edition monthly m&a insider october 2011 - · pdf filemonthly m&a insider global...

Monthly M&A InsIderA mergermArket report on globAl m&A Activity EDITION

october 2011

Monthly M&A InsIdermergermarket

GlobAl overvIew 01

AmericAs: lAtin AmericA 09

north AmericA 17

AsiA-pAcific 28

europe 38

middle eAst & AfricA 51

About MerrIll corporAtIon 61

www.mergermarket.comPart of the mergermarket group

CONTENTS

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Monthly M&A Insider

global overview

01

Bank rescues have generated some of the largest financial services deals of recent years, and this continues to be the case in 2011 with the bailout of French-Belgian banking conglomerate Dexia SA. Announced in early October, the Government of Belgium’s US$5.4bn acquisition of Dexia Banque Belgique, Dexia’s retail and commercial arm, now stands as the eighth largest financial services deal of 2011 globally. Running parallel to this deal is an influx of investment into the Belgian financial services space: within a week of Dexia, KBC Groep NV, the financial services conglomerate which since 2008 has received more than US$8bn in support from the Belgium and the Flemish governments, agreed to sell Fidea NV to US-based private equity group J.C. Flowers & Co. for US$336m, and its KBL European Private Bankers unit to a holding company backed by the Qatari royal family for an undisclosed amount. These deals follow closely behind the US$737m sale of KBC Groep’s consumer business, Bentea, to Belgium-based Groupe Credit Agricole in April. All of these transactions reflect an ongoing struggle to meet stricter capital requirements set by the European Commission.

M&A has been a regular fixture in financially distressed countries, and seems to be accelerating now that private equity buyers are entering the mix more aggressively. In Ireland, a consortium including WL Ross & Co., Fidelity Investments, Fairfax Financial Holdings Limited, Kennedy-Wilson and the Capital Group Companies invested US$1.5bn in the Bank of Ireland, in what now stands as the country’s fourth largest deal of 2011. Other corners of the Irish financial services sector are seeing foreign interest, too: earlier this month, The Blackstone Group’s GSO Capital Partners acquired Ireland-based leverage loan investor Harbourmaster Capital Management for an undisclosed amount, to help strengthen its grip on the European market. The acquisition of HCM, which looks after approximately €8bn of senior secured loans and infrastructure

debt, will help GSO build its European leveraged loan business into a diverse global platform with €11.5bn under management.

International banks’ asset sales have also been translating into local opportunities for strategic buyers. In the US, Capital One Financial Corporation has been particularly quick in snapping up opportunities, acquiring the US credit card and retail operations of UK-based HSBC for US$2.6bn in August, after acquiring the US operations of Netherlands-based ING Groep NV, ING Direct USA, for US$9bn the previous June. A similar trend can be found in Latin America, where a cluster of ING Groep operations – AFP Integra SA, InVita Seguros de Vida SA, and its Latin American pensions, life insurance and investment management operations – were acquired by Colombia-based Grupo de Inversiones Suramericana SA for US$3.9bn.

Financial sector consolidation has offered an incredibly steady stream of opportunities over the past few years, and while strategic buyers have been quickest to pounce, buyout groups appear increasingly willing to enter the fold. J.C. Flowers & Co.’s debut in Belgium this month and GSO’s strategic acquisition of Ireland-based Harbourmaster are two notable examples of private equity’s appetite for financial services assets, which had previously been tempered by high-profile crashes. Washington Mutual’s story was especially alarming, as the bank was taken over by the Federal Deposit Insurance Corporation (FDIC) just months after receiving US$2bn from US-based private equity group TPG. But investors’ confidence could be boosted by the more recent story of BankUnited, which launched a successful IPO this year after receiving US$900m from a group of private equity firms including WL Ross & Co. and The Carlyle Group in 2009. Regardless of how the rest of the year plays out, investors and advisors should keep a close eye on all of the financial services M&A opportunities emerging underneath the more topical headlines about the industry’s distress.

GLOBAL OVERVIEW

Head of Research – Elias Latsis

Global Research Manager – Sola Akinola

Head of Production – Felicity James

For advertising opportunities contact:

Erik Wickman

Tel: + (1) 212 6863329 [email protected]

Global overview: Elizabeth Castro

Latin America: Svetlana Alkayeva and Urna Chakraborty

North America: Jennifer Ruiz and Jason Cozza

Asia-Pacific: Jin Zhang and Maggie Cheung

Europe: Samuel Tedjasukmana and Damian Julliard

Middle East & Africa: Yannis Papacostas, Peter Kruk and Silvia Paparello

GLOBAL M&A IN THE FIRST THREE QUARTERS OF 2011 TOTALLED US$1,718BN – A 21.5% INCREASE FROM THE US$1,414.4BN WORTH OF DEALS REGISTERED IN THE FIRST THREE QUARTERS OF 2010 – AND THE FINANCIAL SERVICES SECTOR SAW AN EVEN STEEPER 37.4% INCREASE DURING THIS NINE-MONTH WINDOW. THE FIRST THREE QUARTERS OF 2011 BROUGHT US$208.5BN IN FINANCIAL SERVICES DEALS TO MARKET, UP FROM US$151.7BN IN THE SAME PERIOD LAST YEAR, AND A CLOSER LOOK AT THESE FIGURES SHOWS JUST HOW IMPORTANT A ROLE M&A IS PLAYING IN THE INDUSTRY’S BROADER TRANSFORMATION.

Monthly M&A Insider 02

globAl overvieW

lEagUE TablES

ranking Q3 2011 Q3 2010

Q3 2010 Q3 2011 company name value (us$m)

deal count value (us$m)

value change (%)

1 1 goldman Sachs 471,506 241 309,873 52.2%

4 2 JPMorgan 425,369 182 233,417 82.2%

2 3 Morgan Stanley 388,672 193 291,278 33.4%

3 4 Credit Suisse 338,471 159 277,089 22.2%

5 5 Citigroup 278,340 122 203,454 36.8%

8 6 Deutsche bank 265,066 136 184,538 43.6%

9 7 bank of america Merrill lynch 253,950 170 168,249 50.9%

6 8 barclays Capital 221,946 99 202,822 9.4%

10 9 lazard 195,044 136 134,404 45.1%

7 10 UbS Investment bank 171,829 157 187,832 -8.5%

11 11 rothschild 96,769 146 122,650 -21.1%

24 12 Evercore Partners 96,108 51 37,940 153.3%

14 13 HSbC 78,037 56 88,313 -11.6%

12 14 bNP Paribas 68,600 67 105,072 -34.7%

15 15 Sg 66,264 49 85,271 -22.3%

13 16 Nomura Holdings 60,660 86 89,741 -32.4%

17 17 greenhill & Co 54,539 20 58,687 -7.1%

22 18 rbC Capital Markets 50,785 75 40,349 25.9%

21 19 Perella weinberg Partners 49,403 15 46,357 6.6%

47 20 Moelis & Company 47,343 41 13,510 250.4%Source: mergermarket

The financial adviser league tables by value and volume have been run from 01-Jan-11 to 30-Sep-11. The tables cover all sectors and are based on the geography of either the target, bidder or seller being global.

top 20 fInAncIAl AdvIsors – GlobAl

valUE

ranking Q3 2011 Q3 2010



deal count change

1 1 goldman Sachs 471,506 241 207 34

2 2 Morgan Stanley 388,672 193 205 -12

9 3 JPMorgan 425,369 182 145 37

3 4 KPMg 14,627 176 192 -16

12 5 bank of america Merrill lynch 253,950 170 128 42

5 6 Credit Suisse 338,471 159 170 -11

10 7 UbS Investment bank 171,829 157 145 12

7 8 rothschild 96,769 146 159 -13

4 9 PwC 10,231 138 181 -43

11 10 Deutsche bank 265,066 136 145 -9

8 11 lazard 195,044 136 147 -11

13 12 Citigroup 278,340 122 113 9

6 13 Deloitte 13,055 118 169 -51

14 14 Ernst & Young 15,132 102 108 -6

15 15 barclays Capital 221,946 99 101 -2

18 16 Jefferies & Company 36,448 90 69 21

16 17 Nomura Holdings 60,660 86 89 -3

17 18 rbC Capital Markets 50,785 75 78 -3

21 19 bNP Paribas 68,600 67 60 7

22 20 M&a International 1,190 67 57 10Source: mergermarket

top 20 fInAncIAl AdvIsors – GlobAl

vOlUME


globAl overvieW

lEagUE TablES

ranking Q3 2011 Q3 2010



deal count change

1 1 Dla Piper 36,147 214 264 -50

2 2 latham & watkins 187,971 209 199 10

3 3 Jones Day 93,724 207 191 16

5 4 linklaters 179,480 188 179 9

12 5 Clifford Chance 89,915 178 129 49

8 6 allen & Overy 156,778 174 162 12

6 7 Freshfields bruckhaus Deringer 193,846 173 174 -1

9 8 Skadden arps Slate Meagher & Flom 218,277 152 156 -4

4 9 baker & McKenzie 66,476 151 186 -35

7 10 Kirkland & Ellis 66,459 151 170 -19

10 11 Hogan lovells 60,483 143 136 7

11 12 CMS 29,125 123 136 -13

14 13 weil gotshal & Manges 114,253 121 120 1

15 14 Simpson Thacher & bartlett 295,450 113 114 -1

13 15 Sullivan & Cromwell 317,221 102 120 -18

16 16 white & Case 51,312 100 108 -8

24 17 Shearman & Sterling 190,354 98 86 12

18 18 Dewey & leboeuf 208,716 92 96 -4

29 19 Davis Polk & wardwell 109,504 91 74 17

19 20 Cleary gottlieb Steen & Hamilton 142,536 87 94 -7Source: mergermarket

The legal adviser league tables by value and volume have been run from 01-Jan-11 to 30-Sep-11 and include lapsed and withdrawn deals. The tables cover all sectors and are based on the geography of either the target, bidder or seller being global.

top 20 leGAl AdvIsors – GlobAl

vOlUME

ranking Q3 2011 Q3 2010



value change (%)

