Keeping score: Exxon-XTO data points
From the Thomson Reuters data team:
- Exxon Mobil’s $40.7 billion acquisition of XTO Energy ranks as the sixth biggest announced worldwide M&A transaction this year and the fourth biggest US target transaction.
- The deal ranks as the eighth biggest Energy & Power M&A transaction in history and marks the biggest US transaction since Chevron’s $43.3 billion acquisition of Texaco in October 2000. The $85.1 billion combination of Exxon and Mobil in December 1998 ranks as the biggest Energy & Power deal on record.
- Worldwide, energy & power M&A totals $330.9 billion for year-to-date 2009, an 18.1% decrease from last year at this time. Worldwide M&A in the oil & gas sector totals $203.7 billion, a 17.2% increase over last year at this time.
- In the US, energy & power M&A accounts for 12.2% of overall activity, a 7.5 decline from last year. Oil & gas M&A activity in the US totals $74.9 billion, a 35.6% increase over 2008.
- With the announcement, JP Morgan (advisor to Exxon Mobil), moves from fourth place to third place for worldwide merger advisors, with $467.5 billion in announced deals from 299 deals. Barclays and Jefferies (advisors to XTO Energy) rank 10th and 21st, respectively.
- In the US, JP Morgan remains in third place with $269.5 billion. Barclays moves to sixth place from seventh and Jefferies moves from 23rd place to 13th.
Keeping score: autos M&A, U.S. property, Spanish loans
Highlights from this week’s Thomson Reuters Investment Banking scorecard:
· AUTOMOTIVE STAKES TOTAL $11.2 BILLION Powered by Germany’s Volkswagen AG, the volume of minority stake purchases in automotive manufacturers totals $11.2 billion for year-to-date 2009, the biggest year on record. In this week’s biggest deal, Volkswagen secured a 19.9% stake in Japanese automobile maker, Suzuki Motor Corp, valued at $2.5 billion. Volkswagen’s 49.9% stake in German rival, Porsche was valued at $5.8 billion and completed on December 7th. Year-to-date, worldwide M&A activity in the industrials sector totals $244.3 billion, a 9% increase over last year at this time.
· US REAL ESTATE M&A DOWN 60% OVER 2008 Simon Property Group’s $2.3 billion acquisition of Baltimore-based Prime Outlets Acquisition Co LLC, an owner and operator of shopping centers, ranks as the biggest US-based real estate transaction since Boston Properties Inc acquired New York’s General Motors Building and other properties from Macklowe Properties for $3.9 billion in May 2008. US real estate mergers and acquisitions, which account for just 2% of overall US M&A, total $12.5 billion for year-to-date 2009, a 60% decline from 2008.
· LENDING IN SPAIN MORE THAN DOUBLES Spain’s Urbaser SA, a waste management company, closed a $1.1 billion term loan from a syndicate of banks this week, brining the volume of syndicated lending in Spain to $66.2 billion, more than double last year’s total. Borrowers in the energy & power and industrials sectors comprise 83% of overall syndicated loans in Spain this year, with multi-billion dollar borrowings from utilities such as Gas Natural ($29 billion) and Iberdrola SA ($6.8 billion) and infrastructure concern Grupo Ferrovial SA ($4.6 billion).
Keeping score: NBC, asset-backed bonds
Highlights from this week’s Thomson Reuters Investment Banking Scorecard:
COMCAST-NBC UNIVERSAL LIFTS MEDIA M&A The proposed combination of Comcast and NBC Universal into a 51:49 joint venture brings the announced volume of mergers in the media and entertainment sector to $79.7 billion, a 31% decrease from last year at this time. The transaction is valued at $14.4 billion, which signifies GE’s net asset contribution and ranks as the second biggest transaction in the sector this year, after DirecTV Group’s $14.5 billion merger with Liberty Entertainment in May. Overall, worldwide M&A totals $1.9 trillion, down 33% compared to 2008 levels.
SECURITIZATIONS PULL AHEAD OF 2008 LEVELS The volume of new asset-backed and mortgage backed securities total $498.9 billion for year-to-date 2009, a 3% increase over 2008 levels. After a nearly 85% decline in 2008, the market for securitizations of residential mortgages, credit card receivables and auto receivables has slowly returned aided by US government guarantee programs. Issuers in the United States account for 38% of overall activity this year, followed by UK-based issuers with 15%.
ASIA PACIFIC M&A DOWN 11% Asia Pacific M&A activity totals $367.5 billion for year-to-date 2009, an 11% decrease from 2008 levels. Consolidation in the financial, high technology and energy and power sectors accounts for 45% of announced deal volume this year. High technology merger activity has more than doubled in the region, while activity in the telecommunications and materials sectors has seen declines of 77% and 45%, respectively.
Keeping score: HK IPO, M&A picks up
Highlights from this week’s Thomson Reuters Investment Banking Scorecard:
6TH LARGEST IPO OF THE YEAR In this week’s second largest ECM transaction Sands China, the Macau operations of US based Las Vegas Sands raised $2.5 billion on the Hong Kong stock exchange. It is the 6th largest IPO of the year and the second of its kind in a couple of months after Wynn Macau, a subsidiary of US based Wynn Resorts raised $1.9 billion in September. Follow On activity is up 35% when compared to the same period last year with $528 billion and it also accounts for 75% of total ECM activity so far this year.
