Zephyr Quarterly M&A Report

Transcription

1 Global, Q3 2014

2 Global, Q The following report details mergers and acquisitions activity in Q using data from the Zephyr database. It focuses on deal activity by target company. Click here to access the raw data in an Excel spreadsheet. Section 1: Global Deals Page 1 Section 2: Western Europe Page 16 Section 3: North America Page 27 Section 4: Asia/Asia Pacific Page 37 Section 5: Russia/CEE Page 50 Global M&A volume and value drop in Q3 The value of global mergers and acquisitions (M&A) in Q declined 18 per cent from USD 1,279 billion in Q to USD 1,054 billion. In spite of the decrease, this is still the third highest result in the nine quarters under review. The decline does not mean there were not a number of notable deals with particularly high values. On the contrary, there were nine transactions worth in excess of USD 10,000 million in the period under review. Together, they accounted for almost 22 per cent of overall deal value for the three months. Volume slipped at the slightly slower rate of 20 per cent, falling from 20,244 deals in Q2 to 16,186 transactions. Global deals by volume and value Announced date No of deals Total deal value Q ,186 1,053,770 Q ,244 1,279,478 Q , ,052 Q , ,573 Q ,945 1,028,788 Q , ,068 Q , ,504 Q ,097 1,067,238 Q , ,272 Page 1

3 Global, Q Global deals by volume and value 1,400,000 25,000 Deal value 1,200,000 1,000, , , , ,000 20,000 15,000 10,000 5,000 0 Q Q Q Q Q Q Q Q Q Total deal value Number of deals Page 2

4 Global, Q US targets dominate quarter s top deals All of the top 20 deals recorded in Q were worth USD 6,000 million or more and the top five were each valued at over USD 15,000 million. In all, 11 of the top 20 transactions targeted US companies, including the largest deal of the quarter. Kinder Morgan announced plans to pick up all outstanding equity securities in Kinder Morgan Energy Partners, El Paso Pipeline Partners and Kinder Morgan Management for USD 71,000 million. Of this amount, USD 27,000 million involved the assumption of debt, with USD 4,000 million in the form of cash and the balance in shares. A UK company accounted for the quarter s second largest deal. In July AbbVie committed to buy biopharmaceuticals maker Shire for USD 53,642 million in cash and shares, to be financed using cash reserves and a facility led by JP Morgan. The largest capital increase of the quarter was carried out by a Cypriot company as Bank of Cyprus announced a placing and open offer worth USD 13,832 million. PE and VC also declines quarter-on-quarter The volume and value of global private equity (PE) and venture capital (VC) investment did not fare any better in Q3, as both declined compared to the second quarter of the year. In all, there were 2,627 PE and VC deals worth an aggregate USD 112,888 million recorded globally in Q3. Value decreased by 6 per cent from USD 119,964 million while volume weakened at the faster rate of 7 per cent from 2,823 deals. Chinese company tops PE deals list by value The top 20 PE and VC deals by value in Q were all worth USD 1,000 million or more and two surpassed USD 10,000 million. The largest deal of the period was a USD 17,458 million investment in Chinese oil and petroleum products wholesaler Sinopec Sales. Multiple investors including China Life Insurance, Harvest Fund Management and ENN Energy China Investment injected funds which will be used to optimise the firm s capital structure and make it more competitive. The second largest PE and VC deal of the quarter was Burger King s announced USD 11,356 million acquisition of Canadian coffee and doughnut chain Tim Hortons, which is backed by Berkshire Hathaway. Page 3

5 Global, Q Top 20 global deals by value Deal value Deal type Target Target country Acquiror Acquiror country Announced date 1. 71,000 Acquisition Kinder Morgan Energy Partners LP; Kinder Morgan Management LLC; El Paso Pipeline Partners LP US; US; US Kinder Morgan Inc. US 10/08/ ,642 Acquisition 100% Shire plc GB AbbVie Inc. US 18/07/ ,400 Acquisition 100% Lorillard Inc. US Reynolds American Inc. US 15/07/ ,458 Minority stake 30% Sinopec Sales Co., Ltd CN Investors; China Life Insurance Co., Ltd; Sino Life Insurance CN; CN; 15/09/2014 Co., Ltd; Harvest Fund Management Co., Ltd; Changjiang Pension Insurance Co., Ltd; Harvest Capital Management Co., Ltd; Bohai Huamei (Shanghai) Equity Investment Management Co., Ltd; Cinda Sino-Rock International Energy Co., Ltd; HuaXia SSF1 Investors Ltd; Kingsbridge Asset Holding Ltd; Qian Hai Golden Bridge Management Ltd; Shenzhen Baotengsheng Fund Management Co., Ltd; ENN Energy China Investment Ltd CN; CN; CN; CN; VG; VG; VG; CN; CN; HK 5. 15,266 Acquisition 45% to 100% Alliance Boots GmbH CH Walgreen Company US 06/08/ ,832 Acquisition 90% Bank of Cyprus Public Company Ltd CY European Bank for Reconstruction and Development; Investors; TD Asset Management Inc.; Institutional Investors; Gruppa Kompanii Renova ZAO; Cyprus Popular Bank Public Co Ltd; Shareholders II; CA; RU; CY 28/07/ ,500 Acquisition 100% TRW Automotive Holdings Corporation US ZF Friedrichshafen AG DE 15/09/ ,356 Acquisition 100% Tim Hortons Inc. CA Burger King Worldwide Inc. US 26/08/ ,042 Acquisition Enersis SA; Endesa Latinoamerica SA CL; ES Enel Energy Europe SRL ES 31/07/ ,871 Acquisition 100% Family Dollar Stores Inc. US Dollar General Corporation US 10/09/2014 Page 4

6 Global, Q Top 20 global deals by value (cont d) Deal value (mil USD) Deal type Target Target country Acquiror Acquiror country Announced date 11. 9,295 Acquisition 100% GVT Participacoes SA BR Telefonica Brasil SA BR 18/09/ ,200 Acquisition 100% Family Dollar Stores Inc. US Dollar Tree Inc. US 28/07/ ,709 Acquisition 100% Salix Pharmaceuticals Ltd US Cosmo Technologies Ltd IE 08/07/ ,552 Acquisition 100% The Hillshire Brands Company US Tyson Foods Inc. US 02/07/ ,300 Acquisition 100% Concur Technologies Inc. US SAP America Inc. US 18/09/ ,300 Acquisition 100% InterMune Inc. US Roche Holding AG CH 24/08/ ,500 Minority stake 23% Hermès International SCA FR LVMH Moet Hennessy Louis Vuitton SA's shareholders FR 03/09/ ,241 Acquisition 96% Aktsionernyi Kommercheskii Bank Bank Moskvy OAO RU Bank VTB OAO RU 04/09/ ,100 Acquisition Lorillard Inc.'s certain assets; Reynolds American Inc.'s certain assets US; US Lignum-2 Inc. US 15/07/ ,400 Acquisition 100% International Game Technology Inc. US GTECH plc GB 16/07/2014 Page 5

7 Global, Q Target country by volume - global deals Target country by value - global deals Target country Q Q Q Target country Q Q Q US 2,920 3,535 3,064 China 1,221 1,222 1,267 UK 1,787 1,472 1,257 Canada Australia 1, Japan Russia Spain India South Korea Germany Taiwan France Malaysia Italy Netherlands Sweden Vietnam South Africa Poland US 404, , ,338 UK 61,417 59, ,420 China 93, , ,753 Canada 26,799 45,742 48,757 Russia 37,850 27,138 29,959 Switzerland 2,264 18,670 26,867 Japan 42,077 29,851 26,401 Australia 23,992 44,355 25,450 Spain 15,110 19,819 24,410 Germany 38,180 47,398 23,609 Italy 10,937 23,620 20,585 Brazil 14,385 16,352 19,835 France 14,874 55,955 19,604 South Korea 16,486 25,399 15,480 Cyprus 3, ,925 Chile 3,950 4,814 12,091 Netherlands 48,719 31,022 11,892 Cayman Islands 11,898 16,802 11,266 India 17,615 25,145 10,444 Norway 3,540 13,044 9,780 Page 6

8 Global, Q Top five global target countries by deal volume in Q Top five global target countries by deal value in Q US US China UK UK China Canada Canada Australia Russia Page 7

9 Global, Q Top five global target countries by deal volume in Q Deal volume between Q and Q Number of deals 4,000 3,500 3,000 2,500 2,000 1,500 1, Q Q Q Q Q Q Q Q US China UK Canada Australia Q Top five global target countries by deal value in Q Deal value between Q and Q Deal value 450, , , , , , , ,000 50,000 0 Q Q Q Q Q Q Q Q US UK China Canada Russia Q Page 8

