German Target M&A Pushed to 6-Year High
McKesson's $8.7bn two-step bid for full control of Germany's Celesio AG pushed German target M&A to $85.6bn for year-to-date 2013, a 56% increase from a year ago and the strongest period for deal making in Germany since 2007. Cross-border acquisitions of German targets total $58.6bn so far this year, accounting for 69% of overall German M&A activity - the highest percentage of inbound cross-border M&A in the country since 2005. Germany ranks as the top target for US-based acquirors, or 12.4% of US outbound M&A, ahead of Japan (10.2%) and the United Kingdom (10.0%).
Goldman Sachs, advisor to McKesson, tops the list of financial advisors in Germany, with $49.1bn from 17 deals. UBS and Citi round out the top three advisors this year.
US Equity Capital Markets Activity Up 3%
A $2.7bn follow-on offering from Crown Castle International to finance its purchase of wireless towers from AT&T and a $1.3bn convertible bond from SanDisk Corp brings the volume of equity capital markets issuance from US companies to $207.5bn, an increase of 3% compared to the same time last year. Energy & power, real estate and healthcare and tech ECM issuance accounts for 59% of overall volume this year, up from 55% last year at this time. US follow-on offerings, which account for two-thirds of year-to-date activity, have fallen 6% compared to a year ago. Convertible offerings are up 64% from last year and IPOs have increased 8%.
Goldman Sachs is the leading underwriter for US equity capital markets offerings with 14.6% market share, an increase of 4.2 share points from late year.
Worldwide Real Estate M&A Up 53%
American Realty Capital Properties $10.2bn acquisition of Cole Real Estate Investments pushed the volume of REIT M&A to $70.0bn so far this year, more than double last year's tally and brings worldwide real estate deal making to $247.3bn a 53% increase compared to year-to-date 2012. This year marks the busiest period for real estate merger activity since 2007 when volume reached $378.9bn. Real estate now ranks as the second busiest sector this year and accounts for 13.2% of worldwide M&A, behind energy & power (13.7%) and slightly ahead of telecom (13.1%).
The United States accounts for 44.2% of real estate M&A so far this year, up from 33.7% last year at this time, followed by China (9.2%) and Japan (7.9%).