GLOBAL CORPORATE BOND ISSUANCE UP The top two bonds issued this week are both investment grade corporate debt issues which are both above the $1 billion mark. UNEDIC and CDP Financials with $5.9 billion and $4.9 billion. Global corporate bonds reached $2.4 trillion so far this year up 11% when compared to the same period last year. Corporate bond issuance also makes up 46% of total bond activity this year.
M&A HITS 5 MONTH-HIGH Global announced M&A in November totaled $234 billion and marks the second busiest monthly level of activity of the last twelve months after June 2009 ($275 billion). There were ten transactions in excess of $1 billion announced this week, including the $1.7 billion takeover of UK based JPMorgan Cazenove by JPMorgan Chase & Co.
Keeping score: Breaking records in Qatar, Taiwan
Highlights from the Thomson Reuters Investment Banking scorecard:
QATAR PRICES BIGGEST MIDDLE EASTERN BOND ON RECORD This week’s $7 billion offering from the State of Qatar marked the largest bond offering from a Middle Eastern issuer on record and the second multibillion dollar offering from Qatar this year. For year-to-date 2009, debt capital markets activity from Middle Eastern issuers totals $38.6 billion, a 120% increase over last year at this time. The offering, which was led by Barclays, Credit Suisse, Goldman Sachs, JP Morgan and Qatar National Bank, bested the previous Middle Eastern record, a $3.2 billion offering from UAE-based real estate developer, Nakheel Co PJSC.
TECH DEALS DOMINATE RECORD TAIWAN M&A ACTIVITY Taiwan’s Innolux Display Corp agreed to merge with Chi Mei Optoelectronics Corp, a manufacturer of LCD TV panels in a merger valued at $13.1 billion, including debt. The deal ranks as the largest merger in Taiwan’s history. M&A activity in Taiwan totals $26.1 billion for year-to-date 2009, nearly five times last year’s total and the largest annual period for M&A activity in Taiwan on record. High technology mergers account for just over 60% of activity in Taiwan this year, while financials account for $6.1 billion or 23%.
UNITYMEDIA IN BIGGEST BUYOUT EXIT THIS YEAR Germany’s Unitymedia GmBH, a provider of cable television and internet services was acquired by Englewood, Colorado-based Liberty Global Inc in a deal valued at $5.2 billion. A portfolio company of BC Partners and Apollo Management LP, the sale marks the biggest M&A exit for a buyout consortium this year. Worldwide M&A activity for buyout-backed companies totals $75.0 billion for year-to-date 2009, a 58% decrease from last year at this time when activity totaled $177.5 billion.
Keeping score: Asian IPOs, Oz M&A, tech debt
Highlights from this week’s Thomson Reuters Investment Banking scorecard:
ASIA PACIFIC IPOs UP 65% Malaysian telecommunications provider, Maxis Bhd, raised $3.3 billion in an initial public offering this week, the biggest IPO from a Malaysian issuer on record. Asia Pacific offerings account for 59% of global IPO activity this year and total $49.2 billion for year-to-date 2009, a 65% increase over last year at this time. In Asia, China International Capital Co, CITIC and UBS account for nearly 35% of overall IPO activity, by proceeds, this year while Morgan Stanley has lead managed the most offerings in the region, with 14.
AUSTRALIAN M&A TOTALS $130.9 BILLION Australian target M&A activity totals $130.9 billion for year-to-date 2009, a 58% increase over the year ago period. Deal activity in the materials, financial and industrial sectors accounts for nearly 80% of overall activity. A bid for Melbourne-based Transurban Group, an operator and developer of electronic tolling systems by an investor group comprised of Canada Pension Plan Investment Board and Ontario Teachers’ Pension Plan for $8.9 billion topped the list of biggest deals this week.
HIGH TECH CORPORATE DEBT UP 34% This week’s $4.9 billion bond offering from Cisco Systems brings year-to-date corporate debt volume in the high tech sector to $56.9 billion, a 34% increase over last year. Ranking as the largest US high tech bond for year-to-date 2009, it also marks Cisco’s second debt offering this year. As the global credit markets have rebounded this year, a number of high technology names have stepped into the bond market with multi-billion offerings including Hewlett-Packard, Oracle, Microsoft and IBM.
Keeping score: EMEA mid-market M&A halves
Highlights from Thomson Reuters data on mid-market (sub-$500 milion) deals. For October in European, the Middle East and Africa (EMEA):
· Average bid premium four weeks prior to announcement increased on average across sectors in EMEA year to date compared to same period in 2008 by 2% with bid premia rising slightly with half the sector showing an increase and half decreasing.
· Year on year Average Rank Value to EBITDA however decreased by 16% on average with only the Real Estate and Materials sectors increasing.