10 Global, Q Target sector by volume - global deals Target sector by value - global deals Target sector Q Q Q Target sector Q Q Q Other services 7,673 7,722 6,310 Machinery, equipment, furniture, recycling 2,388 2,571 1,962 Wholesale & retail trade 1,674 1,533 1,274 Banks 1,488 1,508 1,088 Chemicals, rubber, plastics 1,142 1, Publishing, printing Construction Metals & metal products Primary sector Food, beverages, tobacco Education, health Transport Gas, water, electricity Hotels & restaurants Textiles, wearing apparel, leather Insurance companies Wood, cork, paper Post and telecommunications Public administration and defence Other services 363, , ,403 Banks 120, , ,089 Chemicals, rubber, plastics 74, , ,729 Gas, water, electricity 41,571 55, ,444 Machinery, equipment, furniture, recycling 164, , ,711 Transport 28,335 44,411 96,488 Wholesale & retail trade 55,238 48,627 87,496 Food, beverages, tobacco 23,410 35,089 67,324 Primary sector 32,389 55,097 30,097 Hotels & restaurants 6,579 14,296 22,078 Construction 31,121 45,323 21,399 Insurance companies 16,639 15,640 18,078 Metals & metal products 22,427 37,642 17,210 Publishing, printing 13,238 17,675 16,511 Textiles, wearing apparel, leather 8,989 7,263 12,929 Education, health 19,962 17,057 11,973 Wood, cork, paper 5,551 6,858 4,499 Post and telecommunications 1, Public administration and defence Page 9

11 Global, Q Global private equity deals by volume and value Announced date No of deals Total deal value Q , ,888 Q , ,964 Q , ,806 Q , ,045 Q , ,462 Q , ,478 Q ,220 90,720 Q ,438 95,947 Q ,281 86,933 Page 10

12 Global, Q Global private equity deals by volume and value 140,000 3,000 Deal value 120, ,000 80,000 60,000 40,000 20,000 2,500 2,000 1,500 1, Q Q Q Q Q Q Q Q Q Total deal value Number of deals Page 11

13 Global, Q Top 20 global private equity deals by value Deal value Deal type Target Target country Equity provider Announced date 1. 17,458 Minority stake 30% Sinopec Sales Co., Ltd CN China Life Insurance Co., Ltd; Sino Life Insurance Co., Ltd; Harvest Fund Management 15/09/2014 Co., Ltd; Changjiang Pension Insurance Co., Ltd; Harvest Capital Management Co., Ltd; Bohai Huamei (Shanghai) Equity Investment Management Co., Ltd; Cinda Sino-Rock International Energy Co., Ltd; HuaXia SSF1 Investors Ltd; RRJ Management (HK) Ltd; Qian Hai Golden Bridge Management Ltd; Shenzhen Baotengsheng Fund Management Co., Ltd; ENN Energy China Investment Ltd 2. 11,356 Acquisition 100% Tim Hortons Inc. CA Berkshire Hathaway Inc. 26/08/ ,110 IBO majority stake Lindorff AS NO NC Advisory AB 18/07/ ,811 Minority stake 35% CDP Reti Srl IT Borealis Infrastructure Management Inc.; Industry Funds Management Pty Ltd; Wren 31/07/2014 House Infrastructure Management Ltd 5. 2,686 Minority stake Vivarte SA FR Oaktree Capital Management LP 03/08/ ,500 IBO 100% Compuware Corporation US Thoma Bravo LLC 02/09/ ,368 Minority stake 21% China Huarong Asset Management Co., Ltd CN Warburg Pincus LLC; Goldman Sachs Group Inc.; China International Capital Corporation 28/08/2014 Ltd; Khazanah Nasional Bhd; China Life Insurance (Group) Company; CITIC Securities International Co., Ltd; Fosun International Ltd; COFCO Corporation 8. 1,940 IBO 100% Wheelabrator Technologies Inc. US Energy Capital Partners LLC 29/07/ ,758 IBO 100% LTS Lohmann Therapie-Systeme AG DE Dievini Hopp BioTech Holding GmbH & Co. KG 17/07/ ,542 IBO 100% PizzaExpress Ltd GB Hony Capital Co., Ltd 11/07/2014 Page 12

14 Global, Q Top 20 global private equity deals by value (cont d) Deal value Deal type Target Target country Equity provider Announced date 11. 1,430 IBO 100% Berlin Packaging LLC US Oak Hill Capital Management Inc. 25/08/ ,325 IBO 100% York Risk Services Group Inc. US Onex Corporation 16/07/ ,300 Minority stake Venari Resources LLC US Warburg Pincus LLC; The Jordan Company LP; Temasek Holdings Pte Ltd; 13/08/2014 Kelso & Company LP; BlackRock Inc.; GIC Pte Ltd 14. 1,200 IBO 100% SWEPI LP and Shell Gulf of Mexico Inc.'s Haynesville assets US Blackstone Capital Partners LP; The Blackstone Group LP 14/08/ ,200 IBO 100% Grocery Outlet Inc. US Hellman & Friedman LLC 16/09/ ,190 IBO 100% ParexGroup SA FR CVC Capital Partners Ltd 22/07/ ,126 IBO 100% Goodpack Ltd SG Kohlberg Kravis Roberts & Company LP 30/07/ ,087 IBO 100% MPG Opco Ltd GB The Blackstone Group LP 22/07/ ,050 Minority stake Sierra Oil & Gas S de RL de CV MX Riverstone Holdings LLC; EnCap Investments LP; Riverstone Energy Ltd; 18/09/2014 Infraestructura Institucional S de RL de CV 20. 1,000 IBO 100% Ranpak Holdings Inc. US Rhone Capital LLC 13/08/2014 Page 13

15 Global, Q Target country by volume - global private equity deals Target country by value - global private equity deals Target country Q Q Q Target country Q Q Q US 1,121 1,359 1,338 UK China France India Germany Canada Spain Japan Russia Netherlands Italy Israel Finland Sweden Belgium Brazil Australia Switzerland Portugal US 66,086 52,599 34,219 China 1,769 2,388 22,894 Canada 363 1,042 12,583 UK 9,776 6,457 10,447 France 3,314 7,731 5,211 Norway 1,118 3,742 4,229 Germany 2,820 9,420 3,944 Italy ,006 India 1,687 1,112 2,361 Spain 1,045 2,392 2,044 Switzerland ,236 Australia 431 2,937 1,190 Singapore 33 1,288 1,151 Mexico ,131 Netherlands 559 6,720 1,027 Turkey Japan 1,801 1, Grenada Belgium Luxembourg 1,058 2, Page 14

16 Global, Q Target sectors by volume - global private equity deals Target sectors by value - global private equity deals Target sector Q Q Q Target sector Q Q Q Other services 1,530 1,745 1,498 Machinery, equipment, furniture, recycling Publishing, printing Wholesale & retail trade Chemicals, rubber, plastics Education, health Food, beverages, tobacco Banks Construction Metals & metal products Textiles, wearing apparel, leather Hotels & restaurants Gas, water, electricity Transport Primary sector Post and telecommunications Wood, cork, paper Insurance companies Public administration and defence Other services 28,744 48,048 33,404 Wholesale & retail trade 7,376 3,056 25,058 Hotels & restaurants 1,105 5,659 14,047 Machinery, equipment, furniture, recycling 41,367 12,875 6,752 Chemicals, rubber, plastics 3,865 14,579 6,498 Banks 814 5,489 5,522 Transport 3,538 5,997 3,536 Primary sector 146 3,782 3,306 Gas, water, electricity 3,583 2,082 3,075 Education, health 2,458 1,601 2,926 Construction 746 1,459 1,934 Metals & metal products 1,208 8,415 1,752 Publishing, printing 1,516 1,092 1,678 Textiles, wearing apparel, leather ,637 Wood, cork, paper 779 1,960 1,622 Food, beverages, tobacco 1,542 1, Insurance companies 4,019 1, Post and telecommunications 1, Public administration and defence Page 15

17 Western Europe, Q Western Europe M&A value weakens but remains buoyant The value of mergers and acquisitions (M&A) targeting Western European companies slipped 22 per cent to USD 281,797 million in Q from a high base of USD 359,244 million the previous quarter, which was the best result of the last two years under review. Despite the decrease, M&A value in the July to September period was still strong and marked the third-highest result of the nine quarters. It was also an improvement on the same time 12 months ago, when USD 249,726 millionworth of deals were announced. Volume decreased at roughly the same rate, sliding 23 per cent from 5,396 transactions in Q to 4,172 which is the lowest level of the nine quarters under review. A sharp upturn in the value of M&A targeting UK companies bolstered results for the region as a whole, augmented by increases in both Switzerland and Cyprus. Western Europe deals by volume and value Announced date No of deals Q , ,797 Q , ,244 Q , ,741 Q , ,393 Q , ,726 Q , ,983 Q , ,825 Q , ,614 Total deal value Q , ,288 Page 16

18 Western Europe, Q Western Europe deals by volume and value 400,000 7,000 Deal value 350, , , , , ,000 50,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Q Q Q Q Q Q Q Q Q Total deal value Number of deals Page 17

