$250m

$15m-$100m

$5m-$14.9m

Value not disclosed

Num

ber

of d

eals

34Monthly M&A Insider

europe

A mergermArket m&A report on

eUrope

Indeed, rising uncertainty has reflected a number of economic and political factors such as the emergence of the greek debt crisis, fears of contagion to other european states and the uncertainty surrounding the British elections. All of these factors are valid concerns, as the greek crisis continues unabated and the Uk election delivered a hung parliament and a weak mandate to the new governing coalition.

Dealmakers need even greater confidence to source transactions outside of their home markets. In europe, this is another source of concern given that cross-border transactions drive a great level of deal activity, accounting for some 60% of european m&A in Q1 2010. given the uncertainty surrounding the euro due to the turmoil in greece, this could deter some overseas companies from making firm investment commitments into the eurozone area at the moment.

recovery expecteD wIthIn the FInAncIAl ServIceS DeAl Flow throUghoUt remAInDer oF the yeAr

elsewhere, recovery in Financial Services deal flow is expected during the remainder 2010 with Spain and germany emerging as potential hot beds of activity. the potential pick up in activity has not yet materialised with deal levels remaining reasonably low across europe. Indeed, transactions in the US$500m+ range have accounted for around a tenth of total Financial Services deals announced in europe over the first five months of the year, compared to around 15% for the whole of 2009.

however, the ongoing restructuring of the european banking sector is expected to be a key force driving m&A activity going forward. As such, activity over the next few months is likely to be focused on publicly controlled banks as they seek to divest

parts of their businesses, in order to meet eU commission State Aid conditions. Beyond banking, further scale-building transactions among insurers, financial infrastructure companies and asset managers are also likely to feature prominently in the m&A landscape. the coming regulatory shake up in the asset management sector has the potential to spur deal activity.

UcItS Iv, the set of european Union directives that aim to allow collective investment schemes to operate freely throughout the eU voted last January, could also be a driver of consolidation and we may see service providers seeking to expand their footprint across europe. Further m&A activity involving private equity firms is also expected, boosted by the growing availability of debt finance, the recovery in financial services valuations and some funds’ need to invest capital pledged by lps before the financial crisis.

eU competition rulings and growing political pressure are adding further impetus to the resurgence of m&A in the german banking sector. germany offers opportunities for synergies and market development that few other countries of this size can match.

Spain is highlighted as one of the countries in which restructuring is likely to be most pronounced. Institutions are looking to consolidation and divestment to help strengthen margins and rebuild their balance sheets creating a range of opportunities for investment.

EuropEAn M&A rEMAIns low

In mAy, eUropeAn m&A ActIvIty SAw 252 trAnSActIonS collectIvely vAlUeD At €16.93Bn, the loweSt monthly volUme AnD vAlUe SInce the regIon’S DeAl mArket troUgheD In AUgUSt 2009. cleArly, m&A InveStment DepenDS on A hIgh level oF mArket conFIDence Among ceos AnD corporAte BoArDS. AnD In eUrope, A ‘perFect Storm’ oF UncertAInty hAS ArISen In recent monthS pUnctUrIng SUch conFIDence.

35

EUROPE

Monthly M&A Insider

Target: Harrods Limited Announced: 08 May 2010

Bidder: Qatar Investment Authority Deal value: €1.74bn

Seller: Mr. Mohamed Al-Fayed Deal nature: Cross-border, Private

• Qatar Holding LLC, the Qatar based investment arm of Qatar Investment Authority, the Qatari sovereign wealth fund, has acquired Harrods Limited, the UK based operator of the upper market department store Harrods, from Mohamed Al-Fayed, the UK based businessman, for a total consideration of £1.5bn (€1.76bn).

• The acquisition is in line with Qatar Holding’s strategy to acquire prestigious top-performing businesses. Harrods’ management team will be supported by Mr. Ahmad Al-Sayed, CEO of Qatar Holding. Harrods was acquired by Mr. Al-Fayed in 1985 for £615m (€912.35m). Post transaction, Mr. Al-Fayed will become the honorary Chairman of Harrods.

DEAL OF THE MONTH

Advisers


Financial Lazard Financial Credit Suisse

Legal Herbert Smith/Gleiss Lutz/Stibbe Legal Latham & WatkinsLoyens & Loeff

PR Brunswick Group PR -

Exit multiples – Y/E 31/03/10 Premium analysis

Multiples Value (€m) Offer price per share (€) n/a

Revenue - - 1 day before n/a

EBITDA - - 1 month before n/a

EBIT - - 1 day after n/a

Earnings - - Pre-rumour n/a

36

europe

Monthly M&A Insider

Top 15 EuropEAn AnnouncED DEAls YTD 31 MAY 2010Announced status Target company sector Bidder company seller company Exit multiples (x) Bid premia


