Global, Q3 2014
Global, Q3 2014 The following report details mergers and acquisitions activity in Q3 2014 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 Q3 2014 declined 18 per cent from USD 1,279 billion in Q2 2014 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 Q3 2014 16,186 1,053,770 Q2 2014 20,244 1,279,478 Q1 2014 20,545 978,052 Q4 2013 22,094 955,573 Q3 2013 19,945 1,028,788 Q2 2013 19,342 918,068 Q1 2013 17,742 736,504 Q4 2012 20,097 1,067,238 Q3 2012 17,689 715,272 Page 1
Global, Q3 2014 Global deals by volume and value 1,400,000 25,000 Deal value 1,200,000 1,000,000 800,000 600,000 400,000 200,000 20,000 15,000 10,000 5,000 0 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 0 Total deal value Number of deals Page 2
Global, Q3 2014 US targets dominate quarter s top deals All of the top 20 deals recorded in Q3 2014 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 Q3 2014 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
Global, Q3 2014 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 10/08/2014 2. 53,642 Acquisition 100% Shire plc GB AbbVie Inc. US 18/07/2014 3. 27,400 Acquisition 100% Lorillard Inc. US Reynolds American Inc. US 15/07/2014 4. 17,458 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 06/08/2014 6. 13,832 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 28/07/2014 7. 13,500 Acquisition 100% TRW Automotive Holdings Corporation US ZF Friedrichshafen AG DE 15/09/2014 8. 11,356 Acquisition 100% Tim Hortons Inc. CA Burger King Worldwide Inc. US 26/08/2014 9. 11,042 Acquisition Enersis SA; Endesa Latinoamerica SA CL; ES Enel Energy Europe SRL ES 31/07/2014 10. 9,871 Acquisition 100% Family Dollar Stores Inc. US Dollar General Corporation US 10/09/2014 Page 4
Global, Q3 2014 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 18/09/2014 12. 9,200 Acquisition 100% Family Dollar Stores Inc. US Dollar Tree Inc. US 28/07/2014 13. 8,709 Acquisition 100% Salix Pharmaceuticals Ltd US Cosmo Technologies Ltd IE 08/07/2014 14. 8,552 Acquisition 100% The Hillshire Brands Company US Tyson Foods Inc. US 02/07/2014 15. 8,300 Acquisition 100% Concur Technologies Inc. US SAP America Inc. US 18/09/2014 16. 8,300 Acquisition 100% InterMune Inc. US Roche Holding AG CH 24/08/2014 17. 7,500 Minority stake 23% Hermès International SCA FR LVMH Moet Hennessy Louis Vuitton SA's shareholders FR 03/09/2014 18. 7,241 Acquisition 96% Aktsionernyi Kommercheskii Bank Bank Moskvy OAO RU Bank VTB OAO RU 04/09/2014 19. 7,100 Acquisition Lorillard Inc.'s certain assets; Reynolds American Inc.'s certain assets US; US Lignum-2 Inc. US 15/07/2014 20. 6,400 Acquisition 100% International Game Technology Inc. US GTECH plc GB 16/07/2014 Page 5
Global, Q3 2014 Target country by volume - global deals Target country by value - global deals Target country Q3 2013 Q2 2014 Q3 2014 Target country Q3 2013 Q2 2014 Q3 2014 US 2,920 3,535 3,064 China 1,221 1,222 1,267 UK 1,787 1,472 1,257 Canada 912 944 823 Australia 1,283 933 810 Japan 758 785 598 Russia 674 676 507 Spain 656 696 496 India 520 699 484 South Korea 724 721 470 Germany 509 453 431 Taiwan 651 589 428 France 432 536 406 Malaysia 282 347 323 Italy 266 368 284 Netherlands 470 341 277 Sweden 329 373 218 Vietnam 174 294 191 South Africa 144 181 187 Poland 346 384 173 US 404,125 402,008 407,338 UK 61,417 59,818 106,420 China 93,386 144,972 101,753 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 3,289 923 14,925 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
Global, Q3 2014 Top five global target countries by deal volume in Q3 2014 Top five global target countries by deal value in Q3 2014 US US China UK UK China Canada Canada Australia Russia Page 7
Global, Q3 2014 Top five global target countries by deal volume in Q3 2014 Deal volume between Q3 2012 and Q3 2014 Number of deals 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 US China UK Canada Australia Q3 2014 Top five global target countries by deal value in Q3 2014 Deal value between Q3 2012 and Q3 2014 Deal value 450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 US UK China Canada Russia Q3 2014 Page 8
Global, Q3 2014 Target sector by volume - global deals Target sector by value - global deals Target sector Q3 2013 Q2 2014 Q3 2014 Target sector Q3 2013 Q2 2014 Q3 2014 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 1,171 936 Publishing, printing 578 687 750 Construction 909 969 717 Metals & metal products 620 571 452 Primary sector 526 562 431 Food, beverages, tobacco 532 540 421 Education, health 429 477 387 Transport 571 537 373 Gas, water, electricity 452 411 295 Hotels & restaurants 350 341 252 Textiles, wearing apparel, leather 200 224 196 Insurance companies 192 205 135 Wood, cork, paper 143 151 117 Post and telecommunications 38 23 24 Public administration and defence 10 5 2 Other services 363,095 433,837 320,403 Banks 120,158 159,597 133,089 Chemicals, rubber, plastics 74,328 111,153 128,729 Gas, water, electricity 41,571 55,112 109,444 Machinery, equipment, furniture, recycling 164,619 176,152 101,711 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 1,820 716 656 Public administration and defence 56 35 0 Page 9
Global, Q3 2014 Global private equity deals by volume and value Announced date No of deals Total deal value Q3 2014 2,627 112,888 Q2 2014 2,823 119,964 Q1 2014 2,551 126,806 Q4 2013 2,666 105,045 Q3 2013 2,453 104,462 Q2 2013 2,381 101,478 Q1 2013 2,220 90,720 Q4 2012 2,438 95,947 Q3 2012 2,281 86,933 Page 10
Global, Q3 2014 Global private equity deals by volume and value 140,000 3,000 Deal value 120,000 100,000 80,000 60,000 40,000 20,000 2,500 2,000 1,500 1,000 500 0 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 0 Total deal value Number of deals Page 11
