European ECM Up 35%; Cross-Border M&A Falls 36%

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European Equity Capital Markets Up 35%

Follow-on offerings from Germany's Deutsche Bank and Luxembourg-based RTL Group SA pushed the volume of European equity capital markets offerings to $64.0 billion for year-to-date 2013, an increase of 35% compared to the same time last year. Follow-ons account for 73% of European ECM activity, down from 76% last year, while convertibles account for 16% and initial public offerings account for 11%. France, United Kingdom, Germany and Luxembourg make up 56% of overall issuance in Europe this year, up from 41% during year-to-date 2012.

Goldman Sachs and Deutsche Bank lead the year-to-date rankings for European equity capital markets, with 12.0% and 11.9% market share, respectively. UBS follows in third place, with 9.5% share, up from 7.2% share during year-to-date 2012.

Cross-Border M&A Falls 36%

The value of announced cross-border deal making totals $172.6 billion for year-to-date 2013, a decline of 36% compared to last year, despite this week's $5.4 billion bid by Unilever to raise its stake in India's Hindustan Unilever and Berkshire Hathaway's $2.05 billion bid to purchase a remaining 20% of Netherlands-based IMC International Metalworking Companies. The US ranks as the most targeted country for cross-border M&A, accounting for 17% of year-to-date activity, followed by the United Kingdom (7%) and Germany (6%). US companies also top the list of outbound acquirors with 24% of cross-border M&A, with the UK accounting for 12% and China with 6%.

Goldman Sachs tops the list of cross-border M&A advisors, followed by Morgan Stanley and Bank of America Merrill Lynch.

Apple's $17bln Bond Offering Breaks All-time Records

Apple Inc's $17.0 billion bond offering ranks as the largest non-financial corporate bond offering on record. The previous record was held by Swiss Healthcare firm Roche Holdings for their US$16.3 billion offering in 2009. Global corporate investment grade debt totals US$992.8 billion so far during 2013, down 4% compared to the same period in 2012. Issuance from companies in the high technology sector totals US$35.0 billion so far this year, more than double issuance last year at this time. Apple’s bond sale accounts for 49% of year-to-date investment grade bond activity in the high tech sector.

Goldman Sachs and Deutsche Bank lead the Apple offering, which was the second corporate bond over $10 billion with just two bookrunners since records began in 1980.

Source - Thomson Reuters

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