2 1 Sullivan & Cromwell 317,221 102 228,198 39.0%

5 2 Simpson Thacher & bartlett 295,450 113 204,981 44.1%

16 3 wachtell, lipton, rosen & Katz 225,539 55 113,756 98.3%

1 4 Skadden arps Slate Meagher & Flom 218,277 152 269,994 -19.2%

12 5 Dewey & leboeuf 208,716 92 119,995 73.9%

4 6 Freshfields bruckhaus Deringer 193,846 173 210,946 -8.1%

19 7 Shearman & Sterling 190,354 98 97,943 94.4%

6 8 latham & watkins 187,971 209 163,326 15.1%

9 9 linklaters 179,480 188 132,276 35.7%

11 10 Cravath Swaine & Moore 161,924 46 123,043 31.6%

14 11 allen & Overy 156,778 174 116,205 34.9%

3 12 Cleary gottlieb Steen & Hamilton 142,536 87 214,395 -33.5%

17 13 weil gotshal & Manges 114,253 121 108,731 5.1%

15 14 Davis Polk & wardwell 109,504 91 114,873 -4.7%

24 15 gibson Dunn & Crutcher 96,180 72 65,119 47.7%

21 16 Jones Day 93,724 207 87,815 6.7%

22 17 Clifford Chance 89,915 178 77,403 16.2%

28 18 Fried Frank Harris Shriver & Jacobson 89,713 39 52,445 71.1%

7 19 blake, Cassels & graydon 70,621 72 140,701 -49.8%

34 20 baker & McKenzie 66,476 151 42,006 58.3%Source: mergermarket

top 20 leGAl AdvIsors – GlobAl

valUE


globAl overvieW

lEagUE TablES

valUE

valUE

rank

Q3 2011 company name value (us$m)

deal count

1 blackstone group 16,965 11

2 Temasek Holdings 13,518 4

3 apax Partners 8,768 6

4 Kohlberg Kravis roberts & Co 8,583 8

5 CvC Capital Partners 7,396 8

6 axa Private Equity 6,588 10

7 bain Capital 6,583 5

8 Clayton, Dubilier & rice 6,256 3

9 bC Partners 5,686 4

10 TPg Capital 5,130 8

11 Hellman & Friedman 5,043 3

12 rrJ Capital 5,000 1

13 Silver lake Partners 4,712 4

14 EQT Partners 4,703 8

15 warburg Pincus 4,531 8Source: mergermarket

rank

Q3 2011 company name value (us$m)

deal count

1 Nordic Capital 28,767 3

2 Coller Capital 27,509 2

3 CSFb Private Equity 16,040 5

4 avista Capital Partners 13,740 1

5 Kohlberg Kravis roberts & Co 12,262 3

6= The Carlyle group 10,984 18

6= Silver lake Partners 9,544 2

8 andreessen Horowitz 9,044 1

9 blackstone group 8,163 8

10 EQT Partners 7,763 3

11 PaI Partners 7,170 5

12 barclays Private Equity 6,999 11

13 One Equity Partners 5,129 4

14 Providence Equity Partners 4,829 3

15 MidOcean Partners 4,687 2Source: mergermarket

vOlUME

vOlUME

rank

Q3 2011 company name deal count

value (us$m)

1 The Carlyle group 21 4,130

2 H.I.g. Capital 16 342

3 Sun Capital Partners 13 379

4 blackstone group 11 16,965

5 bridgepoint Capital 11 3,889

6 The riverside Company 11 -

7 axa Private Equity 10 6,588

8 advent International 9 2,560

9 lloyds TSb Development Capital 9 316

10 Kohlberg Kravis roberts & Co 8 8,583

11 CvC Capital Partners 8 7,396

12 TPg Capital 8 5,130

13 EQT Partners 8 4,703

14 warburg Pincus 8 4,531

15 Ta associates 7 1,249Source: mergermarket

rank


value (us$m)

1 The Carlyle group 18 10,984

2 barclays Private Equity 11 6,999

3 Intel Capital 11 295

4 blackstone group 8 8,163

5 3i group 8 383

6 MbO Partenaires 8 109

7 New Enterprise associates 8 26

8 bain Capital 7 3,904

9 axa Private Equity 7 3,762

10 atria Capital Partenaires 7 669

11 Penta Investments 7 -

12 U.S. venture Partners 6 617

13 Draper Fisher Jurvetson 6 447

14 CSFb Private Equity 5 16,040

15 PaI Partners 5 7,170Source: mergermarket

ActIvIty tAble of prIvAte eQuIty fIrMs on GlobAl buyouts

ActIvIty tAble of prIvAte eQuIty fIrMs on GlobAl exIts

The private equity buyout activity tables by value and volume are based on private equity firms advising the bidder on buyout deals where the dominant geography of the target company is global. The tables by value and volume have been run from 01-Jan-11 to 30-Sep-11 and exclude lapsed and withdrawn deals.

The private equity exit activity tables by value and volume are based on private equity firms advising the vendor on exit deals where the dominant geography of the target company is global. The tables by value and volume have been run from 01-Jan-11 to 30-Sep-11 and exclude lapsed and withdrawn deals.


globAl overvieW

TrEND graPHS

GlobAl M&A QuArterly trend

0

200

400

600

800

1,000

1,200

1,400

Q311

Q211

Q111

Q410

Q310

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Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Valu

e (U

S$m

)

Total value Mid-market value

Num

ber of deals

0

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4,500

Total volume Mid-market volume

0

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200

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300

350

400

Q311

Q211

Q111

Q410

Q310

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Valu

e (U

S$m

)

Buyout value Exit value

Num

ber of deals

Buyout volume Exit volume

0

100

200

300

400

500

600

700

800

900

GlobAl M&A AnnuAl trend GlobAl M&A AnnuAl prIvAte eQuIty trend

0

500

1,000

1,500

2,000

2,500

3,000

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4,000

Q3 2011201020092008200720062005

Valu

e (U

S$m

)


Num

ber of deals

0

2,000

4,000

6,000

8,000

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12,000

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16,000

18,000


0

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Q3 2011201020092008200720062005

Valu

e (U

S$m

)


Num

ber of deals


0

500

1,000

1,500

2,000

2,500

3,000

3,500

GlobAl M&A QuArterly prIvAte eQuIty trend


globAl overvieW

TrEND graPHS

GlobAl M&A sector breAkdown Q3 2011

GlobAl GeoGrAphIc breAkdown Q3 2011

valUE

valUE

vOlUME

vOlUME

2.2%1.8%

3.8%1.9%

23.1%

12.4%

7.2%

0.3%<0.1%

6.5%

4.4%

8.2%

17.2%

1.3%

9.3%

Industrials & Chemicals

Consumer

Business Services

Technology

Energy, Mining & Utilities

Financial Services

Pharma, Medical & Biotech

Construction

Leisure

Transportation

Media

Real Estate

Telecommunications

Agriculture

Defence

1.8% 5.6%

43.3%

31.8%

17.6% Asia-Pacific

Europe

North America

Middle East & Africa

Latin America

9.2%

10.7%

1.2%1.1%

0.3%

3.1%3.1%

3.5%

1.6%

8.0%

3.6%

8.8%

19.8%

13.3%

12.7%


Consumer

Business Services

Technology


Financial Services


Construction

Leisure

Transportation

Media

Real Estate

Telecommunications

Agriculture

Defence

4.8%2.4%

32.0%

41.2%

19.5% Asia-Pacific

Europe

North America

Middle East & Africa

Latin America


global overview

Trend graphs

GLOBAL M&A deAL sIze BreAkdOwn

value volume

0

10

20

30

40

50

60

70

80

90

100

Q3 2011201020092008200720062005

38.8%

15.6%

22.1%

8.5%

15.1%

42.3%

16.8%

20.8%

7.5%

12.6%

39.8%

16.9%

23.0%

7.9%

12.5%

42.0%

15.3%

19.3%

8.9%

14.5%

40.6%

16.5%

20.5%

7.9%

14.5%

27.4%

21.0%

27.7%

9.3%

14.6%

34.1%

18.3%

25.1%

9.4%

13.0%

<US$250m or undisclosed value

US$251m-US$500m

US$501m-US$2,000m

US$2,001m-US$5,000m

>US$5,001m

Per

cent

age

80

82

84

86

88

90

92

94

96

98

100

Q3 2011201020092008200720062005


US$251m-US$500m

US$501m-US$2,000m

US$2,001m-US$5,000m

>US$5,001m

0.7%

1.0%

4.5%

4.7%

89.2%

0.7%

1.2%

5.0%

4.7%

88.3%

0.7%

1.3%

5.5%

5.1%

87.4%

0.6%

0.9%

3.9%

4.6%

90.1%

0.5%

1.0%

3.8%

3.9%

90.9%89.1%

4.5%

4.8%

1.2%

0.4% 0.6%

1.1%

5.1%

5.0%

88.1%

Per

cent

age

secTor analysisGLOBAL sectOr AnALysIssector Q3 2010 Q3 2011 % change

Value ($m) Mrk share deal count Value ($m) Mrk share deal count value volume

energy, mining & utilities 366,684 25.9% 960 402,188 23.1% 835 10% -125

industrials & chemicals 176,465 12.5% 1,574 299,333 17.2% 1,807 70% 233

consumer 120,400 8.5% 1,100 142,293 8.2% 1,210 18% 110

Financial services 151,749 10.7% 905 216,270 12.4% 801 43% -104

pharma, medical & Biotech 114,491 8.1% 669 161,446 9.3% 726 41% 57

Technology 66,555 4.7% 935 113,186 6.5% 978 70% 43

Business services 91,968 6.5% 1,097 76,329 4.4% 1,159 -17% 62

media 27,157 1.9% 279 33,468 1.9% 279 23% 0

Transportation 51,881 3.7% 260 38,472 2.2% 279 -26% 19

real estate 39,350 2.8% 195 66,492 3.8% 146 69% -49

leisure 31,472 2.2% 298 31,807 1.8% 323 1% 25

Telecommunications 139,409 9.9% 147 125,988 7.2% 112 -10% -35

defence 5,378 0.4% 42 3,743 0.2% 28 -30% -14

construction 20,429 1.4% 359 23,161 1.3% 330 13% -29

agriculture 10,864 0.8% 108 5,066 0.3% 101 -53% -7

total 1,414,252 8,928 1,739,242 9,114 23% 186

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LATIN AM

ERICA

LATIN AMERICAA MERgERMARkET M&A REpoRT oN

09Monthly M&A Insider 9

The Telecommunications sector accounted for the largest share of the total deal value in Q3 2011, with four deals worth an astounding US$14.5bn announced during the period, corresponding to a market share of 40.9%. Interestingly, the same trend manifested itself in the third quarter last year, when four deals in the Telecommunications industry were valued at US$12.4bn, or 43.1% of the total market share. By deal count, the Consumer sector topped the sector tables this quarter, with 28 deals worth US$6bn taking place during the period.