Global, Q3 2014 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. 26/08/2014 3. 3,110 IBO majority stake Lindorff AS NO NC Advisory AB 18/07/2014 4. 2,811 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 03/08/2014 6. 2,500 IBO 100% Compuware Corporation US Thoma Bravo LLC 02/09/2014 7. 2,368 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 29/07/2014 9. 1,758 IBO 100% LTS Lohmann Therapie-Systeme AG DE Dievini Hopp BioTech Holding GmbH & Co. KG 17/07/2014 10. 1,542 IBO 100% PizzaExpress Ltd GB Hony Capital Co., Ltd 11/07/2014 Page 12
Global, Q3 2014 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. 25/08/2014 12. 1,325 IBO 100% York Risk Services Group Inc. US Onex Corporation 16/07/2014 13. 1,300 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 14/08/2014 15. 1,200 IBO 100% Grocery Outlet Inc. US Hellman & Friedman LLC 16/09/2014 16. 1,190 IBO 100% ParexGroup SA FR CVC Capital Partners Ltd 22/07/2014 17. 1,126 IBO 100% Goodpack Ltd SG Kohlberg Kravis Roberts & Company LP 30/07/2014 18. 1,087 IBO 100% MPG Opco Ltd GB The Blackstone Group LP 22/07/2014 19. 1,050 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
Global, Q3 2014 Target country by volume - global private equity deals Target country by value - global private equity deals Target country Q3 2013 Q2 2014 Q3 2014 Target country Q3 2013 Q2 2014 Q3 2014 US 1,121 1,359 1,338 UK 221 233 204 China 67 92 163 France 92 178 99 India 107 106 98 Germany 111 90 84 Canada 80 61 70 Spain 56 85 65 Japan 47 48 54 Russia 35 62 43 Netherlands 39 37 36 Italy 47 39 33 Israel 41 35 30 Finland 19 37 26 Sweden 27 42 23 Belgium 17 10 20 Brazil 25 20 17 Australia 19 15 15 Switzerland 17 12 15 Portugal 18 6 13 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 871 154 3,006 India 1,687 1,112 2,361 Spain 1,045 2,392 2,044 Switzerland 154 101 1,236 Australia 431 2,937 1,190 Singapore 33 1,288 1,151 Mexico 14 694 1,131 Netherlands 559 6,720 1,027 Turkey 7 46 943 Japan 1,801 1,412 765 Grenada 0 0 750 Belgium 181 49 575 Luxembourg 1,058 2,848 531 Page 14
Global, Q3 2014 Target sectors by volume - global private equity deals Target sectors by value - global private equity deals Target sector Q3 2013 Q2 2014 Q3 2014 Target sector Q3 2013 Q2 2014 Q3 2014 Other services 1,530 1,745 1,498 Machinery, equipment, furniture, recycling 253 290 269 Publishing, printing 116 181 266 Wholesale & retail trade 134 116 135 Chemicals, rubber, plastics 88 106 78 Education, health 46 75 65 Food, beverages, tobacco 42 43 44 Banks 34 38 42 Construction 33 34 39 Metals & metal products 30 18 32 Textiles, wearing apparel, leather 26 19 30 Hotels & restaurants 27 39 27 Gas, water, electricity 29 19 23 Transport 22 38 19 Primary sector 17 22 15 Post and telecommunications 9 8 9 Wood, cork, paper 7 13 9 Insurance companies 11 5 6 Public administration and defence 0 2 0 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 204 890 1,637 Wood, cork, paper 779 1,960 1,622 Food, beverages, tobacco 1,542 1,794 156 Insurance companies 4,019 1,063 79 Post and telecommunications 1,339 132 73 Public administration and defence 0 35 0 Page 15
Western Europe, Q3 2014 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 Q3 2014 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 Q2 2014 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 Q3 2014 4,172 281,797 Q2 2014 5,396 359,244 Q1 2014 5,572 257,741 Q4 2013 6,377 214,393 Q3 2013 5,868 249,726 Q2 2013 5,689 300,983 Q1 2013 4,972 169,825 Q4 2012 5,745 273,614 Total deal value Q3 2012 4,806 146,288 Page 16
Western Europe, Q3 2014 Western Europe deals by volume and value 400,000 7,000 Deal value 350,000 300,000 250,000 200,000 150,000 100,000 50,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 0 Total deal value Number of deals Page 17
Western Europe, Q3 2014 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 Q3 2014. 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 Q3 2014 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 2012. 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 Q2 2014. 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 2013. The region s highest value PE deal in Q3 2014 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
Western Europe, Q3 2014 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 18/07/2014 2. 15,266 Acquisition 45% to 100% Alliance Boots GmbH CH Walgreen Company US 06/08/2014 3. 13,832 Acquisition 90% Bank of Cyprus Public Company Ltd CY European Bank for Reconstruction and Development II 28/07/2014 4. 11,042 Acquisition Enersis SA CL Enel Energy Europe SRL ES 31/07/2014 5. 7,500 Minority stake 23% Hermès International SCA FR LVMH Moet Hennessy Louis Vuitton SA's shareholders FR 03/09/2014 6. 4,926 Acquisition 57% Sky Deutschland AG DE British Sky Broadcasting Group plc GB 25/07/2014 7. 4,459 Acquisition 54% to 100% TUI Travel plc GB TUI AG DE 15/09/2014 8. 4,320 Acquisition 100% Jazztel plc GB Orange SA FR 15/09/2014 9. 4,162 Acquisition 100% Sky Italia Srl IT British Sky Broadcasting Group plc GB 25/07/2014 10. 3,396 Acquisition 57% to 100% Sky Deutschland AG DE Kronen tausend985 GmbH DE 25/07/2014 11. 3,125 Acquisition 100% WILD Flavors GmbH CH Archer Daniels Midland Company US 07/07/2014 12. 3,110 IBO majority stake Lindorff AS NO NC Advisory AB SE 18/07/2014 13. 3,044 Acquisition 100% Rottapharm SpA IT Meda AB SE 31/07/2014 14. 2,811 Minority stake 35% CDP Reti Srl IT Hanwha Corporation KR 31/07/2014 15. 2,686 Minority stake Vivarte SA FR Oaktree Capital Management LP US 03/08/2014 16. 2,500 Acquisition 100% Mojang AB SE Microsoft Corporation US 15/09/2014 17. 2,447 Minority stake 9% British Sky Broadcasting Group plc GB Investors 25/07/2014 18. 2,250 Minority stake HSBC Holdings plc GB 15/09/2014 19. 2,200 Acquisition 100% Nobel Biocare Holding AG CH Danaher Corporation US 15/09/2014 20. 2,169 Acquisition 100% Liberty Living plc GB Goldman Sachs Group Inc. US 15/08/2014 Page 19