19 Western Europe, Q Top two deals target healthcare sector US drug maker AbbVie reached a deal to buy UK rival Shire in a take-private worth USD 53,642 million in the region s number one M&A transaction by value in Q This single acquisition accounted for around a fifth of overall M&A targeting Western European companies between July and September and was worth more than the next five transactions combined. At number two in the top 20 deals by value was US retail pharmacy chain Walgreens buying the remaining 55 per cent stake in Swiss-headquartered Alliance Boots for USD 15,266 million. Third place was taken by Bank of Cyprus completing a capital increase worth USD 13,832 million as part of its previously-announced restructuring in the wake of the country s banking crisis. While the majority of dealmaking landscape was intra-regional, a significant number of the top transactions by value involved acquirors from overseas, in particular the US and South Korea. UK companies once again the favoured targets UK-based targets attracted the most investment in Q with USD 106,420 million, around 38 per cent of all investment in Western Europe over the three months. The result marks a significant improvement on Q2, when the UK was targeted in deals worth USD 59,818 million. It also ensured the country dwarfed its nearest opposition, Switzerland, which attracted investment of USD 26,867 million in the period under review, which was unsurprising given that it had three deals in the top 20 by value for the quarter, including the Alliance Boots deal. The country also led the way by volume, notching up 1,258 transactions, placing it some way ahead of its nearest rival, Spain with 496. However, the result represents a 15 per cent decline on the 1,472 deals recorded in Q2 and is actually the UK s lowest recorded quarterly volume since the beginning of Disappointment as Western European PE activity weakens Private equity (PE) investment in Western Europe totalled USD 32,615 million in Q3 2014, down 21 per cent on the USD 41,470 million recorded in Q However, the figure does represent an improvement year-on-year (Q3 2013: USD 23,042 million). Volume also declined on Q2, from 830 deals to 656 deals, lower than any quarter since the opening three months of The region s highest value PE deal in Q was NC Advisory s announced USD 3,110 million majority stake purchase in Norwegian debt collection agency Lindorff. This was one of seven PE transactions worth more than USD 1,000 million in Q3. Page 18

20 Western Europe, Q Top 20 Western Europe deals by value Deal value Deal type Target Target country Acquiror Acquiror country Announced date 1. 53,642 Acquisition 100% Shire plc GB AbbVie Inc. US 18/07/ ,266 Acquisition 45% to 100% Alliance Boots GmbH CH Walgreen Company US 06/08/ ,832 Acquisition 90% Bank of Cyprus Public Company Ltd CY European Bank for Reconstruction and Development II 28/07/ ,042 Acquisition Enersis SA CL Enel Energy Europe SRL ES 31/07/ ,500 Minority stake 23% Hermès International SCA FR LVMH Moet Hennessy Louis Vuitton SA's shareholders FR 03/09/ ,926 Acquisition 57% Sky Deutschland AG DE British Sky Broadcasting Group plc GB 25/07/ ,459 Acquisition 54% to 100% TUI Travel plc GB TUI AG DE 15/09/ ,320 Acquisition 100% Jazztel plc GB Orange SA FR 15/09/ ,162 Acquisition 100% Sky Italia Srl IT British Sky Broadcasting Group plc GB 25/07/ ,396 Acquisition 57% to 100% Sky Deutschland AG DE Kronen tausend985 GmbH DE 25/07/ ,125 Acquisition 100% WILD Flavors GmbH CH Archer Daniels Midland Company US 07/07/ ,110 IBO majority stake Lindorff AS NO NC Advisory AB SE 18/07/ ,044 Acquisition 100% Rottapharm SpA IT Meda AB SE 31/07/ ,811 Minority stake 35% CDP Reti Srl IT Hanwha Corporation KR 31/07/ ,686 Minority stake Vivarte SA FR Oaktree Capital Management LP US 03/08/ ,500 Acquisition 100% Mojang AB SE Microsoft Corporation US 15/09/ ,447 Minority stake 9% British Sky Broadcasting Group plc GB Investors 25/07/ ,250 Minority stake HSBC Holdings plc GB 15/09/ ,200 Acquisition 100% Nobel Biocare Holding AG CH Danaher Corporation US 15/09/ ,169 Acquisition 100% Liberty Living plc GB Goldman Sachs Group Inc. US 15/08/2014 Page 19

21 Western Europe, Q Target country by volume - Western Europe deals Target country by value - Western Europe deals Target country Q Q Q Target country Q Q Q UK 1,787 1,472 1,258 Spain Germany France Italy Netherlands Sweden Finland Switzerland Belgium Norway Denmark Turkey Portugal Ireland Austria Luxembourg Cyprus Greece Malta UK 61,417 59, ,420 Switzerland 2,264 18,670 26,867 Spain 15,110 19,819 24,410 Germany 38,180 47,398 23,611 Italy 10,937 23,620 20,585 France 14,874 55,955 19,604 Cyprus 3, ,925 Netherlands 48,719 31,022 11,892 Norway 3,540 13,044 9,780 Sweden 8,132 5,633 5,503 Turkey 3,580 2,033 3,513 Denmark 2,084 1,733 3,249 Belgium 4,096 3,084 3,020 Finland 13,102 3,910 2,806 Portugal 955 6,931 2,759 Austria 4,639 3,790 1,625 Luxembourg 6,374 8,088 1,069 Ireland 7,460 45, Greece 1,603 8, Malta Page 20

22 Western Europe, Q Target sector by volume - Western Europe deals Target sector by value - Western Europe deals Target sector Q Q Q Target sector Q Q Q Other services 2,398 2,230 1,669 Machinery, equipment, furniture, recycling Wholesale & retail trade Banks Chemicals, rubber, plastics Construction Publishing, printing Food, beverages, tobacco Education, health Transport Metals & metal products Hotels & restaurants Gas, water, electricity Primary sector Textiles, wearing apparel, leather Insurance companies Wood, cork, paper Post and telecommunications Public administration and defence Chemicals, rubber, plastics 24,023 62,079 68,550 Other services 79,665 94,269 67,529 Banks 36,311 55,974 44,766 Wholesale & retail trade 7,139 18,245 25,939 Gas, water, electricity 8,624 5,731 13,617 Machinery, equipment, furniture, recycling 29,736 74,367 13,173 Textiles, wearing apparel, leather 3,291 3,393 9,196 Transport 8,417 5,919 6,823 Education, health 6,992 2,362 5,930 Food, beverages, tobacco 10,388 9,679 5,542 Insurance companies 9,165 1,763 5,109 Hotels & restaurants 1,905 1,802 3,505 Publishing, printing 8,240 2,762 3,495 Construction 7,219 7,988 3,219 Primary sector 3,771 4,808 2,811 Metals & metal products 3,745 4,962 2,080 Wood, cork, paper 1,026 2, Post and telecommunications Public administration and defence Page 21

23 Western Europe, Q Western Europe private equity deals by volume and value Announced date No of deals Total deal value Q ,615 Q ,470 Q ,497 Q ,554 Q ,042 Q ,546 Q ,626 Q ,349 Q ,996 Page 22

24 Western Europe, Q Western Europe private equity deals by volume and value Deal value 60,000 50,000 40,000 30,000 20,000 10, Q Q Q Q Q Q Q Q Q Total deal value Number of deals Page 23

25 Western Europe, Q Top 20 Western Europe private equity deals by value Deal value Deal type Target Target country Equity provider Announced date 1. 3,110 IBO majority stake Lindorff AS NO NC Advisory AB 18/07/ ,811 Minority stake 35% CDP Reti Srl IT Borealis Infrastructure Management Inc.; Industry Funds Management Pty Ltd; 31/07/2014 Wren House Infrastructure Management Ltd 3. 2,686 Minority stake Vivarte SA FR Oaktree Capital Management LP 03/08/ ,758 IBO 100% LTS Lohmann Therapie-Systeme AG DE Dievini Hopp BioTech Holding GmbH & Co. KG 17/07/ ,542 IBO 100% PizzaExpress Ltd GB Hony Capital Co., Ltd 11/07/ ,190 IBO 100% ParexGroup SA FR CVC Capital Partners Ltd 22/07/ ,087 IBO 100% MPG Opco Ltd GB The Blackstone Group LP 22/07/ Minority stake 10% London Stock Exchange Group plc GB Qatar Holding LLC 11/07/ IBO 98% UN Ro-Ro Isletmeleri AS TR Esas Holding AS; Actera Group 05/08/ Minority stake 7% Amadeus IT Holding SA ES Nomura International plc 31/07/ IBO 100% ADA Cosmetics International GmbH DE Ardian France 24/07/ IBO 100% Lakeside 1 Ltd GB Sun Capital Partners Ltd; TDR Capital LLP 09/09/ IBO 100% Voyage Healthcare Group Ltd GB Duke Street Capital Ltd; Tikehau Capital Partners; Partners Group AG 06/08/ IBO 100% Alliance Automotive Group SAS FR The Blackstone Group LP 11/08/ IBO 100% APCOA Parking Holdings GmbH DE Centerbridge Capital Partners LP 20/08/ IBO 100% HES Beheer NV NL Riverstone Holdings LLC 17/07/ IBO Lombard International Assurance SA LU The Blackstone Group LP 11/07/ Minority stake Origo Exploration AS NO Temasek Holdings Pte Ltd; Riverstone Holdings LLC; Barclays Natural Resource 26/08/2014 Investments; Riverstone Energy Ltd Minority stake 39% Interparking SA BE Canada Pension Plan Investment Board 18/07/ Minority stake Siccar Point Energy Ltd GB Blackstone Capital Partners LP; Blue Water Energy LLP; GIC Pte Ltd 31/08/2014 Page 24