Inbound cross-border investments in the region stood at 71 deals valued at US$14.6bn in the third quarter 2011, which corresponded to 41% of all M&A activity in Latin America during the period. This deal value was more than two times higher than in the second quarter of this year, while the number of inbound deal remained the same (71 deals worth US$5.8bn).

Last year saw the largest value of inbound transactions in the past six years: there were 208 deals worth US$73bn. It remains to be seen if this year’s inbound investments will surpass last year’s activity. So far in the year-to-date, foreign companies invested US$36.9bn in 209 deals in Latin America.

Brazil was the largest recipient of foreign investments in the region: in the first three quarters of 2011, Brazil was involved in 109 such transactions worth US$30.1bn. At the same time, the outbound activity for Brazil stood at a mere 16 deals valued at US$3.9bn. Western European companies were the most active in the country in terms of deal count (34% of the total inbound activity in Brazil), followed by North America (31%), and Southern Europe (10%). All of Asia accounted for 13% of the total deal count in the first three quarters which, according to some analysts, is expected to go up in the future. M&A activity tends to pick up the fourth quarter, and it will be interesting to explore what further trends will be revealed in the last quarter this year.

LATIN AMERICAN M&A SAW 134 dEALS WoRTh US$35.4BN ANNoUNCEd IN Q3 2011, WhICh REpRESENTS A 12.7% dECREASE IN dEAL CoUNT ANd A 43.2% INCREASE IN dEAL vALUE. CoMpAREd To ThE SECoNd QUARTER of ThE yEAR, ThERE WERE 151 TRANSACTIoNS WoRTh US$20.1BN IN Q2 2011. ThE dRop IN ThE dEAL CoUNT WAS ESpECIALLy AppARENT foR MIdMARkET dEALS: 45 M&A TRANSACTIoNS BETWEEN US$10M ANd US$250M WERE ANNoUNCEd ThIS QUARTER WITh A CoMBINEd dEAL vALUE of US$3.5BN. IN CoNTRAST, 63 MIdMARkET dEALS vALUEd AT US$3.8BN Took pLACE LAST QUARTER, A 40% dRop IN TERMS of voLUME ANd AN 8% dRop IN TERMS of dEAL vALUE IN Q3 2011. ovERALL, ThIS QUARTER SAW ThE LoWEST NUMBER of MIdMARkET dEALS SINCE Q4 2009, WhEN oNLy 44 TRANSACTIoNS IN ThIS pRICE BRACkET WERE ANNoUNCEd.

10

LATIN AM

ERICA

Monthly M&A Insider

Deal summary

Announced: 02-Aug-11 Deal value: US$2,553m

kirin holdings Company has acquired a 50.45% stake in Schincariol participacoes e Representacoes SA from Alexandre Schincarol and Adriano Schincariol.

kirin, the listed Japan based company headquartered in Tokyo, is a manufacturer of food and beverage products. Schincariol participacoes, the Brazil based company headquartered in Sao paulo, is engaged in the production of beer and soft beverages. Alexandre Schincarol and Adriano Schincariol are two Brazil based private investors.

TerMs:• kirin has paid BRL 3.95bn (US$2.55bn) for a 50.45% stake

in the target company.

• The implied equity value of the transaction is approximately BRL 7.8bn (US$5.06bn).

FInAncIng:• The consideration was financed with a combination of

cash and loans.

rATIonAle:• This transaction will enhance kirin’s position in the

Brazilian market, and kirin expects to accelerate Schincariol participacoes’ growth by a combination of

brands, distribution effort, research and marketing.

dEAL of ThE QUARTER

Advisors

Target/seller Bidder

Financial BTg pactual (Marco goncalves)

Financial Citigroup

legal Mattos filho, veiga filho, Marrey Jr. e Quiroga Advogados (Roberto Quidroga Mosquera, Joao Ricardo de Azevedo Ribeiro)

legal Allen & overy (Taro Nakashima, Nobuo Nakata); Shearman & Sterling (Ayako Adachi, kenneth Lebrun); Tozzini freire Teixeira e Silva Advogados (pedro Seraphim, Marcio Mello Silva Baptista)

Bidder

Kirin Holdings Company, Ltd.

Headquarters: 10-1, Shinkawa 2-chomeTokyo 104 8288 Japan

sector: Consumer

Description: Japan based conglomerate engaged in the manufacture and sale of alcohol beverage products, soft drinks/fruit juices and pharmaceutical products

Target

Primo Schincariol Industria de Cervejas e Refrigerantes

Headquarters: Av primo Schincariol 2300Itu 13312-900 Brazil

sector: Consumer

Description: Brazil based company engaged in the production of beer and wine

11

LATIN AM

ERICA

Monthly M&A Insider

Top 10 lATIn AMerIcAn AnnounceD DeAls oF Q3 2011Announced Bidder company Target company Target dominant sector seller company exit multiples (x) Bid premia

1-day before

Deal value

(us$m)revenue eBITDA p/e

26-Aug-11 Brasil Telecom SA Tele Norte Leste participacoes SA (55.1% Stake)

Telecommunications 0.9 2.5 8.5 - 12,459

25-Jul-11 grupo de Inversiones Suramericana SA

Afp Integra SA (80% Stake), Invita Seguros de vida SA (33.7% Stake), and INg groep Nv (Latin American pensions, life insurance, and investment management operations)

financial Services INg groep Nv 4.0 14.0 - 3,853

02-Aug-11 kirin holdings Co Ltd primo Schincariol Industria de Cervejas e Refrigerantes (50.45% Stake)

Consumer Adriano Schincariol (private investor) and Alexandre Schincarol (private investor)

2.9 155.6 - 2,553

02-Sep-11 Baosteel group Corporation, CITIC group, Shougang group Corporation, Anshan Iron & Steel group Corporation, and Taiyuan Iron & Steel group Company Ltd

Companhia Brasileira de Mineracao e Metalurgia (CBMM) (15% Stake)


Brasil Warrant Administracao de Bens E Empresas SA

- 1,950

26-Aug-11 Brasil Telecom SA Telemar Norte Leste SA (9.5% Stake)

Telecommunications 1.2 3.3 8.2 8.5% 1,029

08-Jul-11 TIM Celular SA AES Atimus group Telecommunications Companhia Brasiliana de Energia

7.6 - 1,015

19-Sep-11 Coca-Cola fEMSA SAB de Cv

grupo CIMSA Consumer - 844

13-Jul-11 fleury SA Labs Cardiolab Exames Complementares SA

pharma, Medical & Biotech

Rede d'or - 775

07-Sep-11 Sodexo SA puras do Brasil SA Business Services puras Administradora de Negocios e participacoes Ltda

1.1 - 740

04-Sep-11 dufry group Blaicor SA, Navinten SA, duty free Ecuador SA, Adf Shops CJSC, and Two duty free Shops in Martinique

Consumer 7.9 - 672

Based on announced deals, including lapsed and withdrawn bids Based on dominant geography of target company being Latin Americadata correct as of 10-oct-11

Source: mergermarket

Top dEALS

12

LATIN AM

ERICA

Monthly M&A Insider

LEAgUE TABLES

The financial adviser league tables by valueand volume have been run from 01-Jan-11 to 30-Sep-11. The tables cover all sectors and are based on the geography of either the target, bidder or seller being Latin American.

vALUEranking Q3 2011 Q3 2010

Q3 2010 Q3 2011 company name Value (us$m)

Deal count Value (us$m)

Value change (%)

6 1 BTg pactual 33,453 18 15,842 111.2%

10 2 Banco Itau BBA 26,275 23 10,551 149.0%

1 3 Credit Suisse 24,504 23 69,998 -65.0%

14 4 Rothschild 20,352 10 9,712 109.6%

18 5 goldman Sachs 19,470 19 5,869 231.7%

19 6 Banco Bradesco BBI 17,130 12 5,101 235.8%

23 7 Barclays Capital 14,780 5 3,055 383.8%

3 8 Santander global Banking and Markets 14,099 13 41,878 -66.3%

5 9 Morgan Stanley 10,171 14 17,650 -42.4%

15 10 JpMorgan 9,630 7 9,627 0.0%

2 11 Citigroup 9,228 12 49,539 -81.4%

24 12 hSBC 8,916 4 2,882 209.4%

9 13 UBS Investment Bank 7,950 5 10,768 -26.2%

4 14 Bank of America Merrill Lynch 7,494 6 23,728 -68.4%

29 15 Lazard 7,035 5 1,731 306.4%

11 16 Banco Espirito Santo de Investimento 6,991 9 9,966 -29.9%

17 17 deutsche Bank 6,577 5 6,855 -4.1%

8 18 Caixa Banco de Investimento 5,543 4 11,038 -49.8%

- 19 Bancolombia 3,928 3 - -

- 20 Estructura partners 2,099 1 - -Source: mergermarket

Top 20 FInAncIAl ADVIsors – lATIn AMerIcA

voLUMEranking Q3 2011 Q3 2010


Deal count Deal count Deal count change

4 1 Banco Itau BBA 26,275 23 16 7

2 2 Credit Suisse 24,504 23 26 -3

11 3 goldman Sachs 19,470 19 8 11

1 4 BTg pactual 33,453 18 28 -10

8 5 Morgan Stanley 10,171 14 8 6

3 6 Santander global Banking and Markets 14,099 13 16 -3

21 7 Banco Bradesco BBI 17,130 12 4 8

7 8 Citigroup 9,228 12 10 2

10 9 Rothschild 20,352 10 8 2

14 10 Banco Espirito Santo de Investimento 6,991 9 6 3

6 11 JpMorgan 9,630 7 11 -4

24 12 M&A International 43 7 4 3

5 13 Bank of America Merrill Lynch 7,494 6 14 -8

25 14 BNp paribas 1,286 6 4 2

20 15 pwC 1,252 6 5 1

23 16 Barclays Capital 14,780 5 4 1

9 17 UBS Investment Bank 7,950 5 8 -3

17 18 Lazard 7,035 5 6 -1

15 19 deutsche Bank 6,577 5 6 -1

80 20 BroadSpan Capital 39 5 1 4Source: mergermarket

Top 20 FInAncIAl ADVIsors – lATIn AMerIcA

13

LATIN AM

ERICA

Monthly M&A Insider

The legal adviser league tables by value and volume have been run from 01-Jan-11 to 30-Sep-11 and include lapsed and withdrawn deals. The tables cover all sectors and are based on the geography of either the target, bidder or seller being Latin American.