Western Europe, Q3 2014 Target country by volume - Western Europe deals Target country by value - Western Europe deals Target country Q3 2013 Q2 2014 Q3 2014 Target country Q3 2013 Q2 2014 Q3 2014 UK 1,787 1,472 1,258 Spain 656 696 496 Germany 509 453 432 France 432 536 406 Italy 266 368 284 Netherlands 470 341 277 Sweden 329 373 218 Finland 384 238 152 Switzerland 128 125 104 Belgium 131 114 99 Norway 170 172 95 Denmark 139 122 82 Turkey 202 152 74 Portugal 48 48 63 Ireland 66 67 44 Austria 69 60 36 Luxembourg 34 36 27 Cyprus 35 16 19 Greece 25 13 10 Malta 2 9 7 UK 61,417 59,818 106,420 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 3,289 923 14,925 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 45,029 886 Greece 1,603 8,541 294 Malta 13 54 171 Page 20
Western Europe, Q3 2014 Target sector by volume - Western Europe deals Target sector by value - Western Europe deals Target sector Q3 2013 Q2 2014 Q3 2014 Target sector Q3 2013 Q2 2014 Q3 2014 Other services 2,398 2,230 1,669 Machinery, equipment, furniture, recycling 586 572 467 Wholesale & retail trade 541 468 372 Banks 432 400 303 Chemicals, rubber, plastics 244 242 185 Construction 243 277 182 Publishing, printing 185 197 175 Food, beverages, tobacco 207 170 152 Education, health 170 151 125 Transport 181 156 123 Metals & metal products 170 121 120 Hotels & restaurants 139 101 77 Gas, water, electricity 120 112 61 Primary sector 101 88 56 Textiles, wearing apparel, leather 62 52 49 Insurance companies 63 45 44 Wood, cork, paper 50 42 38 Post and telecommunications 22 11 11 Public administration and defence 6 3 0 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 2,346 657 Post and telecommunications 387 290 592 Public administration and defence 20 35 0 Page 21
Western Europe, Q3 2014 Western Europe private equity deals by volume and value Announced date No of deals Total deal value Q3 2014 656 32,615 Q2 2014 830 41,470 Q1 2014 763 31,497 Q4 2013 778 34,554 Q3 2013 734 23,042 Q2 2013 729 48,546 Q1 2013 618 17,626 Q4 2012 714 35,349 Q3 2012 572 14,996 Page 22
Western Europe, Q3 2014 Western Europe private equity deals by volume and value Deal value 60,000 50,000 40,000 30,000 20,000 10,000 900 800 700 600 500 400 300 200 100 0 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 0 Total deal value Number of deals Page 23
Western Europe, Q3 2014 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 18/07/2014 2. 2,811 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 03/08/2014 4. 1,758 IBO 100% LTS Lohmann Therapie-Systeme AG DE Dievini Hopp BioTech Holding GmbH & Co. KG 17/07/2014 5. 1,542 IBO 100% PizzaExpress Ltd GB Hony Capital Co., Ltd 11/07/2014 6. 1,190 IBO 100% ParexGroup SA FR CVC Capital Partners Ltd 22/07/2014 7. 1,087 IBO 100% MPG Opco Ltd GB The Blackstone Group LP 22/07/2014 8. 943 Minority stake 10% London Stock Exchange Group plc GB Qatar Holding LLC 11/07/2014 9. 940 IBO 98% UN Ro-Ro Isletmeleri AS TR Esas Holding AS; Actera Group 05/08/2014 10. 773 Minority stake 7% Amadeus IT Holding SA ES Nomura International plc 31/07/2014 11. 673 IBO 100% ADA Cosmetics International GmbH DE Ardian France 24/07/2014 12. 644 IBO 100% Lakeside 1 Ltd GB Sun Capital Partners Ltd; TDR Capital LLP 09/09/2014 13. 633 IBO 100% Voyage Healthcare Group Ltd GB Duke Street Capital Ltd; Tikehau Capital Partners; Partners Group AG 06/08/2014 14. 590 IBO 100% Alliance Automotive Group SAS FR The Blackstone Group LP 11/08/2014 15. 586 IBO 100% APCOA Parking Holdings GmbH DE Centerbridge Capital Partners LP 20/08/2014 16. 552 IBO 100% HES Beheer NV NL Riverstone Holdings LLC 17/07/2014 17. 531 IBO Lombard International Assurance SA LU The Blackstone Group LP 11/07/2014 18. 525 Minority stake Origo Exploration AS NO Temasek Holdings Pte Ltd; Riverstone Holdings LLC; Barclays Natural Resource 26/08/2014 Investments; Riverstone Energy Ltd 19. 508 Minority stake 39% Interparking SA BE Canada Pension Plan Investment Board 18/07/2014 20. 500 Minority stake Siccar Point Energy Ltd GB Blackstone Capital Partners LP; Blue Water Energy LLP; GIC Pte Ltd 31/08/2014 Page 24
Western Europe, Q3 2014 Target country by volume - Western Europe private equity deals Target country by value - Western Europe private equity deals Target country Q3 2013 Q2 2014 Q3 2014 Target country Q3 2013 Q2 2014 Q3 2014 UK 221 233 204 France 92 178 99 Germany 111 90 85 Spain 56 85 65 Netherlands 39 37 36 Italy 47 39 33 Finland 19 37 26 Sweden 27 42 23 Belgium 17 10 20 Switzerland 17 12 15 Portugal 18 6 13 Denmark 16 12 11 Norway 8 14 8 Ireland 25 17 5 Austria 9 9 5 Turkey 4 3 4 Luxembourg 4 2 3 Cyprus 3 1 3 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 871 154 3,006 Spain 1,045 2,392 2,044 Switzerland 154 101 1,236 Netherlands 559 6,720 1,027 Turkey 7 46 943 Belgium 181 49 575 Luxembourg 1,058 2,848 531 Finland 822 317 92 Portugal 0 3 74 Sweden 67 849 69 Cyprus 3 350 23 Denmark 19 55 13 Austria 1,183 52 12 Ireland 67 65 4 Page 25