· JP Morgan top the European Mid-Market M&A rankings YTD, up from third position for same period 2008
· EMEA Mid-Market M&A from January to end of October down 49.6% compared to same period last year, to US$110.2bn from US$218.8bn.
· EMEA Mid-Market M&A activity for October at US$12.2bn, down 12% from September’s US$13.9bn, but down 34.9% compared to October 2008 which stood at US$18.7bn.
Keeping score: Buffett, buyouts, Japanese M&A
Highlights from this week’s Thomson Reuters Investment Banking Scorecard:
BERKSHIRE HATHAWAY’S BIGGEST DEAL Berkshire Hathaway’s $35.9 billion bid for the remaining share capital of Burlington Northern Santa Fe, ranked as the fourth biggest M&A deal this year in the United States and the largest acquisition for Berkshire Hathaway on record. Since 1980, Berkshire Hathaway and its subsidiaries have announced nearly 200 acquisitions, with 43% of those deals in the industrials sector, 34% in the financials sector and 12% in energy & power. Just over 90% of the acquisitions announced by Berkshire Hathaway have been based in the United States.
IMS HEALTH IN LARGEST BUYOUT SINCE 2007 IMS Health agreed to be acquired by TPG and the investment board of the Canada Pension Plan for $5.2 billion, marking the largest leveraged buyout in the United States since the $27 billion buyout of Hilton Hotels in July 2007. Eight investment banks provided financial advisory services to IMS and the private equity consortium, including Evercore Partners which currently ranks fourth for year-to-date M&A in the United States, up from 16th last year at this time.
JAPANESE M&A UP 41% OVER 2008 This week’s $11.3 billion merger of Nippon Oil Corp and Nippon Mining Holdings Inc brings the volume of Japanese target M&A to $90.1 billion for year-to-date 2009, a 41% increase over 2008 levels and one of the few regions to see year-over-year M&A growth. Merger activity in the Japanese financial sector accounts for 38% of year-to-date activity, followed by high technology and real estate with 17.1% and 13.3% respectively. Energy & power mergers account for 13.0% of announced volume this year, nearly three times last year’s total.
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Keeping score: PGE, Stellar Megaunion and IPOs
Highlights from the Thomson Reuters Investment Banking Scorecard:
BIGGEST EUROPEAN IPO SINCE MAY 2008
As part of a government privatisation program, Polska Grupa Energetyczna SA (PGE), an electric utility, raised $2.1 billion in an IPO on the Warsaw stock exchange this week. The offering marks the largest IPO from a Polish company on record and the biggest IPO in Europe since the $2.5 billion listing of Dutch coal miner, New World Resources NV, in May 2008.
Goldman Sachs and Unicredit led the offering, which brings year-to-date European IPO activity to $3.3 billion, a decline of 76% compared to last year at this time.
* REAL ESTATE ACCOUNTS FOR 19% OF CHINESE M&A
China’s Stellar Megaunion’s planned $2.7 billion acquisition of real estate assets from Guilherme Holdings brings the volume of Chinese M&A to $73.6 billion for year-to-date 2009, a 14% decline from last year’s levels but far outpacing the 40% downturn for worldwide mergers.
M&A activity in the real estate sector accounts for 19% of overall activity in China this year, with financials accounting for 17% and industrials comprising 15% of the year-to-date total for Chinese targets.
Keeping score: Brazilian IPOs and Russian M&A
Highlights from the Thomson Reuters Investment Banking Scorecard:
· CHINA, BRAZIL & US ACCOUNT FOR 80% OF IPOs Banco Santander (Brasil) SA raised $7.0 billion in an initial public offering in New York and Sao Paulo, marking the largest IPO by a Brazilian company on record and the second largest IPO this year behind an offering from China State Construction Engineering, which raised $7.3 billion in July. Global initial public offerings for year-to-date 2009 total $59.4 billion, a 35% decline from last year at this time. Despite a flurry of recent offerings, nearly 80% of IPOs this year, by proceeds, have come from companies based in China, Brazil and the United States.
· ACQUISITIONS BY RUSSIAN COMPANIES DOWN 53% An $11.7 billion bid by Russia’s Vimpelcom for Kyivstar, a Ukrainian provider of wireless telecommunications services partly owned by Norwegian state-owned Telenor ASA ranked as the week’s biggest deal and the largest acquisition by a Russian company this year. Overall, worldwide M&A totals $1.5 trillion for year-to-date 2009, a 38% decline over last year. Acquisitions by Russian companies total $28.6 billion so far this year, a decrease of 53% compared to 2008.
· JAPANESE FOLLOW-ONS REACH $35.6 BILLION In its second common stock offering this year, Nomura Holdings Inc, raised $5.1 billion, marking the third largest Japanese follow-on offering this year behind Sumitomo Mitsui Financial Group ($9.4 billion) and Mizuho Financial Group ($5.9 billion). The volume of follow-on offerings in Japan totals $35.6 billion for year-to-date 2009, nearly eight times greater than the volume seen during year-to-date 2008. Capital raising by financial issuers dominates the market this year, accounting for 77% of total issuance.
