MERGERS  2012 Review 2013 outlook      January 2013
01.04.13 www.bloombergbriefs.com	                                                                                         ...
01.04.13 www.bloombergbriefs.com	                                                                                         ...
01.04.13 www.bloombergbriefs.com	                                                                   Bloomberg Brief | Merg...
01.04.13 www.bloombergbriefs.com	                                                                                         ...
01.04.13 www.bloombergbriefs.com	                                                                                         ...
01.04.13 www.bloombergbriefs.com	                                                                                         ...
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01.04.13 www.bloombergbriefs.com	                                                                                         ...
01.04.13 www.bloombergbriefs.com	                                                                                         ...
01.04.13 www.bloombergbriefs.com	                                                                                         ...
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Mergers 2012 Review
Mergers 2012 Review
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Mergers 2012 Review

  1. 1. MERGERS 2012 Review 2013 outlook January 2013
  2. 2. 01.04.13 www.bloombergbriefs.com Bloomberg Brief | Mergers 2Contents M&A highlights: 2012M&A HIGHLIGHTS: REGIONAL VALUATIONS MONTH ACTIONS2012 ANALYSIS: Page 11page 2 Deal volumes, indus- Roche Holding AG made an ultimately unsuccessful $6 billion hostile bid for Illumina tries, top deals and PRIVATE EQUITY Inc. Roche is reported to be considering renewing its offer in 2013.GLOBAL top advisers for: Page 11 JANSUMMARY Outokumpu OYJ agreed to buy ThyssenKrupp AG’s Inoxum Stainless Steel unit forDeal volumes, top in- North America SECTOR ANALYSIS $3.5 billion.dustries and biggest page 7 Volumes and premi- Glencore International Plc offered to buy the 66 percent of Xstrata Plc it didn’t already own,terminated deals. ums, telecom deals; in what would be the largest deal of the year. In November, Xstrata shareholders approvedpage 3 EUROPE, MIDDLE energy acquirers a higher offer for a total deal value of $46.7 billion. EAST & AFRICA and consumer non- FEB UPS Inc. agreed to buy TNT Express NV for $6.9 billion. The merger has been held upCOUNTRY BY page 8 cyclical deals. while EU regulators seek concessions to preserve competition.COUNTRY page 12.Map of volume ASIA-PACIFIC GDF Suez offered to buy the 30 percent of International Power Plc it didn’t alreadychanges from 2011 page 9 TRENDS own for $10.2 billion, winning agreement with a higher offer of $11.0 billion in April.to 2012. Asian buyers MARpage 4 LATIN AMERICA & page 13 Cisco Systems Inc. agreed to buy digital video company NDS Group Ltd. from News CARIBBEAN Corp. and Permira for $5 billion.GLOBAL TOP 50 page 10 TRENDSDEALS The impact of deals Coty Inc. made an ultimately unsuccessful $12.8 billion bid for Avon Products Inc.page 5 on buyers’ share Coty withdrew the offer in May after Avon declined to negotiate by its deadline. prices. APRCAPITAL FLOWS page 14 Nestle AG agreed to buy Pfizer Inc.’s nutrition business for $11.9 billion, adding babyDeal flows between foods to its line-up as the drugmaker focused on research and development.regions. DEALMAKERSpage 6 Seven top financial Eaton Corp. agreed to buy electricity distribution equipment manufacturer Cooper advisers in 2012. Industries Plc for $12.8 billion. page 15 MAY Marubeni Corp. agreed to buy U.S.-based grain merchandiser Gavilon Group LLC from a private-equity group led by Soros Fund Management LLC. Anheuser Busch Inbev NV offered to buy the 25 percent of Mexicos Grupo Modelo SAB it didn’t already own for $17.2 billion.Bloomberg Brief Mergers 2012 Review/2013 Outlook JUNNewsletter Ted Merz Bloomberg News Dan Moss Bristol-Myers Squibb Co. offered $6.5 billion for Amylin Pharmaceuticals LLC.Executive Editor tmerz@bloomberg.net Executive Editor dmoss@bloomberg.net +1-212-617-2309 +1-202-624-1881 China’s Cnooc Ltd. offered $17.4 billion for Canadian energy group Nexen Inc. InBloomberg News Managing Editor December, the Canadian government approved the deal, the largest-ever foreign acquisition by a Chinese company.Katherine Snyder JULksnyder@bloomberg.net Volkswagen AG agreed to buy the 50.1 percent of Porsche AG it