February M&A up 15% over Full Month January 2013
A flurry of deal making in the United States pushed February M&A levels to $147.9 billion with nearly two weeks remaining, a 15% increase over the entire month of January 2013. Year-to-date, M&A activity totals $278.9 billion, an increase of 18% compared to the same time last year. Real estate, consumer staples, telecom and technology targets account for 49% of announced worldwide M&A activity so far this year, compared to 28% during year-to-date 2012.
US M&A, which has more than doubled compared to the year ago period, accounting for 57% of global deal making so far this year. JP Morgan tops the list of worldwide M&A advisors with over $100 billion in M&A assignments, including four for the top five announced deals this year. Four boutique investment banks have moved into the top ten this year, displacing Citi, Deutsche Bank, Nomura and BNP Paribas.
TMT Investment Grade DCM up 42% over 2012
This week's $6.0 billion debt offering from Vodafone Group PLC brings the volume of tech, media and telecom (TMT) investment grade corporate debt issuance to $27.9 billion for year-to-date 2013, an increase of 27% over last year at this time and strongest start for corporate debt in the TMT sector since year-to-date 2009. United States issuers account for 40% of this year's activity, followed by the United Kingdom (21%), and Germany (9%). The average size of a TMT corporate debt offering this year is $1.0 billion, second only to consumer staples ($1.2 billion).
Barclays, which has served as bookrunner on six of the top 10 TMT investment grade debt offerings this year, leads the year-to-date underwriter rankings in the sector with 13.8% market share. HSBC Holdings and JP Morgan follow, with 6.9% and 6.6%, respectively.
Energy and Real Estate Sectors Drive Follow-Ons
Global follow-on equity capital markets activity totals $54.3 billion for year-to-date 2013, an increase of38% compared to the same time last year and the best start for follow-on issuance in two years ($63.3 billion). The energy & power and real estate sectors account for 40% of global follow-on activity this year, compared to 32% last year at this time. United States issuers account for 28% of follow-on activity so far during 2013, followed by China (19%) and India (8%). The United State and Canada accounted for a combined 50% of follow-on activity during year-to-date 2012.
Goldman Sachs leads the ranking of bookrunners of global follow-ons with 10.6% market share, up from fourth last year at this time. Citi follows closely behind with 10.6% market share.