(€m)revenue EBITDA p/E

4-Jan-10 p Alcon Inc (52% stake)


novartis Ag nestle SA 8.0 20.9 26.9 9.5% 18,247

5-Jan-10 c nk russneft oAo energy, mining & Utilities

mr. mikhail gutseriyev (private Investor)

en+ group ltd - 4,595

18-mar-10 p ratiopharm gmbh pharma, medical & Biotech

teva pharmaceutical Industries ltd

2.3 - 3,625

20-Jan-10 p Areva t&D SA Industrials & chemicals

Alstom SA; and Schneider electric SA

ArevA SA 0.6 - 3,180

22-Apr-10 p Arriva plc transportation Deutsche Bahn Ag 0.8 7.7 14.6 1.2% 2,819

8-Apr-10 p Iberia lineas Aereas de espana SA

transportation British Airways plc 0.5 0.9% 2,234

15-mar-10 c tommy hilfiger corporation

consumer phillips-van heusen corporation

Apax partners llp

1.3 7.9 - 2,200

30-Apr-10 c BSg resources (guinea) limited (51% stake)

energy, mining & Utilities

vale SA BSg resources limited

- 1,880

8-may-10 c harrods limited consumer Qatar Investment Authority

mohamed Al Fayed (private investor)

- 1,742

17-Feb-10 c Barclays plc (5.20% stake)

Financial Services

International petroleum Investment company

n/a n/a 8.9 -32.7% 1,428

23-mar-10 p vt group plc Business Services

Babcock International group plc

1.2 15.5 56.0 6.5% 1,367

29-Jan-10 c talk talk telecom group plc

tmt the carphone warehouse group plc (shareholders)

the carphone warehouse group plc

0.9 8.5 - 1,355

21-may-10 p kBl european private Bankers SA

Financial Services

the hinduja group kBc group nv n/a n/a - 1,350

28-mar-10 p volvo cars corporation


Zhejiang geely holding group company limited

Ford motor company

- 1,342

19-Jan-10 p cegelec SA Industrials & chemicals

vinci SA Qatari Diar real estate Investment company

- 1,291


top DeAlS & expecteD DeAlS

37

europe

Monthly M&A Insider

top DeAlS & expecteD DeAlS

Top 5 EuropEAn AnnouncED DEAls oF ThE MonTh (MAY 2010)Announced status Target company sector Bidder company seller company Exit multiples (x) Bid premia


(€m)revenue EBITDA p/E

8-may-10 c harrods limited consumer Qatar Investment Authority

mohamed Al Fayed (private investor)

- 1,742

21-may-10 p kBl european private Bankers S.A

Financial Services

the hinduja group kBc group nv n/a n/a - 1,350

19-may-10 p Sperian protection SA


honeywell International Inc

essilor International SA; and mr. ginette Dalloz (private Investor)

1.7 17.2 47.6 31.8% 1,112

26-may-10 p netto Foodstores limited

consumer ASDA group limited Dansk Supermarked A/S

1.1 27.9 389.2 - 904

19-may-10 p Svyazinvest telecommunication Investment JSc (25% stake)

tmt oAo rostelecom mgtS Finance SA; and oAo comstar United teleSystems

- 690


situation Target company sector potential bidder company

Financial adviser to bidder (B); target (T); seller (s)

seller company Market cap/ est. value (€m)

comments

potential takeover target

compagnie de Saint-gobain (packaging division)

construction Bank of America merrill lynch (S); Bnp paribas (S); Jpmorgan (S)

compagnie de Saint-gobain SA

4,000 Saint gobain is still intent on eventually selling its glass packaging division, said pierre-Andre de chalendar, ceo of the French listed building construction group. chalendar will proceed with the divestiture "at the right time," he pointed out.


centea nv; and Fidea

Financial Services

Deutsche Bank Ag; and AxA SA

kBc group nv 1,000 kBc group’s sale of retail banking unit centea and insurance brokerage Fidea are unlikely to start before the fourth quarter, sources close to the deal said.


hansa metallwerke Ag

consumer 140 hansa metallwerke, the german bathroom fitting company, is up for sale, it is understood. the company management is reviewing its strategic options and the sale process is in early stages.


Scott wilson group plc

construction 101 Scott wilson, the Uk-listed design and engineering consultancy, is in talks with two potential bidders, according to a person familiar with the situation.

note: expected deals based on confirmed announcements by companies involved

pIpElInE oF EuropEAn ExpEcTED DEAls

38

europe

Monthly M&A Insider

leAgUe tABleS

vAlUeYTD


(€m)Deal count

1 credit Suisse 57,148 462 goldman Sachs 45,246 273 citigroup 40,883 184 Deutsche Bank 31,251 335 Jpmorgan 31,308 326 rothschild 27,071 607 Bank of America merrill lynch 20,915 168 greenhill & co 19,046 59 morgan Stanley 18,899 3210 lazard 16,869 3011 UBS Investment Bank 14,690 2512 Barclays capital 13,637 1513 pricewaterhousecoopers 8,969 4314 nomura holdings 8,948 1215 Blackstone group holdings 8,765 416 hSBc Bank 8,423 1517 evercore partners 7,432 218 macquarie group limited 7,315 719 perella weinberg partners 7,048 320 royal Bank of Scotland group 6,316 7


volUme

the financial adviser league tables by value and volume have been run from 01 January 2010 to 31 may 2010 and exclude lapsed and withdrawn deals. the tables cover all sectors andare based on the geography of either the target, bidder or seller being europe.

