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A MERGERMARKET REPORT ON GLOBAL M&A ACTIVITY

MONTHLY M&A INSIDERMARCH 2014

Monthly M&A Insider | March

INSIDE:

GLOBAL OVERVIEW

LATIN AMERICA

NORTH AMERICA

ASIA-PACIFIC

EUROPE

MIDDLE EAST & AFRICA

ABOUT MERRILL DATASITE & MERRILL CORPORATION

MERRILL CORPORATION CONTACTS

GLOBAL OVERVIEW

Monthly M&A Insider | March | 01

The beginning of 2014 finds the M&A climate holistically improving: in February 2014, the number of deals increased 7% year-on-year (YoY) to 1,028 deals, while value jumped 24% to US$274.5Bn over the same period.

TMT continues to bustleWhen comparing February 2013 with February 2014, the Telecommunications, Media & Technology (TMT) sector saw a 13% increase in volume to 176 deals, and a 45% increase YoY in value to US$107.8bn. These figures are all the more remarkable given that 2013’s biggest TMT deal and second biggest transaction overall – Liberty Global’s US$25bn purchase of Virgin Media – was announced in February.

This past February saw TMT deals involving companies at vastly different points in their growth cycles. On the one hand, start-ups commanded premiums. In the most notable example, ocial networking giant acquired mobile messaging program Whatsapp for US$16bn. This big-ticket price was considered by many observers to be surprisingly high, given that Whatsapp is still in many respects a start-up, and only had 55 employees at the time of the purchase. But owning Whatsapp allows Facebook to tap into a younger market. It is also worth highlighting that, at the time of purchase, Whatsapp was profitable, but not through traditional revenue streams. Whatsapp charges users $1 per year, without advertisements on the platform.

But well-established telecom and media companies also dominated headlines. US-based cable and broadband provider Comcast announced plans to buy its biggest cable rival, Time Warner Cable, for US$68.5bn. If it goes through, the deal will create a company that provides cable to 30 million households in the US – far and away larger than its nearest competitors. Given the gargantuan sizes of these two companies, the regulatory hurdles will be high, with customers expressing concerns that a joined-up company will lead to an absence of choice among cable providers.

Real Estate The real estate sector continues the momentum it began to gather in 2013. When comparing February 2014 with February 2013, volume jumped 69% to 22 deals. Over the same period, value increased nearly ten times over, to US$10.3bn. Globally, the real estate sector is somewhat unconsolidated, and experiencing a much-awaited recovery following the downturn of 2008.

Although this activity is taking place around the globe, a noticeably high percentage of February’s real estate deals are concentrated in North Asia. In the biggest, China’s Khangai Company made public its intentions to buy a 30% stake in Iowa China Offshore Holdings. The deal is valued at US$2.1bn, and is set to further the Khangai Company’s logistics networks in China.

Head of Research: Elias Latsis

Editor: Laura Resetar

For advertising opportunities contact: Erik Wickman Tel: + (1) 212 686 3329 [email protected]

Global Overview: Demis Memedoski and Kristina Thompson

Latin America: Fabio Lopes and Raquel Mozzer

North America: Lana Vilner and Urna Chakraborty

Asia-Pacific: Jeffrey Chung and Brandon Taylor

Europe: Lucia Costa and Alan Nasrat

Middle East & Africa: Silvia Paparello and Thomas Buckley

TREND GRAPHS

GLOBAL OVERVIEW Monthly M&A Insider | March | 02

GLOBAL M&A QUARTERLY TREND GLOBAL M&A QUARTERLY PRIVATE EQUITY TREND

GLOBAL M&A ANNUAL TREND GLOBAL M&A ANNUAL PRIVATE EQUITY TREND

Num

ber of deals

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

YTD 2014*201320122011201020092008

Total value Mid-market value Total volume Mid-market volume

Valu

e (U

S$bn

)

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

Num

ber of deals

0

100

200

300

400

500

600

700

800

900

YTD 2014*201320122011201020092008

Valu

e (U

S$bn

)

Buyout value Exit value Buyout volume Exit volume

0

500

1,000

1,500

2,000

2,500

3,000

3,500

Valu

e (U

S$bn

)

Num

ber of deals

0

200

400

600

800

1,000

1,200

1,400

Q114*

Q413

Q313

Q213

Q113

Q412

Q312

Q212

Q112

Q411

Q311

Q211

Q111

Q410

Q310

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108


0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

Valu

e (U

S$bn

)

Num

ber of deals

0

50

100

150

200

250

300

350

400

Q114*

Q413

Q313

Q213

Q113

Q412

Q312

Q212

Q112

Q411

Q311

Q211

Q111

Q410

Q310

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108


0

100

200

300

400

500

600

700

800

900


TREND GRAPHS

GLOBAL M&A SECTOR BREAKDOWN YTD 2014

VALUE VOLUME

GLOBAL M&A GEOGRAPHIC BREAKDOWN YTD 2014

VALUE VOLUME

14.3%

11.8%

20.6%

11.1%

9.2%

8.9%

7.1%

3.8%

2.1%

3.6%

2.8%3.1%

0.9%0.7%

0.1%

Industrials & Chemicals

Consumer

Business Services

Technology

Financial Services

Energy, Mining & Utilities

Pharma, Medical & Biotech

Leisure

Media

Transportation

Construction

Real Estate

Agriculture

Telecommunications

Defence

12.4%

11.4%

3.9%

9.0%

10.5%

13.5%7.2%

19.4%

1.3%

1.0%

1.4%

4.0%

0.4%4.6%


Consumer

Business Services

Technology

Financial Services



Leisure

Media

Transportation

Construction

Real Estate

Agriculture

Telecommunications

14.0%

26.0%

55.8%

0.9%3.3%

Asia-Pacific

Europe

North America

Middle East & Africa

Central & South America

21.8%

38.5%

34.4%

1.9%3.4%

Asia-Pacific

Europe

North America

Middle East & Africa

Central & South America


TREND GRAPHS

GLOBAL M&A DEAL SIZE BREAKDOWN YTD 2014

VALUE VOLUME

Return to contents

80

82

84

86

88

90

92

94

96

98

100

YTD 2014*201320122011201020092008

Perc

enta

ge

90.1% 90.9%89.3% 89.0% 89.0%

0.9% 1.0% 1.1% 1.0% 1.1%

4.6%3.9%

4.5% 4.8% 4.7%

3.8% 3.7%4.7% 4.7% 4.8%

0.6% 0.5% 0.4% 0.5% 0.5%0.4% 0.4%

89.7%

1.0%

4.3%

4.6%

88.5%

1.3%

4.6%

5.1%

US$0-US$250m

US$251m-US$500m

US$501m-US$2,000m

US$2,001m-US$5,000m

>US$5,001m

0

10

20

30

40

50

60

70

80

90

100

YTD 2014*201320122011201020092008

Perc

enta

ge

41.9% 40.5%

27.3% 30.0% 29.3%

8.9% 7.9% 9.7% 10.1% 9.7%

15.2% 16.5%

20.4%19.0% 19.7%

19.4% 20.5%27.5% 26.2% 27.5%

14.6% 14.6% 15.1% 14.7% 13.8%

42.2%

7.4%

16.6%

22.8%

11.0%

28.7%

9.9%

18.9%

27.8%

14.7%

US$0-US$250m

US$251m-US$500m

US$501m-US$2,000m

US$2,001m-US$5,000m

>US$5,001m

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A MERGERMARKET M&A REPORT ON

LATIN AMERICA


It is a new year and M&A activity in Latin America continued to decrease. During the first quarter of 2013, 140 transactions were announced, while this year we witnessed the announcement of 66 transactions, a decrease of 52.9% by volume. The total deal value for this first quarter is US$14.1bn, a decrease of 20.9% by value when compared to the same period in 2013, when the total deal value was US$17.8bn.