didn’t already own212-617-5212 for $8.7 billion.Mergers Newsletter Editors Reporter Hertz Global Holdings Inc. offered $2.5 billion for Dollar Thrifty Automotive Group.John E. Morris Scott Johnson Will Robinson The deal was cleared by U.S. antitrust regulators in November, ending a five-yearjmorris89@bloomberg.net sjohnson166@bloomberg.net wrobinson11@bloomberg.net pursuit by Hertz of its rival car rental company.212-617-0628 +852-2977-4678 212-617-5327 AUGJohn Manley Rob Williams Aetna Inc. bought Coventry Health Care Inc. for $5.6 billion, one of several health insur-jmanley5@bloomberg.net rwilliams80@bloomberg.net ance deals following the approval of U.S. President Barack Obama’s healthcare plans.+44-(0) 20-3525-8762 212-617-8844 Thai Beverage PCL bid $9.9 billion for Fraser & Neave Ltd, sparking a bidding war forContributing Data Editors the Singapore-based property and brewing group.Carol Chuang Alicia Looney Uvarshanie Nandram SEPcchuang2@bloomberg.net alooney1@bloomberg.net unandram1@bloomberg.net Liberty Global Inc. offered to buy the rest of Belgium’s Telenet Group Holding NV for212-617-3642 +1 212-617-8006 212-617-7743 $2.5 billion.Designers Rosneft OAO bought out BP and its partners in TNK-BP Ltd. for a total of $54.4 billion.Katie Porter Rose Marie Constantino Andy Hodgson The deal awarded BP a 19.75 percent stake in Rosneft.kporter7@bloomberg.net rconstant2@bloomberg.net ahodgson9@bloomberg.net212-617-6099 212-617-4484 +44-20-7392-0373 OCT Walt Disney Co. bought Lucasfilm Ltd. for $4.1 billion, promising a new trilogy of ‘StarIan Maready Pekka Aalto Steve Usher Wars’ movies.imaready@bloomberg.net pekka2@bloomberg.net susher8@bloomberg.net212-617-3761 +852-2977-6013 +44-20-3525-8465Newsletter Business Manager Advertising Reprints & Permissions Overseas Union Enterprise Ltd. offered $12.7 billion for Fraser & Neave Ltd.Nick Ferris bbrief@bloomberg.net Lori Husted NOvnferris2@bloomberg.net 212-617-6975 lori.husted@theygsgroup.com Lehman Brothers Holdings Inc. sold its Archstone realty business for $16.1 billion to212-617-6975 717-505-9701 a group led by Equity Residential.To subscribe via the Bloomberg terminal type BRIEF <GO> or on the web at:www.bloombergbriefs.com Intercontinental Exchange Inc. offered $8.2 billion for NYSE Euronext after an earlierTo contact the editors: bbrief@bloomberg.net plan to merge the Big Board with Deutsche Boerse fell through.This newsletter and its contents may not be forwarded or redistributed without the prior consent of DECBloomberg. Please contact our reprints and permissions group listed above for more information Freeport McMoran Copper & Gold Inc. agreed to buy Plains Exploration & Produc-© 2013 Bloomberg LP. All rights reserved. tion Co. and McMoran Exploration Co. for a total of $12.7 billion.  1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 
  3. 3. 01.04.13 www.bloombergbriefs.com Bloomberg Brief | Mergers 3GLOBAL SUMMARYDealmaking Worldwide Did Not Live Up to HopesIn the first half of 2012, bank executives said on earnings calls that their clients had many deals in the works and that they expected asurge of deals later in the year. While deals rose in the fourth quarter, the full-year total, $2.23 billion, was down 7.8 percent from 2011.Volume by Region Volume and Deal Counts by Month $4,500 Asia-Pacific 300 3,000 $4,000 Latin America-Caribbean North America 250 2,500 $3,500 EMEA $3,000 200 2,000 Value - $ Billions $2,500 Deals 150 1,500 Billions $2,000 100 1,000 $1,500 $1,000 50 500 $500 0 0 $0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Source: Bloomberg Source: BloombergEmerging markets activity did not make up for declines in deal levels in A sharp rise in deal volume in the fourth quarter was not enough to offsetthe U.S. and Western Europe. the low levels in the first three quarters.Top Industries Largest Terminated Deals VALUE TARGET COUNTRY ACQUIRER ($Mln) $390 Avon Products U.S. Parentes Holding 12,854 $232 Financial (incl. real estate) Illumina U.S. Roche 6,052 Consumer noncyclical Whitehaven Coal Australia Tinkler Group 5,516 $250 Rhoen Klinikum Germany Fresenius SE 4,904 $412 Energy Oshkosh U.S. Icahn Enterprises 3,245 Communications Sinofert phosphorus stake China Yunnan Yuntianhua 2,587 Industrial Coal assets China Shanxi Meijin Energy 2,335 $260 RONA Canada Lowes Cos 2,178 Consumer cyclical $345 APA Sub Group Australia Caisse de Depot-Quebec, et al 2,091 Other Quest Software U.S. Insight Venture Partners 2,050 $341 Scailex Israel Hutchison Whampoa et al 1,997 $ billions Source: Bloomberg Georgia Gulf U.S. Westlake Chemical 1,853Financial services, consumer noncyclical and energy companies were the Source: Bloomberg Note: Terminated in 2012top targets in 2012. Global M&A Rebound? Try the new MA!  1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 