Western Europe, Q3 2014 Target sectors by volume - Western Europe private equity deals Target sectors by value - Western Europe private equity deals Target sector Q3 2013 Q2 2014 Q3 2014 Target sector Q3 2013 Q2 2014 Q3 2014 Other services 418 450 334 Machinery, equipment, furniture, recycling 82 96 85 Wholesale & retail trade 42 53 49 Publishing, printing 39 61 49 Chemicals, rubber, plastics 33 38 22 Construction 14 16 20 Textiles, wearing apparel, leather 13 6 14 Hotels & restaurants 15 15 14 Food, beverages, tobacco 16 22 13 Education, health 13 21 12 Banks 6 14 11 Metals & metal products 14 8 10 Transport 12 13 9 Gas, water, electricity 10 7 7 Primary sector 5 2 5 Wood, cork, paper 3 8 3 Post and telecommunications 1 2 2 Insurance companies 4 2 2 Public administration and defence 0 1 0 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 572 12,661 3,686 Transport 2,736 2,106 2,994 Hotels & restaurants 773 377 2,443 Education, health 2,098 291 1,218 Machinery, equipment, furniture, recycling 2,082 6,236 1,081 Construction 203 272 1,031 Textiles, wearing apparel, leather 107 50 434 Primary sector 21 147 281 Gas, water, electricity 1,984 196 235 Metals & metal products 202 8 201 Publishing, printing 728 216 156 Wood, cork, paper 759 1,624 120 Food, beverages, tobacco 1,299 367 60 Insurance companies 1,572 0 56 Post and telecommunications 0 1 8 Public administration and defence 0 35 0 Page 26
North America, Q3 2014 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 Q3 2014 to USD 455,754 million from USD 444,835 million in Q2 2014 and USD 430,924 million for the corresponding quarter of 2013. 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 Q2 2014 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 Q3 2014 3,883 455,754 Q2 2014 4,473 444,835 Q1 2014 4,350 396,026 Q4 2013 4,069 327,890 Q3 2013 3,832 430,924 Q2 2013 3,845 294,355 Q1 2013 3,935 267,289 Q4 2012 4,623 327,588 Total deal value Q3 2012 3,909 286,881 Page 27
North America, Q3 2014 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 Q3 2014 3,064 407,338 Q2 2014 3,535 402,008 Q1 2014 3,470 364,366 Q4 2013 2,996 294,871 Q3 2013 2,919 399,725 Q2 2013 2,942 266,913 Q1 2013 3,019 238,765 Q4 2012 3,457 290,421 Q3 2012 2,990 243,879 Q3 2014 823 48,757 Q2 2014 944 45,742 Q1 2014 885 32,488 Q4 2013 1,073 33,088 Q3 2013 913 31,199 Q2 2013 903 27,424 Q1 2013 918 28,159 Q4 2012 1,169 37,180 Q3 2012 919 43,001 Page 28
North America, Q3 2014 North America deals by volume and value Deal value 500,000 450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 0 Total deal value Number of deals Page 29
North America, Q3 2014 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 Q3 2014 to USD 12,583 million from USD 1,042 million in Q2 2014 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
North America, Q3 2014 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 10/08/2014 2. 27,400 Acquisition 100% Lorillard Inc. US Reynolds American Inc. US 15/07/2014 3. 13,500 Acquisition 100% TRW Automotive Holdings Corporation US ZF Friedrichshafen AG DE 15/09/2014 4. 11,356 Acquisition 100% Tim Hortons Inc. CA Burger King Worldwide Inc. US 26/08/2014 5. 9,871 Acquisition 100% Family Dollar Stores Inc. US Dollar General Corporation US 10/09/2014 6. 9,200 Acquisition 100% Family Dollar Stores Inc. US Dollar Tree Inc. US 28/07/2014 7. 8,709 Acquisition 100% Salix Pharmaceuticals Ltd US Cosmo Technologies Ltd IE 08/07/2014 8. 8,552 Acquisition 100% The Hillshire Brands Company US Tyson Foods Inc. US 02/07/2014 9. 8,300 Acquisition 100% Concur Technologies Inc. US SAP America Inc. US 18/09/2014 10. 8,300 Acquisition 100% InterMune Inc. US Roche Holding AG CH 24/08/2014 11. 7,100 Acquisition Lorillard Inc.'s certain assets; Reynolds American Inc.'s certain assets US; US Lignum-2 Inc. US 15/07/2014 12. 6,400 Acquisition 100% International Game Technology Inc. US GTECH plc GB 16/07/2014 13. 6,206 Acquisition 100% Rockwood Holdings Inc. US Albemarle Corporation US 15/07/2014 14. 6,000 Acquisition 100% URS Corporation US AECOM Technology Corporation US 13/07/2014 15. 6,000 Acquisition 100% Kodiak Oil & Gas Corporation US Whiting Petroleum Corporation US 13/07/2014 16. 5,271 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 01/08/2014 18. 4,700 Minority stake Reynolds American Inc. US British American Tobacco plc GB 15/07/2014 19. 4,300 Acquisition 100% Glimcher Realty Trust US Washington Prime Group Inc. US 16/09/2014 20. 4,000 Acquisition 100% Griffin-American Healthcare REIT II Inc. US NorthStar Realty Finance Corporation US 05/08/2014 Page 31
North America, Q3 2014 Target sector by volume - North America deals Target sector by value - North America deals Target sector Q3 2013 Q2 2014 Q3 2014 Target sector Q3 2013 Q2 2014 Q3 2014 Other services 2,245 2,564 2,110 Machinery, equipment, furniture, recycling 406 459 351 Publishing, printing 80 146 242 Banks 203 251 205 Wholesale & retail trade 184 195 185 Chemicals, rubber, plastics 162 200 158 Education, health 100 130 112 Primary sector 79 113 106 Metals & metal products 54 67 81 Food, beverages, tobacco 52 66 73 Construction 38 58 53 Transport 63 53 52 Gas, water, electricity 45 55 42 Hotels & restaurants 35 41 40 Textiles, wearing apparel, leather 19 29 27 Insurance companies 22 27 20 Wood, cork, paper 24 21 18 Post and telecommunications 7 5 5 Public administration and defence 2 1 1 Other services 218,531 214,824 181,073 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 25 116 3 Public administration and defence 36 0 0 Page 32
North America, Q3 2014 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 Q3 2014 1,409 46,801 Q2 2014 1,420 53,641 Q1 2014 1,185 62,308 Q4 2013 1,182 43,244 Q3 2013 1,201 66,449 Q2 2013 1,244 36,578 Q1 2013 1,202 54,031 Q4 2012 1,264 46,560 Q3 2012 1,237 49,876 Q3 2014 70 12,583 Q2 2014 61 1,042 Q1 2014 60 1,282 Q4 2013 94 3,628 Q3 2013 81 4,763 Q2 2013 75 1,330 Q1 2013 78 1,984 Q4 2012 78 826 Q3 2012 77 2,117 US private equity deals by volume and value Announced date No of deals Total deal value Q3 2014 1,338 34,219 Q2 2014 1,359 52,599 Q1 2014 1,124 61,026 Q4 2013 1,086 39,605 Q3 2013 1,120 61,686 Q2 2013 1,169 35,248 Q1 2013 1,123 52,047 Q4 2012 1,187 45,733 Q3 2012 1,160 47,759 Page 33