In the year-to-date, Brazil already registered 30 deals valued at US$6bn, while Mexico registered 10 deals worth US$2.8bn and Colombia saw nine deals worth US$249m. The surprises of the period are Chile with two high-value deals totaling US$2.2bn; and Argentina, which picked up in activity this year, with six deals worth US$1.2bn.

Thus far, the most active sector by value was Energy, Mining & Utilities, with 17 deals worth US$6.7bn and a 47.4% share of the total number of deals announced. In the Consumer sector there were 11 deals announced worth US$2.4bn, 16.7% of total activities. The Financial Services sector held 16.9% of the total activity, with five deals worth US$2.4bn. In terms of volume, Industrials & Chemicals had a large participation in the period, although with small valued transactions. There were 15 deals within this sector worth US$932m.

The deal of the month is the Batista Family’s agreement to acquire a 20.72% stake in JBS SA, a listed Brazil-based animal protein processing company, from the Bertin Group, a Brazilian conglomerate, for US$2bn. The deal was announced on 18-Feb-14.

For the upcoming months, there is likely to be an increase in activity in the Telecommunications sector, with the commitment of Telecom Italia to expand its operations in Brazil, even though several analysts expect the Brazilian business to be sold, partially because of the presence of Telefonica, the Spanish competitor who could be interested in acquiring at least part of Telecom Italia’s business.


TOP DEALS

LATIN AMERICA

TOP 10 LATIN AMERICAN ANNOUNCED DEALS OF THE MONTH (FEB-14)Announced Bidder company Target company Target

dominant sector

Seller company Exit multiples (x) Bid premia 1-day before

Deal value

(US$m) Revenue EBITDA P/E

18-Feb-14 Batista family (Private investors) JBS SA (20.7% stake) Consumer Bertin Group - - - - 2,033

12-Feb-14 YPF Sociedad Anonima Apache Corporation (Argentine operations)


Apache Corporation - - - - 852

20-Feb-14 Partners Group Holding Fermaca SA de CV Energy, Mining & Utilities

Ospraie Management LLC - - - - 750

17-Feb-14 CPFL Energias Renovaveis SA Dobreve Energia SA Energy, Mining & Utilities

Arrow – Fundo de Investimento em Participacoes

- - - - 706

19-Feb-14 Carmen Corporation Transportadora de Gas del Peru SA (23.6% stake); and Compania Operadora de Gas del Amazonas SAC


Tecpetrol SA - - - - 650

18-Feb-14 Fintech Advisory Inc SeaMex Ltd (50% stake) Energy, Mining & Utilities

Seadrill Ltd - - - - 488

18-Feb-14 Teachers Insurance and Annuity Association of America - College Retirement Equities Fund; and Iguatemi Empresa de Shopping Centers SA

JK Iguatemi (50% stake) Real Estate WTorre SA - - - - 267

12-Feb-14 Pluspetrol Energy SA YPF Sociedade Anonima (Vaca Muerta shale)


YPF Sociedad Anonima - - - - 217

10-Feb-14 Empresa Financiera Edyficar SA Mibanco, Banco de la Microempresa SA 60.7% stake)

Financial Services

Grupo ACP Inversiones y Desarrollo

n/a n/a - - 179

12-Feb-14 Neoenergia SA Itapebi Geracao de Energia (22.6% stake)


Iberdrola SA - - - - 134

n/a=not applicable Based on announced deals, including lapsed and withdrawn bids Based on dominant geography of target company being Latin American Data correct as of 06-Mar-14

Source: Mergermarket

TREND GRAPHS

LATIN AMERICA Monthly M&A Insider | March | 08

LATIN AMERICAN M&A QUARTERLY TREND

LATIN AMERICAN M&A ANNUAL TREND

LATIN AMERICAN M&A QUARTERLY PRIVATE EQUITY TREND

LATIN AMERICAN M&A ANNUAL PRIVATE EQUITY TREND

Num

ber of deals

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

YTD 2014*201320122011201020092008

Valu

e (U

S$m

)


0

10

20

30

40

50

60

70

Num

ber of deals

0

20

40

60

80

100

120

140

160

180

YTD 2014*201320122011201020092008


Valu

e (U

S$bn

)

0

100

200

300

400

500

600

700

800

Valu

e (U

S$bn

)

Num

ber of deals

0

10

20

30

40

50

60

70

Q114*

Q413

Q313

Q213

Q113

Q412

Q312

Q212

Q112

Q411

Q311

Q211

Q111

Q410

Q310

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108


0

50

100

150

200

250

Valu

e (U

S$m

)

Num

ber of deals

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

Q114*

Q413

Q313

Q213

Q113

Q412

Q312

Q212

Q112

Q411

Q311

Q211

Q111

Q410

Q310

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108


0

5

10

15

20

25

30

LATIN AMERICAN M&A GEOGRAPHIC BREAKDOWN YTD 2014

LATIN AMERICAN M&A SECTOR BREAKDOWN YTD 2014

VALUE VOLUME

LATIN AMERICA Monthly M&A Insider | March | 09

TREND GRAPHS

VALUE VOLUME

47.4%

6.6%

16.7%

16.9%

7.5%

0.9%

0.2%1.9%

1.9%



Consumer

Financial Services

Technology

Business Services

Leisure

Transportation

Real Estate

25.8%

22.7%

16.7%

7.6%

7.6%

6.1%

3.0%

1.5%1.5%

1.5%

3.0%3.0%



Consumer

Financial Services

Technology

Business Services

Telecommunications

Leisure

Transportation

Media


Real Estate

10.9%

0.5%

19.9%

42.9%

8.3%

15.7%

1.8%

Argentina

Brazil

Chile

Colombia

Mexico

Peru

Venezuela

9.1% 9.1%1.5%

1.5%

15.2%

1.5%

45.5%

3.0%

13.6%

Argentina

Brazil

Chile

Colombia

Costa Rica

Mexico

Panama

Peru

Venezuela

LATIN AMERICAN M&A DEAL SIZE BREAKDOWN YTD 2014

VALUE VOLUME

Return to contentsLATIN AMERICA Monthly M&A Insider | March | 10

TREND GRAPHS

0

10

20

30

40

50

60

70

80

90

100

YTD 2014*201320122011201020092008

Perc

enta

ge

30.3%

9.2%

39.2%28.6%

21.4%

9.9% 10.1%

7.5%

9.5%

10.3%13.6%

25.1%36.6%

24.8%

28.6%

33.1%

20.1%

29.3%

19.0%

18.2%

16.0%

14.6% 14.8% 14.3% 15.9%

16.7%

45.8%

17.3%

20.2%

8.9%

47.2%

30.1%

13.8%

US$0-US$250m

US$251m-US$500m

US$501m-US$2,000m

US$2,001m-US$5,000m

>US$5,001m

20

30

40

50

60

70

80

90

100

YTD 2014*201320122011201020092008

Perc

enta

ge

88.0% 85.8%82.0%

86.3% 86.3%

4.9% 6.8% 8.1%6.2% 5.8%

5.3%5.3%

6.7%5.6% 6.7%

1.2% 1.8% 2.0% 1.1% 0.9%0.6% 0.3% 1.2% 0.9%0.8% 0.3%

85.7%

6.3%

7.1%3.0%

80.4%

4.5%

12.1%

US$0-US$250m

US$251m-US$500m

US$501m-US$2,000m

US$2,001m-US$5,000m

>US$5,001m



NORTH AMERICA

North American M&A activity by volume and value dropped with 670 deals worth US$239.6bn announced in the year-to-date, a 45% decrease by volume but only a 0.4% decrease by value from full Q4 2013 (1,223 deals, US$240.6bn). Buyouts and exits decreased in volume but kept pace in terms of value with US$25.3bn in buyouts and US$53.3bn in exits in the year-to-date.

