Industrials M&A Falls to Three-Year Low
Advance Auto Parts Inc's $2.0 billion bid for US-based General Parts International topped the list of the week's largest deals and brought deal making in the industrial sector to $165.1 billion, a 9% decline compared to last year at this time and the slowest year-to-date period for merger activity in the sector since 2010. Activity in the United States, China and Germany account for 44% of industrial M&A activity so far this year, on par with a year ago. Automobile and components M&A totals $22.2 billion for year-to-date 2013, a 28% decline from last year at this time.
Morgan Stanley tops the list of M&A financial advisors in the worldwide industrial sector with $34.6 billion from 27 deals, followed by Goldman Sachs ($31 .2 billion) and Credit Suisse ($26.8 billion).
All-time Record for Mexico ECM Activity
The $941.6 million initial public offering for Mexican dairy company, Grupo Lala SAB de CV, pushed the volume of Mexico equity capital markets activity to $11.5 billion for year-to-date 2013, a 58% increase compared to last year and an all-time record. Mexican companies account for 41% of overall Latin America equity capital markets activity, which totals $28.0 billion for year-to-date 2013, a 57% increase compared to a year ago. Financials, real estate and energy and power offerings account for 64% of overall Latin America activity this year.
BBVA, a lead underwriter for the Grupo Lala offering, tops the ranking of Mexican ECM bookrunners this year with 15.7% market share, up from 5.7% last year. Credit Suisse follows in second place with 12.5% and Citi in third with 10%.
China Corporate Debt Tops $250 billion, Up 58%
A $3.3 billion bond offering from China Railway Construction Group brings the volume of investment grade corporate debt from Chinese issuers to $255.2 billion for year-to-date 2013, a 58% increase compared to a year ago and the strongest year-to-date tally since records began in 1980. Issuance is highly concentrated among issuers in the financials, industrials, energy and power and materials sectors, which account for a combined 87% of year-to-date volume.
CITIC Group, one of six bookrunners for China Railway, maintains the top spot for corporate debt underwriters in China this year with 8.8% market share, down from 10.4% last year at this time. Bank of China and China Construction Bank round out the top three.