  4. 4. 01.04.13 www.bloombergbriefs.com Bloomberg Brief | Mergers 4Country by countryDeal Volumes Fell in Most Developed Economies Compared With 2011Many major developed countries saw sharp drops in M&A levels — France was down 74 percent — and even some emerging econo-mies such as Brazil and Turkey saw declines.The biggest percentage gainer was Portugal (323 percent), based on three $4 billion-plus deals — for a highway operator, a cementcompany and the state-owned company that runs the country’s three main airports. Singapore was up 188 percent because of two bidsfor property and drinks company Fraser & Neave Ltd. and Heineken NV’s purchase of Fraser & Neave’s brewery subsidiary. Russiandeal volume rose 129 percent thanks to Rosneft OAO’s $54.8 billion purchase of TNK-BP Ltd. from BP plc and a group of Russian bil-lionaires. Glencore International Plc’s deal to buy full control of Xstrata Plc pushed Swiss M&A deal volume up 118 percent from 2011.Multi-billion-dollar deals in banking, agricultural products, media and real estate as well as in the energy and resources industriespushed up the totals in Canada.Shadings in the map below indicate the direction and magnitude of the percentage change. Only countries with at least $4 billion of dealvolume in both 2011 and 2012 are included. Make an IMpact wIth Bloomberg Briefs provide dedicated licenses to reuse our content to help your business. We offer a full suite of BlooMBerg BrIef content products and services ranging from hardcopy and electronic reprints to plaques, permissions/licensing and photocopies. to find the solution that is right for you, contact us today at: 800 290 5460 x 100, email: bloombergbriefreprints@theygsgroup.com  1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 
  5. 5. 01.04.13 www.bloombergbriefs.com Bloomberg Brief | Mergers 5Global top 50  Click on orange arrows for deal advisers Target EV/ Target Industry Acquirer Target Target Ticker Acquirer Value (SM) Trailing 12M Sector Ticker EBITDA Xstrata Plc XTA LN Basic Materials Glencore International Plc GLEN LN 46,672 5.2 Sprint Nextel Corp. S US Communications Softbank Corp. 9984 JP 37,834 6.4 T-Mobile USA Inc. 166783Q US Communications MetroPCS Communications Inc. PCS US 32,776 - TNK-BP Ltd. stakes owned by AAR TNKBP RU Energy Rosneft OAO ROSN RM 28,000 - TNK-BP Ltd. stake owned by BP Plc TNKBP RU Energy Rosneft OAO ROSN RM 26,380 - Nexen Inc. NXY CN Energy CNOOC Ltd. 883 HK 17,432 4.1 Grupo Modelo SAB de CV GMODELOC MM Consumer, Non-cyclical Anheuser-Busch InBev NV ABI BB 17,231 12.7 Archstone Enterprise LP 3553139Z US Financial Equity Residential, others - 16,094 - Cooper Industries Plc CBE US Industrial Eaton Corp Plc ETN US 12,846 12.8 Fraser and Neave Ltd. (offer still pending) FNN SP Consumer, Non-cyclical Overseas Union Enterprise Ltd. - 12,685 25.6 Pfizer Nutrition 401215Z US Consumer, Non-cyclical Nestle SA NESN VX 11,850 - Archstone Enterprise LP 3553139Z US Financial Lehman Brothers Holdings Inc. LEHMQ US 11,806 - Plains Exploration & Production Co. PXP US Energy Freeport-McMoRan Copper & Gold Inc. FCX US 10,173 6.1 International Power Plc IPR LN Utilities GDF Suez GSZ FP 10,171 8.4 Ping An Insurance Group Co of China Ltd. 2318 HK Financial Charoen Pokphand Group Co Ltd. 1044Z TB 9,385 - Fraser and Neave Ltd. (offer still pending) FNN SP Consumer, Non-cyclical Thai Beverage PCL THBEV SP 9,192 25.6 Consolidated Infrastructure Group Ltd. CIL SJ Industrial Shareholders - 8,867 - Dr Ing hcF Porsche AG 3407753Z GR Consumer, Cyclical Volkswagen AG VOW GR 8,730 - NYSE Euronext NYX US Financial IntercontinentalExchange Inc. ICE US 8,169 8.4 State Grid Energy Development Co Ltd. 0542902D CH Utilities Shenhua Group Corp Ltd. SHGCLZ CH 8,127 - Best Buy Co Inc. BBY US Consumer, Cyclical Private Investor - 7,594 2.6 Viterra Inc. VT CN Industrial Glencore International Plc. GLEN LN 7,499 8.6 EP Energy Global LLC EPE US Energy Apollo Global Management LLC, others - 7,150 - Alibaba Group Holding Ltd., Yahoo! stake ALIBABZ CH Diversified Alibaba Group Holding Ltd. ALIBABZ CH 7,100 - Sterlite Industries India Ltd. STLT IN Basic Materials Sesa Goa Ltd. SESA IN 6,854 3.8 TNT Express NV TNTE NA Industrial United Parcel Service Inc. UPS US 6,853 10.6 Redecard SA RDCD3 