Best Year for China Outbound M&A Since 2008
The $2.6bn purchase of Petrobras Energia Peru SA by entities controlled by China National Petroleum Corp brings the value of China outbound cross-border M&A to $56.3bn, a 20% increase compared to last year and the strongest year for activity since 2008 ($70.1bn). The deal marks the fifth largest acquisition by a Chinese company in Latin America and the largest in Peru. Energy & power deal making accounts for 44% of outbound purchases from Chinese companies this year, which is down 13% compared to year-to-date 2012. Financials follows with 14.4% of outbound activity, materials accounts for 14.0%.
Morgan Stanley leads the advisory rankings for China outbound M&A this year, followed by Goldman Sachs and Barclays.
Pharma Pushes Healthcare M&A Up 36%
This week's $5.5bn bid for ViroPharma Inc by Dublin, Ireland-based Shire PLC pushed the volume of deal making in the pharmaceutical sector to $64.6bn, more than double activity levels seen last year at this time and brings overall healthcare M&A to $175.6bn, a 36% increase compared to 2012. Cross-border merger activity in the healthcare sector totals $56.4bn, a 6% increase compared to a year ago. United States targets account for 67% of announced healthcare deal making this year, up slightly from last year when US activity was 64% of the worldwide sector total. Germany accounts for 8% of volume this year and Ireland accounts for 4%
Goldman Sachs, which advised ViroPharma, tops the ranking of M&A financial advisors in the healthcare sector this year, followed by Bank of America Merrill Lynch and JP Morgan.
European Follow-On Offerings Rise 79% Over 2012
A trio of European follow-on offerings top the list of equity capital markets activity this week and push overall volume of secondary offerings in Europe to $136.5bn, a 79% increase compared to a year ago and the strongest period for issuance since 2009. Common stock offerings from existing shareholders account for 61% of overall follow-on offerings in Europe this year, the highest proportion of stake sales since 2005 when two-thirds of secondary offerings came from shareholders. Financials, industrials and media & entertainment issuers account for 61% of overall issuance this year, up from 47% last year at this time.
Bank of America Merrill Lynch holds the top spot for European follow-on offering underwriting with 10.3% market share, up from 7.3% last year. Last year's leader, Goldman Sachs, falls to second place with 10.1% share.