– CEE and Africa are gaining momentum –
Mergermarket, part of The Mergermarket Group, is an unparalleled, independent M&A intelligence tool used by the world’s foremost financial institutions to originate deals. It provides proprietary intelligence on potential deal flow, potential mandates and valuations via the world’s largest group of M&A journalists and analysts who have direct access to the most senior decision-makers and corporates.
Incorporated in December 1999 by founders Caspar Hobbs, Charlie Welsh and Gawn Rowan Hamilton, it has since become the fastest growing business in its sector. As well as expanding its coverage across Europe, Americas, Latin America and the Asia-Pacific region, the company continues to launch ground-breaking products and services.
In August 2006 The Mergermarket Group was acquired by the Financial Times Group, publisher of the Financial Times newspaper and FT.com. FT Group is a division of Pearson plc, the international media group. For further information, please see: www.mergermarket.com
Dubai – 30 April, 2013 – Mergermarket, an independent mergers and acquisitions intelligence and data service, today participates in the second Annual Investment Meeting. AIM is a well-established international event, well placed to cater to the needs of fast growing developing economies.
While the world continues to grapple an economic crisis, Emerging Markets continue to grow and are leading the FDI recovery. AIM proves to be the right formula allowing the developing world to display their strengths and promote greater interaction and exchanges. The United Arab Emirates, a country with unprecedented and continuous growth, is the host of choice and initiator of this important event.
February’s ‘fortune-fortnight’ produced US$ 87.7bn -worth of mega-deals (deals above US10bn) towards global M&A so far this year – 124% higher than the US$ 70.7bn gained from mega-deals in Q1 last year, according to Mergermarket. The expected resurgence in M&A that these deals would produce hasn’t quite come to fruition – global M&A in 2013 to-date valued at US$ 496.7bn is down 12.7% compared to the US$ 569-worth of deals racked up in the same period of 2012. Deal volume is also behind last year at 22.6% from 3988 deals to 3085 deals so far this year.
The Americas M&A activity, mostly dominated by the US, is the only region to have witnessed year-on-year increases in deal value and also deal count from 2010 onwards. Mergermarket expects US M&A to hold up this activity in 2013 as the country sees US$ 298.1bn-worth of deals announced so far this year, on par with the US$ 237.7bn accumulated in the same time last year.
CEE’s 2012 activity (US$ 127.6bn) was the third consecutive annual increase in deal value. The region looks consistent with its progress in deal making this year too with Q1 showing increases in deal value every month – deals valued at US$ 28.3bn is up 61% compared to US$ 17.6bn during the same time in 2012. According to Mergermarket, two deals in particular have Influenced this total – the highest valued slots into Russia’s Mining sector where a 37.75% stake was acquired in gold mining company Polyus Gold International by two private investors in February for US$ 3.6bn. The second deal was in the most active global sector of Telecommunications – Tele2 Russia Telecom was acquired by Russian VTB Bank for US$ 3.6bn.
Following one of this year’s top global deals by value total deals for Africa are valued at US$ 14.9bn. This represents a 55.2% increase from the same time last year where deals totaled US$ 9.6bn. The regions highest valued deal so far saw Eni East Africa was acquired by China National Petroleum for US$ 4.2bn.
Post-crisis global M&A has made an attempted recovery since the 2009 trough but values came at a standstill by the time we reached the end of 2012 (US$ 2,247.7bn) and ended at a similar level to how 2011 did (US$ 2,245.1bn).”
During the course of the year we have seen several signals that M&A activity was back and appetite and excitement by investors and M&A professionals have has increased, says Giovanni Amodeo, Global Editor in Chief of Mergermarket. “However, the Eurozone crisis, the issues in Cyprus and the slowdown in the GDP growth in some of the emerging market has not helped the M&A volume to pick up. The increase in cross border activity, as shown by Megermarket is a good indication that companies are still looking for good acquisition targets in different continents.”