BZ Consumer, Non-cyclical Itau Unibanco Holding SA ITUB4 BZ 6,845 12.6 Sunoco Inc. SUN US Energy Energy Transfer Partners LP ETP US 6,787 4.2 Ralcorp Holdings Inc. RAH US Consumer, Non-cyclical ConAgra Foods Inc. CAG US 6,655 10.6 Alliance Boots GmbH 3609631Z GR Consumer, Non-cyclical Walgreen Co. WAG US 6,596 - Cequel Communications Holdings LLC 9472287Z US Communications Management group, others - 6,580 - Amylin Pharmaceuticals LLC AMLN US Consumer, Non-cyclical Bristol-Myers Squibb Co. BMY US 6,486 - Cairn India Ltd. CAIR IN Energy Sesa Goa Ltd. SESA IN 5,900 5.9 Brisa Auto-Estradas de Portugal SA BRI PL Consumer, Non-cyclical Tagus Holding Sarl 0237690D LX 5,777 11.2 Orascom Telecom Media & Technology OTMT EY Communications Shareholders - 5,653 - Hankook Tire Co Ltd. 161390 KS Consumer, Cyclical Shareholders - 5,650 - Actavis Group HF ACT IR Consumer, Non-cyclical Watson Pharmaceuticals Inc. WPI US 5,610 13.4 Gavilon Group LLC 2745841Z US Consumer, Non-cyclical Marubeni Corp. 8002 JP 5,600 - Coventry Health Care Inc. CVH US Consumer, Non-cyclical Aetna Inc. AET US 5,591 6.3 Cimpor Cimentos de Portugal SGPS SA CPR PL Industrial Camargo Correa SA 899180Z BZ 5,431 7.2 Progress Energy Resources Corp. PRQ CN Energy Petroliam Nasional Bhd PET MK 5,405 32.6 Annington Homes Ltd. 3653359Z LN Financial Terra Firma Capital Partners Ltd. 99484Z LN 5,091 - ExxonMobil YK 0134298D JP Consumer, Cyclical TonenGeneral Sekiyu KK 5012 JP 5,021 - NDS Group Ltd. NNDS US Technology Cisco Systems Inc. CSCO US 5,000 12.9 Asia Financial Indonesia Pte Ltd. 204819Z IJ Financial DBS Group Holdings Ltd. DBS SP 4,997 - Servizi Assicurativi del Commercio Estero 580856Z IM Financial Cassa Depositi e Prestiti SpA 186950Z IM 4,900 - DuPont Performance Coatings Inc 2121Z AU Basic Materials Carlyle Group LP CG US 4,900 - Rosneft OAO, 19.75 % stake ROSN RM Energy BP Plc. BP/ LN 4,,799 4.5 Citigroup stake Morgan Stanley Smith Barney 0196898D US Financial Morgan Stanley MS US 4,725 - Amerigroup Corp. AGP US Consumer, Non-cyclical WellPoint Inc. WLP US 4,555 13.4Source: Bloomberg  1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 
  6. 6. 01.04.13 www.bloombergbriefs.com Bloomberg Brief | Mergers 6CAPITAL FLOWSCross-Border Deals Totaled $1.13 Trillion in 2012, Led by Glencore-XstrataCross-border transactions grew 8.7 percent to $1.13 trillion last year from $1.04 trillion in 2011. The biggest announced deal was U.K.-based miner and commodities trader Glencore International Plc’s offer for the 66 percent of Switzerland’s Xstrata Plc it didn’t alreadyown. The final offer, after an increase, was worth $46.7 billion and was approved by shareholders in November.Global Asia-Pacific Outflows Inflows Outflows Inflows Asia Pacific $197,106 $73,501 Asia Pacific $197,106 $73,501 W. Europe $192,014 $206,408 Asia (ex-Japan) $106,719 $63,172 N. America $206,215 $228,884 Japan $107,116 $13,904 EMEA $169,686 $212,050 H.K./China $70,268 $31,788 Americas $196,463 $263,531 India $14,886 $11,249 Latin America $24,254 $65,554 Singapore $21,942 $23,772 E. Europe $6,259 $25,912 Aust./N.Z. $13,115 $40,348 0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100% Source: Bloomberg Source: BloombergThe Asia-Pacific region had the greatest proportion of outbound capital Softbank’s $37.8 billion investment in Sprint-Nextel helped lift Japaneseflows, led by Beijing-based Cnooc’s $17 billion bid for Canada’s Nexen. .4 cross-border M&A volume 22 percent over 2011. (See also page 13.)Americas EMEA Outflows Inflows Outflows Inflows N. America $206,215 $228,884 ME and Africa $22,304 $21,148 W. Europe $192,014 $206,408 Americas $196,463 $263,531 EMEA $169,686 $212,050 Latin America $24,254 $65,554 E. Europe $6,259 $25,912 Canada $73,436 $62,668 Germany $32,183 $38,485 U.S. $192,745 $219,154 Russia $9,985 $16,427 Brazil $8,856 $24,181 U.K. $82,950 $148,438 Mexico $8,245 $27,757 France $7,378 $20,329 0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100% Source: Bloomberg Source: BloombergCanada’s acquisitions of foreign companies grew 13 percent from the The U.K.’s inflows grew 50.2 percent in 2012 as the country emerged fromprior year to about $73.4 billion in 2012 as outflows exceeded inflows. a recession in the third quarter, helped by the London Olympic Games. INDUSTRY BI <GO> Grocer List: PRICES + BRANDS + DEMOGRAPHICS RESEARCH  1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 
