• Worldwide M&A tops the $3 trillion mark for the first time since 2007
• Cross-Border M&A activity totals $1.2 trillion, up 92% compared to YTD 2013
• European Investment Grade DCM activity increases 14% compared to year ago levels
• Asia Pacific ECM hits $207.3 billion so far in 2014, up 34% compared to last year
• Energy & Power M&A totals $516.3 billion during YTD 2014, up 68% from a year ago
• Consumer Staples ECM totals $23.6 billion during YTD 2014, down 26% from a year ago
• Healthcare DCM totals $105.5 billion this year, up 39% compared to 2013
A $66.4 billion white knight bid for Allergan by Actavis PLC helped push worldwide M&A over the $3 trillion mark for the first time since 2007 and lifted healthcare deal making to $364.0 billion, more than double last year's tally. The successful tie-up resulted in the collapse of Valeant Pharmaceuticals $56.3 billion offer for Allergan announced in April. The end of Valeant's pursuit of Allergan pushed the level of withdrawn M&A to $647.4 billion, the highest level for cancelled deals since 2007 and shook up the ranking of worldwide M&A financial advisors. JP Morgan, the sole advisor to Actavis, moved into second place for year-to-date deal making advice, while Morgan Stanley, an advisor to Valeant along with Barclays, RBC Capital Markets and Credit Suisse fell from second place to fifth.
US-dollar denominated investment grade corporate debt issuance reached $1.05 trillion this week, a 7% increase compared to year-to-date 2014 and surpassing all full-year records for US-marketed high grade offerings. Alibaba Group's inaugural $8 billion multi-part offering capped off a week which saw new issues from Johnson & Johnson, Citigroup and Dominion Resources. JP Morgan, which led the Alibaba offering along with five other bookrunners, leads the year-to-date ranking of US investment grade underwriters with 13.5% market share, an increase of 0.3 market share points compared to a year ago.
This week's $2.3 billion initial public offering from New York-based REIT, Paramount Group, lifted global IPO activity to $211.4 billion for year-to-date 2014, a 53% increase compared to a year ago and the strongest year-to-date period for new listings since 2010. Paramount's offering was the 38th IPO greater than $1 billion so far this year -- the highest number of multi-billion dollar IPOs since 2007. Fourteen IPOs greater than $1 billion have come from European companies, with 12 in the Americas and seven in Asia Pacific. Morgan Stanley, which leads overall global IPO underwriting this year with 9.6% market share, has led an industry-leading 24 IPOs greater than $1 billion. Goldman Sachs and Deutsche Bank have each led 20 $1 billion-plus listings this year.