Keeping score: biotech, Chinese debt and European ECM
Here are some highlights from this week’s Thomson Reuters Investment Banking Scorecard.
Medarex boosts biotechnology M&A to $5.3 billion
Bristol-Myers Squibb’s $1.9 billion acquisition of Medarex lifted the volume of biotechnology M&A to $5.3 billion for year-to-date 2009, a 90% decrease from 2008 levels. Last year’s total was bolstered by the $46.7 billion acquisition of Genentech by Roche Holding. Excluding the Genentech transaction, biotechnology M&A volume is down 22% over 2008 levels. By number of deals, mergers in the sector are up 15% over last year.
With their advisory roles on the Medarex transaction, JP Morgan and Goldman Sachs top the ranking of biotechnology advisors for year-to-date 2009.
Chinese debt capital markets triple over 2008
Debt offerings from Chinese companies total $84.9 billion for year-to-date 2009, nearly triple the levels reached last year at this time. Issuers from the financial, energy and power, and industrial sectors account for just over 75% of activity. Industrial & Commercial Bank of China’s (ICBC) recent $5.8 billion offering ranks as the third largest debt offering from a Chinese issuer this year.
ICBC, CITIC and China International Capital lead the Chinese debt underwriting league tables, with a combined 45.3% of the market.
European ECM activity down 5%
European equity capital markets activity totals $129.5 billion through July 23rd, a 5% decrease from 2008. Overall activity is highly concentrated in financials, energy and power and materials, which comprise 72% of new issue activity in Europe. Issuers from the United Kingdom account for 46% of European activity so far in 2009, powered by multi-billion offerings from HSBC, Rio Tinto, and Lloyds Banking Group. JP Morgan tops the list of European ECM bookrunners, with 23.2% of the market, followed by Goldman Sachs with 10.9%.