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.


Got a question about this story? Leave it in Comments & Questions below.

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

Comments & Questions

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 0.6611 0.0000 0.00%
AUD 0.9370 0.0000 0.00%
EUR 0.5936 0.0000 0.00%
GBP 0.4562 0.0000 0.00%
HKD 5.1611 0.0000 0.00%
JPY 77.3440 0.0000 0.00%

Commods

Commodity Price Change Time
Gold Index 1157.7 17.750 2016-02-05T00:
Oil Brent 34.8 1.070 2016-02-05T00:
Oil Nymex 30.8 -0.810 2016-02-05T00:
Silver Index 14.8 -0.070 2016-02-05T00:

Indices

Symbol Open High Last %
NZX 50 6137.7 6153.8 6137.7 0.26%
NASDAQ 4491.5 4493.2 4509.6 -3.25%
DAX 9375.3 9469.7 9393.4 -1.14%
DJI 16418.0 16423.6 16416.6 -1.29%
FTSE 5898.8 5945.9 5898.8 -0.86%
HKSE 19287.4 19397.9 19183.1 0.55%
NI225 16790.5 16893.1 17045.0 -1.32%