The Pharma, Medical & Biotech and Industrials & Chemicals sectors together dominated the top deals of February. Actavis Inc’s US$24.2bn acquisition of Forest Laboratories was the second highest deal of the month and the top Pharma, Medical & Biotech deal. Meanwhile, The Carlyle Group’s US$3.2bn acquisition of The Industrial Packaging Group was the top Industrials & Chemicals deal for the month and the fifth largest deal overall. The Industrials & Chemicals sector was also the most active with 136 deals worth US$25.2bn announced in the year-to-date, capturing 20.3% of market share by volume. Pharma, Medical & Biotech had an aggregate of 71 deals totaling US$47.2bn, with 19.7% of market share by value, second only to the Telecommunications sector which saw the highest transaction for February.

Comcast Corporation’s incredible US$68.5bn merger with Time Warner Cable not only clinched the top deal spot and the sector’s lead by value in the year-to-date with US$71.4bn in deals thus far, as well as a 29.8% market share, but also raised an array of concerns regarding federal regulations and hikes in prices for consumers. However, the rationale is that this agreement would result in US$1.5bn in expected operating efficiency synergies and would bring total subscriber base for both companies to 30 million, representing 30% of total subscribers in the US. The merger is a clear step towards claiming greater market share in the multichannel video programming distributor industry.

Looking forward, this quarter will definitely surpass Q4 2013 in terms of deal value. M&A in general is looking up for this year. Interest rates are at a historic low and companies may look to take advantage of investments before they climb up again, prompting responses from their competitors as well. However, inbound activity from overseas investors may decrease given the strength of foreign currencies against the dollar. Overall, though, the outlook seems optimistic for 2014 given the trend of high value transactions continuing in the first two months of this year.


TOP DEALS

NORTH AMERICA

TOP 10 NORTH AMERICAN ANNOUNCED DEALS OF THE MONTH (FEB-14)Announced Bidder company Target company Target dominant

sectorSeller company Exit multiples (x) Bid premia

1-day before

Deal value

(US$m) Revenue EBITDA P/E

13-Feb-14 Comcast Corporation Time Warner Cable Inc Telecommunications - 3.1 8.7 23.7 17.4% 68,492

18-Feb-14 Actavis Inc Forest Laboratories Inc Pharma, Medical & Biotech

- 7.4 315.7 (loss) 25.3% 24,244

19-Feb-14 Facebook Inc WhatsApp Inc Technology Sequoia Capital - - - - 16,000

17-Feb-14 Partners Group Holding; and Starr Investment Holdings LLC

MultiPlan Inc Pharma, Medical & Biotech

BC Partners Limited; and Silver Lake Partners

- - - - 4,400

06-Feb-14 The Carlyle Group LLC The Industrial Packaging Group


Illinois Tool Works Inc - - - - 3,200

19-Feb-14 Canadian Natural Resources Limited

Devon Energy Corporation (Conventional oil and natural-gas fields excluding Horn River and the heavy oil properties)


Devon Energy Corporation

- - - - 2,850

20-Feb-14 Brookdale Senior Living Inc Emeritus Corporation Pharma, Medical & Biotech

- 1.4 8.6 (loss) 32.1% 2,780

10-Feb-14 Kite Realty Group Trust Inland Diversified Real Estate Trust Inc

Real Estate - - - - - 2,100

10-Feb-14 Continental AG Veyance Technologies Inc Industrials & Chemicals

The Carlyle Group LLC 1.0 7.1 - - 1,910

18-Feb-14 Clayton, Dubilier & Rice LLC Ashland Water Technologies


Ashland Inc 1.1 - - - 1,800

Based on announced deals, including lapsed and withdrawn bids Based on dominant geography of target company being North American (US + Canada) Data correct as of 06-Mar-14


TREND GRAPHS

NORTH AMERICA Monthly M&A Insider | March | 13

NORTH AMERICAN M&A QUARTERLY TREND

NORTH AMERICAN M&A ANNUAL TREND

NORTH AMERICAN M&A QUARTERLY PRIVATE EQUITY TREND

NORTH AMERICAN M&A ANNUAL PRIVATE EQUITY TREND

Valu

e (U

S$bn

)

Num

ber of deals

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

YTD 2014*201320122011201020092008


0

1,000

2,000

3,000

4,000

5,000

6,000

Valu

e (U

S$bn

)

Num

ber of deals

0

50

100

150

200

250

300

350

400

450

500

YTD 2014*201320122011201020092008


0

200

400

600

800

1,000

1,200

Valu

e (U

S$bn

)

Num

ber of deals

0

100

200

300

400

500

600

Q114*

Q413

Q313

Q213

Q113

Q412

Q312

Q212

Q112

Q411

Q311

Q211

Q111

Q410

Q310

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108


0

200

400

600

800

1,000

1,200

1,400

1,600

Valu

e (U

S$bn

)

Num

ber of deals

0

50

100

150

200

250

Q114*

Q413

Q313

Q213

Q113

Q412

Q312

Q212

Q112

Q411

Q311

Q211

Q111

Q410

Q310

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108


0

50

100

150

200

250

300

350

Monthly M&A Insider | March | 14NORTH AMERICA

NORTH AMERICAN M&A SECTOR BREAKDOWN YTD 2014

VALUE VOLUME

NORTH AMERICAN M&A DEAL SIZE BREAKDOWN YTD 2014

VALUE VOLUME

TREND GRAPHS

Return to contents

0

10

20

30

40

50

60

70

80

90

100

YTD 2014*201320122011201020092008

Perc

enta

ge

49.1%58.7%

32.0%37.5%

32.2%

7.3%5.5%

9.8% 9.0% 8.2%

17.4%

13.2%

27.6%20.7% 27.6%

13.9%

13.3%

17.9%

21.0%21.3%

12.3% 9.3% 12.7% 11.8% 10.7%

43.5%

7.4%

23.9%

14.8%

51.9%

17.6%

6.9%4.9%

18.7%

10.4%

US$0-US$250m

US$251m-US$500m

US$501m-US$2,000m

US$2,001m-US$5,000m

>US$5,001m

75

80

85

90

95

100

YTD 2014*201320122011201020092008

Perc

enta

ge

90.5% 91.1%

87.6% 87.6% 86.9%

0.9% 1.0% 1.1% 1.4% 1.5%

4.2% 3.8%

5.2% 5.4%5.0%

3.7% 3.4%5.5% 4.9%

6.0%

0.7% 0.7% 0.6% 0.7%0.6%

85.8%

2.1%

5.1%

6.4%

0.6%0.7%

88.3%

1.0%

4.6%

5.4%

US$0-US$250m

US$251m-US$500m

US$501m-US$2,000m

US$2,001m-US$5,000m

>US$5,001m

10.5%

12.3%

3.3%

10.4%

19.7%3.1%

6.9%0.4%

0.9%

1.6%

0.2%0.8%

0.1%

29.8%


Technology

Business Services

Consumer


Financial Services


Media

Leisure

Transportation

Construction

Real Estate

Agriculture

Telecommunications

20.4%

14.5%

13.7%10.6%

10.6%

9.4%

9.4%

3.3%2.4%

1.9%1.9%

0.9%0.6%

0.1%

0.3%


Technology

Business Services

Consumer


Financial Services


Media

Leisure

Transportation

Construction

Real Estate

Agriculture

Telecommunications

Defence



ASIA-PACIFIC

Deal activity in Asia-Pacific declined month-on-month as February saw 191 deals worth US$29.2bn, a 26% decrease in volume and 7% decrease in value from January. Inbound figures likewise decreased from 30 deals at US$9.1bn in January to 22 deals at US$5.8bn the following month. Private equity-backed buyout activity decreased in terms of volume in January over February from 19 deals to 14, but increased in terms of value, from US$3.3bn to US$3.9bn.