YTD 31-May-10

house Value (€m)

Deal count

1 rothschild 27,071 60


3 pricewaterhousecoopers 8,969 43

4 kpmg 3,831 40

5 Deloitte 3,196 38




9 lazard 16,869 30



12 ernst & young 1,066 22

13 Dc Advisory partners 3,457 19


15 grant thornton corporate Finance 577 17

16 global m&A 71 17




20 hSBc Bank 8,423 15Source: mergermarket

Top 20 FInAncIAl ADVIsErs

vAlUeYTD


(€m)Deal count

1 Sullivan & cromwell 59,936 12

2 cravath Swaine & moore 52,278 7




6 cleary gottlieb Steen & hamilton 37,683 20

7 herbert Smith/gleiss lutz/Stibbe 36,023 26

8 Slaughter and may 31,909 17


10 Skadden Arps Slate meagher & Flom 28,939 12

11 Blake, cassels & graydon 28,482 11


13 Debevoise & plimpton 27,195 3


15 Davis polk & wardwell 25,822 5

16 wachtell, lipton, rosen & katz 21,516 4

17 homburger 21,212 5



20 Fried Frank harris Shriver & Jacobson 11,252 4Source: mergermarket

volUme

the legal adviser league tables by value and volume have been run from 01 January 2010 to 31 may 2010 and include lapsed and withdrawn deals. the tables cover all sectors andare based on the geography of either the target, bidder or seller being europe.

YTD 31-May-10

house Value (€m)

Deal count




4 cmS 3,247 43

5 clifford chance 11,174 42

6 DlA piper 2,482 40

7 Jones Day 8,382 32

8 herbert Smith/gleiss lutz/Stibbe 36,023 26




12 mannheimer Swartling 3,837 22


14 hogan lovells 4,846 21

15 travers Smith 2,738 21

16 vinge 1,275 21

17 cleary gottlieb Steen & hamilton 37,683 20

18 loyens & loeff 11,152 20


20 garrigues 4,993 19Source: mergermarket

Top 20 lEgAl ADVIsErs

39

europe

Monthly M&A Insider

leAgUe tABleS

vAlUe

YTD 31-May-10

house Value (€m)

Deal count


2 kohlberg kravis roberts & co 1,450 4

3 triton partners 1,133 2

4 niam AB 1,088 1

5 Bridgepoint capital 898 4

6= Bain capital 883 1

6= Berkshire partners 883 1

8 cinven 800 1

9 charterhouse capital partners 763 2

10 warburg pincus 698 4Source: mergermarket

volUme

the private equity buyout activity tables by value and volume are based on private equity firms advising the bidder on buyout deals where the dominant geography of the target company is europethe tables by value and volume have been run from 01 January 2010 to 31 may 2010 and exclude lapsed and withdrawn deals.

YTD 31-May-10

house Value (€m)

Deal count

1 hgcapital 414 6


3 kohlberg kravis roberts & co 1,450 4

4 Bridgepoint capital 898 4

5 warburg pincus 698 4

6 Sovereign capital partners 44 4

7 procuritas 28 4

8 Bnp paribas Developpement - 4

9 Sun capital partners 141 3

10 herkules capital 19 3Source: mergermarket

AcTIVITY TABlE oF prIVATE EquITY FIrMs on EuropEAn BuYouTs

vAlUe

YTD 31-May-10

house Value (€m)

Deal count

1 Apax partners 2,200 1

2 3i group 1,133 2

3 montagu private equity 1,117 2

4 Bridgepoint capital 1,101 1

5 Astorg partners 804 1

6 tA Associates 629 1

7= AxA private equity 585 1

7= european capital 585 1

9 lloyds tSB Development capital 417 2

10= Duke Street 404 3

10= parcom capital 404 3Source: mergermarket

volUme

the private equity exit activity tables by value and volume are based on private equity firms advising the vendor on exit deals where the dominant geography of the target company is europethe tables by value and volume have been run from 01 January 2010 to 31 may 2010 and exclude lapsed and withdrawn deals.