26 Western Europe, Q Target country by volume - Western Europe private equity deals Target country by value - Western Europe private equity deals Target country Q Q Q Target country Q Q Q UK France Germany Spain Netherlands Italy Finland Sweden Belgium Switzerland Portugal Denmark Norway Ireland Austria Turkey Luxembourg Cyprus UK 9,776 6,457 10,447 France 3,314 7,731 5,211 Norway 1,118 3,742 4,229 Germany 2,820 9,420 3,946 Italy ,006 Spain 1,045 2,392 2,044 Switzerland ,236 Netherlands 559 6,720 1,027 Turkey Belgium Luxembourg 1,058 2, Finland Portugal Sweden Cyprus Denmark Austria 1, Ireland Page 25

27 Western Europe, Q Target sectors by volume - Western Europe private equity deals Target sectors by value - Western Europe private equity deals Target sector Q Q Q Target sector Q Q Q Other services Machinery, equipment, furniture, recycling Wholesale & retail trade Publishing, printing Chemicals, rubber, plastics Construction Textiles, wearing apparel, leather Hotels & restaurants Food, beverages, tobacco Education, health Banks Metals & metal products Transport Gas, water, electricity Primary sector Wood, cork, paper Post and telecommunications Insurance companies Public administration and defence Other services 7,649 11,822 10,718 Banks 84 3,437 4,522 Wholesale & retail trade 191 1,657 3,739 Chemicals, rubber, plastics ,661 3,686 Transport 2,736 2,106 2,994 Hotels & restaurants ,443 Education, health 2, ,218 Machinery, equipment, furniture, recycling 2,082 6,236 1,081 Construction ,031 Textiles, wearing apparel, leather Primary sector Gas, water, electricity 1, Metals & metal products Publishing, printing Wood, cork, paper 759 1, Food, beverages, tobacco 1, Insurance companies 1, Post and telecommunications Public administration and defence Page 26

28 North America, Q North American M&A value advances against weaker volume The value of mergers and acquisitions (M&A) targeting companies based in North America rose in Q to USD 455,754 million from USD 444,835 million in Q and USD 430,924 million for the corresponding quarter of The result marked the third successive period of growth in the region. North America accounted for 43 per cent of total global value of USD 1,054 billion and was boosted by increases both in the US, where value rose for the third quarter in a row, and Canada, which advanced 7 per cent in monetary terms. Against this improvement in value, volume slipped 13 per cent from 4,473 transactions in Q to 3,883. This decline was mirrored both in the US and Canada, but was more marked in the latter, as volume dipped to 823 deals, the country s lowest level in the nine quarters under review. North America deals by volume and value Announced date No of deals Q , ,754 Q , ,835 Q , ,026 Q , ,890 Q , ,924 Q , ,355 Q , ,289 Q , ,588 Total deal value Q , ,881 Page 27

29 North America, Q US deals by volume and value Canada deals by volume and value Announced date No of deals Total deal value Announced date No of deals Total deal value Q , ,338 Q , ,008 Q , ,366 Q , ,871 Q , ,725 Q , ,913 Q , ,765 Q , ,421 Q , ,879 Q ,757 Q ,742 Q ,488 Q ,073 33,088 Q ,199 Q ,424 Q ,159 Q ,169 37,180 Q ,001 Page 28

30 North America, Q North America deals by volume and value Deal value 500, , , , , , , , ,000 50,000 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1, Q Q Q Q Q Q Q Q Q Total deal value Number of deals Page 29

31 North America, Q US targeted in big-ticket deals As is usually the case, US targets dominated the top 20 deals by value in Q3 2014, and the largest transaction targeting North America was also the largest global transaction by value. It involved Kinder Morgan consolidating its publicly-traded units in a deal worth USD 71,000 million. The Federal Trade Commission has given clearance for the transaction, which is expected to reshape the financial structure of the oil and gas pipeline giant. The deal was one of four worth USD 10,000 and above to target the region during Q3, the others being Reynolds American acquiring Lorillard for USD 27,400 million in a deal that marks significant consolidation in the global cigarette industry; German auto parts supplier ZF Friedrichshafen buying US rival TRW Automotive Holdings for USD 13,500 million; and Burger King Worldwide taking over Canadian coffee and doughnuts chain Tim Hortons for USD 11,356 million. This last transaction was the only significant deal to target Canada during Q3 2014, and accounted for 23 per cent of the country s total value for the three months. Canadian PE soars against overall decline in investment in North America The value of private equity and venture capital (PE and VC) targeting Canada leapt in Q to USD 12,583 million from USD 1,042 million in Q to give the country its highest result of the nine quarters under review. This increase was thanks almost entirely to Burger King s take-private of Tim Hortons, which made up 90 per cent of the country s PE and VC investment for the quarter, and was North America s highest-valued PE transaction of the three months, as well as being the second-highest global PE and VC transaction by value. In spite of strong investment in Canada, PE and VC investment value targeting North America as a whole stalled in Q3 2014, slipping 13 per cent to USD 46,801 million from USD 53,641 million the previous quarter, and was driven by a more than two-thirds decrease in the value of investment targeting USbased companies (Q2 2014: USD 52,599 million: Q3 2014: 34,219 million). Page 30

32 North America, Q Top 20 North America deals by value Deal value Deal type Target Target country Acquiror Acquiror country Announced date 1. 71,000 Acquisition Kinder Morgan Energy Partners LP; Kinder Morgan Management LLC; El Paso Pipeline Partners LP US; US; US Kinder Morgan Inc. US 10/08/ ,400 Acquisition 100% Lorillard Inc. US Reynolds American Inc. US 15/07/ ,500 Acquisition 100% TRW Automotive Holdings Corporation US ZF Friedrichshafen AG DE 15/09/ ,356 Acquisition 100% Tim Hortons Inc. CA Burger King Worldwide Inc. US 26/08/ ,871 Acquisition 100% Family Dollar Stores Inc. US Dollar General Corporation US 10/09/ ,200 Acquisition 100% Family Dollar Stores Inc. US Dollar Tree Inc. US 28/07/ ,709 Acquisition 100% Salix Pharmaceuticals Ltd US Cosmo Technologies Ltd IE 08/07/ ,552 Acquisition 100% The Hillshire Brands Company US Tyson Foods Inc. US 02/07/ ,300 Acquisition 100% Concur Technologies Inc. US SAP America Inc. US 18/09/ ,300 Acquisition 100% InterMune Inc. US Roche Holding AG CH 24/08/ ,100 Acquisition Lorillard Inc.'s certain assets; Reynolds American Inc.'s certain assets US; US Lignum-2 Inc. US 15/07/ ,400 Acquisition 100% International Game Technology Inc. US GTECH plc GB 16/07/ ,206 Acquisition 100% Rockwood Holdings Inc. US Albemarle Corporation US 15/07/ ,000 Acquisition 100% URS Corporation US AECOM Technology Corporation US 13/07/ ,000 Acquisition 100% Kodiak Oil & Gas Corporation US Whiting Petroleum Corporation US 13/07/ ,271 Acquisition Abbott Laboratories Inc.'s non-us developed markets speciality and branded generics JP; CA; New Moon BV NL 14/07/2014 business in Europe; Abbott Laboratories Inc.'s non-us developed markets speciality and branded generics business in Japan; Abbott Laboratories Inc.'s non-us developed markets speciality and branded generics business in Canada; Abbott Laboratories Inc.'s non-us developed markets speciality and branded generics business in Australia; Abbott Laboratories Inc.'s non-us developed markets speciality and branded generics business in New Zealand AU; NZ 17. 5,072 Acquisition 100% Bally Technologies Inc. US Scientific Games Corporation US 01/08/ ,700 Minority stake Reynolds American Inc. US British American Tobacco plc GB 15/07/ ,300 Acquisition 100% Glimcher Realty Trust US Washington Prime Group Inc. US 16/09/ ,000 Acquisition 100% Griffin-American Healthcare REIT II Inc. US NorthStar Realty Finance Corporation US 05/08/2014 Page 31

33 North America, Q Target sector by volume - North America deals Target sector by value - North America deals Target sector Q Q Q Target sector Q Q Q Other services 2,245 2,564 2,110 Machinery, equipment, furniture, recycling Publishing, printing Banks Wholesale & retail trade Chemicals, rubber, plastics Education, health Primary sector Metals & metal products Food, beverages, tobacco Construction Transport Gas, water, electricity Hotels & restaurants Textiles, wearing apparel, leather Insurance companies Wood, cork, paper Post and telecommunications Public administration and defence Other services 218, , ,073 Gas, water, electricity 15,538 35,942 85,886 Transport 6,536 7,259 77,158 Food, beverages, tobacco 2,781 12,340 55,795 Machinery, equipment, furniture, recycling 66,041 52,494 48,637 Chemicals, rubber, plastics 15,627 17,714 37,170 Banks 42,303 25,843 36,523 Wholesale & retail trade 32,156 11,834 28,585 Hotels & restaurants 1,826 8,708 14,526 Primary sector 7,429 28,926 11,840 Publishing, printing 1,304 2,573 6,257 Metals & metal products 2,116 7,647 5,434 Insurance companies 2,111 6,632 4,974 Education, health 9,923 8,532 3,071 Construction 1,778 4,034 2,447 Wood, cork, paper 2,990 1,202 1,879 Textiles, wearing apparel, leather 1,012 1,612 1,441 Post and telecommunications Public administration and defence Page 32

