US Acquisitions in Europe Fall to Three-Year Low
The pace of US acquisitions in Europe have slowed to $55.3 billion for year-to-date 2013, a 46% decline from year ago levels and the slowest period for transatlantic deal making since the 2010 ($48.3 billion). This week, US-based Darling International acquired the entire share capital of VION Ingredients Nederland BV for $2.2 billion, bringing the volume of US acquisitions of European materials assets to $5.1 billion, up 51% from the same time last year. US purchases in the healthcare, telecom and financial sectors account for 44% of European target activity this year, up from 19% a year ago.
The United Kingdom ranks as the top target for US-based acquirors this year with 19% of overall activity, followed by Finland and the Netherlands (15%) and Ireland (13%).
Follow-On Offerings Account for 70% of Japan ECM
Sharp Corp's $1.3 billion common stock offering pushed the volume of follow-on offerings in Japan to $28.3 billion for year-to-date 2013, more than double the level of activity seen last year at this time. Follow-on activity accounts for 70% of overall equity capital markets issuance in Japan this year, up considerably from 48% of overall ECM volume during year-to-date 2012. Consumer staples, real estate, financials and industrial issuers account for 75% of Japanese follow-on activity so far this year.
Nomura, one of four bookrunners on this week's Sharp Corp follow-on, maintains the top spot for follow-on underwriters in Japan for year-to-date 2013 with 22.1% market share. Daiwa Securities Group follows in second place, up from fifth last year. Goldman Sachs ranks third, up from tenth place during year-to-date 2012.
Retail Deal Making Up 2% Over 2012
The $2.3 billion unsolicited bid by US men’s retailer Joseph A Bank Clothiers for rival Men's Warehouse brings the volume of worldwide deal making in the retail sector to $77.4 billion for year-to-date 2013, a 2% increase compared to a year ago. Retail targets in the North America account for 55% of overall activity in the sector during 2013, bolstered robust activity in Canada this year. Apparel and department store retailing account for 23% of announced retail mergers compared to 13% last year at this time.
Bank of America Merrill Lynch, which advised Men's Warehouse and Goldman Sachs, which advised Joseph A Bank, top the list of financial advisors in the retail sector this year with $25.7 and $23.0 billion in advisory assignments, respectively.