  7. 7. 01.04.13 www.bloombergbriefs.com Bloomberg Brief | Mergers 7North America  Click on orange arrows for interactive featuresEnergy, Telecom Dominate U.S., Canadian Deals Annual Deal Volume $2,000 ($ billions) $1,800 Oil Comp.-Exploration & $1,600 Production Cellular Telecom $1,400 $111 $1,200 Real Estate $1,000 Oper./Development $693 Building- $800 $75 Residential/Commercial $600 Pipelines $400 $43 Other $200 $33 $0 $24 ($ billions) 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Source: Bloomberg Source: BloombergDeal volume fell back from 2011, and is still well below the pre-Lehman Energy and telecom saw the biggest volumes, while real estate wascrash peak of 2007. boosted by Archstone, a legacy of the Lehman collapse.Top 10 Deals Target Name Acquirer Name Seller Name DEAL Value ($ mln) Payment Type Deal Status Sprint Nextel Corp. Softbank Corp. - 37,834 Cash or Stock Pending T-Mobile USA Inc. MetroPCS Communications Inc. Deutsche Telekom AG 32,776 Cash and Stock Pending Nexen Inc. CNOOC Ltd. - 17,432 Cash Pending Archstone Enterprise LP Equity Residential,AvalonBay Communities Inc. Lehman Brothers Holdings Inc 16,094 Cash and Stock Pending Cooper Industries Plc Eaton Corp Plc - 12,846 Cash and Stock Complete Pfizer Nutrition Nestle SA Pfizer Inc. 11,850 Cash Complete Archstone Enterprise LP Lehman Brothers Holdings Inc. Barclays Plc,Bank of America Corp. 11,806 Cash Complete Plains Exploration & Production Co. Freeport-McMoRan Copper & Gold Inc. - 10,173 Cash and Stock Pending NYSE Euronext IntercontinentalExchange Inc - 8,169 Cash or Stock Pending Best Buy Co Inc Former CEO Richard Schulze - 7,594 Cash PendingSource: BloombergTop 10 Financial Advisers Top 10 Legal Advisers Market Total Ave Market Total Ave Deal deal Adviser Rank Share Deals Deal ($ Adviser Rank Share Deals Deal Count count (%) ($ MLN) Mln) (%) ($ MLN) ($ MLN) Goldman Sachs & Co. 1 21.5 210,778 1,293 163 Skadden Arps Slate Meagher & Flom 1 17.3 169,791 1,124 151 Morgan Stanley 2 20.6 202,105 1,713 118 Wachtell Lipton Rosen & Katz 2 15.1 147,765 2,463 60 Citigroup 3 19.9 194,752 2,140 91 Davis Polk & Wardwell 3 12.8 125,411 1,718 73 JP Morgan 4 19.3 189,130 1,630 116 Simpson Thacher & Bartlett 4 11.3 110,604 1,063 104 Credit Suisse 5 16.6 162,351 1,888 86 Weil Gotshal & Manges LLP 5 11.1 109,209 903 121 Barclays 6 14.4 141,413 1,209 117 Latham & Watkins LLP 6 10.8 105,833 551 192 Deutsche Bank AG 7 12.5 122,937 1,661 74 Kirkland & Ellis 7 10.2 99,739 424 235 Bank of America Merrill Lynch 8 12.2 119,619 1,040 115 Shearman & Sterling LLP 8 9.7 95,346 1,271 75 RBC Capital Markets 9 9.4 91,729 584 157 Morrison & Foerster LLP 9 9.3 90,725 1,210 75 Evercore Partners Inc. 10 8.6 84629 1387 61 Sullivan & Cromwell 10 9.2 90552 1078 84Source: Bloomberg Source: Bloomberg  1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 
  8. 8. 01.04.13 www.bloombergbriefs.com Bloomberg Brief | Mergers 8EUROPE, MIDDLE EAST AND AFRICA  Click on orange arrows for interactive featuresGlencore-Xstrata, Rosneft-BP Stand Out in Lackluster Year Annual Deal Volume$1,800 ($ billions)$1,600 Oil Comp.-Integrated$1,400 $65 Diversified Minerals$1,200 Commercial Banks Non-$1,000 U.S. $460 $800 $49 Telecom Services $600 Real Estate $27 Oper./Development $400 $21 Other $200 $20 ($ billions) $0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Source: Bloomberg Source: BloombergEuropean merger volume has still not risen back to 2004 levels, and is Rosneft’s complex twin deals to buy TNK-BP from BP and its Russianless than half its pre-recession peak. partners accounted for most of the oil industry merger volume.Top 10 Deals Target Name Acquirer Name Seller Name deal Value ($ mln) Payment Type Deal Status Xstrata Plc Glencore International Plc - 46,672 Stock Pending TNK-BP Ltd. AAR stakes Rosneft OAO Renova, others 28,000 Cash Pending TNK-BP Ltd. BP Plc’s stake Rosneft OAO BP PLC 26,380 Cash and Stock Pending International Power PLC GDF Suez - 10,171 Cash Complete Consolidated Infrastructure Group Ltd. Shareholders Peregrine Holdings Ltd 8,867 Complete Dr Ing hcF Porsche AG Volkswagen AG Porsche Automobil Holding SE 8,730 Cash Complete TNT Express NV United Parcel Service Inc. - 6,853 Cash Pending Alliance Boots GmbH Walgreen Co. KKR & Co LP 6,596 Cash and Stock Complete Banco de Valencia SA Kingdom of Spain - 5,823 Cash Pending Brisa Auto-Estradas de Portugal SA Tagus Holding Sarl - 5777 Cash PendingSource: BloombergTop 10 Financial Advisers Top 10 Legal Advisers Market Total Ave Market Total Ave Deal Deal Adviser Rank Share Deals Deal ($ Adviser Rank Share Deals Deal Count Count (%) ($ MLN) Mln) (%) ($ MLN) ($ Mln) Goldman Sachs & Co. 1 33.6 