YTD 31-May-10

house Value (€m)

Deal count

1= Duke Street 404 3

1= parcom capital 404 3

3 ISIS private equity partners 29 3

4 capman group - 3

5 3i group 1,133 2

6 montagu private equity 1,117 2

7 lloyds tSB Development capital 417 2

8 Barclays private equity 363 2

9 phoenix equity partners 256 2

10 naxicap partners 237 2Source: mergermarket

AcTIVITY TABlE oF prIVATE EquITY FIrMs on EuropEAn ExITs

europe


trenD grAphS

EuropEAn M&A quArTErlY TrEnD

vAlUe volUme

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

500,000

Q210*

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q4 04

Q304

Q2 04

Q104

Valu

e (€

m)

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

Q210*

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Q104

Num

ber

of d

eals

EuropEAn M&A quArTErlY MID-MArkET TrEnD

vAlUe volUme

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

Q210*

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Q104

Valu

e (€

m)

0

100

200

300

400

500

600

700

Q210*

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Q104

Num

ber

of d

eals

moving average trend line

europe


EuropEAn M&A sEcTor BrEAkDown YTD 2010

vAlUe volUme

0.5%

7.8%

3.5%

0.7%

14%

12.8%4.2%

9.0%

17.3%

23%2.5%

1.1%

4.5%

TMT

Business Services

Financial Services



Construction

Leisure

Transportation

Real Estate

Agriculture

Defence


Consumer

16.7%

21.8%

0.7%

0.7%

3.2%1.6% 4.1%

6.6%4.9%

11%

8.8%

7.6%

12.2%TMT

Business Services

Financial Services



Construction

Leisure

Transportation

Real Estate

Agriculture

Defence


Consumer

trenD grAphS

EuropEAn M&A quArTErlY prIVATE EquITY TrEnD

vAlUe volUme

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

Q210*

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Q104

Valu

e (€

m)

European buyouts

European exits

0

50

100

150

200

250

300

350

400

Q210*

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Q104

Num

ber

of d

eals

European buyouts

European exits

europe


EuropEAn M&A DEAl sIzE BrEAkDown

vAlUe volUme

0

50

100

150

200

250

300

350

400

450

500

550

600

650

700

H12010*

H22009

H12009

H22008

H12008

H22007

H12007

H22006

H12006

H22005

H12005

H22004

H12004

> €501m

€251m-€500m

€101m-€250m

€15m-€100m

€5m-€14.9m

Valu

e (€

bn)

0

500

1,000

1,500

2,000

2,500

3,000

3,500

H12010*

H22009

H12009

H22008

H12008

H22007

H12007

H22006

H12006

H22005

H12005

H22004

H12004

> €501m

€251m-€500m

€101m-€250m

€15m-€100m

€5m-€14.9m

Value not disclosed

Num

ber

of d

eals

trenD grAphS

EuropEAn M&A gEogrAphIc BrEAkDown YTD 2010

vAlUe volUme

SEE

UK & Ireland

Nordic

France

CEE

Germany

Iberia

Benelux

Italy

Other

17.1%

2.8%

9.1%

7.4%

27.8%

9.0%

10.8%

8.1%

6.3%

2.5%

22.9%

12.6%

7.7%

12.3%12.3%

11.7%

6.7%

5.3%5.2% 3.1%

SEE

UK & Ireland

Nordic

France

CEE

Germany

Iberia

Benelux

Italy

Other

43

Mid

dle east &

africa

THE MIDDLE EAST & AFRICA

A MERgERMARkET M&A REpoRT on

Monthly M&A Insider

Amr El-Barbary, the Managing Director at Citadel Capital believes that Saudi Arabia will soon be a potentially big private equity market in the region. “The current environment creates substantial opportunities for private equity players. For example, the kingdom’s latest budget is the largest ever, with projected spending of SAR540bn. This allocates budget for spending on infrastructure, and real estate will have a strong knock-on effect in industries ranging from commodities such as steel to services including transportation,” he said. Companies that want to invest in the region need to take into consideration not only economical aspects but also political factors.

Businesses doing M&A deals also tend to be moving away from the traditional oil and gas sectors and moving to other areas like real estate and especially hotels where there is a high demand. For instance, Spanish hotel chain occidental Hotels and Resorts is looking to build hotels in the MEnA region and First & Foremost Hotels and Resorts, the UAE hospitality management company, is looking to set up JVs to develop 12 hotels in the gulf Cooperation Council.

Middle Eastern companies also appear to be on a shopping spree of Western luxury super stores. Indeed, the biggest acquisition in May was the sale of Harrods to Qatar Holding, the investment arm of Qatar Investment Authority, for €1.76bn by Mohammed al-Fayed, who will remain in the company as honorary chairman. Qatar Holding already holds stakes in Barclays, Credit Suisse, porsche, Volkswagen, Canary Wharf, London Stock Exchange and Sainsbury’s. This is the first time that it has bought the entire holding in a company signaling a bolder M&A strategy.

The Qatari company is contemplating opening a Harrods store in Shanghai on top of the knightsbridge and new York branches. Another luxury goods store, Barneys new York, is owned by Istithmar World Capital, the state-owned UAE private equity firm. now it remains to be seen if any other super stores get snapped up by Middle Eastern companies.

M&A deAls In MIddle eAst to pIck up, And sAudI ArAbIA tIpped to be the next bIg MArket In the regIon

AFTER A ToUgH 2009, M&A DEALS In MIDDLE EAST AnD noRTH AFRICA ARE SHoWIng SIgnS oF IMpRoVEMEnT. LAST MonTH SAW 14 DEALS In THE REgIon WITH A ToTAL VALUE oF €2.5Bn. In TERMS oF SECToRS, TELECoMMUnICATIonS AnD FInAnCIAL SERVICES ARE TWo InDUSTRIES In THE MIDDLE EAST THAT WILL SEE MoRE ConSoLIDATIon, ACCoRDIng To A ZAWYA REpoRT.