LEAgUE TABLES

voLUMEranking Q3 2011 Q3 2010



4 1 pinheiro Neto Advogados 23,758 35 18 17

1 2 Mattos filho, veiga filho, Marrey Jr e Quiroga Advogados 5,876 25 22 3

2 3 Machado Meyer Sendacz e opice 15,663 24 20 4

7 4 Barbosa, Mussnich & Aragao 14,700 22 16 6

5 5 Tozzini freire Teixeira e Silva Advogados 4,728 20 17 3

3 6 Baker & Mckenzie 4,840 16 19 -3

24 7 Clifford Chance 14,429 14 6 8

8 8 Souza, Cescon, Barrieu & flesch Advogados 10,532 14 15 -1

21 9 Rodrigo Elias & Medrano 5,395 13 7 6

6 10 demarest e Almeida 937 13 17 -4

10 11 Estudio Muniz, Ramirez, perez-Taiman & olaya Abogados 753 13 12 1

11 12 Cleary gottlieb Steen & hamilton 4,717 11 11 0

16 13 prieto & Carrizosa 4,502 11 9 2

83 14 Brigard & Urrutia 2,637 11 2 9

76 15 Lobo & de Rizzo Advogados 462 11 2 9

20 16 Sullivan & Cromwell 20,377 10 7 3

18 17 Latham & Watkins 5,942 9 8 1

15 18 Linklaters 2,579 9 9 0

12 19 Skadden Arps Slate Meagher & flom 11,276 8 10 -2

14 20 veirano Advogados 1,818 8 9 -1Source: mergermarket

Top 20 legAl ADVIsors – lATIn AMerIcA

vALUEranking Q3 2011 Q3 2010


Deal count Value (us$m)

Value change (%)

28 1 pinheiro Neto Advogados 23,758 35 6,097 289.7%

88 2 Sullivan & Cromwell 20,377 10 615 3213.3%

7 3 Machado Meyer Sendacz e opice 15,663 24 15,622 0.3%

27 4 Barbosa, Mussnich & Aragao 14,700 22 6,154 138.9%

42 5 Clifford Chance 14,429 14 3,090 367.0%

176 6 Bulhoes pedreira, Bulhoes Carvalho, piva, Rosman e Souza Leao Advogados 13,488 2

0 -

5 7 Skadden Arps Slate Meagher & flom 11,276 8 19,498 -42.2%

6 8 Souza, Cescon, Barrieu & flesch Advogados 10,532 14 16,064 -34.4%

18 9 garrigues 9,192 3 9,746 -5.7%

102 10 Cariola diez perez-Cotapos Abogados 7,932 5 398 1893.0%


80 12 Claro y Cia 7,311 3 753 870.9%

- 13 Turci Advogados Associados 7,189 1 - -

25 14 Latham & Watkins 5,942 9 6,960 -14.6%

36 15 Mattos filho, veiga filho, Marrey Jr e Quiroga Advogados 5,876 25 4,022 46.1%

108 16 Rodrigo Elias & Medrano 5,395 13 334 1515.3%

- 17 Eskenazi pernidji Advogados 4,963 1 - -

30 18 Baker & Mckenzie 4,840 16 5,542 -12.7%

9 19 Tozzini freire Teixeira e Silva Advogados 4,728 20 13,588 -65.2%

1 20 Cleary gottlieb Steen & hamilton 4,717 11 52,682 -91.0%Source: mergermarket

Top 20 legAl ADVIsors – lATIn AMerIcA

LATIN AM

ERICA

Monthly M&A Insider

TRENd gRAphS

lATIn AMerIcAn M&A QuArTerly TrenD

0

10

20

30

40

50

60

70

Q311

Q211

Q111

Q410

Q310

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105


Num

ber of dealsValu

e (U

S$m

)

0

20

40

60

80

100

120

140

160

180


0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

Q311

Q211

Q111

Q410

Q310

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Valu

e (U

S$m

)


Num

ber of deals


0

2

4

6

8

10

12

14

16

18

lATIn AMerIcAn M&A AnnuAl TrenD lATIn AMerIcAn M&A AnnuAl prIVATe eQuITy TrenD

0

20

40

60

80

100

120

140

160

180

200

Q3 2011201020092008200720062005


Num

ber of dealsValu

e (U

S$m

)

0

100

200

300

400

500

600


0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

Q3 2011201020092008200720062005

Valu

e (U

S$m

)


Num

ber of deals


0

5

10

15

20

25

30

35

40

45

50

lATIn AMerIcAn M&A QuArTerly prIVATe eQuITy TrenD

14

LATIN AM

ERICA

Monthly M&A Insider

TRENd gRAphS

lATIn AMerIcAn M&A geogrApHIc BreAkDown Q3 2011

vALUE voLUME

74.0%

16.8%

1.0%0.5%

2.0% 1.9%

3.7%Brazil

Chile

Colombia

Guatemala

Mexico

Peru

Uruguay

11.7%

8.3%

8.3%

9.2%

0.8%

60.0%

0.8%

0.8%

Brazil

Chile

Colombia

Costa Rica

Guatemala

Mexico

Peru

Uruguay

lATIn AMerIcAn M&A secTor BreAkDown Q3 2011

vALUE voLUME

2.5%0.6%0.2%

16.9%

2.7%

0.1%

3.9%

15.0%

40.9%

1.7%

0.5%

2.5%

12.5%

Consumer


Business Services


Financial Services


Technology

Agriculture

Real Estate

Telecommunications

Construction

Transportation

Leisure

20.9%

7.5%

6.7%

6.0%

4.5%

3.7%

3.0%3.0%

2.2%1.5%

1.5%

8.2%

20.1%

11.2%

Consumer


Business Services


Financial Services


Technology

Agriculture

Real Estate

Telecommunications

Construction

Transportation

Media

Leisure

15

16

LATIN AM

ERICA

Monthly M&A Insider

LATIN AMerIcAN M&A deAL sIze breAkdowN

value volume

0

10

20

30

40

50

60

70

80

90

100

Q3 2011201020092008200720062005


US$251m-US$500m

US$501m-US$2,000m

US$2,001m-US$5,000m

>US$5,001m

17.6%

7.1%

26.9%

21.0%

27.3%

46.9%

8.3%

21.8%

10.3%

12.7%

16.2%

10.8%

31.4%

16.2%

25.4%

30.5%

20.3%

24.5%

10.0%

14.7%

9.2%

29.3%

36.7%

10.1%

14.8%9.0%

6.6%

24.5%

18.2%

41.7%

27.3%

17.3%

31.0%

11.8%

12.6%

Per

cent

age

20

30

40

50

60

70

80

90

100

Q3 2011201020092008200720062005

0.3%

4.4%

7.1%

87.8%

1.0%

5.4%

7.4%

85.1%

0.2%

5.3%

6.4%

87.4%

0.6%

4.7%

5.3%

88.2%

0.3%

6.9%

5.4%

85.7%81.9%

6.3%

8.3%

1.4% 0.7%0.3% 1.0% 0.7% 1.2% 1.8% 2.0%

7.2%

6.9%

84.0%Per

cent

age

1.2%


US$251m-US$500m

US$501m-US$2,000m

US$2,001m-US$5,000m

>US$5,001m

Trend graphs

LATIN AMerIcAN secTor ANALysIssector Q3 2010 Q3 2011 % change

Value ($m) Mrk share deal count Value ($m) Mrk share deal count Value Volume

energy, mining & utilities 5,743 20.0% 20 4,431 12.5% 11 -23% -45%

Industrials & Chemicals 762 2.7% 11 943 2.7% 27 24% 145%

Consumer 1,451 5.1% 22 6,006 16.9% 28 314% 27%

Financial services 2,185 7.6% 10 5,309 15.0% 10 143% 0%

pharma, medical & Biotech 630 2.2% 6 891 2.5% 9 41% 50%

Technology 46 0.2% 7 229 0.6% 8 398% 14%

Business services 2,106 7.3% 18 1,394 3.9% 15 -34% -17%

media 294 1.0% 6 0 0.0% 2 0% -67%

Transportation 1,686 5.9% 8 586 1.7% 3 -65% -63%

real estate 17 0.1% 2 874 2.5% 5 5041% 150%

leisure 34 0.1% 4 28 0.1% 2 -18% -50%

Telecommunications 12,352 43.1% 4 14,503 40.9% 4 0% 100%

defence 0 0.0% 0 0 0.0% 0 100% 0%

Construction 1,189 4.1% 2 165 0.5% 4 100% 100%

agriculture 159 0.6% 5 86 0.2% 6 -46% 20%

Total 28,654 125 35,445 134 24% 7%

seCTor analysIs

NORTH

AMERICA

A mergermArket m&A report on

17Monthly M&A Insider

nortH AmerICA

pHArmA, medICAl & BIoteCH pulled In tHe HIgHest vAlue of deAls In Q3 2011, wItH 95 deAls wortH us$52.9Bn. tHe IndustrIAls And CHemICAls ConsolIdAted seCtor wAs tHe most ACtIve By deAl Count, wItH 156 deAls wortH us$46.6Bn. In septemBer, AerospACe And teCHnology provIder, unIted teCHnologIes Corp., AnnounCed A strAtegIC proposAl to ACQuIre goodrICH CorporAtIon for us$127.50 per sHAre In CAsH. tHe trAnsACtIon wAs tHe lArgest AnnounCed IndustrIAls deAl In Q3, wItH An enterprIse vAlue of us$18.4Bn. utC does expeCt to fACe HeAvy sCrutIny from AntI-trust regulAtors.

the largest deal announced during Q3, a proposed merger between medco and express scripts valued at us$29.1bn in cash and stock, is facing opposition from consumer-advocacy groups who fear the transaction will limit choices and hike costs for medical patients. the deal is also facing heavy scrutiny from nearly half of the states that advocate against the deal receiving approval from the ftC. the proposed merger aims for completion in January 2012.

overall m&A continues to decline in north America by deal value for the third consecutive quarter. during Q3, 819 deals were announced with an aggregate value of us$215.5bn - a small dip by deal value from Q2 (1,022 deals at us$220.4bn) and a 30% decrease in deal value from Q1 (1,017 deals at us$309.1bn).

north America deal values fared higher in Q3 2011 with a 24% increase compared to the same period last year (1,066 deals at us$173.4bn). with 2,858 deals valued at us$745bn, aggregate m&A deals in 2011 are on track to surpass 2010 by deal value (4,069 deals at us$798.1bn).

Amid uncertainty in the global economy and concerns of a double dip recession, m&A could see an upswing in the last quarter of 2011. As corporates find themselves sitting on top of large cash reserves and facing pressure to explore strategic opportunities, m&A will be an even more relevant option for growth as deal makers take on higher valuations.