215,634 1,960 110 Linklaters LLP 1 25.7 165,207 933 177 Deutsche Bank AG 2 31.0 198,814 2,259 88 Freshfields Bruckhaus Deringer 2 21.5 137,916 913 151 Barclays 3 29.8 191,509 2,736 70 Clifford Chance LLP 3 14.5 93,331 676 138 Morgan Stanley 4 28.0 179,678 1,762 102 Cleary Gottlieb Steen & Hamilton 4 10.9 70,014 4,118 17 Citigroup 5 24.8 159,310 2,451 65 Skadden Arps Slate Meagher & Flom 5 10.5 67,099 1,428 47 Bank of America Merrill Lynch 6 19.1 122,308 2,308 53 Weil Gotshal & Manges LLP 6 9.6 61,356 1,394 44 Credit Suisse 7 18.9 121,585 2,061 59 Allen & Overy LLP 7 9.1 58,096 370 157 Rothschild 8 18.9 121,263 814 149 Cravath Swaine & Moore 8 8.9 57,375 7,172 8 JP Morgan 9 16.6 106,848 1,444 74 White & Case LLP 9 8.9 56,936 999 57 UBS 10 13.6 87,346 1,386 63 Minter Ellison 10 8.8 56,680 8097 7Source: Bloomberg Source: Bloomberg  1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 
  9. 9. 01.04.13 www.bloombergbriefs.com Bloomberg Brief | Mergers 9ASIA PACIFIC  Click on orange arrows for interactive featuresFraser & Neave’s Six-Month Bid Battle Bolsters Slowing Merger Market Annual Deal Volume $600 ($ billions) Brewery $500 Investment Companies $400 $17 Finance-Credit Card $300 $75 Oil Comp.-Exploration & Production $200 $8 Electric-Integrated $100 $7 Other ($ billions) $0 $7 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 $4 Source: Bloomberg Source: BloombergEven a boost from the two pending bids for Singapore’s Fraser & Neave Heineken’s $4.4 billion buyout of Fraser & Neave’s stake in Asia Pacificfailed to propel 2012 deal volume above the prior-year figure. Breweries helped the sector top the 2012 rankings.Top 10 Deals Payment Target Name Acquirer Name Seller Name deal Value ($ mln) Deal Status Type Fraser and Neave Ltd. Overseas Union Enterprise Ltd. - 12,685 Cash Pending Ping An Insurance Group Co. of China Ltd. Charoen Pokphand Group Co Ltd. HSBC Holdings Plc 9,385 Cash Pending Fraser and Neave Ltd. Thai Beverage PCL - 9,192 Cash Pending Tokyo Electric Power Co Inc. Nuclear Damage Compensation Facilitation Corp. - 8,573 Cash Complete State Grid Energy Development Co Ltd. Shenhua Group Corp Ltd China State Grid Corp. 8,127 Undisclosed Pending Cash and Alibaba (Yahoo!’s stake) Alibaba Group Holding Ltd. Yahoo! Inc. 7,100 Complete Stock Sterlite Industries India Ltd. Sesa Goa Ltd. - 6,854 Stock Pending Cairn India Ltd. Sesa Goa Ltd. Vedanta Resources PLC 5,900 Cash Pending Hankook Tire Co Ltd Shareholders Hankook Tire Worldwide Co Ltd 5,650 Complete ExxonMobil YK TonenGeneral Sekiyu KK Exxon Mobil Corp 5,021 Cash CompleteSource: BloombergTop 10 Financial Advisers Top 10 Legal Advisers Market Total Ave Market Total Ave Deal Deal Adviser Rank Share Deals Deal ($ Adviser Rank Share Deals Deal Count Count (%) ($ MLN) Mln) (%) ($ MLN) ($ Mln) Goldman Sachs & Co 1 19.3 97,197 1,171 83 Mori Hamada & Matsumoto 1 9.6 48,494 354 137 Morgan Stanley 2 18.4 92,697 653 142 Nagashima Ohno & Tsunematsu 2 9.2 46,141 285 162 JP Morgan 3 15.6 78,407 1,705 46 Nishimura & Asahi 3 8.3 41,694 366 114 Credit Suisse 4 13.3 66,850 1,453 46 Freshfields Bruckhaus Deringer 4 6.4 32,267 1,008 32 Nomura Holdings Inc 5 10.3 51,822 432 120 Skadden Arps Slate Meagher & Flom 5 6.0 29,957 999 30 Citi 6 10.0 5,0028 893 56 WongPartnership LLP 6 5.4 27,124 431 63 UBS 7 9.1 45,600 931 49 Shook Lin & Bok 7 5.3 26,436 979 27 Bank of America Merrill Lynch 8 7.6 38,,427 1,921 20 Stamford Law Corp 8 4.5 22,758 759 30 HSBC Bank PLC 9 7.3 36,708 1,530 24 Anderson Mori & Tomotsune 9 4.1 20,683 591 35 Deutsche Bank AG 10 6.6 33,291 951 35 Baker & McKenzie 10 4.1 20,543 223 92Source: Bloomberg Source: Bloomberg  1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 
  10. 10. 01.04.13 www.bloombergbriefs.com Bloomberg Brief | Mergers 10Latin America - CaribBean  Click on orange arrows for interactive featuresDeal Volumes Sustained by Brewery, Health Care and Financial Takeovers Annual Deal Volume $600 ($ billions) Real Estate $500 Oper/Development $40 Diversified Operations $400 $19 Beverages-Wine/Spirits $300 $397 $17 Oil Comp.