44

Mid

dle east &

africa

Monthly M&A Insider

target: Anglo American Zinc Announced: 10 May 2010

bidder: Hindustan Zinc Limited deal value: US$1.34bn

seller: Anglo American plc deal nature: Cross Border, private

descrIptIon • Anglo American plc has agreed to sell its portfolio of zinc

assets (Anglo American Zinc) to Vedanta Resources plc for a total consideration of US$1,338m on an attributable, debt and cash free basis.

• Anglo American Zinc assets include 100% of the Skorpion mine in namibia, 100% of the Lisheen mine in Ireland and 74% of Black Mountain Mining, which includes the Black Mountain mine and gamsberg project in South Africa. Anglo American plc, the listed Uk based company headquartered in London, is a mining and natural resources group. Hindustan Zinc Limited, the listed India based company headquartered in Udaipur, Rajasthan, operates as a mining and smelting company and a subsidiary of Vedanta Resources plc, the listed Uk based company headquartered in London, which is a metal mining company.

terMs• Total consideration of US$1,338m, on debt and cash-

free basis.

• As per the agreement, of the total consideration, US$698m relates to the Skorpion mine, US$308m relates to the Lisheen mine and US$332m relates to Anglo American’s 74% interest in Black Mountain Mining. ZAR 50 (£4.36) in cash per northam platinum share.

FInAncIng• The transaction will be funded from Vedanta’s existing

cash resources. Vedanta had cash and cash equivalents worth US$7.2bn as on 31 December 2010.

rAtIonAle• The transaction is expected to be immediately accretive

to earnings. Anglo Zinc is an operational and strategic fit, complementing Vedanta’s existing zinc business. The acquisition increases Vedanta’s geographical presence in Africa and Europe. The divestment is a part of Anglo

American’s strategy to focus on its portfolio of key mining assets including commodities like copper, iron ore and platinum.

• The transaction increases Vedanta’s zinc and lead production capacity from 1,064ktpa to 1,462ktpa, representing an increase of 37% in its annualized production capacity. The acquisition of mines increases reserves and resources by 206m tonnes, increasing Vedanta’s total reserves and resources by 76%.

expected coMpletIon• The transaction is expected to be completed within the

next 12 months. Vedanta expects separate completion dates for Skorpion, Lisheen and Black Mountain Mining, to be completed in stages. The economic ownership will be transferred from 1 January 2010.

condItIons• Customary regulatory approvals.

• Competition clearance in relevant jurisdictions.

bAckground• on 22 october 2009, Anglo American had announced

its decision to divest certain non-core assets, so as to focus on its core mining portfolio creating a streamlined business, with an enhanced focus on operational effectiveness and project delivery.

DEAL oF THE MonTH

45

Mid

dle east &

africa

Monthly M&A Insider

Advisers

target/seller bidder

Financial goldman SachsUBS Investment Bank

Financial Lazard

legal A&L goodbodyLinklaters

legal Dewey & LeBoeufCorpus Legal practitioners

pr Brunswick group pr Finsbury group

exit multiples – Y/e 30/06/2009 premium analysis

Multiples Value (us$m) offer price per share (us$) n/a

revenue 2x 670 1 day before n/a

ebItdA 6.3x 213 1 month before n/a

ebIt 8.7x 154 1 day after n/a

earnings - pre-rumour n/a

DEAL oF THE MonTH

46

Mid

dle east &

africa

Monthly M&A Insider

top 15 MIddle eAstern & AFrIcAn Announced deAls For Ytd 31 MAY 2010Announced status target company sector bidder company seller company exit multiples (x) bid premia


(us$m)revenue ebItdA p/e

30-Mar-10 p Zain Africa BV TMT Bharti Airtel Limited Mobile Telecommunications Company k.S.C.

11.2 10,700

28-Mar-10 p Sonangol Sinopec International Limited (55% stake)


Sinopec Corporation Hongkong International Limited

Sinopec overseas oil & gas Limited

2,457

18-Feb-10 p Tsogo Sun Holdings pty Ltd

Leisure gold Reef Resorts Limited

Hosken Consolidated Investments Limited; and SABMiller plc

2,249

31-Mar-10 p Momentum group Limited

Financial Services

Metropolitan Life Limited

FirstRand Limited 1,986

10-May-10 p Anglo American Zinc Energy, Mining & Utilities

Hindustan Zinc Limited

Anglo American plc 2.0 6.3 1,338

25-Mar-10 p Hyprop Investments Limited (66.70% stake)

Real Estate Redefine Income Fund Limited

15.3 2.5% 942

21-Mar-10 C Qatar Shipping Company QSC

Transportation Qatar navigation Company Q.S.C.