34 North America, Q North America private equity deals by volume and value Canada private equity deals by volume and value Announced date No of deals Total deal value Announced date No of deals Total deal value Q ,409 46,801 Q ,420 53,641 Q ,185 62,308 Q ,182 43,244 Q ,201 66,449 Q ,244 36,578 Q ,202 54,031 Q ,264 46,560 Q ,237 49,876 Q ,583 Q ,042 Q ,282 Q ,628 Q ,763 Q ,330 Q ,984 Q Q ,117 US private equity deals by volume and value Announced date No of deals Total deal value Q ,338 34,219 Q ,359 52,599 Q ,124 61,026 Q ,086 39,605 Q ,120 61,686 Q ,169 35,248 Q ,123 52,047 Q ,187 45,733 Q ,160 47,759 Page 33

35 North America, Q North America private equity deals by volume and value Deal value 70,000 60,000 50,000 40,000 30,000 20,000 10,000 1,600 1,400 1,200 1, Q Q Q Q Q Q Q Q Q Total deal value Number of deals Page 34

36 North America, Q Top 20 North America private equity deals by value Deal value Deal type Target Target country Equity provider Announced date 1. 11,356 Acquisition 100% Tim Hortons Inc. CA Berkshire Hathaway Inc. 26/08/ ,500 IBO 100% Compuware Corporation US Thoma Bravo LLC 02/09/ ,940 IBO 100% Wheelabrator Technologies Inc. US Energy Capital Partners LLC 29/07/ ,430 IBO 100% Berlin Packaging LLC US Oak Hill Capital Management Inc. 25/08/ ,325 IBO 100% York Risk Services Group Inc. US Onex Corporation 16/07/ ,300 Minority stake Venari Resources LLC US Warburg Pincus LLC; The Jordan Company LP; Temasek Holdings Pte Ltd; 13/08/2014 Kelso & Company LP; BlackRock Inc.; GIC Pte Ltd 7. 1,200 IBO 100% SWEPI LP and Shell Gulf of Mexico Inc.'s Haynesville assets US Blackstone Capital Partners LP; The Blackstone Group LP 14/08/ ,200 IBO 100% Grocery Outlet Inc. US Hellman & Friedman LLC 16/09/ ,000 IBO 100% Ranpak Holdings Inc. US Rhone Capital LLC 13/08/ ,000 IBO 100% Pro Mach Inc. US AEA Investors LP 16/09/ IBO 100% Eco Services LLC US CCMP Capital Advisors LLC 31/07/ Minority stake 25% Freeport LNG Development LP US Global Infrastructure Management LLC 14/07/ Minority stake 14% Lululemon Athletica Inc. US Advent International Corporation 07/08/ IBO majority stake NVA Holdings Inc. US Ares Management LP 17/07/ Minority stake Preferred Sands LLC US Kohlberg Kravis Roberts & Company LP 25/07/ Minority stake Canadian Non-Operated Resources LP CA Riverstone Holdings LLC; Riverstone Energy Ltd 12/08/ Minority stake Zenith Energy Group LLC US Warburg Pincus LLC 04/08/ Minority stake 20% Vice Media Inc. US TCMI Inc.; A&E Television Networks LLC 04/09/ IBO 100% Mister Car Wash Holdings Inc. US Leonard Green & Partners LP 25/07/ IBO 100% ABRA Inc. US Hellman & Friedman LLC 04/08/2014 Page 35

37 North America, Q Target sectors by volume - North America private equity deals Target sectors by value - North America private equity deals Target sector Q Q Q Target sector Q Q Q Other services Machinery, equipment, furniture, recycling Publishing, printing Wholesale & retail trade Chemicals, rubber, plastics Education, health Food, beverages, tobacco Metals & metal products Banks Textiles, wearing apparel, leather Construction Primary sector Hotels & restaurants Gas, water, electricity Wood, cork, paper Transport Insurance companies Post and telecommunications Public administration and defence Other services 17,291 30,792 15,909 Hotels & restaurants 315 5,071 11,363 Machinery, equipment, furniture, recycling 36,890 4,630 4,267 Primary sector 1 1,532 2,831 Wholesale & retail trade 6, ,503 Chemicals, rubber, plastics 1,948 1,779 2,045 Gas, water, electricity 779 1,886 1,947 Wood, cork, paper ,502 Textiles, wearing apparel, leather ,183 Publishing, printing ,010 Education, health Construction Banks 387 1, Metals & metal products 739 1, Transport Food, beverages, tobacco Insurance companies Post and telecommunications Public administration and defence Page 36

38 Asia and Asia Pacific, Q Asia Pacific M&A volume and value both decline in Q3 The volume and value of M&A targeting companies based in the Asia Pacific region both declined in Q after increasing on both fronts in in Q The result was also down on the same time last year, when 6,299 transactions worth USD 238,130 million were announced. In total there were 5,141 transactions with a combined value of USD 210,084 million in the three months from July to September, accounting for 32 per cent of total global M&A volume (16,186 deals) and 20 per cent of overall value (USD 1,054 billion). Despite value weakening over the three months, an Asia Pacific-based target not only accounted for the region s largest deal by value but also for the world s highest-value private equity deal in Q3 and the fourth largest M&A deal overall. It involved oil and petroleum products wholesaler Sinopec Sales, which secured USD 17,458 million from investors, including China Life Insurance, Harvest Fund Management and ENN Energy China Investment in September. Asia and Asia Pacific deals by volume and value Announced date No of deals Q , ,084 Q , ,523 Q , ,512 Q , ,983 Q , ,130 Q , ,066 Q , ,956 Q , ,685 Total deal value Q , ,344 Page 37

39 Asia and Asia Pacific, Q Asia and Asia Pacific deals by volume and value Deal value 400, , , , , , ,000 50,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Q Q Q Q Q Q Q Q Q Total deal value Number of deals Page 38

40 Asia and Asia Pacific, Q Chinese companies dominate top M&A deals in Q3 Once again China was the main target of M&A interest in Asia Pacific in Q3. In all there were 1,267 transactions worth USD 101,753 million announced over the three months. Nine of the top 20 deals recorded for the three months have Chinese targets, including the top deal, the aforementioned Sinopec Sales funding round, which accounted for 8 per cent of the quarter s total M&A value (USD 210,084 million). Other Chinese companies targeted include Hong Yuan Securities, Sinopec Oilfield Services and Ping An Bank. While M&A favoured Chinese targets in Q3, Australian companies were the next main targets by volume with 810 deals, followed by Japanese companies with 598 transactions. In monetary terms, Japanese companies attracted M&A totalling USD 26,401 million, though Australian targets came close with USD 25,450 million. Sinopec accounts for region s largest PE and VC deal by value PE and VC investment in companies based in Asia Pacific may have increased in Q3 but this improvement was mainly down to the USD 17,458 million Sinopec Sales deal, which was worth more than seven times the value of the region s next largest deal. China Huarong Asset Management attracted investment of USD 2,368 million from Warburg Pincus, Goldman Sachs and Fosun International, among others. Singapore-headquartered Goodpack accounted for the third largest deal of the quarter after securing USD 1,126 million from IBC Capital. Other targets include Flipkart Internet of India, Pioneer DJ of Japan and Henan Jinkai Chemical Investment s industrial gas assets. PE and VC value rockets While M&A targeting companies based in Asia Pacific declined, PE and VC investment rose significantly over the three months. Volume increased 16 per cent to 372 deals from 322 transactions in Q2, while value shot up to USD 29,061 million from USD 10,886 million. Volume and value was at the highest recorded in the entire period under review. The increase will be welcome news following a 49 per cent decline in value between Q1 and Q2 this year, when investment slipped from USD 21,306 million to USD 10,886 million. Page 39