-Exploration & Production $200 $15 Electric-Generation $14 $100 Other ($ billions) $0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Source: Bloomberg Source: BloombergDeal volumes in 2012 were close to prior year levels, sustained by AB Modelo dominated brewery deals, while financials included UnitedHealth’sInBev’s $17.23 billion purchase of the rest of Mexico’s Grupo Modelo. takeover of Brazilian insurer and hospital group Amil through its parent JPLSPE.Top 10 Deals Target Name Acquirer Name Seller Name DEAL Value ($ mil.) Payment Type Deal Status Grupo Modelo SAB de CV Anheuser-Busch InBev NV - 17,231 Cash Pending Redecard SA Itau Unibanco Holding SA - 6,845 Cash Complete Oil and Gas properties/Gulf of Mexico Plains Exploration & Production Co. BP PLC 5,500 Cash Complete JPLSPE Empreendimentos e Participacoes SA UnitedHealth Group Inc. - 3,201 Cash Complete Grupo Argos SA Shareholders Cementos Argos SA 3,167 - Complete Rede Energia SA CPFL Energia SA,Equatorial Energia SA - 2,792 Cash Pending Operations in Colombia Cencosud SA Carrefour SA 2,605 Cash Complete Consorcio Comex SA de CV Sherwin-Williams Co. - 2,340 Cash Pending PortX Operacoes Portuarias SA MMX Mineracao e Metalicos SA - 2,091 Stock Complete EBX Group Co. Mubadala Development Co. - 2,000 Cash CompleteSource: BloombergTop 10 Financial Advisers Top 10 Legal Advisers Market Total Ave Market Total Ave Deal Deal Adviser Rank Share Deals Deal Adviser Rank Share Deals Deal Count Count (%) ($ MLN) ($ Mln) (%) ($ MLN) ($ Mln) JP Morgan 1 33.1 39,095 2,443 16 Skadden Arps Slate Meagher & Flom 1 22.4 26,445 2,204 12 Credit Suisse 2 29.7 35,084 731 48 Sullivan & Cromwell 2 21.2 25,066 2,785 9 Bank of America Merrill Lynch 3 22.3 26,333 2,194 12 Mattos Filho Veiga Filho Marrey Quiroga 3 16.3 19,237 427 45 Morgan Stanley 4 19.8 23,312 1,665 14 Freshfields Bruckhaus Deringer 4 16.1 18,996 9,498 2 Barclays 5 19.3 22,731 11366 2 Cravath Swaine & Moore 5 15.9 18,735 9,367 2 Lazard Ltd 6 19.2 22,634 2,058 11 Slaughter and May 6 14.8 17,451 8,726 2 Banco Itau BBA SA 7 17.7 20,850 426 49 Blake Cassels & Graydon LLP 6 14.8 17,451 8,726 2 Goldman Sachs & Co 8 17.4 20,519 977 21 Alston & Bird LLP 8 14.6 17,231 17,231 1 Deutsche Bank AG 9 16.6 19,616 2,180 9 Bennett Jones LLP 8 14.6 17,231 17,231 1 Rothschild 10 13.0 15,282 899 17 Greenberg Traurig LLP 8 14.6 17,231 5,744 3Source: Bloomberg Source: Bloomberg  1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 
  11. 11. 01.04.13 www.bloombergbriefs.com Bloomberg Brief | Mergers 11ValuationsPrices Reflected Sluggish Deal ActivityAn increase in deal volume in the second half and rising stock markets were not enough to lift overall valuation multiples for 2012. Theaverage premium for public targets fell from 30.6 percent to 29.6 percent, according to data compiled by Bloomberg. Net Income 0-10% 10.01-25% Free cashflow 25.01-50% Ebitda 50.01-75% Book value 75.01-100% 2011 2011 Revenue 2012 2012 >100% 0x 2x 4x 6x 8x 10x 12x 14x 16x 18x 20x 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% Source: Bloomberg Source: BloombergFive key valuation multiples fell in 2012 versus 2011. There were fewer very low and very high premiums and more deals priced at 10 percent-50 percent over the target’s previous closing price.PRIVATE EQUITYLBO Volume Remained at Just a Fraction of 2006-2007 LevelsLeveraged buyout activity has not rebounded since the financial crisis. Still, some private equity firms such as Advent InternationalCorp., Apollo Global Management LP and Carlyle Group LP have continued to pursue large targets. Apollo announced three dealsworth more than $1 billion in 2012. Carlyle announced four over $3 billion, including by far the largest buyout ever of a Chinese com-pany: Hong Kong-based video-screen advertising company Focus Media Holding Ltd.Buyout Volume Eased from 2011 Largest LBOs of 2012 900 1800 VALUE TARGET COUNTRY ACQUIRER ($MLN) 800 1600 EP Energy Global U.S. Apollo Global et al 7,150 ← Value ($B) 700 1400 Cequel Communications U.S. CPP, BC Partners 6,580 Deals → Annington Homes Britain Terra Firma Capital 5,091 600 1200 DuPont Performance Coatings U.S. Carlyle Group 4,900 500 1000 Primaris Retail REIT Canada Ontario Pension Board et al 4,079 Billions Deals 400 800 United Technologies units U.S., Germany Carlyle Group, BC Partners 3,460 Focus Media Holding Hong Kong Carlyle Group et al 3,427 300 600 Getty Images U.S. Carlyle Group 3,300 200 400 TransUnion U.S. Advent Intl, GS Capital Partners 3,000 100 200 AOT Bedding Super U.S. Advent International 2,404 Party City U.S. Thomas H Lee Partners 2,300 0 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 McGraw-Hill Education U.S. Apollo Global Management 2,249 Source: Bloomberg Ahlsell Sweden CVC Capital Partners 2,404 Source: BloombergDeal volume in 2012 was slightly below 2011 levels and the number ofbuyouts fell to 700 from 913.  1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 