Investors weighing China alternativesWhile the wave of outbound acquisitions by Chinese buyers continues to set new records, M&A within China has moderated as of late. Month-on-month, deal activity in China decreased 65% by volume and 19% by value from January to February. Inbound transactions from buyers outside China and Hong Kong for the first two months of this year have likewise decreased, from 19 deals in January-February 2013 to 13 in 2014.

Attitudes among overseas investors about their China strategies are shifting as regulatory hurdles become higher. While certain sectors are being opened to foreign investment, much sought acquisitions in tech, communications and financial services remain off limits. Recent years have also seen China eliminate preferential tax treatment for foreign investors in an effort to level the playing field with domestic companies.

Increasing wages are also creating a deterrent, the result of which has seen regional and global manufacturing companies set their sights on the emerging markets of Southeast Asia. This trend has been prevalent among Japanese manufacturers, many looking to limit their China exposure as anti-Japan sentiment imposes new risks on Japanese companies and their assets in the country.

Resource deals in AustraliaWhile China and Japan saw volume and value figures decline sharply from January, Australia saw a slight uptick as a number of bulge bracket resource deals bolstered M&A totals for the month.

These deals were led by the proposed merger between Baytex Energy Corporation, the Canadian listed energy group, and Aurora Oil & Gas Ltd, its ASX listed counterpart, for a consideration of US$2.2bn. Also, Netherlands-based resources company Vitol Holding and Abu Dhabi Investment Council acquired the Australian downstream assets of Royal Dutch Shell (RDS), a deal valued at US$2.2bn. The transaction is in line with RDS’ worldwide divestment strategy of selling assets worth US$15bn in the next two years.

Overall, Australia had 34 deals (18% volume) worth US$7.2bn (25% value).

Uncertainty envelopes Thailand, IndonesiaSocial unrest in Thailand and political transitions in Indonesia could be having a negative impact on deal activity in Southeast Asia. February saw 10 fewer deals than the month before, although value figures increased from US$2.1bn to US$2.9bn.

Ongoing protests in Thailand’s capital, Bangkok, are causing dealmakers, many with transactions in the pipeline but keen to avoid unnecessary risk, to sit on the sidelines until the political climate calms. Both inbound and outbound deal flow is expected to pick up once tensions dissipate.

In Indonesia, upcoming elections and shifting national attitudes toward foreign investment are causing hesitation among overseas investors. New regulations implemented last year have limited foreign investors to maximum stakes of 40% in the banking industry and 50% in mining and resources. In the run-up to national elections, slated for April and July 2014, front-running political parties and candidates are likewise taking the position that foreign ownership must be curtailed in the name of national interests.

Investing in Mongolia’s open rangesThe winds of change may be blowing in Mongolia’s energy space as the country commits to investing in renewable energy and expanding its electricity supply grid. Foreign direct investment will factor heavily in this initiative.

Recently, Ferrostaal Industrial Projects GmbH, the Germany-based project developer, agreed to acquire a majority stake in the Sainshand wind farm project in Mongolia for a consideration of US$120m. With 190 GWh of electricity every year, Sainshand will be the largest wind park in Mongolia.

Mongolia is working toward meeting a goal of supplying 25% of its energy needs with renewable resources by 2020. The country hopes to increase access to electricity, particularly in its rural and nomadic areas. Wind energy is expected to supply as much as one-fifth of the renewable energy in the country in the next six years, Ferrostaal reports.

TOP DEALS

Monthly M&A Insider | March | 16ASIA-PACIFIC

TOP 10 ASIA-PACIFIC ANNOUNCED DEALS OF THE MONTH (FEB-14)Announced Bidder company Target company Target dominant


1-day before

Deal value

(US$m)Revenue EBITDA P/E

07-Feb-14 Baytex Energy Corp Aurora Oil & Gas Limited Energy, Mining & Utilities

- - - - 56.5% 2,183

19-Feb-14 Vitol Holding BV; and Abu Dhabi Investment Council

Royal Dutch Shell Plc (Downstream Assets in Australia)


Royal Dutch Shell Plc - - - - 2,166

18-Feb-14 Khangai Company Limited Iowa China Offshore Holdings (Hong Kong) Limited (30.3% stake)

Real Estate - - - - - 2,104

12-Feb-14 AGL Energy Limited Macquarie Generation Energy, Mining & Utilities

Government of New South Wales

1.37 6.67 41.74 - 1,358

28-Feb-14 COFCO Corporation Nidera BV (51% stake) Agriculture - 0.23 29.16 32.38 - 1,200

27-Feb-14 Government of Papua New Guinea

Oil Search Limited (10% stake)


- 19.30 36.74 48.05 -4.3% 1,098

17-Feb-14 Brightoil Petroleum (Holdings) Limited

Kerr-McGee China Petroleum Ltd


Anadarko Petroleum Corporation

- - - - 1,075

12-Feb-14 IMM Investment Corp Hyundai Merchant Marine Liquefied Natural Gas transportation unit

Transportation Hyundai Merchant Marine Co Ltd (HMM)

- - - - 1,026

06-Feb-14 Kazkommertsbank JSC; and Kenes Rakishev (private Iinvestor)

BTA Bank JSC (93% stake)

Financial Services National Welfare Fund Samruk-Kazyna JSC

n/a n/a n/a 23.1% 940

27-Feb-14 Oil Search Limited Pacific LNG Group Companies (PRL15 interest) (22.8% stake)


Pacific LNG Operations Limited

- - - - 900

n/a=not applicable Based on announced deals, including lapsed and withdrawn bids Based on dominant geography of target company being Asia-Pacific Data correct as of 05-Mar-14


TREND GRAPHS


ASIA-PACIFIC M&A QUARTERLY TREND

ASIA-PACIFIC M&A ANNUAL TREND

ASIA-PACIFIC M&A QUARTERLY PRIVATE EQUITY TREND

ASIA-PACIFIC M&A ANNUAL PRIVATE EQUITY TREND

ASIA-PACIFIC

Valu

e (U

S$bn

)

Num

ber of deals

0

100

200

300

400

500

YTD 2014*201320122011201020092008


0

500

1,000

1,500

2,000

2,500

3,000

3,500

Valu

e (U

S$bn

)

Num

ber of deals

0

10

20

30

40

50

60

70

YTD 2014*201320122011201020092008


0

50

100

150

200

250

300

350

Valu

e (US$

bn)

Num

ber of deals

0

20

40

60

80

100

120

140

160

Q114*

Q413

Q313

Q213

Q113

Q412

Q312

Q212

Q112

Q411

Q311

Q211

Q111

Q410

Q310

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108


0

100

200

300

400

500

600

700

800

900

Valu

e (U

S$bn

)

