DealZone

Keeping score: Energy M&A doubles, Asia leads IPOs

February 12, 2010

Highlights from this week’s Thomson Reuters Investment Banking Scorecard:

” ENERGY & POWER M&A MORE THAN DOUBLES
The proposed acquisition of Allegheny Energy by Ohio-based electric utility First Energy Corp, in a transaction valued at $8.9 billion, brings the volume of mergers in the energy & power sector to $50.4 billion, more than double the volume of announced deals in the sector last year at this time.
Deal activity in the oil & gas and power sub-sectors account for nearly 88% of activity in the sector this year.  Targets in the United States account for 52% of activity this year, with Brazil and France accounting for 19% and 12%, respectively.

“ASIA PACIFIC DRIVES 66% OF IPO ACTIVITY
Global initial public offerings total $15.9 billion for year-to-date 2010, a marked increase over the first six weeks of 2009.  Asia Pacific issuers account for 66% of overall IPO activity, bolstered by nearly $9.2 billion in new listings from Chinese companies.
Offerings from the materials, financials, energy & power, and high technology sectors comprise 70% of total IPO volume this year.

“PRIVATE EQUITY BACKS 11% OF EUROPEAN M&A
Private equity-backed M&A in Europe totals $4.2 billion for year-to-date 2010, accounting for 11% of total European M&A activity and 55% of worldwide private equity-backed transactions.  The $1.5 billion buyout of UK-based retailer Pets at Home by KKR ranks as the largest private equity deal this year.
The volume of European mergers and acquisitions totals $36.7 billion for year-to-date 2010, a 10% decrease from last time this year and the slowest start for European dealmaking since 2002.”

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