18

NORTH

AMERICA

Monthly M&A Insider

DEAL OF THE QUARTER

Deal summary

Announced: 21-Jul-11 Deal value: US$33,430m

PlAn of Merger:• Medco Health Solutions, Inc. (MHS), a Delaware

corporation, has signed a definitive agreement to be acquired by Express Scripts, Inc. (ESRX), a Delaware corporation. The Boards of Directors of both companies have approved the merger.

• Medco Health Solutions, Inc., a U.S based company headquartered in Franklin Lakes, NJ, is a healthcare company. It provides clinically driven pharmacy services for private and public employers, health plans, labor unions, government agencies, and individuals in the United States and internationally.

• Express Scripts, Inc., a U.S based company headquartered in St. Louis, MO, provides a range of pharmacy benefit management (PBM) services in North America.

SynergIeS:• Due diligence to date has identified estimated synergies

of US$1bn once fully integrated, which represents approximately 1% of the combined company’s costs. The transaction is expected to be slightly accretive to EPS (excluding integration and deal-related costs and charges) in the first full year after closing and moderately accretive once fully integrated.

TerMS: • US$28.8 in cash and 0.81 ESRX shares will be exchanged

for each MHS share.

• The offer provides a premium of 28% based on MHS’s closing share price of US$55.78 on 20-Jul-11.

• The implied equity value of the transaction is approximately US$28.529bn.

• If a superior offer were to emerge for MHS, the company would be required to give ESRX at least 6 business days to make adjustments to its current offer before MHS’s Board of Directors could affect a change of recommendation of the deal.

ConDITIonS:• HSR (USA).

• MHS EGM (majority affirmative vote required to approve).

• ESRX EGM (majority affirmative vote required to approve).

fInAnCIng: On 29-Aug-11, Express Scripts, Inc. and Aristotle Holding,

Inc. entered into a credit agreement with Credit Suisse AG, Cayman Islands Branch, as administrative agent, Citibank, N.A., as syndication agent, and the other lenders and agents named therein. The Credit Agreement provides for a US$4.0bn term loan facility and a US$1.5bn revolving loan facility. The Term Facility will be available for the Company to pay a portion of the cash consideration in connection with the acquisition of Medco Health Solutions, Inc., to repay any existing indebtedness, and to pay related fees and expenses. Any funding under the Credit Agreement will occur concurrently with the consummation of the Merger, subject to customary closing conditions. The Term Facility and the Revolving Facility will both mature on 29-Aug-2016

PoST DeAl DeTAIlS:• The combined corporate headquarters will be in

St. Louis. George Paz will serve as Chairman and CEO of the combined organisation. The Board of Directors will be expanded to include two current independent Medco Board members.

exPeCTeD CloSe:• The transaction is expected to close in the first half

of 2012.

TerMInATIon DATe:• The termination date for the transaction is

20-Apr-12, but it can be extended to 22-Oct-12 under certain circumstances.

• Termination Fee: US$225m, or 0.8% based on the implied equity value of the deal. The per-share increase required to cover this fee in a superior offer would be US$0.56.

19

NORTH

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Monthly M&A Insider

DEAL OF THE QUARTER

Advisors

Target/Seller Bidder

financial Foros;JPMorgan (Ravi Sachdev, James Woolery);Lazard (David Gluckman, Kenneth Jacobs)

financial Citigroup; Credit Suisse (Boon Sim, Stuart Smith)

legal Simpson Thacher & Bartlett (Advising JPMorgan)(Robert Spatt); Sullivan & Cromwell; Wachtell, Lipton, Resen & Katz (Advising Lazard) (David Lam, Andrew Nussbaum)

legal Cravath Swaine & Moore; (Advising Credit Suisse and Citigroup) (Michael Goldman, William Whelan III);Dewey & LeBoeuf (Advising Credit Suisse) (Denise Cerasani, Sean Wee); Gibson Dunn & Crutcher(Advising Citigroup); Skadden Arps Slate Meagher & Flom

Pr Abernathy MacGregor Group Pr Brunswick Group

exit multiples – y/e 31-DeC-2010 Premium analysis

Multiples Value (US$m) offer price per share (US$) 71.36

revenue 0.5068x 65,968 1 day before 27.93%

eBITDA 11.2401x 2,974 1 month before 26.84%

eBIT 13.3866x 2,497 1 day after 8.17%

earnings 22.5823x 1,427 Pre-rumour 35.98%

mergermarket/dealreporter Intelligence

31-Aug-11 Express Scripts enter into credit agreement with Credit Suisse for US$4bn term loan facility, US$1.5bn revolving loan facility

02-Sep-11 Medco and Express Scripts each received a request for additional information from the FTC

20-Sep-11 The transaction faces opposition from consumer groups

07-oct-11 The deal faces scrutiny in many states

Bidder

Express Scripts, Inc.

Headquarters: One Express WaySt. Louis, Missouri (MO) 63121 USA

Sector: Medical

Description: US based provider of PBM services and provider of benefit-design consultation services

Target

Medco Health Solutions, Inc.

Headquarters: 100 Parsons Pond DriveFranklin Lakes, New Jersey 07417 USA

Sector: Medical

Description: US based provider of pharmacy benefit management and health care services

20

NORTH

AMERICA

Monthly M&A Insider

top deAls & expeCted deAls

ToP 10 norTH AMerICAn AnnoUnCeD DeAlS of Q3 2011Announced Bidder company Target company Target dominated

sectorSeller company exit multiples (x) Bid premia

1-day before

Deal value

(US$m)revenue eBITDA P/e

21-Jul-11 express scripts Inc medco Health solutions Inc

pharma, medical & Biotech

0.5 11.2 22.6 27.9% 33,430

21-sep-11 united technologies Corporation

goodrich Corporation Industrials & Chemicals

2.6 14.0 28.3 14.0% 17,861

14-Jul-11 BHp Billiton ltd petrohawk energy Corporation

energy, mining & utilities

17.1 33.2 49.7 61.9% 14,760

15-Aug-11 google Inc motorola mobility Holdings Inc

telecommunications 0.8 29.2 - 63.5% 8,950

20-Jul-11 ecolab Inc nalco Holding Company Industrials & Chemicals

1.9 10.9 27.5 34.4% 8,138

15-Aug-11 td Bank group mBnA Canada Bank (Credit card business)

financial services mBnA Canada Bank - - 7,570

13-Jul-11 kinetic Concepts Consortium

kinetic Concepts Inc pharma, medical & Biotech

2.8 9.4 19.2 6.2% 5,663

15-Aug-11 time warner Cable Inc Insight Communications Company Inc

telecommunications the Carlyle group llC, midocean partners llp, and Crestview partners lp

4.5 14.7 18.7 - 4,687

25-Jul-11 validus Holdings ltd transatlantic Holdings Inc financial services - - 8.3 -2.6% 4,170

11-Jul-11 International paper Company

temple-Inland Inc Industrials & Chemicals

1.1 10.7 21.1 29.9% 4,167

Based on announced deals, including lapsed and withdrawn bids Based on dominant geography of target company being north America (us + Canada) data correct as of 10-oct-11

source: mergermarket

21

NORTH

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Monthly M&A Insider

Situation Target company Sector Potential bidder company

financial advisor to bidder (B); target (T); seller (S)

Seller company

Market cap/ est. value (US$m)

Comments

expected deal Interdigital telecommunications google Inc; Apple Inc; Intel Corporation; ericsson AB; research in motion limited; microsoft Corporation; sony Corporation

Barclays (t), evercore partners (t)

2,362 Interdigital Inc, the listed us based company engaged in the design and development of digital wireless technology solutions, announced on 19-Jul-2011 that its Board of directors has initiated a process to explore and evaluate potential strategic alternatives for the company, including a possible sale. Interested parties are said to have included google, Apple, Intel, ericsson, research in motion, microsoft, and sony.

expected deal Jakks pacific Inc Consumer oaktree Capital rothschild (t) 492 on 13-sep-2011, Jakks pacific Inc, the listed us based manufacturer of toy products, received a public unsolicited offer from oaktree Capital to buy the target at us$20 per share. the bidder already owns a 4.99% stake in Jakks. this offer was unanimously rejected by the target's Board of directors on 05-oct-2011

expected deal AmAg pharmaceuticals Inc

pharma, medical & Biotech

msmB Capital mA 286 on 03-Aug-2011, AmAg pharmaceuticals, the listed us based biopharmaceutical company, received an unsolicited proposal from msmB Capital management to acquire the company at us$18 per share in cash. AmAg Board of directors has unanimously opposed the proposal and urged stockholders to take no action on the offer. one of the reasons why the Board of directors might not support the acquisition is that msmB is proposing to remove six of the seven current members of AmAg's Board and to replace them with its own nominees.

expected deals based on confirmed announcements by companies involved

PIPelIne of norTH AMerICAn exPeCTeD DeAlS

top deAls & expeCted deAls

22

NORTH

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Monthly M&A Insider

vAlueranking Q3 2011 Q3 2010

Q3 2010 Q3 2011 Company name Value (US$m)

Deal count Value (US$m)

Value change (%)

5 1 Jpmorgan 341,713 123 118,024 189.5%

1 2 goldman sachs 291,049 155 193,919 50.1%

4 3 Credit suisse 255,671 87 135,085 89.3%

2 4 morgan stanley 247,360 116 164,950 50.0%

8 5 Citigroup 201,222 81 89,020 126.0%

7 6 Bank of America merrill lynch 185,576 121 108,822 70.5%


6 8 deutsche Bank 149,609 70 116,876 28.0%

10 9 lazard 146,355 70 84,138 73.9%

9 10 uBs Investment Bank 118,525 90 87,868 34.9%

12 11 evercore partners 95,178 38 36,803 158.6%

11 12 perella weinberg partners 49,403 15 45,982 7.4%

19 13 greenhill & Co 48,798 8 21,000 132.4%

13 14 rBC Capital markets 40,615 66 32,312 25.7%

42 15 Qatalyst group 37,726 16 4,805 685.1%

56 16 foros 34,616 4 3,258 962.5%

17 17 Jefferies & Company 33,666 77 27,452 22.6%

26 18 Centerview partners 29,862 7 13,078 128.3%

27 19 moelis & Company 29,635 35 13,048 127.1%

20 20 scotia Capital 28,722 15 18,887 52.1%source: mergermarket

the financial adviser league tables by value and volume have been run from 01-Jan-11 to 30-sep-11. the tables cover all sectors and are based on the geography of either the target, bidder or seller being us or Canadian.

