Strongest YTD for Latin America ECM since 2008
This week's $2.2 billion follow-on offering from Mexico's Grupo Financiero Banorte pushed the volume of Latin America equity capital markets to $22.6 billion for year-to-date 2013, more than double the tally last year at this time ($9.6 billion) and the strongest start for Latin America equity capital markets activity since 2008. Offerings from issuers in Brazil account for 44% of year-to-date activity, followed by Mexico (39%) and Chile (13%). Financials, energy & power and real estate account for 70% of year-to-date issuance in Latin America this year, up from 37% a year ago.
Brazil's Itau Unibanco leads the year-to-date ranking for Latin America ECM underwriting with 12.5% market share, up from 2.2% last year at this time. Credit Suisse follows in second place with 10.1% market share from an industry-leading 19 offerings.
Largest Canada Retail M&A Deal on Record
Loblaw's $13.0 billion bid for Canada's Shoppers Drug Mart ranks as the largest retail M&A transaction in Canadian history and pushes worldwide retail M&A to $57.6 billion, a decline of 14% compared to year-to-date 2012. Canada accounts for two-thirds of worldwide retail merger activity this year, followed by the United States (22%) and Thailand (11%). The transaction ranks as the largest worldwide retail merger since Walgreen was granted the option to acquire the remaining 55% of Alliance Boots, valued at $21.4 billion, in June 2012 and Australia's Wesfarmers' $15.7 billion purchase of Coles Group in July 2007.
Bank of America Merrill Lynch, sole advisor to Loblaw, tops the ranking of financial advisors in the retail sector with $17.1 billion from seven deals. Goldman Sachs and RBC Capital Markets round out the top three advisors.
China M&A Up 31% from 2012
Baidu's $1.9 billion purchase of mobile software developer 91 Wireless Websoft brings the value of China target M&A to $91.1 billion for year-to-date 2013, a 31% increase compared to last year at this time. Materials, industrials, financials, energy and technology deal making accounts for two-thirds of China M&A activity so far this year, with triple-digit gains for industrials and energy & power deals. Technology M&A in China has increased 62% compared to last year at this time. Domestic M&A activity accounts for 81% of China target M&A, down slightly from a year ago (83%).
China International Capital leads the year-to-date ranking for M&A financial advisors in China with $10.1 billion. CITIC and Morgan Stanley round out the top three advisors.