Tech M&A Down 3%; US Targets Account for 62%
The $6.7 billion acquisition of electronic component manufacturer Molex Inc by Koch Industries topped the list of the weeks largest deals and pushed worldwide deal making in the technology sector to $114.6 billion, a 3% decline compared to last year at this time. Software, computers & peripherals and electronics account for just over two-thirds of global technology M&A this year, up from 50% a year ago. Eight of the top 10 announced technology deals involve United States target, which account for 62% of overall deal activity in the sector this year. Targets in China account for 16% and Germany accounts for 4%.
JP Morgan, which advised Koch Industries, tops the list of financial advisors in the tech sector so far this year, up from second place last year. Goldman Sachs and Bank of America Merrill Lynch round out the top three.
Department Store Retail M&A Doubles Over 2012
A $6.0 billion bid for US department store retailer Neiman Marcus Group by an investor group comprised of Ares Management and Canada Pension Plan Investment Board (CPPIB) pushed the level of worldwide retail M&A to $69.8 billion for year-to-date 2013, down 7% compared to last year at this time. The Neiman Marcus purchase, coupled with July's $2.8 billion for bid Saks Inc by Canada's Hudsons Bay Co brings worldwide department store retail M&A to $12.9 billion, more than double last year's tally. Retail deal making involving Canadian companies accounts for 33% of all retail M&A so far this year.
RBC Capital Markets, which advised Ares and CPPIB, leads the ranking of financial advisors in the retail sector for year-to-date 2013. Bank of America Merrill Lynch and Goldman Sachs rank second and third, respectively.
US Dollar Investment Grade Debt Breaks Record
Powered by Verizon Communications record-breaking $48.9 billion benchmark debt offering, the volume of US dollar denominated investment grade debt offerings total $735.8 billion, a 7% increase compared to last year at this time and the strongest year-to-date period for US dollar corporate debt since records began in 1980. The Verizon offering also breaks the all-time record for US dollar corporate bond fees, which total $265.2 million to be shared among the 13-member syndicate group. Issuers in the financial, energy & power and telecom sectors account for 65% of overall US dollar issuance this year, up from 61% last year at this time.
JP Morgan, Citi and Bank of America Merrill Lynch control 35% of US dollar investment grade debt underwriting this year, down from 36.2% a year ago.