Second Strongest Month for EMEA M&A in 2013
Deal making activity in EMEA totaled $66.3 billion during October, a 19% increase from the previous month and the second strongest month for M&A activity in the region this year. Year-to-date, EMEA merger activity totals $496.6 billion, a 24% decline from a year ago and the slowest year-to-date period for EMEA target M&A in 10 years ($448.7 billion). Germany accounts for 17.2% of EMEA merger volume this year, up from 8.5% last year at this time. This week's $2.5 billion bid for G4S PLC's cash solution business by Charterhouse Capital Partners pushed UK target activity to $76.2 billion, or 15.4% of year-to-date M&A.
Morgan Stanley tops the list of EMEA target M&A financial advisors so far this year with $132.5 billion, up from third place last year. Goldman Sachs and JP Morgan round out the top three advisors this year.
BRIC Equity Capital Markets Activity Up 12%
The $1.3 billion initial public offering for Russia-based diamond miner AK Alrosa pushed the volume of equity capital markets issuance from BRIC companies to $80.8 billion, a 12% increase from 2012 and the strongest period for BRIC ECM since 2011. Chinese issuers account for 65% of all BRIC issuance this year, down from 69% a year ago. Issuance in Brazil, which has double compared to 2012 levels, accounts for 15% of year-to-date volume, followed by Russia and India, each with 10%. Financials, energy & power and materials account for 52% of overall issuance this year, down from 61% during year-to-date 2012.
Goldman Sachs maintains the top spot for BRIC ECM underwriting this year with 10.5% market share, up 0.9 points from a year ago. UBS ranks second, up from eighth place last year and Citi follows in third place.
Investment Grade Debt Falls 27% in October
Multi-billion offerings from Coca-Cola, China Railway Construction Corp and Altria pushed the volume of global investment grade corporate debt to $204.4 billion for October 2013, a 27% decline compared to September levels. Year-to-date global investment grade corporate debt totals $2.3 trillion, down slightly from a year ago. The top five issuer nations -- United States, China, France, Japan and Germany -- account for 56% of activity this year and have seen volume increase 13% compared to year-to-date 2012.