North America, Q3 2014 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 1,000 800 600 400 200 0 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 0 Total deal value Number of deals Page 34
North America, Q3 2014 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. 26/08/2014 2. 2,500 IBO 100% Compuware Corporation US Thoma Bravo LLC 02/09/2014 3. 1,940 IBO 100% Wheelabrator Technologies Inc. US Energy Capital Partners LLC 29/07/2014 4. 1,430 IBO 100% Berlin Packaging LLC US Oak Hill Capital Management Inc. 25/08/2014 5. 1,325 IBO 100% York Risk Services Group Inc. US Onex Corporation 16/07/2014 6. 1,300 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 14/08/2014 8. 1,200 IBO 100% Grocery Outlet Inc. US Hellman & Friedman LLC 16/09/2014 9. 1,000 IBO 100% Ranpak Holdings Inc. US Rhone Capital LLC 13/08/2014 10. 1,000 IBO 100% Pro Mach Inc. US AEA Investors LP 16/09/2014 11. 890 IBO 100% Eco Services LLC US CCMP Capital Advisors LLC 31/07/2014 12. 850 Minority stake 25% Freeport LNG Development LP US Global Infrastructure Management LLC 14/07/2014 13. 845 Minority stake 14% Lululemon Athletica Inc. US Advent International Corporation 07/08/2014 14. 700 IBO majority stake NVA Holdings Inc. US Ares Management LP 17/07/2014 15. 680 Minority stake Preferred Sands LLC US Kohlberg Kravis Roberts & Company LP 25/07/2014 16. 618 Minority stake Canadian Non-Operated Resources LP CA Riverstone Holdings LLC; Riverstone Energy Ltd 12/08/2014 17. 600 Minority stake Zenith Energy Group LLC US Warburg Pincus LLC 04/08/2014 18. 500 Minority stake 20% Vice Media Inc. US TCMI Inc.; A&E Television Networks LLC 04/09/2014 19. 500 IBO 100% Mister Car Wash Holdings Inc. US Leonard Green & Partners LP 25/07/2014 20. 500 IBO 100% ABRA Inc. US Hellman & Friedman LLC 04/08/2014 Page 35
North America, Q3 2014 Target sectors by volume - North America private equity deals Target sectors by value - North America private equity deals Target sector Q3 2013 Q2 2014 Q3 2014 Target sector Q3 2013 Q2 2014 Q3 2014 Other services 844 952 862 Machinery, equipment, furniture, recycling 135 157 152 Publishing, printing 30 68 133 Wholesale & retail trade 41 34 44 Chemicals, rubber, plastics 35 53 42 Education, health 16 32 35 Food, beverages, tobacco 14 11 24 Metals & metal products 11 9 18 Banks 13 9 16 Textiles, wearing apparel, leather 10 13 14 Construction 9 12 10 Primary sector 5 14 8 Hotels & restaurants 7 11 8 Gas, water, electricity 11 10 7 Wood, cork, paper 3 2 5 Transport 5 11 5 Insurance companies 3 1 3 Post and telecommunications 6 4 2 Public administration and defence 0 1 0 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 6,641 640 2,503 Chemicals, rubber, plastics 1,948 1,779 2,045 Gas, water, electricity 779 1,886 1,947 Wood, cork, paper 20 7 1,502 Textiles, wearing apparel, leather 94 840 1,183 Publishing, printing 619 668 1,010 Education, health 92 957 898 Construction 38 715 568 Banks 387 1,396 380 Metals & metal products 739 1,407 84 Transport 455 451 68 Food, beverages, tobacco 33 772 27 Insurance companies 40 0 23 Post and telecommunications 25 116 3 Public administration and defence 0 0 0 Page 36
Asia and Asia Pacific, Q3 2014 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 Q3 2014 after increasing on both fronts in in Q2 2014. 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 Q3 2014 5,141 210,084 Q2 2014 6,330 337,523 Q1 2014 6,302 205,512 Q4 2013 6,932 242,983 Q3 2013 6,299 238,130 Q2 2013 6,184 184,066 Q1 2013 5,686 176,956 Q4 2012 6,398 229,685 Total deal value Q3 2012 6,118 191,344 Page 37
Asia and Asia Pacific, Q3 2014 Asia and Asia Pacific deals by volume and value Deal value 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 0 Total deal value Number of deals Page 38
Asia and Asia Pacific, Q3 2014 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
Asia and Asia Pacific, Q3 2014 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 15/09/2014 2. 6,390 Acquisition 100% Hong Yuan Securities Co., Ltd CN Shenyin & Wanguo Securities Co., Ltd CN 26/07/2014 3. 5,271 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 12/09/2014 5. 3,221 Minority stake Ping An Bank Co., Ltd CN Investors; Pingan Assets Management Co., Ltd CN 16/07/2014 6. 2,704 Minority stake 17% The Dai-ichi Life Insurance Co., Ltd JP 03/07/2014 7. 2,664 Minority stake 11% Oversea-Chinese Banking Corporation Ltd SG 18/08/2014 8. 2,497 Acquisition 100% Samsung Engineering Co., Ltd KR Samsung Heavy Industries Co., Ltd KR 01/09/2014 9. 2,427 Acquisition 100% Australand Property Group AU Frasers Amethyst Pte Ltd SG 07/07/2014 10. 2,368 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
Asia and Asia Pacific, Q3 2014 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 02/07/2014 12. 1,945 Minority stake 5% Hitachi, Ltd JP Sumitomo Mitsui Trust Bank Ltd JP 31/07/2014 13. 1,736 Minority stake 5% Mitsubishi Corporation JP BlackRock Japan Co., Ltd JP 31/07/2014 14. 1,611 Minority stake 9% Ping An Bank Co., Ltd CN Investors; Ping An Insurance (Group) Company of China Ltd CN 16/07/2014 15. 1,411 Acquisition 70% Shanghai Zhongji Investment Holding Co., Ltd CN Investors; Shanghai Huanzhi Investment Management Co., Ltd CN 19/08/2014 16. 1,146 Minority stake 17% AGL Energy Ltd AU 20/08/2014 17. 1,126 IBO 100% Goodpack Ltd SG IBC Capital Ltd KY 30/07/2014 18. 1,059 Acquisition 100% Sinopec Yizheng Chemical Fibre Co., Ltd's outgoing business CN China Petroleum & Chemical Corporation CN 12/09/2014 19. 1,055 Minority stake 5% Orix Corporation JP BlackRock Japan Co., Ltd JP 31/07/2014 20. 1,031 Acquisition 100% Anhui Jianghuai Automotive Group Co., Ltd CN Anhui Jianghuai Automobile Co., Ltd CN 11/07/2014 Page 41
