Slowest Start for Energy & Power M&A Since 2005
The pace of worldwide energy & power deal making has slowed to the lowest levels since year-to-date 2005, with $85.3 billion in announced deals this year, an 11% decline from last year at this time. This week's $3.3 billion acquisition of Lufkin Industries Inc by GE pushes the volume of oil & gas merger activity to $60.1 billion, or 70% of overall energy & power deal making so far this year.
Energy & power M&A accounts for a market-leading 14.5% of total worldwide M&A this year, down from 17.7% last year at this time. There have been no energy & power deals greater than $5 billion announced this year, the first time since year-to-date 2004.
Citi, which has advised on four of the top 10 deals in the energy sector this year, leads the energy & power advisory rankings, up from ninth at this time last year.
Sovereign Debt Issuance Rises 13% Over 2012
With eight sovereign debt offerings priced this week, raising over $22 billion, the volume of underwritten sovereign debt offerings (excluding treasury auctions) totals $116.8 billion for year-to-date 2013, a 13% increase compared to the same time last year and the strongest year-to-date period for sovereign debt offerings since 2010 ($142.6 billion).
Multi-billion offerings from Austria, Finland, Indonesia and Mexico led the week, which ranks as the largest by proceeds raised since October 2012 and the largest by number of offerings since July 2010. For year-to-date 2013, the United Kingdom and Belgium each account for 10% of sovereign debt issuance, followed by Spain and Sweden, each with 9%.
Barclays leads all sovereign debt bookrunners so far this year, with 12.1% market share, up from second last year at this time. Goldman Sachs ranks second, up from 10th last year.
Real Estate ECM Doubles 2012 Levels
Bolstered by offerings from real estate investment trusts (REIT), the volume of real estate equity capital markets activity totals $36.8 billion for year-to-date 2013, more than double the pace of issuance last year at this time. Real estate issuers account for a market-leading 17.6% of global equity capital markets issuance this year, up from 10.7% during year-to-date 2012. The United States accounts for 47% of real estate ECM volume this year, followed by Japan (13%) and Mexico and Singapore, each with 7% of total issuance.
Bank of America Merrill Lynch leads the year-to-date rankings of real estate ECM bookrunners with 9.4% market share, followed by Citi with 8.5%of the market and Goldman Sachs with 8.2%.