Num

ber of deals

0

5

10

15

20

25

Q114*

Q413

Q313

Q213

Q113

Q412

Q312

Q212

Q112

Q411

Q311

Q211

Q111

Q410

Q310

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

0

20

40

60

80

100

120

0

20

40

60

80

100

120


ASIA-PACIFIC M&A SECTOR BREAKDOWN YTD 2014

ASIA-PACIFIC M&A GEOGRAPHIC BREAKDOWN YTD 2014

VALUE VOLUME

VALUE VOLUME


TREND GRAPHS

16.9%

8.6%

8.1%

13.0%24.9%

3.4%

10.1%

3.0%5.7%

2.1% 0.3%0.5%

3.4%


Consumer

Technology

Financial Services


Business Services

Leisure

Real Estate


Transportation

Media

Construction

Agriculture

14.0%

20.8%

11.2%

10.0%

10.0%

8.9%

6.1%

5.1%

4.4%

3.5%

1.6%

3.0%

0.7%

0.5%


Consumer

Technology

Financial Services


Business Services

Leisure

Real Estate


Transportation

Media

Construction

Agriculture

Telecommunications

39.6%

15.5%

13.9%

8.4%

3.4%

3.6%

2.8%

3.3%

2.6%

2.4%4.5%

China

Australia

South Korea

Japan

Singapore

India

Papua New Guinea

Malaysia

Hong Kong

Taiwan

Other

36.9%

13.8%7.0%

15.0%

6.8%

3.3%

2.8%0.5%

4.2%

1.2% 8.6%China

Australia

South Korea

Japan

Singapore

India

Papua New Guinea

Malaysia

Hong Kong

Taiwan

Other


ASIA-PACIFIC M&A DEAL SIZE BREAKDOWN YTD 2014

VALUE VOLUME

TREND GRAPHS

Return to contents

75

80

85

90

95

100

YTD 2014*201320122011201020092008

Perc

enta

ge

88.5%

0.9%

5.7%

4.5%

0.4% 0.2%0.3%0.4%

87.9% 88.7%87.6%

88.6%

1.0% 1.5% 0.8% 0.9%

5.3%5.1%

5.9%5.5%

5.4% 4.4% 5.3% 4.7%

0.4% 0.3%

88.0%

5.7%

0.8%

5.3%

0.2%

87.4%

6.8%

0.9%

4.7%

US$0-US$250m

US$251m-US$500m

US$501m-US$2,000m

US$2,001m-US$5,000m

>US$5,001m

0

10

20

30

40

50

60

70

80

90

100

YTD 2014*201320122011201020092008

Perc

enta

ge

13.7%

33.9%

11.7%

17.4%

23.3%

17.0%

30.8%

9.6%

14.4%

28.2%

29.6%19.9%

13.5%24.5% 20.5%

12.0% 11.2% 11.1% 12.0% 12.0%

22.2%30.4% 26.3% 29.6% 28.6%

15.7%

17.0% 27.1%13.6%

17.3%

20.5% 22.0% 20.3% 21.6%

US$0-US$250m

US$251m-US$500m

US$501m-US$2,000m

US$2,001m-US$5,000m

>US$5,001m

21.5%



EUROPE

February 2014 revealed to be a month of large deals with three of the top transactions totalling US$27.9bn. This also had an impact on the deal size breakdown for 2014, with 45.8% of the total European deals being valued above US$5bn. Investors seem to be benefiting from more confidence in Europe, as they are managing to get higher returns on past investments, cheaper debt and more leverage opportunities.

TMT is the most active sector in 2014 so farSimilar to 2013, Technology, Media and Telecommunications (TMT) is the most active sector so far in 2014. With 113 deals worth US$28.6bn, TMT performed US$11bn higher than the second sector, Industrials & Chemicals (US$17.6bn, 171 deals). Consumer deals took the third position in this ranking, summing up 134 deals with a total value of US$16.2bn.

TMT is also the dominant sector for two of the top deals, including the highest valued deal. The merger between Portuguese Telecommunications Company, Portugal Telecom SGPS and the Brazil-based Oi SA, in a transaction valued at US$10.6bn. The transaction, which boosted Portugal to the fourth most active European country thus far for 2014, will culminate in the creation of a new company.

M&A activity in Europe for 2014 can again be expected to be driven by TMT, as investors seem to be attracted to this fast growing and changing sector (OPP 1759728). In the meanwhile, the terms for Dixons and Carphone Warehouse merger are being discussed, a transaction expected to be worth US$5.84bn.

Private equity

As for private equity deals, January and February 2014 saw fewer deals with higher values both for exits and buyouts, when compared to the same period last year. Buyouts registered 138 deals worth of US$10.5bn in the first two months of 2014, a value that is US$4bn higher than the same period last year. Exit deals were up by US$3bn from the same period in 2013, with 84 transactions valued at US$10.3bn.

The acquisition of the German company Vitus Immobilien Sarl by the also German-based real estate company, Deutsche Annington Immobilien SE, was the largest private equity deal in 2014 valued at US$1.9bn. Low interest rates are driving the German real estate market and feeding the demand for transactions in this sector.

GENERAL TREND

M&A activity in Europe so far is already increasing the expectations of what can be achieved in 2014. The first two months of 2014 saw 810 deals worth of US$111.6bn, an increase by 15.2% when compared to the same period in 2013 (US$96.9bn, 876 deals). M&A in Q1 2014 is on track to reach the same level as seen in Q1 2013 (US$134.8bn), with only US$23.2bn separating the two periods so far.

TOP DEALS

Monthly M&A Insider | March | 21EUROPE

TOP 10 EUROPEAN ANNOUNCED DEALS OF THE MONTH (FEB-14)Announced Bidder company Target company Target dominant


1-day before

Deal value


20-Feb-14 Oi SA Portugal Telecom SGPS Telecommunications - 3.7 9.2 8.6 -4.6% 10,574

21-Feb-14 Volkswagen AG Scania AB Industrials & Chemicals

- 1.7 13.3 25.7 38.3% 9,148

11-Feb-14 L'Oreal SA L'Oreal SA (8% stake) Consumer Nestle SA 3.2 15.8 0.3 -3.5% 8,190

06-Feb-14 OP Pohjola Group Central Cooperative

Pohjola Bank plc (62.8% stake)

Financial Services - 13.4% 4,586

13-Feb-14 Amec Foster Wheeler AG Business Services - 0.8 12.4 31.8 3.3% 2,851

28-Feb-14 Deutsche Annington Immobilien SE

Vitus Immobilien Real Estate Blackstone Real Estate Partners

- - - - 1,933

24-Feb-14 Jyske Bank BRFkredit a/s Financial Services BRFholding a/s - - - - 1,362

19-Feb-14 Portfolio Recovery Associates Inc

Aktiv Kapital AS Business Services Geveran Trading Co Ltd - - - - 1,315

28-Feb-14 COFCO Corporation Nidera BV (51% stake) Agriculture - 0.2 29.2 32.4 1,200

10-Feb-14 Deutsche Telekom AG T-Mobile Czech Republic AS (39.2% stake)

Telecommunications Mid Europa Partners - - - - 1,129

Based on announced deals, including lapsed and withdrawn bids Based on dominant geography of target company being European Data correct as of 05-Mar-14


TREND GRAPHS


EUROPEAN M&A ANNUAL TREND EUROPEAN M&A ANNUAL PRIVATE EQUITY TREND

EUROPEAN M&A QUARTERLY PRIVATE EQUITY TREND

EUROPEAN M&A QUARTERLY TREND

EUROPE

Valu

e (U

S$bn

)

Num

ber of deals

0

200

400

600

800

1,000

1,200

1,400

1,600

YTD 2014*201320122011201020092008


0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

Num

ber of deals

0

50

100

150

200

250

300

350

YTD 2014*201320122011201020092008


Valu

e (U

S$bn

)

0

200

400

600

800

1,000

1,200

1,400

1,600

Num

ber of deals

0

100

200

300

400

500

600

700

Q114*

Q413

Q313

Q213

Q113

Q412

Q312

Q212

Q112

Q411

Q311

Q211

Q111

Q410

Q310

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108


Valu

e (U

S$bn

)

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

Valu

e (U

S$bn

)