Asia and Asia Pacific, Q3 2014 Target country by volume - Asia and Asia Pacific deals Target country by value - Asia and Asia Pacific deals Target country Q3 2013 Q2 2014 Q3 2014 Target country Q3 2013 Q2 2014 Q3 2014 China 1,221 1,222 1,267 Australia 1,283 933 810 Japan 758 785 598 India 520 699 484 South Korea 724 721 470 Taiwan 651 589 428 Malaysia 282 347 323 Vietnam 174 294 191 Singapore 164 153 136 Thailand 70 96 94 Hong Kong 89 103 77 Indonesia 127 116 63 New Zealand 88 103 62 Philippines 46 48 40 Sri Lanka 18 28 38 Kazakhstan 11 23 19 Samoa 10 10 13 Marshall Islands 10 16 10 Pakistan 3 4 6 Kyrgyzstan 12 20 5 China 93,386 144,972 101,753 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 1,036 374 Sri Lanka 210 179 227 Pakistan 35 1 218 Samoa 45 58 126 Cambodia 29 43 124 Page 42
Asia and Asia Pacific, Q3 2014 Target sector by volume - Asia and Asia Pacific deals Target sector by value - Asia and Asia Pacific deals Target sector Q3 2013 Q2 2014 Q3 2014 Target sector Q3 2013 Q2 2014 Q3 2014 Other services 1,719 1,641 1,544 Machinery, equipment, furniture, recycling 1,141 1,245 934 Chemicals, rubber, plastics 583 548 484 Wholesale & retail trade 469 436 347 Construction 398 386 315 Banks 478 416 275 Publishing, printing 255 282 275 Metals & metal products 282 288 185 Primary sector 150 172 125 Education, health 94 123 114 Transport 176 166 113 Food, beverages, tobacco 144 180 91 Textiles, wearing apparel, leather 70 100 77 Gas, water, electricity 122 104 76 Hotels & restaurants 95 107 76 Wood, cork, paper 42 54 40 Insurance companies 37 49 39 Post and telecommunications 5 5 5 Public administration and defence 0 0 0 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 2,978 893 Post and telecommunications 1,352 310 62 Public administration and defence 0 0 0 Page 43
Asia and Asia Pacific, Q3 2014 Asia and Asia Pacific private equity deals by volume and value Announced date No of deals Total deal value Q3 2014 372 29,061 Q2 2014 322 10,886 Q1 2014 306 21,306 Q4 2013 345 7,948 Q3 2013 291 9,433 Q2 2013 217 3,169 Q1 2013 212 9,374 Q4 2012 257 4,941 Q3 2012 275 8,457 Page 44
Asia and Asia Pacific, Q3 2014 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 5,000 400 350 300 250 200 150 100 50 0 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 0 Total deal value Number of deals Page 45
Asia and Asia Pacific, Q3 2014 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 30/07/2014 4. 998 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 23/07/2014 5. 551 IBO 100% Pioneer DJ Corporation JP Kohlberg Kravis Roberts & Company LP 16/09/2014 6. 488 Acquisition 100% Henan Jinkai Chemical Investment Holding Group Co., Ltd's industrial gas assets CN Warburg Pincus LLC 19/08/2014 7. 453 Acquisition 80% Chery Heavy Industry Co., Ltd CN Hony Capital Co., Ltd 20/08/2014 8. 448 IBO 100% Roc Oil Company Ltd AU Fosun International Ltd 11/09/2014 9. 325 IBO 75% Suzhou Savera Shangwu Elevator Riding System Co., Ltd CN Partners Group Holding AG 19/08/2014 10. 314 Minority stake Velocity Frequent Flyer Pty Ltd AU Affinity Equity Partners (HK) Ltd 29/08/2014 Page 46
Asia and Asia Pacific, Q3 2014 Top 20 Asia and Asia Pacific private equity deals by value (cont d) Deal value Deal type Target Target country Equity provider Announced date 11. 273 IBO 100% Tong Yang Magic Inc. KR Nonghyup Bank 02/07/2014 12. 225 Minority stake 45% JinkoSolar Power Engineering Group Ltd CN Macquarie Group Ltd; New Horizon Capital; China Development Bank 30/07/2014 International Investment Ltd 13. 200 Minority stake Beijing Feixiangren Information Technology Co., Ltd CN The Carlyle Group; Tiger Global Management LLC 12/08/2014 14. 189 IBO 100% LCR Group Pty Ltd AU Archer Capital Pty Ltd 03/07/2014 15. 180 Minority stake 10% Intas Pharmaceuticals Ltd IN Dunearn Investments (Mauritius) Pte Ltd 16/09/2014 16. 147 Acquisition to 100% Beijing Liujin Property Ltd CN Beijing Capital Investment Co., Ltd; Beijing Zhongzhi Dingfu Real Estate 18/09/2014 Property Development Ltd 17. 140 Minority stake ReNew Power Ventures Pvt Ltd IN Goldman Sachs Group Inc.; Asian Development Bank; GEF Management 03/07/2014 Corporation 18. 128 Minority stake 32% Korea Real Estate Investment & Trust Co., Ltd KR ACCION Investment Management Company; Hanwha Investment Corporation 01/09/2014 19. 125 Minority stake 45% Canberra Data Centres Pty Ltd AU Quadrant Private Equity Pty Ltd 18/09/2014 20. 109 IBO 96% Orkim Sdn Bhd MY Ekuiti Nasional Bhd 21/08/2014 Page 47
Asia and Asia Pacific, Q3 2014 Target country by volume - Asia and Asia Pacific private equity deals Target country by value - Asia and Asia Pacific private equity deals Target country Q3 2013 Q2 2014 Q3 2014 Target country Q3 2013 Q2 2014 Q3 2014 China 67 92 163 India 107 106 98 Japan 47 48 54 Australia 19 15 15 South Korea 7 14 7 Indonesia 4 3 6 New Zealand 7 4 6 Hong Kong 2 4 5 Singapore 14 18 4 Thailand 4 3 3 Philippines 1 2 3 Malaysia 3 6 3 Taiwan 1 1 2 Kazakhstan 1 1 1 Sri Lanka 0 0 1 Vietnam 5 3 1 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 1,412 765 South Korea 2,805 1,437 438 Malaysia 1 35 110 Taiwan 0 35 67 Vietnam 54 14 35 Sri Lanka 0 0 20 Hong Kong 3 84 16 Indonesia 0 20 5 New Zealand 638 14 4 Thailand 2 11 2 Philippines 53 85 1 Page 48