41 Asia and Asia Pacific, Q Top 20 Asia and Asia Pacific deals by value Deal value Deal type Target Target country Acquiror Acquiror country Announced date 1. 17,458 Minority stake 30% Sinopec Sales Co., Ltd CN Investors; China Life Insurance Co., Ltd; Sino Life Insurance Co., Ltd; Harvest Fund Management Co., Ltd; Changjiang Pension Insurance Co., Ltd; Harvest Capital Management Co., Ltd; Bohai Huamei (Shanghai) Equity Investment Management Co., Ltd; Cinda Sino-Rock International Energy Co., Ltd; HuaXia SSF1 Investors Ltd; Kingsbridge Asset Holding Ltd; Qian Hai Golden Bridge Management Ltd; Shenzhen Baotengsheng Fund Management Co., Ltd; ENN Energy China Investment Ltd CN; CN; CN; CN; CN; CN VG; VG; VG; CN; CN; HK 15/09/ ,390 Acquisition 100% Hong Yuan Securities Co., Ltd CN Shenyin & Wanguo Securities Co., Ltd CN 26/07/ ,271 Acquisition Abbott Laboratories Inc.'s non-us developed markets JP; CA; New Moon BV NL 14/07/2014 speciality and branded generics business in Europe; Abbott Laboratories Inc.'s non-us developed markets speciality and branded generics business in Japan; Abbott Laboratories Inc.'s non-us developed markets speciality and branded generics business in Canada; Abbott Laboratories Inc.'s non-us developed markets speciality and branded generics business in Australia; Abbott Laboratories Inc.'s non-us developed markets speciality and branded generics business in New Zealand AU; NZ 4. 3,927 Acquisition 100% Sinopec Oilfield Services Corporation CN Sinopec Yizheng Chemical Fibre Co., Ltd CN 12/09/ ,221 Minority stake Ping An Bank Co., Ltd CN Investors; Pingan Assets Management Co., Ltd CN 16/07/ ,704 Minority stake 17% The Dai-ichi Life Insurance Co., Ltd JP 03/07/ ,664 Minority stake 11% Oversea-Chinese Banking Corporation Ltd SG 18/08/ ,497 Acquisition 100% Samsung Engineering Co., Ltd KR Samsung Heavy Industries Co., Ltd KR 01/09/ ,427 Acquisition 100% Australand Property Group AU Frasers Amethyst Pte Ltd SG 07/07/ ,368 Minority stake 21% China Huarong Asset Management Co., Ltd CN Warburg Pincus LLC; Goldman Sachs Group Inc.; China International Capital Corporation Ltd; Khazanah Nasional Bhd; China Life Insurance (Group) Company; CITIC Securities International Co., Ltd; Fosun International Ltd; COFCO Corporation US; US; CN; MY; CN; HK; HK; CN 28/08/2014 Page 40

42 Asia and Asia Pacific, Q Top 20 Asia and Asia Pacific deals by value (cont d) Deal value Deal type Target Target country Acquiror Acquiror country Announced date 11. 1,950 Minority stake S-Oil Corporation KR Aramco Overseas Company BV NL 02/07/ ,945 Minority stake 5% Hitachi, Ltd JP Sumitomo Mitsui Trust Bank Ltd JP 31/07/ ,736 Minority stake 5% Mitsubishi Corporation JP BlackRock Japan Co., Ltd JP 31/07/ ,611 Minority stake 9% Ping An Bank Co., Ltd CN Investors; Ping An Insurance (Group) Company of China Ltd CN 16/07/ ,411 Acquisition 70% Shanghai Zhongji Investment Holding Co., Ltd CN Investors; Shanghai Huanzhi Investment Management Co., Ltd CN 19/08/ ,146 Minority stake 17% AGL Energy Ltd AU 20/08/ ,126 IBO 100% Goodpack Ltd SG IBC Capital Ltd KY 30/07/ ,059 Acquisition 100% Sinopec Yizheng Chemical Fibre Co., Ltd's outgoing business CN China Petroleum & Chemical Corporation CN 12/09/ ,055 Minority stake 5% Orix Corporation JP BlackRock Japan Co., Ltd JP 31/07/ ,031 Acquisition 100% Anhui Jianghuai Automotive Group Co., Ltd CN Anhui Jianghuai Automobile Co., Ltd CN 11/07/2014 Page 41

43 Asia and Asia Pacific, Q Target country by volume - Asia and Asia Pacific deals Target country by value - Asia and Asia Pacific deals Target country Q Q Q Target country Q Q Q China 1,221 1,222 1,267 Australia 1, Japan India South Korea Taiwan Malaysia Vietnam Singapore Thailand Hong Kong Indonesia New Zealand Philippines Sri Lanka Kazakhstan Samoa Marshall Islands Pakistan Kyrgyzstan China 93, , ,753 Japan 42,077 29,851 26,401 Australia 23,992 44,355 25,450 South Korea 16,486 25,399 15,480 India 17,615 25,145 10,444 Taiwan 14,894 13,945 9,513 Singapore 4,870 9,756 8,128 New Zealand 1,794 2,725 6,364 Malaysia 4,248 9,249 4,000 Hong Kong 5,282 16,690 3,131 Philippines 3,951 1,970 2,867 Thailand 546 4,664 2,104 Vietnam 1,078 1,801 1,934 Indonesia 6,450 4,669 1,727 Marshall Islands 891 2,911 1,160 Kazakhstan 598 1, Sri Lanka Pakistan Samoa Cambodia Page 42

44 Asia and Asia Pacific, Q Target sector by volume - Asia and Asia Pacific deals Target sector by value - Asia and Asia Pacific deals Target sector Q Q Q Target sector Q Q Q Other services 1,719 1,641 1,544 Machinery, equipment, furniture, recycling 1,141 1, Chemicals, rubber, plastics Wholesale & retail trade Construction Banks Publishing, printing Metals & metal products Primary sector Education, health Transport Food, beverages, tobacco Textiles, wearing apparel, leather Gas, water, electricity Hotels & restaurants Wood, cork, paper Insurance companies Post and telecommunications Public administration and defence Other services 41,964 92,443 45,604 Machinery, equipment, furniture, recycling 61,143 39,343 30,910 Wholesale & retail trade 11,519 14,016 28,971 Chemicals, rubber, plastics 21,961 21,345 26,047 Banks 28,416 64,446 20,427 Construction 19,987 22,671 12,100 Primary sector 5,238 9,917 9,748 Metals & metal products 12,505 16,793 7,694 Insurance companies 3,252 4,202 7,005 Transport 7,923 23,047 5,337 Gas, water, electricity 8,251 8,425 4,479 Publishing, printing 3,235 6,127 4,037 Food, beverages, tobacco 6,500 7,932 3,574 Hotels & restaurants 1,604 2,972 2,366 Education, health 2,076 2,126 2,146 Textiles, wearing apparel, leather 4,001 1,617 1,231 Wood, cork, paper 454 2, Post and telecommunications 1, Public administration and defence Page 43

45 Asia and Asia Pacific, Q Asia and Asia Pacific private equity deals by volume and value Announced date No of deals Total deal value Q ,061 Q ,886 Q ,306 Q ,948 Q ,433 Q ,169 Q ,374 Q ,941 Q ,457 Page 44

46 Asia and Asia Pacific, Q Asia and Asia Pacific private equity deals by volume and value Deal value 35,000 30,000 25,000 20,000 15,000 10,000 5, Q Q Q Q Q Q Q Q Q Total deal value Number of deals Page 45

47 Asia and Asia Pacific, Q Top 20 Asia and Asia Pacific private equity deals by value Deal value Deal type Target Target country Equity provider Announced date 1. 17,458 Minority stake 30% Sinopec Sales Co., Ltd CN China Life Insurance Co., Ltd; Sino Life Insurance Co., Ltd; Harvest Fund 15/09/2014 Management Co., Ltd; Changjiang Pension Insurance Co., Ltd; Harvest Capital Management Co., Ltd; Bohai Huamei (Shanghai) Equity Investment Management Co., Ltd; Cinda Sino-Rock International Energy Co., Ltd; HuaXia SSF1 Investors Ltd; RRJ Management (HK) Ltd; Qian Hai Golden Bridge Management Ltd; Shenzhen Baotengsheng Fund Management Co., Ltd; ENN Energy China Investment Ltd 2. 2,368 Minority stake 21% China Huarong Asset Management Co., Ltd CN Warburg Pincus LLC; Goldman Sachs Group Inc.; China International Capital 28/08/2014 Corporation Ltd; Khazanah Nasional Bhd; China Life Insurance (Group) Company; CITIC Securities International Co., Ltd; Fosun International Ltd; COFCO Corporation 3. 1,126 IBO 100% Goodpack Ltd SG Kohlberg Kravis Roberts & Company LP 30/07/ Minority stake Flipkart Internet Pvt Ltd IN Accel Management Company LLC; T Rowe Price Group Inc.; Tiger Global Management LLC; Mail.ru Group Ltd; GIC Pte Ltd 23/07/ IBO 100% Pioneer DJ Corporation JP Kohlberg Kravis Roberts & Company LP 16/09/ Acquisition 100% Henan Jinkai Chemical Investment Holding Group Co., Ltd's industrial gas assets CN Warburg Pincus LLC 19/08/ Acquisition 80% Chery Heavy Industry Co., Ltd CN Hony Capital Co., Ltd 20/08/ IBO 100% Roc Oil Company Ltd AU Fosun International Ltd 11/09/ IBO 75% Suzhou Savera Shangwu Elevator Riding System Co., Ltd CN Partners Group Holding AG 19/08/ Minority stake Velocity Frequent Flyer Pty Ltd AU Affinity Equity Partners (HK) Ltd 29/08/2014 Page 46