  12. 12. 01.04.13 www.bloombergbriefs.com Bloomberg Brief | Mergers 12Sector analysis  Click on orange arrows for interactive tablesChina’s Energy Buys, Emerging-Markets Food & Drink and U.S. Health Insurers Mark 2012China was a significant net buyer of energy assets in 2012, emerging markets food and drink was in focus as global companies soughtgrowth and U.S. President Barack Obama’s health care program sparked consolidation in the health insurance sector.Diversified, Telecom Command Highest Premiums N. American Targets Dominate Telecom Deals $700 70% Announced deal value $Bln (lhs) Telecom Targets by Region Regional Flow of Funds $600 Announced premium % (rhs) 60% LatAm- Mid-East, Africa in Telecom Deals ($B) Caribbean $13.9B $500 50% $870M North $400 40% AmericaBillions $300 30% Asia-Pacific Europe $16.49B $200 20% Middle North East/Africa Europe America $100 10% $27B Asia- $94.76B Pacific $0 0% Latin America -$50 $0 $0 $50 Click on bars for interactive features Source: BloombergFinancials, consumer goods and energy led in deal volumes. The highest October saw Softbank buy a $37.8 billion stake in Sprint Nextel andaverage premiums were in diversified industries and communications. MetroPCS’s merger with Deutsche Telekom’s T-Mobile USA.China Emerges as Energy Acquirer Drinks, Health Feature in Consumer Non-Cyclicals VALUE DEAL TARGET ACquirer seller Top Energy Acquirers Top Energy Targets ($Bln) STATUS Grupo Modelo SAB AB InBev NV 17.23 Pending Fraser and Neave Ltd. OUE Ltd. 12.68 Pending Pfizer Nutrition Nestle SA Pfizer Inc. 11.85 Complete U.S. $96.26B $95.32B Ralcorp Holdings Inc. ConAgra Foods Inc. 6.66 Pending $128.14B $127.81B Russia China Alliance Boots GmbH Walgreen Co KKR & Co LP 6.60 Complete $15.40B Canada Amylin Pharma LLC Bristol-Myers Squibb Co. 6.49 Complete $13.72B India Brisa Auto-Estradas SA Tagus Holding Sarl 5.78 Pending $31.45B $58.03B Australia $58.06B Actavis Group HF Watson Pharma Inc. Novator EHF 5.61 Complete $62.27B $45.75B Others $14.55B Gavilon Group LLC Marubeni Corp. Soros FM LLC 5.60 Pending Coventry Health Care Inc. Aetna Inc. 5.59 Pending Amerigroup Corp. WellPoint Inc. 4.56 Complete Lincare Holdings Inc Linde AG 4.40 Complete Source: Bloomberg Source: Bloomberg Cnooc’s $17.4 billion agreed offer for Canada’s Nexen helped make AB InBev sought growth in Mexico; Heineken and Kirin competed for theChina the third largest energy acquirer in 2012. drinks units of Singapore’s Fraser & Neave. SUBScriBe tO BlOOMBerg BrieFS Market leading intelligence Bloomberg Briefs publishes 18 newsletters to help you stay ahead of the markets. Individual and group subscriptions available. Visit www.bloombergbriefs.com to subscribe or take a trial. GET THE WORLD. Or call Annie Gustavson at +1-212-617-0544. BRIEF BLOOMBERGBRIE  1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 
  13. 13. 01.04.13 www.bloombergbriefs.com Bloomberg Brief | Mergers 13TrendsAsian Buyers Emerge as a Major Factor in Global M&AChina has emerged as a big driver of global M&A over the past six years. Chinese companies came to the fore just as the financial crisiscurbed mergers in much of the rest of the world, and Chinese buying, both domestic and foreign, has held at a fairly constant level since2007. (The chart below left includes both Mainland and Hong Kong acquirers.)Japanese companies have re-emerged as major players as they see overseas acquisitions as a vehicle to sustain growth, and the yen’srise against the dollar since 2009 has made foreign expansion more attractive.Chinese Corporate Acquisitions Foreign Acquisitions by Japanese Companies $60 Softbank $37B 70 $160 ← Deal volume ($B) investment in Sprint- $/yen (inverted scale) → Nextel 80 $140 $50 Target outside China & Hong Kong Includes Softbanks 90 $120 $40 $37.8 billion investment in Target in China & Hong Kong Sprint-Nextel $100 100 $30 $80Billions 110 $60 $20 120 $40 $10 130 $20 $0 140 $- 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Japanese acquirers, global targets ex Japan Source: Bloomberg Source: BloombergChinese corporate purchases, domestic and foreign, have remained A rising yen through mid-2012 and slow domestic growth prospects havesteady through the financial crisis and after. spurred outbound Japanese dealmaking. Download your FREE iPad® app today TRY ME REIMAGINED Type MKTS <GO> for download instructions FOR YOUR IPAD ® Available to all Bloomberg Professional® service users. iPad is a trademark of Apple Inc., Registered in the U.S. and other countries.  1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 

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