-24% 917

10-Jan-10 C Qatar Real Estate Investment Co

Real Estate Barwa Real Estate Company QSC

n/a n/a 10.1 30.6% 862

20-May-10 p Shadeed Iron & Steel LLC


Jindal Steel & power Ltd

Al ghaith Holding pJSC

464

10-Mar-10 C Foodcorp (proprietary) Limited (77% stake)

Consumer new Foodcorp Holdings (proprietary) Limited

pamodzi Investment Holdings (proprietary) Limited

0.6 5.8 453

18-Jan-10 p Bank Audi SAL - Audi Saradar group (13.95% stake)

Financial Services

M1 group Ltd EFg-Hermes Holding Company

n/a n/a 3.4% 450

15-Mar-10 p kingdom Hotel Investments (43.90% stake)

Leisure kingdom Holding Company

4.1 14.3 0.4 25.0% 375

18-Feb-10 p Chambishi Metals plc (90% stake); and Comit Resources FZE


Eurasian natural Resources Corporation plc

International Mineral Resources BV

300

26-Apr-10 p northam platinum Ltd (12.20% stake)


Eurasian natural Resources Corporation plc

Mvelaphanda Resources Limited

5.4 18.3 28.7 -4.8% 295

31-Mar-10 p Freeworld Coatings Ltd (81.14% stake)


Brait private Equity 1.0 6.5 0.2 13.3% 291



47

Mid

dle east &

africa

Monthly M&A Insider

situation target company sector potential bidder company Financial adviser to bidder (b); target (t); seller (s)

seller company Market cap/ est.

value (us$m)

comments


Sinokrot Agricultural Sector

Agriculture Abraaj Capital Holdings Limited; and Siraj Capital

10 Sinokrot Agricultural Sector (Sgg Agriculture), a palestinian agricultural project, is offering a financial or strategic investor a 25% stake for US$10m, the chairman of the board of directors, Mazen Sinokrot, said. Sgg Agriculture has been speaking with potential investors, Sinokrot said, adding that Dubai-based Abraaj Capital and Siraj Capital are looking at the project.

Rumoured takeover

Togo Telecom TMT France Telecom SA; MTn group Limited; globacom; Huawei Technologies Co Ltd

République Togolaise

200 Togo Telecom, the western African telecom player, is in talks to introduce a foreign strategic investor as part of its privatization programme, said a company source. It has spoken to France Telecom, MTn and globacom, and would welcome more approaches, he added.

Rumoured merger

Al khalij Commercial Bank QSC

Financial Services

International Bank of Qatar

11,100 The board of International Bank of Qatar (IBQ) has yet to meet to discuss its proposed merger with Qatar-listed Al-khalij Commercial Bank, a person with knowledge of the situation said

Expected deals based on confirmed announcements by companies involved

pIpelIne oF MIddle eAstern & AFrIcAn expected deAls


top 5 MIddle eAstern & AFrIcAn Announced deAls oF the Month (MAY 2010)Announced status target company sector bidder company seller company exit multiples (x) bid premia

1-day before

deal value

(us$m)revenue ebItdA p/e

10-May-10 p Anglo American Zinc Energy, Mining & Utilities

Hindustan Zinc Limited

Anglo American plc 2.0 6.3 1,338

20-May-10 p Shadeed Iron & Steel LLC


Jindal Steel & power Ltd

Al ghaith Holding pJSC

464

17-May-10 C Al kout Industrial projects Company kSCC (48.69% stake)


kuwait Financial Centre SAkC

Shuaa Capital pSC 2.8 0.02 57

11-May-10 p Regency Jerusalem Mount Scopus Hotel

Leisure Dan Hotels Corporation Ltd

Regency Jerusalem Hotel Ltd

47

24-May-10 C Comsys Communication and Signal processing Ltd

TMT Intel Corporation genesis partners; koor Corporate Venture Capital; Microdent Ventures ; and pitango Venture Capital

30


48

Mid

dle east &

africa

Monthly M&A Insider

LEAgUE TABLES

VALUEYtd


(us$m)deal count



3 HSBC Bank 11,617 2




7= global Investment House 10,700 1

7= State Bank of India 10,700 1


10 Royal Bank of Scotland group 4,933 2

11 Commerzbank 4,933 1


13 Lazard 3,967 4


15 Rand Merchant Bank 2,864 6Source: mergermarket

VoLUME

The financial adviser league tables by value and volume have been run from 01 January 2010 to 31 May 2010 and exclude lapsed and withdrawn deals. The tables cover all sectors andare based on the geography of either the target, bidder or seller being Middle East & Africa including Israel