Asia and Asia Pacific, Q3 2014 Target sectors by volume - Asia and Asia Pacific private equity deals Target sectors by value - Asia and Asia Pacific private equity deals Target sector Q3 2013 Q2 2014 Q3 2014 Target sector Q3 2013 Q2 2014 Q3 2014 Other services 130 176 194 Publishing, printing 40 39 67 Wholesale & retail trade 29 21 27 Machinery, equipment, furniture, recycling 25 15 26 Education, health 15 15 15 Banks 10 11 9 Chemicals, rubber, plastics 7 8 8 Post and telecommunications 2 1 5 Hotels & restaurants 5 10 5 Construction 5 2 5 Gas, water, electricity 2 1 4 Metals & metal products 3 0 3 Food, beverages, tobacco 7 7 2 Transport 2 11 2 Primary sector 1 3 1 Textiles, wearing apparel, leather 3 0 1 Wood, cork, paper 0 2 0 Public administration and defence 0 0 0 Insurance companies 3 0 0 Wholesale & retail trade 370 590 18,644 Other services 2,635 2,342 4,562 Metals & metal products 237 0 1,456 Machinery, equipment, furniture, recycling 364 582 1,381 Chemicals, rubber, plastics 1,183 92 697 Gas, water, electricity 426 0 483 Publishing, printing 81 187 387 Construction 81 83 335 Banks 276 585 317 Transport 150 3,341 298 Hotels & restaurants 17 211 240 Primary sector 53 1,721 106 Post and telecommunications 1,313 16 62 Education, health 252 220 60 Textiles, wearing apparel, leather 2 0 20 Food, beverages, tobacco 187 623 13 Wood, cork, paper 0 297 0 Public administration and defence 0 0 0 Insurance companies 1,715 0 0 Page 49
Russia/CEE, Q3 2014 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 Q3 2014 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 Q3 2013. Volume fell at the faster rate of 32 per cent from 2,908 transactions in Q2 2014 to 1,988, the lowest level since Q3 2012 (1,857). Russia/CEE deals by volume and value Announced date No of deals Q3 2014 1,988 39,297 Q2 2014 2,908 41,793 Q1 2014 3,104 33,951 Q4 2013 3,364 78,568 Q3 2013 2,755 43,910 Q2 2013 2,404 63,783 Q1 2013 2,058 56,933 Q4 2012 2,142 53,435 Q3 2012 1,857 25,913 Total deal value Page 50
Russia/CEE, Q3 2014 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 1,000 500 0 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 0 Total deal value Number of deals Page 51
Russia/CEE, Q3 2014 Russian M&A drives regional value Companies based in Russia were targeted in the top 5 transactions by value during Q3 2014 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 Q3 2014 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 Q2 2014 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 Q3 2013. Volume slipped by more than two-thirds from 130 transactions in Q2 2014 to 84, the lowest since Q2 2013 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
Russia/CEE, Q3 2014 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 04/09/2014 2. 5,776 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 15/07/2014 4. 2,267 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 16/09/2014 6. 1,423 Acquisition 100% Bank Gospodarki Zywnosciowej SA PL BNP Paribas SA FR 25/08/2014 7. 1,042 Acquisition 62% Gazprombank OAO RU Federalnoe Agentstvo Po Upravleniyu Gosudarstvennym RU 17/09/2014 Imushchestvom 8. 840 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 9. 693 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 24/08/2014 10. 682 Acquisition to 100% Rossiiskii Selskokhozyaistvennyi Bank OAO RU Federalnoe Agentstvo Po Upravleniyu Gosudarstvennym Imushchestvom RU 29/08/2014 Page 53
Russia/CEE, Q3 2014 Top 20 Russia/CEE deals by value (cont d) Deal value Deal type Target Target country Acquiror Acquiror country Announced date 11. 604 Acquisition 66% Obyedinennye Mashinostroitelnye Zavody (Gruppa RU Gazprombank-Upravlenie Aktivami ZAO; Inter Kapital OOO RU; RU 14/07/2014 Uralmash-Izhora) OAO 12. 551 Acquisition 100% Rossiiskie Kommunalnye Sistemy OAO RU Kompleksnye Energeticheskie Sistemy ZAO RU 21/08/2014 13. 500 Minority stake 32% Gruppa Kompanii PIK OAO RU 01/07/2014 14. 500 Acquisition 94% to 100% Vankorneft ZAO RU Neftyanaya Kompaniya Rosneft OAO RU 18/08/2014 15. 467 Minority stake 12% Moskovskaya Birzha MMVB-RTS OAO RU Investors; Upravlyayushchaya Kompaniya RFPI OOO RU 02/07/2014 16. 435 Minority stake 4% PGE Polska Grupa Energetyczna SA PL Undisclosed investors 02/07/2014 17. 400 Minority stake Erste Bank Hungary Zrt HU Erste Group Bank AG AT 26/08/2014 18. 344 Acquisition to 100% Rossiiskie Zheleznye Dorogi OAO RU Pravitelstvo Rossii RU 28/07/2014 19. 341 Acquisition 99% Gostinnichnyi Kompleks Pripyat OAO BY Undisclosed acquiror 08/07/2014 20. 330 IBO 7% O2 Czech Republic AS CZ PPF AS CZ 07/07/2014 Page 54
Russia/CEE, Q3 2014 Target country by volume - Russia/CEE deals Target country by value - Russia/CEE deals Target country Q3 2013 Q2 2014 Q3 2014 Target country Q3 2013 Q2 2014 Q3 2014 Russia 674 676 507 Poland 346 384 173 Romania 108 163 122 Bulgaria 198 219 120 Ukraine 226 254 94 Estonia 85 78 72 Latvia 68 65 68 Belarus 75 62 46 Hungary 61 45 37 Czech Republic 45 36 34 Serbia 38 52 23 Moldova 30 65 22 Bosnia And Herzegovina 14 28 21 Lithuania 37 33 17 Slovenia 7 8 17 Croatia 12 16 13 Slovakia 8 21 12 Macedonia 9 18 3 Kosovo 1 0 1 Montenegro 1 1 0 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 5,869 845 Slovenia 85 134 682 Hungary 567 132 512 Belarus 24 96 357 Slovakia 143 318 290 Croatia 34 144 281 Bulgaria 664 649 232 Latvia 22 118 153 Serbia 109 56 82 Estonia 77 125 30 Bosnia And Herzegovina 13 167 24 Kosovo 0 0 20 Lithuania 54 730 3 Moldova 15 36 3 Macedonia 2 23 1 Montenegro 0 38 0 Page 55