Num

ber of deals

0

20

40

60

80

100

120

140

Q114*

Q413

Q313

Q213

Q113

Q412

Q312

Q212

Q112

Q411

Q311

Q211

Q111

Q410

Q310

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

0

50

100

150

200

250

300

350

400

450



EUROPEAN M&A GEOGRAPHIC BREAKDOWN YTD 2014

VALUE VOLUME

TREND GRAPHS

EUROPE

EUROPEAN M&A SECTOR BREAKDOWN YTD 2014

13.2%

12.6%

12.5%

10.7%10.2%

9.0%

6.4%

6.0%

5.6%

4.9%

4.1%

1.8%1.3%

1.8%

France

Germany

Netherlands

Portugal

UK

Sweden

Finland

CEE

Italy

Denmark

Switzerland

Norway

Spain

Other

4.7%

10.0% 14.2%

13.2%

6.7%

19.1%4.6%

10.5%

4.0%

2.6%

2.3%

5.7%

2.2%

0.2%

France

Germany

Netherlands

Portugal

UK

Sweden

Finland

CEE

Italy

Denmark

Switzerland

Norway

Spain

Other

6.3%

2.3%

14.5%

11.0%7.8%

6.5%0.1%

11.8%

1.4%

1.2%

8.7%

1.1%11.5% 15.8% Industrials & Chemicals

Consumer

Business Services

Technology

Financial Services



Construction

Media

Leisure

Transportation

Real Estate

Agriculture

Telecommunications

16.5%

12.6%8.6%

8.2%

6.4%

6.2%

4.3%

4.3%

4.0%

1.0% 1.0%

0.1%

4.0%

1.7%

21.1% Industrials & Chemicals

Consumer

Business Services

Technology

Financial Services



Construction

Media

Leisure

Transportation

Real Estate

Agriculture

Telecommunications

Defence

VALUE VOLUME

Monthly M&A Insider | March | 24EUROPE

TREND GRAPHS

EUROPEAN M&A DEAL SIZE BREAKDOWN YTD 2014

VALUE VOLUME

Return to contents

0

10

20

30

40

50

60

70

80

90

100

YTD 2014*201320122011201020092008

Perc

enta

ge

44.4%

8.3%

19.2%

15.0%

13.1%

33.6%28.6% 26.6%

34.0%

8.5% 9.0% 9.8% 9.5%

21.0%29.2% 29.0%

25.2%

20.7%18.7% 20.4%

18.8%

16.2% 14.5% 14.2% 12.5%

22.2%

10.1%

27.6%

25.8%

14.3%

45.8%

7.2%

21.6%

16.1%

9.3%

US$0-US$250m

US$251m-US$500m

US$501m-US$2,000m

US$2,001m-US$5,000m

>US$5,001m

80

82

84

86

88

90

92

94

96

98

100

YTD 2014*201320122011201020092008

Perc

enta

ge

90.6%93.1% 92.0% 91.1% 91.6%

0.9% 0.9% 0.7% 0.9% 0.8%

4.2%

2.9%3.2%

3.6%3.7%

3.7%2.7% 3.8% 4.0% 3.5%

0.6%

92.1%

0.9%

3.0%

3.3%

0.7%0.4%0.4% 0.4%

92.4%

0.9%

3.2%

3.3%

US$0-US$250m

US$251m-US$500m

US$501m-US$2,000m

US$2,001m-US$5,000m

>US$5,001m

0.3% 0.2%



THE MIDDLE EAST & AFRICAThus far, dealmaking activity in the Middle East & Africa (MEA) throughout the first quarter of 2014 has seen a steady decrease in both value and volume, as a lull in the region’s 2013 momentum is set to slow further amidst territorial disputes and rising unemployment. Q1 2014 logged 44 deals worth US$4.6bn, a 36% slide from Q1 2013 (69 deals worth US$7.2bn). The figures also mark an alarming drop in value and volume from Q3 2013 (124 deals worth US$15.8), down 70.9% and 64.5% respectively. By value, Q1 2014 is the lowest quarter since the financial crisis (Q1 2009 had 65 deals worth US$4bn) and the lowest quarter by volume since Q4 2004 (32 deals worth US$4.6bn).

The Energy, Mining & Utilities sector (six deals worth US$1.6bn) regained value, accounting for 40% of M&A activity in the region throughout Q1 2014. This marks a 298% increase on Q1 2013 (10 deals worth US$389m), owed in large part to Luanda, Angola-based Sonangol’s acquiring a 15% stake in Angola Block 15/06 from French energy giant Total for US$750m in February. The deal was the region’s second-largest by value, with London-based private miner QKR Corporation’s acquiring AngloGold Ashanti’s Namibian arm for US$110m lifting the sector to account for 40% of MEA’s top 10 deals.

Of the region’s top ten deals, 57% were owed to foreign investment, including MEA’s largest deal of the quarter: Tokyo, Japan-based Rakuten’s headline-grabbing acquisition of Viber Media for US$900m. The inbound spend figures come amidst the anticipated growth of Africa’s middle class and Arabian wealth, with consolidation gearing up to accommodate the region’s ever-bulging consumer base. Beyond Energy, Mining & Utilities’ 40% share of the region’s deal value, Technology accounted for 29% of the market, followed by Financial Services’ 18%. In terms of volume, the Consumer sector logged the greatest number of deals as it accounted for 26% of activity, followed by Industrials & Chemicals’ 21% and Energy, Mining & Utilities’ 16%.

Israel led the region’s activity by value and volume, accounting for 32% and 24% respectively. In a February interview with Bloomberg TV, Jerusalem, Israel-based OurCrowd founder and Chief Executive Officer Jon Medved stressed there was no better time to invest in the Israeli tech startup scene. The oil-rich nations of Angola and Qatar followed, accounting for 19% and 17% of total market value respectively, while South Africa and the United Arab Emirates accounted for 13% and 10% of total market volume respectively.

Foreign investors remain positive on the region’s potential, as Industrial & Commercial Bank of China Ltd (ICBC), the world’s most profitable lender, said it will consider acquisitions in the Middle East as part of plans to boost earnings from the region by 50% this year. “We’re looking to see if there are acquisition opportunities,” said Zhou Xiaodong, Chief Executive Officer of ICBC’s Middle East division, in a February interview from the lender’s Dubai offices. “It’s a good strategy. Part of the reason why ICBC grew so fast in Hong Kong is because of acquisitions.” In a February press conference, Jim Cowles, Chief Executive Officer of Citigroup’s Europe, Middle East and Africa division, stressed that the firm sees a ‘pickup in mergers and acquisitions as well as debt and equity capital market deals on the continent’ and will adopt a ‘new strategic plan for sub-Saharan Africa with Nigeria, East Africa and South Africa as its top priorities.’

TOP DEALS

Monthly M&A Insider | March | 26MIDDLE EAST & AFRICA

TOP 11 MIDDLE EASTERN & AFRICAN ANNOUNCED DEALS OF THE MONTH (FEB-14)Announced Bidder company Target company Target

dominant sector

Seller company Exit multiples (x) Bid premia 1-day before

Deal value


14-Feb-14 Rakuten Inc Viber Media Inc Technology Shabtai Family; IRS WEST LLC; and Marco family

- - - - 900

04-Feb-14 Sonangol EP Angola Block 15/06 (15% stake)

Energy, Mining & Utilitites

Total SA - - - - 750

13-Feb-14 Rexam Plc United Arab Can Manufacturing Company (51% stake)

Consumer - - - - - 122

10-Feb-14 QKR Corporation (UK) Limited

AngloGold Ashanti Namibia (Pty) Ltd

Energy, Mining & Utilitites

AngloGold Ashanti Limited - - - - 110

26-Feb-14 Imperial Logistics Eco Health Limited (53% stake)


- - - - - 74

11-Feb-14 Improchem (Pty) Ltd Clariant Southern Africa (Pty) Ltd; and Blendtech (Pty) Ltd (50% stake)


Clariant AG - - - - 38

20-Feb-14 Undisclosed bidder Retail Arabia International LLC (50% stake)

Consumer Gulf General Investment Co (PSC)

- - - - 37

03-Feb-14 Sulzer Ltd Saudi Pump Factory (75% stake)


