Issue 8 2019

Acquisition International - Issue 8 2019 87 Figures refer to: Aggregate deal value (m $) Deal monthly value (Announced date) Number of deals Aggregate deal value (mil $) July 2019 119 5,917 June 2019 157 1,243 May 2019 213 3,719 April 2019 178 1,348 March 2019 224 20,281 February 2019 157 4,645 January 2019 159 2,813 December 2018 240 5,121 November 2018 169 4,111 October 2018 199 4,558 September 2018 170 2,828 August 2018 176 3,925 July 2018 187 8,306 June 2018 193 13,236 May 2018 186 9,502 April 2018 212 5,578 March 2018 196 5,386 February 2018 176 1,659 January 2018 170 4,901 December 2017 187 13,211 November 2017 211 3,889 October 2017 189 1,277 World region (target) March 2016 April 2016 May 2016 June 2016 July 2016 Western Europe 528 243 131 539 1,050 North America 1,763 2,450 248 309 103 Far East and Central Asia 787 65 150 316 366 Africa 0 0 0 0 0 Oceania 267 202 263 142 1,281 Middle East 6 0 5 0 1 South and Central America 26 53 0 20 59 Eastern Europe 0 129 0 0 4 Figures refer to : Aggregate deal value (m USD) Bureau van Dijk Zephyr shows 734 deals worth an aggregate USD 35,659 million were announced in the sector in Q2 2019, compared to 1,044 deals totalling USD 33,970 million in Q1 2019, representing a 5 per cent increase in value and a 30 per cent decrease in volume. It should be noted the decline in volume appears particularly stark as dealmaking in Q4 2018 and Q1 2019 exceeded 1,000 for the first time since Q1 2016 and the 734 deals announced in Q2 2019 is more in line with levels recorded in the first three quarters of 2018. The results also indicate the growth in value in Q2 2019 was driven by a single transaction with a high value rather than prolific dealmaking. Overall value for the first six months of 2019 totalled USD 69,629 million, of which M&A targeting companies based in North America and Western Europe accounted for 42 per cent (USD 29,003 million) and 36 per cent (USD 24,993 million), respectively. Global value in H1 2019 was up across the board when compared to H2 2018, with just one exception, Oceania, where deals fell from an aggregate USD 2,548 million in H2 2018 to USD 1,783 million and only one transaction targeting the region featured in the top 20 deals by value for the half year. MBK Partners HK acquired Godiva Chocolatier’s retail and distribution business in Japan, South Korea, Australia and New Zealand for USD 1,000 million. The largest M&A deal in the consumer retail sector to have been announced in 2019 to date involved EssilorLuxottica striking an agreement to acquire GrandVision in its entirety in a two-step deal that will first see the Franco-Italian ophthalmic lenses, frames and sunglasses manufacturer known for its Ray-Ban brand buying a 77 per cent stake from HAL Holding’s wholly-owned Hal Optical Investments via a block trade worth USD 6,099 million. This was followed by an affiliate of Eddie Lampert’s ESL Investments acquiring the assets of Sears Holding for USD 5,200 million as part of the 125-year-old retailer’s bankruptcy proceedings. The value of M&A targeting the global consumer retail market in 2019 to date has picked up the pace - when compared to the relatively subdued aggregate transaction value recorded in 2018 - against a backdrop of both political and economic uncertainty and the rapid transformation of the industry as a whole, due to, among other things, changes in consumer spending, digitalisation, demand for new channels and a race to enter new markets. Consumer Retail Figures refer to: Aggregate deal value (m $) Figures refer to : Aggregate deal value (m USD) Deal type Number of deals Aggregate deal value (mil USD) Acquisition 8,153 291,086 Institutional buy-out 944 176,193 Minority stake 9,098 112,956 Capital increase 1,064 29,173 Management buy-out 85 4,002 Merger 96 42 Management buy-in 4 12 Demerger 10 0 BvD sectors (target) Number of deals Aggregate deal value (mil $) Public Administra- tion, Education, Health Social Services 11,409 608,938 Business Services 28 3,446 Industrial, Electric & Electronic Ma- chinery 37 2,800 Banking, Insurance & Financial Ser- vices 13 1,934 Computer Software 7 994 Mining & Extraction 3 816 Property Services 4 695 Wholesale 7 507 Transport, Freight & Storage 2 327 Construction 3 231 Travel, Personal & Leisure 3 159 Wood, Furniture & Paper Manufacturing 1 147 Retail 1 66 Biotechnology and Life Sciences 2 57 Food & Tobacco Manufacturing 1 20 Chemicals, Petro- leum, Rubber & Plastic 2 14 Media & Broad- casting 1 3