Corporate M&A activity falls in 2012

Global corporate merger and acquisition (M&A) activity fell in 2012 from the previous year and was the lowest for deal values since 2010, a survey by Mergermarket shows.

The value of deals, at  $US2174.5 billion, was down 2.7% on 2011 but rose 13.3% in the second half. The fourth quarter’s $US672.9 billion-worth of deals was the highest quarter since the corresponding period in 2010 and was up 45.6% on the same period in 2011.

The largest M&A transaction was the $US45.6 billion all-equity takeover of Xstrata by Switzerland-based Glencore International, followed by Japan-based Softbank’s all-cash offer for the US-based Sprint Nextel valued at $US35.5 billion.

Mega-deals in Asia-Pacific (excluding Japan) were up for a second year to 13% of overall M&A value in the region, the highest level since 2008.

Global bidders looking for Asia-Pacific targets favoured Chinese targets, with 627 deals valued at $US126.7 billion, followed by those in Japan (368 deals worth $US72.5 billion) and Australia (397 deals worth $US46.1 billion). A drop-off in energy and mining deals took its toll on Australian totals.

The bidding war for Singapore conglomerateFraser & Neave was the centre of attention in the region in 2012, with companies from Thailand, Indonesia, Singapore and Japan fighting over control.

As a result, Dutch brewer Heineken ended up with F&N’s shareholding in Asia Pacific Breweries, parent company of New Zealand’s DB Breweries.

Private equity buyouts in Asia-Pacific (excl Japan) slid 30.7% on 2011 to $US27.2 billion, the worst year for buyouts in the region since 2009.

Goldman Sachs maintained its place at the top of adviser league tables both globally and in Asia-Pacific,
with Citi and Credit Suisse second and third respectively in Asia Pacific.

This article is tagged with the following keywords. Find out more about My Tags

Comment & Question

Commenter icon key: Subscriber Verified

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot

Forex

Sym Price Change
USD 0.7845 0.0017 0.22%
AUD 0.8994 0.0002 0.02%
EUR 0.6203 0.0010 0.16%
GBP 0.4929 0.0003 0.06%
HKD 6.0847 0.0131 0.22%
JPY 84.0120 0.0180 0.02%

Commods

Commodity Price Change Time
Gold Index 1233.8 -1.760 2014-10-14T00:
Oil Brent 85.4 -4.470 2014-10-14T00:
Oil Nymex 81.2 -4.530 2014-10-14T00:
Silver Index 17.4 0.035 2014-10-14T00:

Indices

Symbol Open High Last %
NZX 50 5145.9 5168.7 5145.9 0.33%
NASDAQ 4246.2 4281.3 4213.6 0.32%
DAX 8765.4 8854.4 8812.4 0.15%
DJI 16321.9 16463.7 16321.1 -0.04%
FTSE 6366.2 6403.4 6366.2 0.42%
HKSE 23087.5 23230.3 23048.0 0.67%
NI225 15009.8 15044.3 14936.5 -0.13%