- - - - - 37

27-Feb-14 Scania AB Kenya Grange Vehicle Industries Ltd

Consumer Niaz Nathoo (private investor) - - - - 28

24-Feb-14 Metropolitan International (Pty) Ltd

Cannon Assurance Limited Financial Services

- - - - - 28

17-Feb-14 BRF Brasil Foods SA Federal Foods Limited (11% stake)

Consumer Al Nowais Investments LLC - - - - 28

Based on announced deals, including lapsed and withdrawn bids Based on dominant geography of target company being Middle East or Africa Data correct as of 06-Mar-14


TREND GRAPHS


MIDDLE EASTERN & AFRICAN M&A QUARTERLY TREND

MIDDLE EASTERN & AFRICAN M&A QUARTERLY PRIVATE EQUITY TREND

MIDDLE EASTERN & AFRICAN M&A ANNUAL TREND

MIDDLE EASTERN & AFRICAN M&A ANNUAL PRIVATE EQUITY TREND

Valu

e (U

S$bn

)

Num

ber of deals

0

10

20

30

40

50

60

70

80

90

100

YTD 2014*201320122011201020092008


0

100

200

300

400

500

600

Valu

e (U

S$bn

)

Num

ber of deals

0

2

4

6

8

10

12

14

YTD 2014*201320122011201020092008


0

10

20

30

40

50

60

70

Valu

e (U

S$m

)

Num

ber of deals

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

Q114*

Q413

Q313

Q213

Q113

Q412

Q312

Q212

Q112

Q411

Q311

Q211

Q111

Q410

Q310

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108


0

20

40

60

80

100

120

140

160

Valu

e (U

S$m

)

Num

ber of deals

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

Q114*

Q413

Q313

Q213

Q113

Q412

Q312

Q212

Q112

Q411

Q311

Q211

Q111

Q410

Q310

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108


0

5

10

15

20

25


MIDDLE EASTERN & AFRICAN M&A SECTOR BREAKDOWN YTD 2014

MIDDLE EASTERN & AFRICAN M&A GEOGRAPHIC BREAKDOWN YTD 2014

VALUE VOLUME

VALUE VOLUME

TREND GRAPHS

21.1%

15.8%

26.3%

10.5%

13.2%

2.6%2.6%

2.6%2.6%

2.6%

Consumer



Technology

Financial Services


Business Services

Telecommunications

Transportation

Agriculture

6.4%

17.6%

39.9%

28.8%

1.9%0.5%

4.8% Consumer



Technology

Financial Services


Business Services

31.7%

1.6%

7.7%

19.3%

1.9%

16.9%

0.7%

1.4%

4.1%

14.5%

Israel

South Africa

United Arab Emirates

Saudi Arabia

Kenya

Angola

Namibia

Nigeria

Qatar

Oman

23.7%

13.2%

10.5%7.9%

7.9%

5.3%

5.3%

2.6%

2.6%2.6%

2.6%2.6%

2.6%

5.3%

5.3%

Israel

South Africa

United Arab Emirates

Saudi Arabia

Kenya

Angola

Namibia

Nigeria

Tanzania

Qatar

Oman

Egypt

Jordan

Lebanon

Mozambique


MIDDLE EASTERN & AFRICAN M&A DEAL SIZE BREAKDOWN YTD 2014

VALUE VOLUME

TREND GRAPHS

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0

10

20

30

40

50

60

70

80

90

100

YTD 2014*201320122011201020092008

Perc

enta

ge

42.6%46.9% 44.9% 46.6% 45.6%

5.6% 4.0%5.7% 6.1% 4.7%

11.5% 13.1%10.1% 11.1% 12.3%

36.5%32.6% 33.3% 28.6% 29.8%

3.8% 3.4% 6.0% 7.6% 7.6%

54.8%

4.4%

9.5%

25.2%

6.1%

56.8%

9.1%

25.0%

6.8%

US$0-US$14.9m

US$15m-US$100m

US$101m-US$250m

US$251m-US$500m

>US$501m

2.3%

0

10

20

30

40

50

60

70

80

90

100

YTD 2014*201320122011201020092008

Perc

enta

ge

47.5%53.2%

68.0%59.2%

65.9%

13.7% 12.9%9.0% 9.0% 8.2%

18.9%13.2%

12.6%

13.6% 13.5%

47.6%

8.7%

20.6%

10.3%

12.8%

18.2% 19.2%

9.4%

16.9%11.5%

1.6% 1.0% 1.3%

73.2%

6.0%

9.8%

10.2%

US$0-US$14.9m

US$15m-US$100m

US$101m-US$250m

US$251m-US$500m

>US$501m

1.7% 0.9% 0.8%

Merrill DataSite The No.1 VDR Choice of Dealmakers

About Merrill CorporationMerrill Corporation is a leading provider of outsourced solutions for complex business communication and information management. Founded in 1968 and headquartered in St. Paul, Minnesota, Merrill’s services include document and data management, litigation support, language translation services, fulfilment, imaging and printing. Merrill serves the corporate, legal, financial services, insurance and real estate markets. With more than 5,000 people in over 40 domestic and 22 international locations, Merrill Corporation empowers the communications of the world’s leading organisations.

Merrill DataSite is a division of Merrill Corporation.

ISO 27001 Industry Leading Security

85 Project Managers, speaking 27 languages

Working with Dealmakers around the world

27,000 640 million pages and counting...

andVDR projects

To find out more, or to arrange a demonstration of our VDR solution,call +44 (0)845 602 6912, email us at [email protected], or visit www.datasite.com today.

#

The No.1 VDR Choice of Dealmakers

The Market Leading VDR Solution With decades of experience in document management and due diligence services, Merrill Corporation has created a smart, simple and secure virtual data room (VDR) solution - Merrill DataSite. With Merrill DataSite you can easily execute on all of your acquisition checklist items and turn your paper and electronic files into a fully searchable, secure, and completely edit-enabled online library – no additional hardware, software, personnel or programming needed. We have worked with great success on many thousands of deals, so far uploading approximately 640,000,000 pages of data on over 27,000 projects.

Round-the-clock availabilityMerrill DataSite VDRs offer international dealmakers multiple business benefits. We offer rapid set-up and round-the-clock support, a reliable hosted service from a single supplier, advanced but easy to use functionality, plus – complete cost transparency.

Our clients have effectively used our VDRs to enhance the following types of transactions: Mergers, acquisitions and divestitures Private placement transactions Leveraged buyout transactions Bankruptcy and reorganisation transactions Financing restructuring transactions IPOs and dual track processes

Unrivalled International Service Our multilingual project managers between them speak 27 languages, and a dedicatedproject management team will be assigned to your deal right from the start and then beavailable 24/7/365 – giving you peace of mind that the right person is always on hand toaddress any issue you might have. Our structured approach to setting up every VDRapplies tried and tested practices that make it easier for you when it comes to opening,managing and maintaining your data room, while adding value for all the parties involvedin the due diligence process.

Ironclad SecurityMerrill DataSite leads the way in VDR security having become the first VDR provider to be fully accredited with ISO 27001, the industry gold-standard for security certification. Certified since 2007, we are audited annually to maintain the highest standards. In addition, documents are 256-bit SSL encrypted, watermarks are tamperproof and can be customised, and data can be viewed, printed and downloaded only by the users you designate. Added to this, we are fully Safe Harbor certified. You’ll have peace of mind knowing your information is being shared with only the people you choose.

