The $6.8 billion buyout of BMC Software by a group lead by Bain Capital and Golden Gate Capital and Inergy Midstream's $2.3 billion purchase of Crestwood Midstream Partners pushed the volume of US domestic M&A activity to $303.5 billion for year-to-date 2013, a 60% increase compared to last year at this time.
US domestic deal making accounts for 40% of overall worldwide M&A, the highest year-to-date percentage since 2005. Telecommunications, energy and power and high technology M&A accounts for 49% of US domestic M&A activity so far this year.
Bank of America Merrill Lynch tops the ranking of US domestic M&A advisors with $124.2 billion from 21 deals this year followed by JP Morgan and Barclays.
German Inbound Cross-Border M&A Up 24%
A $1.4 billion winning bid by Canada's state-owned Public Sector Pension Investment Board for Germany's Hochtief Airport GmbH brings the volume of German inbound cross-border M&A to $11.7 billion for year-to-date 2013, an increase of 24% compared to last year at this time. Deal making in high technology, industrials and real estate account for nearly 75% of overall German inbound cross-border M&A this year. Acquirors in the United Kingdom, United States and Canada make up 80% of German inbound M&A activity during year-to-date 2013.
Deutsche Bank, which advised Hochtief along with RBS, tops the list of financial advisors for German inbound M&A this year. The firm also advised ista International GmbH on its $4.0 billion bid from CVC Capital Partners in April.
Strongest Start for Telecom IB Fees since 2007
Fees for global investment banking services in the telecommunications sector, from M&A advisory to capital markets underwriting, totaled US$1.2 billion so far during 2013, a 61% increase over the same period last year and marking the strongest year-to-date period for fees in the sector since 2007. Telecoms sector fees accounted for 4.6% of total investment banking fees earned so far this year, the biggest proportion since 2006 (5.2%).
Morgan Stanley earned the lion’s share of investment banking fees in the telecommunications sector so far during 2013, with US$107.3 million in fees, or 8.8% of overall wallet-share. Bank of America Merrill Lynch took second place with US$93.3 million, a 7.7% cut.