Announced Emerging Markets M&A Up 23% | Energy & Power Leads All Sectors | Morgan Stanley Takes Top Spot

The total value of announced M&A activity in the Emerging Markets reached US$570.5 billion during the first half of 2018, a 22.8% increase from totals reached during the same period last year. The number of M&A transactions in the Emerging Markets totaled 7,218, a 9.2% decrease from the total number of deals a year ago.

Asia Pacific involvement activity drove M&A activity in Emerging Markets, with 5,016 transactions worth US$448.7 billion, far outpacing Middle East & Norht Africa involvement activity, which generated the next highest volume, with 439 deals worth US$49.8 billion. Latin America followed closely, accumulating US$49.3 billion from 558 transactions.

The first half of 2018 saw a relatively balanced industry mix across Emerging Market activity. Energy & Power led, accounting for 14.7% of market activity, followed by Financials and Materials, accounting for 14.3% and 14.2% of market activity, respectively.

According to estimates, total fees earned from completed Emerging Market M&A transactions during the first half of 2018 reached US$4.1 billion – a 0.6% increase from a year ago.

Morgan Stanley took the top spot in the first half of 2018, with US$99.4 billion in announced deals.JP Morgan and Bank of America Merrill Lynch took the second and third spots, respectively.

Average EBITDA multiples across the Emerging Markets increased to 16.4x from 15.6x during the first half of 2018. Multiples ranged from 8.3x in Eastern Europe to 18.9x in China. Bid premia (to 4 weeks prior stock price) averaged 20.9%, a slight increase from the 20.8% averaged during first half 2017.

Source: Thomson Reuters