ToP 20 fInAnCIAl ADVISorS – norTH AMerICA

leAgue tABles

volumeranking Q3 2011 Q3 2010



1 1 goldman sachs 291,049 155 147 8

6 2 Jpmorgan 341,713 123 84 39

4 3 Bank of America merrill lynch 185,576 121 96 25

2 4 morgan stanley 247,360 116 112 4

5 5 uBs Investment Bank 118,525 90 87 3

3 6 Credit suisse 255,671 87 101 -14

11 7 Citigroup 201,222 81 62 19

7 8 Barclays Capital 179,813 78 81 -3

12 9 Jefferies & Company 33,666 77 62 15

9 10 deutsche Bank 149,609 70 74 -4

8 11 lazard 146,355 70 78 -8

10 12 rBC Capital markets 40,615 66 69 -3

13 13 Houlihan lokey 16,857 53 62 -9

14 14 rothschild 20,444 45 54 -9

26 15 raymond James & Associates 6,089 40 28 12

29 16 evercore partners 95,178 38 23 15

24 17 moelis & Company 29,635 35 29 6

25 18 robert w. Baird & Co 3,274 35 28 7

18 19 keefe, Bruyette & woods 7,416 33 39 -6

27 20 Bmo Capital markets 21,561 32 25 7source: mergermarket

ToP 20 fInAnCIAl ADVISorS – norTH AMerICA

23

NORTH

AMERICA

Monthly M&A Insider

volumeranking Q3 2011 Q3 2010



2 1 latham & watkins 152,871 155 156 -1

3 2 Jones day 86,305 146 151 -5

1 3 kirkland & ellis 65,081 142 165 -23

5 4 skadden Arps slate meagher & flom 194,253 119 118 1

4 5 dlA piper 16,749 111 140 -29

6 6 simpson thacher & Bartlett 259,699 100 101 -1

15 7 Hogan lovells 34,350 86 72 14

8 8 weil gotshal & manges 98,085 82 92 -10

7 9 sullivan & Cromwell 256,725 81 101 -20

14 10 dewey & leBoeuf 198,250 79 74 5

17 11 wilson sonsini goodrich & rosati 22,549 77 63 14

19 12 davis polk & wardwell 98,258 73 60 13

11 13 Blake, Cassels & graydon 70,389 70 80 -10

23 14 goodwin procter 6,887 70 58 12

12 15 k&l gates 6,715 68 80 -12

24 16 shearman & sterling 147,721 64 56 8

16 17 morgan lewis & Bockius 46,350 63 70 -7

9 18 gibson dunn & Crutcher 91,647 61 84 -23

13 19 stikeman elliott 32,014 61 75 -14

26 20 Allen & overy 64,546 58 54 4source: mergermarket

the legal adviser league tables by value and volume have been run from 01-Jan-11 to 30-sep-11 and include lapsed and withdrawn deals. the tables cover all sectors and are based on the geography of either the target, bidder or seller being us or Canadian.

ToP 20 legAl ADVISorS – norTH AMerICA

leAgue tABles

vAlueranking Q3 2011 Q3 2010


Deal count Value (US$m)

Value change (%)

2 1 simpson thacher & Bartlett 259,699 100 179,969 44.3%

4 2 sullivan & Cromwell 256,725 81 139,430 84.1%

12 3 wachtell, lipton, rosen & katz 224,016 53 88,006 154.5%

15 4 dewey & leBoeuf 198,250 79 82,095 141.5%

1 5 skadden Arps slate meagher & flom 194,253 119 193,537 0.4%

13 6 Cravath swaine & moore 159,129 43 84,473 88.4%

5 7 latham & watkins 152,871 155 137,356 11.3%

17 8 shearman & sterling 147,721 64 66,166 123.3%

3 9 Cleary gottlieb steen & Hamilton 141,947 52 148,649 -4.5%

9 10 davis polk & wardwell 98,258 73 98,721 -0.5%

8 11 weil gotshal & manges 98,085 82 101,276 -3.2%

20 12 gibson dunn & Crutcher 91,647 61 56,801 61.3%

21 13 fried frank Harris shriver & Jacobson 89,141 36 50,960 74.9%

14 14 Jones day 86,305 146 84,061 2.7%

30 15 linklaters 76,886 45 36,983 107.9%

10 16 freshfields Bruckhaus deringer 76,451 52 94,169 -18.8%

6 17 Blake, Cassels & graydon 70,389 70 113,545 -38.0%

29 18 kirkland & ellis 65,081 142 42,516 53.1%

49 19 Allen & overy 64,546 58 19,245 235.4%

37 20 greenberg traurig 63,615 54 23,886 166.3%source: mergermarket

ToP 20 legAl ADVISorS – norTH AMerICA

24

NORTH

AMERICA

Monthly M&A Insider

leAgue tABles

vAlue

vAlue

rank

Q3 2011 Company name Value (US$m)

Deal count

1 Blackstone group 16,751 10

2 kohlberg kravis roberts & Co 8,583 8

3 Apax partners 8,518 5

4 Clayton, dubilier & rice 6,256 3

5 Bain Capital 5,730 4

6 Hellman & friedman 5,043 3

7 rrJ Capital 5,000 1

8 temasek Holdings 5,000 1

9 silver lake partners 4,712 4

10 warburg pincus 4,531 8

11 CvC Capital partners 4,509 2

12 the Carlyle group 3,952 18

13 tpg Capital 3,760 6

14 providence equity partners 3,636 5

15 vestar Capital partners 3,500 1source: mergermarket

rank

Q3 2011 Company name Value (US$m)

Deal count

1 silver lake partners 9,544 2

2 Andreessen Horowitz 9,044 1

3 eQt partners 7,763 2



6 Barclays private equity 5,873 5

7 midocean partners 4,687 2

8 Crestview partners 4,687 1

9 lBo france 4,562 1

10 Clayton, dubilier & rice 4,262 1

11 pAI partners 4,126 3

12 general Atlantic 4,125 4


14 Cinven 3,535 2

15 Bain Capital 2,711 5source: mergermarket

volume

volume

rank

Q3 2011 Company name Deal count

Value (US$m)



3 the riverside Company 0 11


5 Advent International 2,560 9


7 warburg pincus 4,531 8

8 sun Capital partners 124 8

9 tA Associates 1,249 7

10 tpg Capital 3,760 6

11 golden gate Capital 2,582 6

12 the gores group 118 6

13 Audax private equity group 0 6

14 Apax partners 8,518 5

15 providence equity partners 3,636 5source: mergermarket

rank

Q3 2011 Company name Deal count

Value (US$m)


2 Intel Capital 295 10

3 new enterprise Associates 26 8


5 us venture partners 617 6


7 Bain Capital 2,711 5

8 norwest equity partners 2,498 5

9 thoma Bravo 1,015 5

10 redpoint ventures 610 5

11 Index ventures 588 5

12 sequoia Capital 497 5

13 vantagepoint Capital partners 457 5

14 pamlico Capital 333 5

15 lightspeed venture partners 185 5source: mergermarket

ACTIVITy TABle of PrIVATe eQUITy fIrMS on norTH AMerICAn BUyoUTS

ACTIVITy TABle of PrIVATe eQUITy fIrMS on norTH AMerICAn exITS

the private equity buyout activity tables by value and volume are based on private equity firms advising the bidder on buyout deals where the dominant geography of the target company is us or Canadian. the tables by value and volume have been run from 01-Jan-11 to 30-sep-11 and exclude lapsed and withdrawn deals.

the private equity exit activity tables by value and volume are based on private equity firms advising the vendor on exit deals where the dominant geography of the target company is us or Canadian. the tables by value and volume have been run from 01-Jan-11 to 30-sep-11 and exclude lapsed and withdrawn deals.

25

NORTH

AMERICA

Monthly M&A Insider

trend grApHs

norTH AMerICAn M&A QUArTerly TrenD

0

100

200

300

400

500

600

Q311

Q211

Q111

Q410

Q310

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Valu

e (U

S$bn

)


Num

ber of deals

0

200

400

600

800

1,000

1,200

1,400

1,600


0

50

100

150

200

250

Q311

Q211

Q111

Q410

Q310

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Valu

e (U

S$bn

)


Num

ber of deals


0

50

100

150

200

250

300

350

norTH AMerICAn M&A AnnUAl TrenD norTH AMerICAn M&A AnnUAl PrIVATe eQUITy TrenD

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

Q3 2011201020092008200720062005


Num

ber of dealsValu

e (U

S$bn

)

0

1,000

2,000

3,000

4,000

5,000

6,000


0

50

100

150

200

250

300

350

400

450

500

Q3 2011201020092008200720062005

Valu

e (U

S$bn

)


