Worldwide M&A Dips Negative; Down 7% From 2012
The pace of worldwide mergers & acquisitions fell to just $11.1 billion through Thursday of this week, marking the slowest week for deal making this year and brings the year-to-date total of worldwide M&A to $750.2 billion, a decline of 7% compared to last year at this time. United States targets account for 46% of worldwide M&A this year, up from 32% during year-to-date 2012. China M&A accounts for 7% of this year's tally, followed by Japan and the United Kingdom which each account for 4%.
Telecommunications, media & entertainment and consumer staples lead the sectors with strongest year-over-year percentage gains, while materials, energy and power and financials have all registered double-digit declines compared to year-to-date 2012.
US Dollar Investment Grade Debt Up 15%
Bolstered by this week's multi-billion dollar offerings from Brazil's Petrobras ($10.9 billion), US-based Merck Inc ($6.5 billion) and Indonesia's Pertamina PT ($3.25 billion), the level of US-dollar denominated investment grade corporate debt totals $447.9 billion for year-to-date 2013, a 15% increase compared to the year ago period and the strongest year-to-date period for US-dollar denominated investment grade corporate debt since records began in 1980.
Financials, energy and power, consumer staples and technology issuers account for 71% of overall issuance this year, down from 73% last year at this time. JP Morgan leads the year-to-date ranking for US-dollar investment grade underwriting with 15.3% share, up 1.7 share points from last year at this time.
Sinopec and China Galaxy Boost Asia IPOs
Initial public offerings from China's Sinopec Engineering Group and China Galaxy Securities Co each raised over $1 billion on the Hong Kong Stock Exchange pushing the volume of Asia Pacific IPOs to $9.9 billion for year-to-date 2013, a 15% decline compared to last year at this time. The two offerings rank as the largest Chinese IPOs this year, but fall behind Thailand's BTS Rail Mass Transit Growth ($2.13 billion) and Singapore's Mapletree Greater China ($2.06 billion).
IPO activity from Chinese companies has fallen to $2.9 billion for year-to-date 2013, a 66% decrease compared to a year ago. Goldman Sachs, which lead both the Sinopec and China Galaxy offerings, leads year-to-date IPO underwriting with 9.3% share.