48 Asia and Asia Pacific, Q Top 20 Asia and Asia Pacific private equity deals by value (cont d) Deal value Deal type Target Target country Equity provider Announced date IBO 100% Tong Yang Magic Inc. KR Nonghyup Bank 02/07/ Minority stake 45% JinkoSolar Power Engineering Group Ltd CN Macquarie Group Ltd; New Horizon Capital; China Development Bank 30/07/2014 International Investment Ltd Minority stake Beijing Feixiangren Information Technology Co., Ltd CN The Carlyle Group; Tiger Global Management LLC 12/08/ IBO 100% LCR Group Pty Ltd AU Archer Capital Pty Ltd 03/07/ Minority stake 10% Intas Pharmaceuticals Ltd IN Dunearn Investments (Mauritius) Pte Ltd 16/09/ Acquisition to 100% Beijing Liujin Property Ltd CN Beijing Capital Investment Co., Ltd; Beijing Zhongzhi Dingfu Real Estate 18/09/2014 Property Development Ltd Minority stake ReNew Power Ventures Pvt Ltd IN Goldman Sachs Group Inc.; Asian Development Bank; GEF Management 03/07/2014 Corporation Minority stake 32% Korea Real Estate Investment & Trust Co., Ltd KR ACCION Investment Management Company; Hanwha Investment Corporation 01/09/ Minority stake 45% Canberra Data Centres Pty Ltd AU Quadrant Private Equity Pty Ltd 18/09/ IBO 96% Orkim Sdn Bhd MY Ekuiti Nasional Bhd 21/08/2014 Page 47

49 Asia and Asia Pacific, Q Target country by volume - Asia and Asia Pacific private equity deals Target country by value - Asia and Asia Pacific private equity deals Target country Q Q Q Target country Q Q Q China India Japan Australia South Korea Indonesia New Zealand Hong Kong Singapore Thailand Philippines Malaysia Taiwan Kazakhstan Sri Lanka Vietnam China 1,769 2,388 22,894 India 1,687 1,112 2,361 Australia 431 2,937 1,190 Singapore 33 1,288 1,151 Japan 1,801 1, South Korea 2,805 1, Malaysia Taiwan Vietnam Sri Lanka Hong Kong Indonesia New Zealand Thailand Philippines Page 48

50 Asia and Asia Pacific, Q Target sectors by volume - Asia and Asia Pacific private equity deals Target sectors by value - Asia and Asia Pacific private equity deals Target sector Q Q Q Target sector Q Q Q Other services Publishing, printing Wholesale & retail trade Machinery, equipment, furniture, recycling Education, health Banks Chemicals, rubber, plastics Post and telecommunications Hotels & restaurants Construction Gas, water, electricity Metals & metal products Food, beverages, tobacco Transport Primary sector Textiles, wearing apparel, leather Wood, cork, paper Public administration and defence Insurance companies Wholesale & retail trade ,644 Other services 2,635 2,342 4,562 Metals & metal products ,456 Machinery, equipment, furniture, recycling ,381 Chemicals, rubber, plastics 1, Gas, water, electricity Publishing, printing Construction Banks Transport 150 3, Hotels & restaurants Primary sector 53 1, Post and telecommunications 1, Education, health Textiles, wearing apparel, leather Food, beverages, tobacco Wood, cork, paper Public administration and defence Insurance companies 1, Page 49

51 Russia/CEE, Q Russia and CEE volume and value weaken The value of mergers and acquisitions (M&A) targeting companies based in Russia and Central and Eastern Europe (CEE) in Q dipped 6 per cent from USD 41,793 million last quarter to USD 39,297 million. Year-on-year the result was 11 per cent lower than the USD 43,910 millionworth of deals announced in Q Volume fell at the faster rate of 32 per cent from 2,908 transactions in Q to 1,988, the lowest level since Q (1,857). Russia/CEE deals by volume and value Announced date No of deals Q ,988 39,297 Q ,908 41,793 Q ,104 33,951 Q ,364 78,568 Q ,755 43,910 Q ,404 63,783 Q ,058 56,933 Q ,142 53,435 Q ,857 25,913 Total deal value Page 50

52 Russia/CEE, Q Russia/CEE deals by volume and value Deal value 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 4,000 3,500 3,000 2,500 2,000 1,500 1, Q Q Q Q Q Q Q Q Q Total deal value Number of deals Page 51

53 Russia/CEE, Q Russian M&A drives regional value Companies based in Russia were targeted in the top 5 transactions by value during Q with a combined value of USD 19,385 million, accounting for 49 per cent of the region s total M&A value for the quarter. Highest of these was an attempted takeover of Aktsionernyi Kommercheskii Bank Bank Moskvy by Bank VTB worth USD 7,241 million. The buyer succeeded in acquiring 96 per cent of the outstanding shares in Bank Moskvy. This was followed by the Russian government purchasing a stake in Bank VTB via a capital increase worth USD 5,776 million. In all, Russian companies were targeted in 14 of the top 20 deals by value in Q3 2014, with Polish, Czech, Hungarian and Belarussian companies also targeted. Steady growth in PE investment value The value of private equity and venture capital (PE and VC) investment targeting companies in the CEE region advanced for the second quarter in a row to USD 743 million in Q after a sharp drop between the last quarter of 2013 and the first three months of this year (Q4 2013: USD 10,110 million; Q1 2014: USD 534 million; Q2 2014: USD 621 million). Russia leads by volume and value The predominance of Russian targets in the top 20 transactions by value is indicative of its position as a key country for M&A in the region as a whole. Russian companies were both the most valuable and most prolific in Q3 2014, targeted in 507 transactions worth a total of USD 29,959 million. In monetary terms, this marked the second consecutive quarterly increase (Q1 2014: USD 21,707 million; Q2 2014: USD 27,138 million). Companies based in Poland were the next main targets by value with USD 3,102 million and Romania third with USD 1,419 million. There was a significant drop in the value of M&A targeting Ukrainian companies as deal-making fell to USD 845 million from USD 5,869 million in Q2 2014, potentially attributable to ongoing political tension in the country. Poland was also second by volume with 173 transactions, halving from 384 the previous quarter. Again, there was a significant decrease in the volume of transactions targeting Ukrainian companies with an almost three-fold decline from 254 deals in Q to 94. Year-on-year, PE and VC investment value in the quarter under review was almost double the USD 386 million-worth of deals announced in Q Volume slipped by more than two-thirds from 130 transactions in Q to 84, the lowest since Q when 67 deals were announced. The highest-value PE deal of the quarter was Czech PE firm PPF increasing its stake in mobile operator O2 Czech Republic from 73 per cent to 80 per cent for USD 330 million. Page 52

54 Russia/CEE, Q Top 20 Russia/CEE deals by value Deal value Deal type Target Target country Acquiror Acquiror country Announced date 1. 7,241 Acquisition 96% Aktsionernyi Kommercheskii Bank Bank Moskvy OAO RU Bank VTB OAO RU 04/09/ ,776 Minority stake Bank VTB OAO RU Federalnoe Agentstvo Po Upravleniyu Gosudarstvennym RU 01/09/2014 Imushchestvom 3. 2,631 Acquisition 93% Aviatsionnyi Kompleks im SV Ilyushina OAO RU 15/07/ ,267 Minority stake 20% on London Stock Aktsionernaya Neftyanaya Kompaniya Bashneft OAO RU 08/09/2014 Exchange 5. 1,470 Acquisition 52% to 100% V Kontakte OOO RU Mail.ru Group Ltd VG 16/09/ ,423 Acquisition 100% Bank Gospodarki Zywnosciowej SA PL BNP Paribas SA FR 25/08/ ,042 Acquisition 62% Gazprombank OAO RU Federalnoe Agentstvo Po Upravleniyu Gosudarstvennym RU 17/09/2014 Imushchestvom Minority stake 29% Vertolety Rossii OAO RU Obyedinennaya Promyshlennaya Korporatsiya RU; RU; 06/08/2014 Oboronprom OAO; Federalnoe Agentstvo Po Upravleniyu RU Gosudarstvennym Imushchestvom; Rostekh Acquisition VGP Park Horni Pocernice AS; VGP CZ II SRO; VGP Blue Park AS; VGP Green Tower AS; VGP Park Turnov AS; VGP Park Prisovice AS; VGP CZ IV SRO; VGP Green Park AS CZ; CZ; CZ; CZ; CZ; CZ; CZ; CZ P3 Group Sarl LU 24/08/ Acquisition to 100% Rossiiskii Selskokhozyaistvennyi Bank OAO RU Federalnoe Agentstvo Po Upravleniyu Gosudarstvennym Imushchestvom RU 29/08/2014 Page 53