About Merrill DataSiteMerrill DataSite is established as the market-leader for virtual data rooms (VDRs) in Europe and across the world. As first to market, we have many years of experience to bring to your transaction and have had time to develop and refine our technology, leading to a peerless Project Management and systems infrastructure that operates 24/7/365. This is why many thousands of companies trust Merrill DataSite to manage their online due diligence processes.

imaging and printing. Merrill serves the corporate, legal, financial services, insurance and real estate markets. With more than 5,000 people in over 40 domestic

2013 WINNERM&A Advisor

Turnaround Awards

Information Management Product/Service of the Year

2013 WINNER3rd Annual ACG

New York Champion’s Awards

Product/Service of the Year

2012 WINNERGlobal M&A Advisor

M&A Awards


2012 WINNERAcquisitions International UK

UK VDR Provider of the Year

2011 WINNERM&A Advisor

International Awards


Working with Dealmakers around the world

640 million

Call Us: +44 (0)845 602 6912www.datasite.com

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EXECUTIVE MANAGEMENTEd BifulkPresident Tel: +1 212 229 6563

EXECUTIVE SALESWill BrownRegional Director, France Tel: +33 1 40 06 13 02

Anna ScottRegional Director, UK Tel: +44 (0) 207 422 6263

Chris BeckmannRegional Director, Germany, Switzerland & Poland Tel: +49 69 244 321 480

Martin AlamriRegional Director, Germany Tel: +49 69 244 321 471

Jérôme PottierRegional Director, France Tel: +33 (0) 1 40 06 13 12

Hakema El-HadadRegional Director, France & Northern Africa Tel: +33 (0) 1 40 06 13 10

Manuel BianchiRegional Director, Europe Tel: +44 (0) 207 422 6271

Mike HinchliffeRegional Director, Europe Tel: +44 (0) 207 422 6256

Bryan BrightonRegional Director, Europe Tel: +44 (0)207 422 6212

Adam PangRegional Director, Europe Tel: +44 (0) 207 422 6268

Merlin J. PiscitelliRegional Director, Europe Tel: +44 (0) 207 422 6266

Mary WalshRegional Director, Europe Tel: +44 (0) 207 422 6270

Jonathan HughesAccount Manager, Europe Tel: +44 (0) 207 422 6267

Malcolm NeateAccount Manager, Europe Tel: +44 (0) 207 422 6272

Alex GrossRegional Director, Eastern Europe & Middle East Tel: +49 69 7593 7148

Alvaro OrtegaRegional Director, Southern Europe Tel: +39 27 6362314 Tel: +34 91 7691022

David Haynes Regional Director, Asia-Pacific Tel: +852 2536 2288

Ari LeeRegional Director, North Asia Tel: +852 9855 3758

Vincent LorkRegional Director, South East Asia Tel: +65 6248 4602

Patrick CabreraRegional Director, South East Asia Tel: +65 9834 4557

John PateRegional Director, Australia & New Zealand Tel: +61 (0) 499 992 400

Manuel BentosinosRegional Director, Mexico, Columbia & Caribbean Tel: +52 55 9171 2237

Ana Paula Macêdo Távora de CastroVice President, South America Tel: +55 11 9908 0858

Luis Felipe Salles CunhaRegional Director, Brazil Tel: +55 11 3568 2429

Brian GilbreathVice President, Midwest & Latin America Tel: +1 404 934 8085

Hank GregorySVP, Western Canada & Pacific Northwest Tel: + 604 603 4360

Todd CaveNorthern California, Pacific Northwest & Western Canada Tel: +1 651 632 4369

Ryan MacMillanRegional Director, Canada Tel: +1 416 214 2448

Michael KennedyRegional Director, New England Tel: +1 207 829 4369

Ross WhittakerRegional Director, New England Tel: +1 617.535.1516

Jon LenihanRegional Director, Boston Tel: +1 617 535 1618

Scott RedikerRegional Director, Mid Atlantic Tel: +1 443 690 3122

Forrest R. DoaneRegional Director, New York Tel: +1 212 229 6620

Adam KuritzkyRegional Director, New York Tel: +1 917 232 9569

John McElroneRegional Director, New York Tel: +1 212 229 6656

Joseph SolanoRegional Director, New York Tel: +1 212 229 6576

Hillary PryorRegional Director, New York Tel: +1 212 367 5924

Harry Poulos Regional Director, New York Tel: +1 212 367 5924

Meiken Castillo Regional Director, New York Tel: +1 212 229 6879

Steve PicconeVice President, New York Tel: +1 212 229 6883

BJ BirtzRegional Director, Raleigh Tel: +1 919 996 9117

Paul KleinkaufRegional Director, Southeast Tel: +1 404 602 3251

Colin SchopbachRegional Director, Southeast Tel: +1 404 796 1478

Michail SidorovRegional Director, Ohio & Michigan Tel: +1 216 333 1274

Scott HaugenRegional Director, Minnesota & Wisconsin Tel: +1 651 632 4375

Anthony CrosbyRegional Director, Chicago Tel: +1 312 674 6511

Mark PlaehnRegional Director, Chicago Tel: +1 312 674 6527

Kelly-Leigh KeefeRegional Director, Chicago Tel: +1 312 386 2229

Ted SengpielRegional Director, Missouri, Kansas, Nebraska & Iowa Tel: +1 314 315 2909

Nicholas RenterRegional Director, Texas Tel: +1 214 754 2100

Angela PedersenAccount Executive, Greater Texas Region Tel: + 651 632 4394

Andrew BuonincontroRegional Director, Bay Area Tel: +1 650 493 1400

Erik SandieRegional Director, Bay Area Tel: +1 650 493 1400

Jay LoyolaRegional Director, Bay Area Tel: +1 949 622 0663

Dan PhelanRegional Director, Los Angeles Tel: +1 213 253 2139

Aleshia HlivkaAccount Executive, California Tel: +1 651 632 4967

David YearyVice President, DataSite Life Sciences Tel: +1 415 307 4414

James SnazaDirector of Life Sciences Tel: +1 651 632 4585

Jon BlueVice President, Clean Tech Tel: +1 206 696 916


MERRILL CORPORATION CONTACTS

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The following notes pertain to data contained in this publication:

Deals are included where the deal value is greater than or equal to US$5m.

Where no deal value has been disclosed, deals are included if the turnover of the target is greater than or equal to US$10m.

Deals are included in the graphs and Top Deals in each section based on the dominant geography and dominant sector of the target company. Data underlying the League Tables are based on deals where the bidder, target or parent geography of either is that of the geography in focus.

Mid-market is defined as US$10m - US$250m.

*Q1 2014 refers to the period 01-Jan-14 to 28-Feb-14. *YTD 2014 refers to the period 01-Jan-14 to 28-Feb-14.

For a full version of the mergermarket M&A deal database inclusion and league table criteria, go to http://www.mergermarket.com/pdf/deal_criteria.pdf.

Remark, the events and publications arm of The Mergermarket group, offers a range of publishing, research and events services that enable clients to enhance their own profile, and to develop new business opportunities with their target audience.

Disclaimer

This publication contains general information and is not intended to be comprehensive nor to provide financial, investment, legal, tax or other professional advice or services. This publication is not a substitute for such professional advice or services, and it should not be acted on or relied upon or used as a basis for any investment or other decision or action that may affect you or your business. Before taking any such decision, you should consult a qualified professional adviser. While reasonable effort has been made to ensure the accuracy of the information contained in this publication, this cannot be guaranteed and neither Schulte Roth & Zabel nor Mergermarket nor any of its subsidiaries or any affiliate thereof or other related entity shall have any liability to any person or entity which relies on the information contained in this publication, including incidental or consequential damages arising from errors or omissions. Any such reliance is solely at the user’s risk.

Part of The Mergermarket Group

www.mergermarket.comUSA: 11 West 19th Street, 2nd floor, New York, NY 10011, USA

t: +1 212 686-5606 f: +1 212 686-2664 [email protected]

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t: +852 2158 9700 f: +852 2158 9701 [email protected]

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