Ytd 31-May-10

house Value (us$m)

deal count


2 Rand Merchant Bank 2,864 6



5 Lazard 3,967 4



8 Standard Bank group 888 3

9 Deloitte 50 3

10 HSBC Bank 11,617 2




14 Royal Bank of Scotland group 4,933 2

15 Investec 2,280 2Source: mergermarket

top 15 FInAncIAl AdVIsers – MIddle eAst & AFrIcA

VALUEYtd


(us$m)deal count

1 Herbert Smith/gleiss Lutz/Stibbe 15378 4

2 Allen & overy 13573 6

3 Linklaters 13275 4

4 AZB & partners 11484 4

5 Edward nathan Sonnenbergs 5684 7

6 Freshfields Bruckhaus Deringer 5514 4

7 Stikeman Elliott 4966 2

8 Sullivan & Cromwell 4933 2

9= goERg Rechtsanwaelte 4933 1

9= kirkland & Ellis 4933 1

9= noerr 4933 1

9= Willkie Farr & gallagher 4933 1

13 Skadden Arps Slate Meagher & Flom 2457 1

14 Webber Wentzel 2328 5

15 Tabacks 2249 1


VoLUME

The legal adviser league tables by value and volume have been run from 01 January 2010 to 31 May 2010 and include lapsed and withdrawn deals. The tables cover all sectors andare based on the geography of either the target, bidder or seller being Middle East & Africa including Israel

Ytd 31-May-10

house Value (us$m)

deal count

1 Edward nathan Sonnenbergs 5,684 7


3 Bowman gilfillan 1,465 6

4 Webber Wentzel 2,328 5

5 Werksmans 678 5

6 Herbert Smith/gleiss Lutz/Stibbe 15,378 4

7 Linklaters 13,275 4




11 norton Rose 0 4

12 gibson Dunn & Crutcher 735 3

13 Jones Day 597 3

14 DLA Cliffe Dekker Hofmeyer 392 3

15 Stikeman Elliott 4,966 2Source: mergermarket

top 15 legAl AdVIsers – MIddle eAst & AFrIcA

49

Mid

dle east &

africa

Monthly M&A Insider

LEAgUE TABLES

VALUE

VALUE

Ytd 31-May-10

house Value (us$m)

deal count

1 Capitau 453 1

2 Brait private Equity 291 1

3 Temasek Holdings 200 1

4 Tene Capital 23 1

5= Asian Healthcare Fund 20 1

5= Capinnova Investment Bank 20 1

7= good Energies Investments 15 1

7= new Energies Invest 15 1

7= Zouk Ventures 15 1

10 Halcyon Capital Holding Co 11 1Source: mergermarket

VoLUME

The private equity buyout activity tables by value and volume are based on private equity firms advising the bidder on buyout deals where the dominant geography of the target company is Middle East & Africa including Israel The tables by value and volume have been run from 01 January 2010 to 31 May 2010 and exclude lapsed and withdrawn deals

Ytd 31-May-10

house Value (us$m)

deal count

1 Capitau 453 1

2 Brait private Equity 291 1

3 Temasek Holdings 200 1

4 Tene Capital 23 1

5= Asian Healthcare Fund 20 1

5= Capinnova Investment Bank 20 1

7= good Energies Investments 15 1

7= new Energies Invest 15 1

7= Zouk Ventures 15 1

10 Halcyon Capital Holding Co 11 1Source: mergermarket

ActIVItY tAble oF prIVAte equItY FIrMs on MIddle eAstern & AFrIcAn buYouts

VALUEYtd 31-May-10

house Value (us$m)

deal count

1 pamodzi Investment Holdings 453 1

2 Radius Ventures 160 1

3 pitango Venture Capital 100 2

4= Ant Capital partners Co 60 1

4= Bridge Capital Fund 60 1

4= Cedar Fund 60 1

4= Marathon Venture Capital Fund 60 1

4= Mitsubishi UFJ Capital Co 60 1

4= nippon Venture Capital Co 60 1

4= Teuza - A Fairchild Technology Venture 60 1

4= Yozma group 60 1Source: mergermarket

VoLUME

The private equity exit activity tables by value and volume are based on private equity firms advising the vendor on exit deals where the dominant geography of the target company is Middle East & Africa including Israel The tables by value and volume have been run from 01 January 2010 to 31 May 2010 and exclude lapsed and withdrawn deals

Ytd 31-May-10

house Value (us$m)

deal count

1 pamodzi Investment Holdings 453 1

2 Radius Ventures 160 1

3 pitango Venture Capital 100 2

4= Ant Capital partners Co 60 1

4= Bridge Capital Fund 60 1

4= Cedar Fund 60 1

4= Marathon Venture Capital Fund 60 1

4= Mitsubishi UFJ Capital Co 60 1

4= nippon Venture Capital Co 60 1

4= Teuza - A Fairchild Technology Venture 60 1

4= Yozma group 60 1Source: mergermarket

ActIVItY tAble oF prIVAte equItY FIrMs on MIddle eAst & AFrIcA exIts

50

Mid

dle east &

africa

Monthly M&A Insider

TREnD gRApHS

MIddle eAst & AFrIcA M&A quArterlY trend

VALUE VoLUME

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

Q210*

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Q104

Valu

e ($

m)

