Worldwide M&A Off to Best Start Since 2007
AbbVie’s $19.9 billion bid for Pharmacyclics and NXP Semiconductors $16.1 billion offer for rival Freescale Semiconductor pushed worldwide deal making to $568.6 billion for year-to-date 2015, a 15% increase compared to a year ago and strongest annual start for M&A since 2007. The telecom, healthcare and financial sectors account for 41% of overall activity, compared to 21% during year-to-date 2014. This week, Morgan Stanley advised AbbVie and Freescale Semiconductor , solidifying third place for year-to-date 2015 worldwide M&A advice behind Goldman Sachs and JP Morgan.
Investment Grade Debt Issuance Flat as US$ Deals Rise
Global Investment Grade corporate bond issuance totals $588.9 billion so far this year boosted by this week’s multi-billion offerings from Actavis, Exxon Mobil and Berkshire Hathaway. Overall activity is flat compared to year-to-date 2014 despite a 12% increase in US$-dollar denominated deals. US$ deals now account for 50% of year-to-date issuance, up from 45% a year ago. The average US$ bond offering is now $1.3 billion, the highest average offering size since records began in 1980.
EMEA Follow-On Activity at All-Time YTD High
Follow-on equity issuance from EMEA companies was boosted by this week’s billion+ offerings from Spain’s Abertis Infraestructuras, France’s Safran and Turkey’s Akbank bringing year-to-date issuance to $33.6 billion, a 45% increase compared to last year and best all-time year-to-date start for follow-on offerings in the region.