55 Russia/CEE, Q Top 20 Russia/CEE deals by value (cont d) Deal value Deal type Target Target country Acquiror Acquiror country Announced date Acquisition 66% Obyedinennye Mashinostroitelnye Zavody (Gruppa RU Gazprombank-Upravlenie Aktivami ZAO; Inter Kapital OOO RU; RU 14/07/2014 Uralmash-Izhora) OAO Acquisition 100% Rossiiskie Kommunalnye Sistemy OAO RU Kompleksnye Energeticheskie Sistemy ZAO RU 21/08/ Minority stake 32% Gruppa Kompanii PIK OAO RU 01/07/ Acquisition 94% to 100% Vankorneft ZAO RU Neftyanaya Kompaniya Rosneft OAO RU 18/08/ Minority stake 12% Moskovskaya Birzha MMVB-RTS OAO RU Investors; Upravlyayushchaya Kompaniya RFPI OOO RU 02/07/ Minority stake 4% PGE Polska Grupa Energetyczna SA PL Undisclosed investors 02/07/ Minority stake Erste Bank Hungary Zrt HU Erste Group Bank AG AT 26/08/ Acquisition to 100% Rossiiskie Zheleznye Dorogi OAO RU Pravitelstvo Rossii RU 28/07/ Acquisition 99% Gostinnichnyi Kompleks Pripyat OAO BY Undisclosed acquiror 08/07/ IBO 7% O2 Czech Republic AS CZ PPF AS CZ 07/07/2014 Page 54

56 Russia/CEE, Q Target country by volume - Russia/CEE deals Target country by value - Russia/CEE deals Target country Q Q Q Target country Q Q Q Russia Poland Romania Bulgaria Ukraine Estonia Latvia Belarus Hungary Czech Republic Serbia Moldova Bosnia And Herzegovina Lithuania Slovenia Croatia Slovakia Macedonia Kosovo Montenegro Russia 37,850 27,138 29,959 Poland 803 3,941 3,102 Romania 412 1,057 1,419 Czech Republic 287 1,023 1,323 Ukraine 2,745 5, Slovenia Hungary Belarus Slovakia Croatia Bulgaria Latvia Serbia Estonia Bosnia And Herzegovina Kosovo Lithuania Moldova Macedonia Montenegro Page 55

57 Russia/CEE, Q Target sector by volume - Russia/CEE deals Target sector Q Q Q Other services Wholesale & retail trade Banks Machinery, equipment, furniture, recycling Construction Primary sector Gas, water, electricity Food, beverages, tobacco Chemicals, rubber, plastics Transport Metals & metal products Textiles, wearing apparel, leather Publishing, printing Hotels & restaurants Education, health Insurance companies Wood, cork, paper Post and telecommunications Public administration and defence Target sector by value - Russia/CEE deals Target sector Q Q Q Banks 4,039 3,745 18,584 Other services 7,102 7,022 5,557 Machinery, equipment, furniture, recycling 2,606 5,343 5,232 Primary sector 9,929 8,677 2,423 Gas, water, electricity 5,523 1,928 2,178 Wholesale & retail trade 935 1,979 1,233 Construction 258 6, Transport 1,845 1, Hotels & restaurants Metals & metal products 1,759 1, Chemicals, rubber, plastics 8,959 2, Food, beverages, tobacco 181 1, Wood, cork, paper Insurance companies Textiles, wearing apparel, leather Publishing, printing Education, health Post and telecommunications Public administration and defence Page 56

58 Russia/CEE, Q Russia/CEE private equity deals by volume and value Announced date No of deals Total deal value Q Q Q Q ,110 Q Q ,998 Q ,109 Q Q ,375 Page 57

59 Russia/CEE, Q Russia/CEE private equity deals by volume and value Deal value 12,000 10,000 8,000 6,000 4,000 2, Q Q Q Q Q Q Q Q Q Total deal value Number of deals Page 58

60 Russia/CEE, Q Top 20 Russia/CEE private equity deals by value Deal value Deal type Target Target country Equity provider Announced date IBO 7% O2 Czech Republic AS CZ PPF AS 07/07/ IBO 75% Citadele Banka AS LV Ripplewood Holdings LLC 17/09/ Minority stake Ulybkino OOO RU 15/07/ IBO Suominen Joustopakkaukset Oy; Suominen Polska Sp zoo FI; PL Lonsdale Capital Partners LLP 11/07/ Minority stake 11% to 33% Sen-Goben Stroitelnaya Produktsiya Rus OOO RU European Bank for Reconstruction and Development 07/07/ IBO 85% Ceramica SA (Iasi) RO Asia Debt Management Hong Kong Ltd 14/07/ Minority stake Glass-Team Sp zoo PL Syntaxis Capital U.F. GmbH 01/08/ Minority stake esky SA PL Syntaxis Capital U.F. GmbH 17/07/ Minority stake Frenchkis OOO RU Venture Investments & Yield Management LLP 04/09/ Minority stake SamAp OOO RU Banco Bilbao Vizcaya Argentaria SA; Finansovaya Gruppa Laif ZAO; 12/08/2014 Groupon Inc Minority stake Zhuk RU 14/08/ Minority stake 25% Adesso SA PL 21 Concordia Sp zoo 29/08/ Minority stake Energoeffektivnye Izmeritelnye Sistemy OOO RU 17/07/ Minority stake Vebinar OOO RU European Bank for Reconstruction and Development; Intel Capital 03/09/2014 Corporation; VTB Kapital Upravlenie Aktivami ZAO; Flint Kapital OOO Minority stake OnlineTours RU HV Holtzbrinck Ventures Adviser GmbH; InVenture Partners; e.ventures; 17/07/2014 GlobalFoundersCapital Minority stake Travelata OOO RU European Bank for Reconstruction and Development; MCI Management SA 08/07/ Minority stake Selanikar OOO RU Fast Lein Venchures OOO 22/07/ Acquisition 41% to 53% Inkuron OOO RU Upravlyayushchaya Kompaniya Bioprotsess Kepital Partners OOO 12/08/ Acquisition 74% to 100% Bakalland SA PL Innova Phoenix Sarl 11/08/ Minority stake Mobile Engine Szoftverfejleszto es Uzemelteto Kft HU Valor Capital Kockazati Tokealap-Kezelo Zrt 28/08/2014 Page 59

61 Russia/CEE, Q Target country by volume - Russia/CEE private equity deals Target country by value - Russia/CEE private equity deals Target country Q Q Q Target country Q Q Q Russia Poland Bulgaria Ukraine Lithuania Romania Czech Republic Hungary Slovakia Latvia Estonia Czech Republic Russia Latvia Poland Romania Hungary Bulgaria Slovakia Page 60

62 Russia/CEE, Q Target sectors by volume - Russia/CEE private equity deals Target sectors by value - Russia/CEE private equity deals Target sector Q Q Q Target sector Q Q Q Other services Publishing, printing Wholesale & retail trade Chemicals, rubber, plastics Food, beverages, tobacco Machinery, equipment, furniture, recycling Construction Banks Wood, cork, paper Textiles, wearing apparel, leather Gas, water, electricity Education, health Insurance companies Primary sector Metals & metal products Hotels & restaurants Post and telecommunications Transport Other services Banks Chemicals, rubber, plastics Wholesale & retail trade Food, beverages, tobacco Publishing, printing Construction Machinery, equipment, furniture, recycling Wood, cork, paper Post and telecommunications Education, health Insurance companies Gas, water, electricity Metals & metal products Textiles, wearing apparel, leather Transport Hotels & restaurants Primary sector Page 61

63 Zephyr Half Year M&A Report Notes to editors Activity is based on the activity of the target company. Deal status is announced within the time period. The sector breakdown uses targets activities as defined to be Major Sectors by Zephyr. The date range for Q is deals announced between 01/07/ /09/2014 inclusive. The Western Europe region covers target companies in Andorra, Austria, Belgium, Cyprus, Denmark, Finland, France, Germany, Gibraltar, Greece, Iceland, Ireland, Italy, Liechtenstein, Luxembourg, Malta, Monaco, Netherlands, Norway, Portugal, San Marino, Spain, Sweden, Switzerland, Turkey and the UK. The Asia and Asia Pacific region covers target companies based in the Far East, Central Asia and Oceania. The Russia/CEE region covers target companies in Albania, Belarus, Bosnia and Herzegovina, Bulgaria, Croatia, Czech Republic, Estonia, Hungary, Kosovo, Latvia, Lithuania, Macedonia, Moldova, Montenegro, Poland, Romania, Russia, Serbia, Slovakia, Slovenia and Ukraine. Where deals have multiple targets the sector and region of each target is represented in the data. All deal types are included except joint ventures, IPOs, planned IPOs and share buybacks.

64 Zephyr Half Year M&A Report About Bureau van Dijk Bureau van Dijk (BvD) is one of the world s leading publishers of electronic business and company information. The company has 33 offices worldwide. BvD is best known for its range of international company information products that combines multiple high-quality data sources with flexible software to allow users to manipulate data for research, marketing intelligence and analysis. Products include Fame, Orbis, Amadeus, Bankscope, Isis and Osiris. BvD also publishes the global M&A database, Zephyr. About Zephyr Zephyr is an information solution containing M&A, IPO and venture capital deals and rumours with links to detailed financial company information. Zephyr covers various deal types including M&A activity, IPOs, joint ventures and private equity deals. It s published by Bureau van Dijk (BvD). The deals on Zephyr are linked to the company financials and peer reports on BvD s product range, which includes Orbis, Amadeus and Fame, for company valuation and benchmarking. Zephyr contains information on over 1 million deals. Approximately 75,000 deals are added each year depending on levels of deal activity. Zephyr has no minimum deal value. All deal information is translated into English. Zephyr s UK-based researchers speak 35 languages and use native language and English sources in their deal enquiries.