Num

ber of deals


0

200

400

600

800

1,000

1,200

norTH AMerICAn M&A QUArTerly PrIVATe eQUITy TrenD

26

NORTH

AMERICA

Monthly M&A Insider

TREND GRAPHS

norTH AMerICAn M&A SeCTor BreAkDown Q3 2011

vALUE vOLUME

22.0%

9.0%

0.3%

0.3%0.2%

1.0%

7.0%

16.0%

1.0%

11.0%

25.0%

1.0% 7.0%Industrials & Chemicals

Technology

Business Services

Financial Services


Consumer


Media

Construction

Leisure

Transportation

Telecommunications

Real Estate

19.0%

16.0%

13.0%

1.0%

12.0%

12.0%

2.0% 2.0%

3.0%

9.0%

9.0%

0.5%0.4%0.1%


Technology

Business Services

Financial Services


Consumer


Media

Construction

Leisure

Transportation

Telecommunications

Defence

Real Estate

Agriculture

norTH AMerICAn M&A DeAl SIze BreAkDown

vALUE vOLUME

0

10

20

30

40

50

60

70

80

90

100

Q3 2011201020092008200720062005


US$251m-US$500m

US$501m-US$2,000m

US$2,001m-US$5,000m

>US$5,001m

46.5%

15.8%

18.1%

7.0%

12.6%

52.1%

14.9%

17.1%

6.3%

9.6%

42.9%

19.0%

21.8%

6.6%

9.6%

49.3%

13.8%

17.5%

7.2%

12.2%

58.8%

13.3%

13.2%

5.4%

9.2% 12.5%

9.6%

27.6%

18.0%

32.1%

43.6%

19.8%

18.3%

8.2%

10.1%

Per

cent

age

75

80

85

90

95

100

Q3 2011201020092008200720062005

0.9%1.3%

4.5%

4.8%

88.5%

1.1%

1.5%

5.4%

5.3%

86.8%

1.1%

1.8%

6.3%

5.3%

85.6%

0.9%

3.7%

4.1%

90.6%

1.0%

3.5%

3.8%

91.0%

87.4%

5.2%

5.7%

1.1%0.9%

1.6%

5.2%

6.0%

86.2%

0.7% 0.7% 0.6%


US$251m-US$500m

US$501m-US$2,000m

US$2,001m-US$5,000m

>US$5,001m

Per

cent

age

27

NORTH

AMERICA

Monthly M&A Insider

North AMerIcAN sector ANAlysIssector Q3 2010 Q3 2011 % change

Value ($m) Mrk share Deal count Value ($m) Mrk share Deal count Value Volume

energy, mining & utilities 51,743 29.8% 130 34,952 16.2% 70 -32% -46%

Industrials & Chemicals 19,312 11.1% 165 46,558 21.6% 156 141% -5%

Consumer 15,764 9.1% 84 2,592 1.2% 75 -84% -11%

financial services 11,809 6.8% 122 23,491 10.9% 100 99% -18%

pharma, medical & Biotech 16,197 9.3% 111 52,991 24.6% 95 227% -14%

technology 18,904 10.9% 156 18,997 8.8% 132 0% -15%

Business services 18,708 10.8% 148 14,301 6.6% 106 -24% -28%

media 4,649 2.7% 28 2,465 1.1% 25 -47% -11%

transportation 2,242 1.3% 17 403 0.2% 12 -82% -29%

real estate 2,385 1.4% 15 689 0.3% 3 -71% -80%

leisure 6,513 3.8% 36 1,411 0.7% 13 -78% -64%

telecommunications 2,655 1.5% 16 15,939 7.4% 11 500% -31%

defence 266 0.2% 7 86 0.0% 4 -68% -43%

Construction 2,172 1.3% 27 630 0.3% 16 -71% -41%

Agriculture 44 0.0% 4 0 0.0% 1 -100% -75%

total 173,363 1,066 215,505 819 24% -23%

seCtor AnAlysIs

ASIA-PAcIfIc



ASIA-pAcIfIc

Large-scale domestic consolidationAs the global economy continues to look for a foot to stand on, m&A activity in the Asia-pacific for September shows companies are looking more to domestic consolidation than cross-border acquisitions – perhaps a result of the continued global uncertainty. Indeed, the top seven deals announced in September all involved domestic players. the largest deal of the month by a significant margin was the tie-up between Sumitomo metal and nippon Steel. After unveiling merger plans in february 2011, the two revealed the details in full in September 2011, setting the stage for what will become the world’s second-largest steelmaker. the deal, valued at US$22.5bn, will take place via a share swap merger and will be renamed nippon Steel & Sumitomo metal corporation. the integration is set to strengthen global competitiveness in light of intensified competition, accelerating globalisation and escalating raw material prices.

further to the deal between nippon and Sumitomo, a domestic deal in malaysia valued at US$1.7bn involved permodalan nasional Berhad (pnB), a private asset management arm of the malaysia government, making an offer to acquire all shares and warrants they do not already own in Sp Setia, a malaysia-listed real estate holding company. In South korea, kolon engineering and construction company agreed to acquire koLon I’networks, a company engaged in the distribution business and the provision of information technology services, for US$1.2bn. In china, Jizhong energy resources, the listed china-based coal mining and energy group, entered into a definitive agreement to acquire an 80% stake in Shanxi Jizhong energy mining, the china-based coal mining and logistics company for US$946m as state-owned investment company, Jizhong energy group, sold this asset to its listed entity.

Widespread activity across the regionDue to one massive deal, the bulk of value was transacted in Japan, but m&A activity by volume was widespread. china hosted the highest number of deals, as 31 transactions worth US$3.3bn took place over the month across multiple sectors including energy & mining, consumer, transportation and tmt. following china in terms of volume were Australia and Japan, which saw 19 and 22 transactions respectively. South korea hosted 18 deals valued at US$1.6bn – the bulk of value coming in the aforementioned kolon engineering and construction deal. South east Asia combined saw 21 deals worth US$3.6bn with the most activity in Indonesia, which saw six deals cumulatively valued at US$692m.

Indonesia bidders heating upAfter a strong month in September, Indonesian m&A could remain active across multiple sectors. In the tmt sector, Solusi tunas pratama, the listed Indonesian telecommunications hardware company, is aiming to acquire up to four telecommunication towers companies. the company plans to acquire at least two tower operators this year with another two to be acquired in 2012. In the Banking sector, Bank negara Indonesia, the listed state-owned Indonesian bank, plans to acquire a counterpart with assets around US$200m aimed at increasing micro-lending, which offers higher profit margins. furthermore in the Banking sector, kuwait finance House malaysia (kfHm), the malaysian financial company, may look for acquisitions to expand in Indonesia eyeing acquisition opportunities of both Islamic and conventional banks. In the consumer sector, Unilever Indonesia, the listed Indonesian consumer goods company, is open to making acquisitions to support its external growth, following the footsteps of Unilever global, it is seeking opportunities to widen its market in the country.

ASIA-pAcIfIc m&A wItneSSeD A SpAte of LArger DeALS over Q3 2011, wItH totAL DeAL vALUe growIng 31% from Q2, wHILe DeAL voLUme ActUALLy DecLIneD By ApproxImAteLy 6% to 463 DeALS. tHIS gAve wAy to A SIgnIfIcAnt rISe In AverAge DeAL vALUe to US$245m In Q3 compAreD to US$177m over tHe prevIoUS QUArter. wHILe AUgUSt wAS tHe StrongeSt montH In termS of BotH voLUme AnD vALUe, SeptemBer SAw conSIDerABLe DeAL fLow of 140 DeALS vALUeD At ApproxImAteLy US$37Bn, or US$264m per DeAL – tHe LArgeSt AverAge montHLy DeAL vALUe So fAr In 2011.

29

ASIA-PAcIfIc

Monthly M&A Insider

PLAn of Merger:• nippon Steel corp, a Japan-listed steelmaker, signed a

business integration agreement to acquire and merge with Sumitomo metal Industries Ltd., also a steelmaker.

Structure:• the transaction is conducted via a share swap merger to

acquire the remaining 90.6% of Sumitomo metal.

terMS: • 0.753 nippon Steel shares per Sumitomo metal share.

• It values the entire share capital at Jpy797.3 bn (US$10.4 bn), based on the exchange rate of Jpy76.53 per USD.

• the exchange ratio values each share at Jpy171.99 based on the closing price of nippon Steel at Jpy234 on 21-Sep-11.

• It represents a premium of 1.8% over the closing price of Jpy169 on 21-Sep-11.

• It represents a discount of 10.9% over the last closing price prior to the indicative announcement of Jpy193 on 3-feb-11.

• Sumitomo metal does not have any outstanding convertible Bonds.

fInAncIng:• nippon Steel will issue a total of 3,075,306,130 shares to

Sumitomo metal shareholders, representing about 32.8% dilution to the share capital of nippon Steel.

SubStAntIAL ShArehoLderS:• Sumitomo corp owns 9.54% of Sumitomo metal

• nippon Steel owns 9.4% of Sumitomo metal

PoSt deAL ShArehoLdIng:• following completion, nippon Steel and Sumitomo metal

shareholders will own 67.2% and 32.8% respectively in the merged company.

bAckground & rAtIonALe:• on february 3rd 2011, Sumitomo metal and nippon

Steel unveiled an indicative merger plan to combine the two companies and to create the world’s second-largest steelmaker. the companies did not disclose any details on the plan and informed that the companies would execute a merger agreement targeted for April 2012 at the latest and hold shareholder’s meetings to approve the merger no later than the Agm in June 2012.

• on 14-mar-2011, Sumitomo metal’s largest factory in kashima was severely damaged by the major earthquake which accelerated the coordination and fostered the relationship between Sumitomo metal and nippon Steel.

• Due to changing business environment surrounding the steel industry, the business combination will strengthen the group’s global competitiveness in response to increase in steel demand, intensified competition, accelerating globalisation in production and sales, as well as escalating raw material prices and strong yen.

• the merger will bring a synergy of cost savings for Jpy150bn per year starting approximately three years after business integration.

condItIonS:• Approval from Sumitomo metal shareholders

(min 2/3 required).

• Approval from nippon Steel shareholders (min 2/3 required).

• Approval from Japan fair trade commission.

• Approval from US federal trade commission.

• Approval from european commission.

• Approval from china’s ministry of commerce.

• Approval from competition commission of India.

• Approval from federal Antimonopoly Service of russia.

• Approval from mexico federal competition commission.

• Approval from competition of South Africa.

• Approval from the Australian competition and consumer commission.

DeAL of tHe QUArter

deal summary

Announced: 22-Sep-11 deal value: US$22,474m

30

ASIA-PAcIfIc

Monthly M&A Insider

DeAL of tHe QUArter

bidder

Nippon Steel Corporation

headquarters: marunouchi park Building, 2-6-1chiyoda ward, tokyo, kanto, Japan

Sector: other

description: Japan based company engaged in manufacture of steel and related products, energy, finance, and insurance services

target

Sumitomo Metal Industries Ltd

headquarters: 5-33, kitahama 4-chomechuo-ku, osaka, kinki, Japan

Sector: Industrials & chemicals

description: Japan based company engaged in the manufacture and sale of steel and related products


02-Mar-11 nippon Steel/Sumitomo metal merger ratio likely around 1:067-0.7 – industry sources

04-Apr-11 nippon Steel/Sumitomo to stick to merger plan despite disruption

09-Jun-11 nippon Steel/Sumitomo metal: Jftc’s early hearings not aimed at completing screening within 30 days

29-Jun-11 nippon Steel/Sumitomo metal Industries: Jtfc decides on second round of antitrust reviews – report

30-Jun-11 nippon Steel/ Sumitomo metal Industries: Japan fair trade commission decide to conduct second round of reviews on proposed merger

22-Sep-11 nippon Steel, Sumitomo metal yet to file overseas, but approvals expected on time

22-Sep-11 nippon Steel and Sumitomo metal Industries announce execution of master integration agreement

22-Sep-11 nippon Steel and Sumitomo metal Industries decide on merger ratio, other details of planned merger – report

28-Sep-11 nippon Steel, Sumitomo metal: Japan commission likely to rule on planned merger by end of year – report

• Approval from the Australian competition and consumer commission.

• Approval from Brazil’s council for economic Defense.

• Approval from thailand’s office of the trade competition commission.

• Approval from germany’s cartel Authority.

• Approval from netherlands’ competition Authority.

