Emerging Markets M&A 2017 review - Morgan Stanley stays top

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Announced Emerging Markets M&A Down 9% | Completed Advisory Fees Up 49% | Morgan Stanley Takes Top Spot

The total value of announced M&A activity in the Emerging Markets reached US$1 trillion during full year 2017, a 9.4% decrease from totals reached during 2016. The number of M&A transactions in the Emerging Markets totaled 16,109, a 6.2% decrease from the total number of deals a year ago.

Chinese involvement activity drove M&A activity in Emerging Markets, with 6,848 transactions worth US$657.4 billion, far outpacing Brazilian involvement activity, which generated the next highest volume, with 591 deals worth US$66.5 billion. India followed closely, accumulating US$62.1 billion from 1,531 transactions.

Full year 2017 saw a balanced industry mix across Emerging Market activity. Real Estate led, accounting for 17.6% of market activity, and was followed by Financials and Energy & Power, accounting for 12.5% and 11.6% of market activity, respectively.

According to estimates, total fees earned from completed Emerging Market M&A transactions during full year 2017 reached US$8.4 billion - a 48.9% increase from a year ago.

Morgan Stanley took the top spot in the Emerging Markets in 2016, with US$116.9 billion in announced deals. Goldman Sachs and China International Capital Co took the second and third spots, respectively.

Average EBITDA multiples across the Emerging Markets slightly increased to 15.6x from 15.3x recorded during full year 2016. Multiples ranged from 9.7x in Latin America to 18.2x in China. Bid premia (to 4 weeks prior stock price) averaged 21.6%, a slight decrease from the 23% averaged during full year 2016.

Emerging Markets Involvement Announced 2017: Thomson Reuters

Source: Thomson Reuters

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