Russia/CEE, Q3 2014 Target sector by volume - Russia/CEE deals Target sector Q3 2013 Q2 2014 Q3 2014 Other services 885 901 621 Wholesale & retail trade 387 356 293 Banks 252 307 194 Machinery, equipment, furniture, recycling 150 189 144 Construction 189 196 140 Primary sector 147 143 96 Gas, water, electricity 130 118 88 Food, beverages, tobacco 87 100 73 Chemicals, rubber, plastics 95 119 72 Transport 118 126 62 Metals & metal products 73 61 38 Textiles, wearing apparel, leather 36 33 38 Publishing, printing 44 38 31 Hotels & restaurants 61 70 28 Education, health 44 49 24 Insurance companies 51 59 17 Wood, cork, paper 13 27 13 Post and telecommunications 2 2 2 Public administration and defence 2 1 0 Target sector by value - Russia/CEE deals Target sector Q3 2013 Q2 2014 Q3 2014 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 6,490 947 Transport 1,845 1,460 656 Hotels & restaurants 204 52 626 Metals & metal products 1,759 1,416 514 Chemicals, rubber, plastics 8,959 2,259 473 Food, beverages, tobacco 181 1,347 416 Wood, cork, paper 3 99 212 Insurance companies 396 640 126 Textiles, wearing apparel, leather 22 38 47 Publishing, printing 100 265 17 Education, health 40 135 7 Post and telecommunications 1 0 0 Public administration and defence 0 0 0 Page 56
Russia/CEE, Q3 2014 Russia/CEE private equity deals by volume and value Announced date No of deals Total deal value Q3 2014 84 743 Q2 2014 130 621 Q1 2014 155 534 Q4 2013 185 10,110 Q3 2013 89 386 Q2 2013 67 1,998 Q1 2013 79 3,109 Q4 2012 93 564 Q3 2012 83 1,375 Page 57
Russia/CEE, Q3 2014 Russia/CEE private equity deals by volume and value Deal value 12,000 10,000 8,000 6,000 4,000 2,000 200 180 160 140 120 100 80 60 40 20 0 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 0 Total deal value Number of deals Page 58
Russia/CEE, Q3 2014 Top 20 Russia/CEE private equity deals by value Deal value Deal type Target Target country Equity provider Announced date 1. 330 IBO 7% O2 Czech Republic AS CZ PPF AS 07/07/2014 2. 146 IBO 75% Citadele Banka AS LV Ripplewood Holdings LLC 17/09/2014 3. 30 Minority stake Ulybkino OOO RU 15/07/2014 4. 29 IBO Suominen Joustopakkaukset Oy; Suominen Polska Sp zoo FI; PL Lonsdale Capital Partners LLP 11/07/2014 5. 28 Minority stake 11% to 33% Sen-Goben Stroitelnaya Produktsiya Rus OOO RU European Bank for Reconstruction and Development 07/07/2014 6. 21 IBO 85% Ceramica SA (Iasi) RO Asia Debt Management Hong Kong Ltd 14/07/2014 7. 20 Minority stake Glass-Team Sp zoo PL Syntaxis Capital U.F. GmbH 01/08/2014 8. 16 Minority stake esky SA PL Syntaxis Capital U.F. GmbH 17/07/2014 9. 15 Minority stake Frenchkis OOO RU Venture Investments & Yield Management LLP 04/09/2014 10. 13 Minority stake SamAp OOO RU Banco Bilbao Vizcaya Argentaria SA; Finansovaya Gruppa Laif ZAO; 12/08/2014 Groupon Inc. 11. 13 Minority stake Zhuk RU 14/08/2014 12. 11 Minority stake 25% Adesso SA PL 21 Concordia Sp zoo 29/08/2014 13. 11 Minority stake Energoeffektivnye Izmeritelnye Sistemy OOO RU 17/07/2014 14. 7 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 15. 7 Minority stake OnlineTours RU HV Holtzbrinck Ventures Adviser GmbH; InVenture Partners; e.ventures; 17/07/2014 GlobalFoundersCapital 16. 7 Minority stake Travelata OOO RU European Bank for Reconstruction and Development; MCI Management SA 08/07/2014 17. 6 Minority stake Selanikar OOO RU Fast Lein Venchures OOO 22/07/2014 18. 5 Acquisition 41% to 53% Inkuron OOO RU Upravlyayushchaya Kompaniya Bioprotsess Kepital Partners OOO 12/08/2014 19. 5 Acquisition 74% to 100% Bakalland SA PL Innova Phoenix Sarl 11/08/2014 20. 3 Minority stake Mobile Engine Szoftverfejleszto es Uzemelteto Kft HU Valor Capital Kockazati Tokealap-Kezelo Zrt 28/08/2014 Page 59
Russia/CEE, Q3 2014 Target country by volume - Russia/CEE private equity deals Target country by value - Russia/CEE private equity deals Target country Q3 2013 Q2 2014 Q3 2014 Target country Q3 2013 Q2 2014 Q3 2014 Russia 35 62 43 Poland 5 4 11 Bulgaria 26 22 8 Ukraine 1 5 4 Lithuania 4 9 4 Romania 1 4 3 Czech Republic 3 3 3 Hungary 4 11 3 Slovakia 0 2 2 Latvia 6 0 2 Estonia 2 6 1 Czech Republic 127 11 330 Russia 199 494 155 Latvia 1 0 147 Poland 27 75 82 Romania 0 0 21 Hungary 4 17 6 Bulgaria 27 1 1 Slovakia 0 0 1 Page 60
Russia/CEE, Q3 2014 Target sectors by volume - Russia/CEE private equity deals Target sectors by value - Russia/CEE private equity deals Target sector Q3 2013 Q2 2014 Q3 2014 Target sector Q3 2013 Q2 2014 Q3 2014 Other services 60 98 48 Publishing, printing 3 4 9 Wholesale & retail trade 8 3 6 Chemicals, rubber, plastics 3 2 5 Food, beverages, tobacco 1 1 4 Machinery, equipment, furniture, recycling 4 10 4 Construction 0 2 3 Banks 3 0 2 Wood, cork, paper 1 1 1 Textiles, wearing apparel, leather 0 0 1 Gas, water, electricity 2 0 1 Education, health 1 2 0 Insurance companies 0 0 0 Primary sector 2 1 0 Metals & metal products 1 0 0 Hotels & restaurants 0 2 0 Post and telecommunications 0 1 0 Transport 0 1 0 Other services 134 433 418 Banks 64 0 147 Chemicals, rubber, plastics 0 2 98 Wholesale & retail trade 30 1 46 Food, beverages, tobacco 0 32 20 Publishing, printing 1 0 14 Construction 0 14 0 Machinery, equipment, furniture, recycling 0 62 0 Wood, cork, paper 0 32 0 Post and telecommunications 0 0 0 Education, health 0 5 0 Insurance companies 0 0 0 Gas, water, electricity 127 0 0 Metals & metal products 30 0 0 Textiles, wearing apparel, leather 0 0 0 Transport 0 30 0 Hotels & restaurants 0 0 0 Primary sector 0 0 0 Page 61
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 Q3 2014 is deals announced between 01/07/2014-21/09/2014 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.
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. www.bvdinfo.com 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. www.zephyrdealdata.com