Latin America M&A tops $90 billion, down 31%
Despite two of the week's biggest deals worldwide, announced M&A activity in Latin America totals $90.7 billion for year-to-date 2011, a decrease of 31% compared to the same time last year. Deal making activity in Brazil and Mexico, which accounts for three-quarters of overall volume in Latin America this year, has declined 30% and 43%, respectively.
By sector, telecommunications and resources M&A accounts for 60% of year-to-date activity in Latin America, while cross-border activity totals $37.5 billion for year-to-date 2011, for 41% of activity. Goldman Sachs leads the rankings for any Latin American involvement M&A, up from 20th last year at this time.
IPOs and Financials drag down China ECM activity
Equity capital markets activity from Chinese companies totals $67.9 billion so far this year, a decline of 21% compared to year-to-date 2010. Chinese initial public offerings are down 38% compared to last year at this time, while convertibles and follow-ons, including this week's $478.3 million ICBC block trade, have seen increases of 43% and 14%, respectively.
Morgan Stanley holds the top spot for equity capital markets underwriting for Chinese companies this year, with 8.6% market share, up from 3.3% market share during year-to-date 2010. ECM issuance in the financial sector is down 75% this year, while media, real estate and energy new issues have seen triple-digit increases.
@Dealintel: WW Spinoffs total $82.3 billion
When completed, Kraft’s spinoff of its North American grocery business may be among the biggest worldwide spinoffs. Centerview Partners, Evercore Partners and Goldman Sachs are advising Kraft on the spinoff; Centerview and Goldman advised on Kraft's $62.6bln spinoff from Altria in 2007.
@Dealintel: US Investment Grade Coupon Rates
Coca-Cola's 3.3% 10-year note and 1.8% 5-year note rank as the lowest coupons for each maturity class this year. This week's $197mln 30-year offering from Southwestern Public Service Co priced at 4.5%, or 78 basis points over Treasury, to tie the all time record lowest coupon in the 30-year maturity class.
Source - Thomson Reuters