0

20

40

60

80

100

120

140

Q210*

Q110

Q4 09

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Q104

Volu

me

of d

eals

MIddle eAst & AFrIcA M&A quArterlY MId-MArket trend

VALUE VoLUME

0

1,000

2,000

3,000

4,000

5,000

6,000

Q210*

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q3 05

Q205

Q105

Q404

Q304

Q204

Q104

Valu

e ($

m)

0

10

20

30

40

50

60

70

80

Q210*

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Q104

Volu

me

of d

eals


51

Mid

dle east &

africa

Monthly M&A Insider

TREnD gRApHS

MIddle eAst & AFrIcA M&A sector breAkdown Ytd 2010

VALUE VoLUME

17%11%

4%

42%7%

1%

10%

5%

3%

Financial Services

Consumer

TMT

Business Services

Real Estate


Leisure

Transportation

Construction

Agriculture

Defence



15%

13%

6%

15%16%

15%

3%2%

1%

6%4%3%

3%

Financial Services

Consumer

TMT

Business Services

Real Estate


Leisure

Transportation

Construction

Agriculture

Defence



MIddle eAst & AFrIcA M&A quArterlY prIVAte equItY trend

VALUE VoLUME

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

-

Q210*

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Valu

e ($

m)

Middle East& Africa buyouts

Middle East& Africa exits

0

2

4

6

8

10

12

14

16

18

20

-

Q210*

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Num

ber

of d

eals

Middle East& Africa buyouts

Middle East& Africa exits

52

Mid

dle east &

africa

Monthly M&A Insider

TREnD gRApHS

MIddle eAst & AFrIcA M&A geogrAphIc breAkdown Ytd 2010

VALUE VoLUME

3%9%

1%

13%

5%

1%

1%3%

7%

56%

Oman

Qatar

Saudi Arabia

Angola

Congo

Egypt

Iran

Isreal

Jordan

Kenya

Kuwait

Lebanon

Mauritania

Libya

Morocco

Namibia

Nigeria

4%7%

7%

3%

1%

10%

1%

41%

3%1%

7%

3%

1%1%

1%3%

5%

Oman

Qatar

Saudi Arabia

Angola

Congo

Egypt

Iran

Isreal

Jordan

Kenya

Kuwait

Lebanon

Mauritania

Libya

Morocco

Namibia

Nigeria

MIddle eAst & AFrIcA M&A deAl sIZe breAkdown

VALUE VoLUME

0

10

20

30

40

50

60

H12010*

H22009

H12009

H22008

H12008

H22007

H12007

H22006

H12006

H22005

H12005

H22004

H12004

> $5$01m

$251m-$500m

$101m-$250m

$15m-$100m

$5m-$14.9m

Valu

e ($

bn)

0

50

100

150

200

250

H12010*

H22009

H12009

H22008

H12008

H22007

H12007

H22006

H12006

H22005

H12005

H22004

H12004

> $5$01m

$251m-$500m

$101m-$250m

$15m-$100m

$5m-$14.9m

Value not disclosed

Num

ber

of d

eals

www.mergermarket.comRemark, part of The Mergermarket group

11 West 19th Street, 2nd fl.New York, NY 10011USA

t: +1 212 686-5606f: +1 212 [email protected]

80 StrandLondon, WC2R 0RLUnited Kingdom

t: +44 (0)20 7059 6100f: +44 (0)20 7059 [email protected]

Suite 2401-3Grand Millennium Plaza181 Queen’s Road, CentralHong Kong

t: +852 2158 9700f: +852 2158 [email protected]

disclaimer

This publication contains general information and is not intended to be comprehensive nor to provide financial, investment, legal, tax or other professional advice or services. This publication is not a substitute for such professional advice or services, and it should not be acted on or relied upon or used as a basis for any investment or other decision or action that may affect you or your business. Before taking any such decision you should consult a suitably qualified professional adviser. Whilst reasonable effort has been made to ensure the accuracy of the information contained in this publication, this cannot be guaranteed and neither Mergermarket nor any of its subsidiaries nor any affiliate thereof or other related entity shall have any liability to any person or entity which relies on the information contained in this publication, including incidental or consequential damages arising from errors or omissions. Any such reliance is solely at the user’s risk.

Remark, the events and publications arm of The Mergermarket group, offers a range of publishing, research and events services that enable clients to enhance their own profile, and to develop new business opportunities with their target audience.

The following notes pertain to data contained in this publication:

• Deals are included where the deal value is greater than or equal to €5m.

• Where no deal value has been disclosed, deals are included if the turnover of the target is greater than or equal to €10m.

• Deals are included in the graphs and Top Deals in each section based on the dominant geography and dominant sector of the target company. Data underlying the League Tables are based on deals where the bidder, target or parent geography of either is that of the geography in focus.

• H1 2010 refers to the period 31 January 2010 to 31 May 2010.

A mergermArket report on globAl m&A Activity Monthly M&A InsIder JUne 2010 · 2010-06-18 · hong...

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Transcript of A mergermArket report on globAl m&A Activity Monthly M&A InsIder JUne 2010 · 2010-06-18 · hong...