• Approval from norway’s competition Authority.

• Approval from Singapore’s competition commission.

PoSt deAL detAIL: • following completion, the merged company will be

renamed to nippon Steel & Sumitomo metal corporation.

exit multiples – Y/e 31-dec-10 Premium analysis

Multiples Value (uS$m) offer price per share (uS$) 2.25

revenue 1.3x 16,689 1 day before 1.77%

ebItdA 9.8x 2,183 1 month before 8.85%

ebIt 31.9x 670 1 day after 8.85%

earnings - -85 Pre-rumour -5.09%

Advisors

target/Seller bidder

financial Daiwa Securities group; Deutsche Bank;goldman Sachs; Sumitomo mitsui financial group

financial Bank of America merrill Lynch; Jpmorgan; mizuho financial group; morgan Stanley

Legal nagashima ohno & tsunematsu Shearman & Sterling (masahisa Ikeda);Simpson thacher & Bartlett

Legal nishimura & Asahi; Sullivan & cromwell


ASIA-PAcIfIc

top DeALS

toP 10 ASIA-PAcIfIc Announced deALS of Q3 2011Announced bidder company target company target dominant sector Seller company exit multiples (x) bid premia

1-day beforedeal value

(uS$m)revenue ebItdA P/e

22-Sep-11 nippon Steel corporation

Sumitomo metal Industries Ltd (90.60% stake)

Industrials & chemicals

1.3 9.8 (loss) 1.8% 22,474

17-Aug-11 SABmiller plc foster's group Limited consumer 5.1 15.1 10.2 12.2% 12,925

29-Aug-11 temasek Holdings pte Ltd; government of Singapore Investment corporation pte Ltd.; cItIc Securities co., Ltd.; national council for Social Security fund; State Administration of foreign exchange

china construction Bank corporation (5.44% stake)

financial Services Bank of America corporation

n/a n/a 7.2 -12.6% 8,288

01-Jul-11 vodafone group plc vodafone essar Limited (33.00% stake)

tmt essar group - 5,460

11-Jul-11 consortium for macarthur coal Limited

macarthur coal Limited (83.80% stake)

energy, mining & Utilities

6.6 20.8 32.7 40.4% 3,851

17-Aug-11 ping An Insurance (group) company of china Ltd

Shenzhen Development Bank co. Ltd (18.85% stake)

financial Services n/a n/a 8.8 -1.4% 3,132

29-Jul-11 mapletree Investments pte Ltd

festival walk consumer Swire properties Ltd

- 2,746

22-Jul-11 cp2 (formerly capital partners)

connecteast group transport 14.7 22.5 (loss) 22.2% 2,658

08-Aug-11 fc residential Investment corporation

Ichigo real estate Investment corporation

real estate n/a n/a 10.4% 2,225

11-Jul-11 mayban ventures Sdn Bhd

Sapuracrest petroleum Bhd


1.9 11.1 25.8 3.7% 1,969

Based on announced deals, including lapsed and withdrawn bids Based on dominant geography of target company being Asia-pacific Data correct as of 10-oct-11


32

ASIA-PAcIfIc

Monthly M&A Insider

vALUeranking Q3 2011 Q3 2010

Q3 2010 Q3 2011 company name Value (uS$m)

deal count Value (uS$m)

Value change (%)

3 1 goldman Sachs 132,145 64 53,906 145.1%

1 2 morgan Stanley 83,514 55 60,090 39.0%

2 3 Jpmorgan 79,305 34 55,551 42.8%

9 4 Deutsche Bank 71,787 34 39,101 83.6%

6 5 Bank of America merrill Lynch 66,498 36 43,770 51.9%


8 7 credit Suisse 45,353 37 41,704 8.7%

5 8 nomura Holdings 41,817 73 48,811 -14.3%

12 9 citigroup 36,698 33 25,943 41.5%

7 10 Barclays capital 32,035 13 43,176 -25.8%

49 11 Sumitomo mitsui financial group 29,513 20 3,076 859.5%

37 12 mizuho financial group 28,900 24 4,073 609.6%

109 13 moelis & company 26,606 7 562 4634.2%

18 14 Daiwa Securities group 25,949 25 18,249 42.2%

14 15 HSBc 23,271 19 23,366 -0.4%

16 16 royal Bank of Scotland group 22,270 16 22,400 -0.6%

290 17 Scotia capital 22,106 4 19 116247.4%

17 18 Lazard 21,231 17 18,710 13.5%

57 19 gresham Advisory partners 17,997 12 2,011 794.9%

21 20 grant Samuel 16,138 6 14,324 12.7%Source: mergermarket

toP 20 fInAncIAL AdVISerS – ASIA-PAcIfIc

the financial adviser league tables by value and volume have been run from 01-Jan-11 to 30-Sep-11 and exclude lapsed and withdrawn deals. the tables cover all sectors and are based on the geography of either the target, bidder or seller being Asia-pacific-based.

LeAgUe tABLeS

voLUmeranking Q3 2011 Q3 2010


deal count deal count deal count change

5 1 nomura Holdings 41,817 73 63 10

3 2 goldman Sachs 132,145 64 53 11

28 3 kpmg 6,405 57 51 6

1 4 morgan Stanley 83,514 55 61 -6

4 5 UBS Investment Bank 46,567 50 40 10

25 6 Deloitte 8,213 49 52 -3

29 7 pwc 5,006 49 55 -6

26 8 ernst & young 8,095 46 56 -10

8 9 credit Suisse 45,353 37 35 2

6 10 Bank of America merrill Lynch 66,498 36 27 9

19 11 macquarie group 14,725 35 23 12

2 12 Jpmorgan 79,305 34 34 0

9 13 Deutsche Bank 71,787 34 39 -5

12 14 citigroup 36,698 33 25 8

20 15 cImB group 8,373 31 29 2

18 16 Daiwa Securities group 25,949 25 28 -3

37 17 mizuho financial group 28,900 24 36 -12

10 18 rothschild 6,426 21 35 -14

49 19 Sumitomo mitsui financial group 29,513 20 21 -1

14 20 HSBc 23,271 19 18 1Source: mergermarket

toP 20 fInAncIAL AdVISerS – ASIA-PAcIfIc

33

ASIA-PAcIfIc

Monthly M&A Insider

LeAgUe tABLeS

the legal adviser league tables by value and volume have been run from 01-Jan-11 to 30-Sep-11 and include lapsed and withdrawn deals. the tables cover all sectors and are based on the geography of either the target, bidder or seller being Asia-pacific-based.

voLUmeranking Q3 2011 Q3 2010



14 1 Baker & mckenzie 24,883 60 74 -14

16 2 freehills 29,219 52 46 6

1 3 Allen & overy 52,584 51 31 20

27 4 minter ellison 8,409 46 42 4

10 5 mallesons Stephen Jaques 10,306 44 40 4

17 6 Allens Arthur robinson 40,887 42 26 16

58 7 clifford chance 10,422 41 25 16

21 8 kim & chang 10,618 40 32 8

25 9 Blake Dawson 12,415 38 23 15

4 10 Linklaters 20,260 37 37 0

89 11 Lee & ko 16,607 37 22 15

53 12 Jones Day 7,067 36 35 1

18 13 nishimura & Asahi 36,785 34 30 4

2 14 nagashima ohno & tsunematsu 35,301 34 32 2

3 15 mori Hamada & matsumoto 6,991 34 62 -28

6 16 freshfields Bruckhaus Deringer 41,066 33 40 -7

39 17 clayton Utz 18,241 33 27 6

120 18 Desai & Diwanji 2,571 33 34 -1

34 19 Allen & gledhill 13,618 31 28 3

19 20 DLA piper 4,570 31 63 -32


toP 20 LegAL AdVISerS – ASIA-PAcIfIc

vALUeranking Q3 2011 Q3 2010


deal count Value (uS$m)

Value change (%)

15 1 Simpson thacher & Bartlett 69,121 27 55,304 25.0%

1 2 Allen & overy 57,385 53 41,442 38.5%

5 3 Sullivan & cromwell 47,332 17 67,732 -30.1%

6 4 freshfields Bruckhaus Deringer 41,066 33 66,595 -38.3%

17 5 Allens Arthur robinson 40,891 42 30,518 34.0%


8 7 nishimura & Asahi 36,785 34 16,111 128.3%

2 8 freehills 35,629 54 33,860 5.2%

16 9 nagashima ohno & tsunematsu 35,301 34 35,228 0.2%

11 10 Skadden Arps Slate meagher & flom 26,747 29 33,897 -21.1%

14 11 Linklaters 26,670 38 32,951 -19.1%

13 12 Baker & mckenzie 25,948 61 20,230 28.3%

111 13 Latham & watkins 24,859 19 20,072 23.8%

59 14 Hogan Lovells 24,405 11 2,538 861.6%

112 15 corrs chambers westgarth 22,294 20 4,377 409.3%

4 16 morgan Lewis & Bockius 20,699 6 1,400 1378.5%

22 17 clayton Utz 18,469 34 7,858 135.0%

39 18 Debevoise & plimpton 18,432 9 58,505 -68.5%

129 19 white & case 17,766 13 1,069 1561.9%

89 20 Lee & ko 16,607 37 2,520 559.0%Source: mergermarket

toP 20 LegAL AdVISerS – ASIA-PAcIfIc

34

ASIA-PAcIfIc

Monthly M&A Insider

vALUe

vALUe

rank

Q3 2011 company name Value (uS$m)

deal count


2 rrJ capital 5,000 1

3 Bain capital 3,315 4

4 Archer capital 2,570 4


6 national pension Service of korea 1,950 1

7 mirae Asset financial group 1,747 4

8 the carlyle group 1,521 7

9 woori private equity fund 1,343 2

10 neoplux 1,255 1

11 Harbourvest partners 1,249 1

12 Bravia capital Hong kong 1,049 1

13 ge capital corporation 1,049 1

14 Quadrant private equity 1,047 2

15 Affinity equity partners 945 3Source: mergermarket

rank

Q3 2011 company name Value (uS$m)

deal count

1= coller capital 27,479 1

1= nordic capital 27,479 1

3 cSfB private equity 16,040 2

4 Avista capital partners 13,740 1

5 kohlberg kravis roberts & co 8,246 1



8 propel Investments 2,300 2

9= Allianz capital partners 2,300 1

9= Dubai International capital 2,300 1

9= Sofina 2,300 1


13 pacific equity partners 1,727 3

14= permira 1,701 1

14= vcp vienna 1,701 1Source: mergermarket

voLUme

voLUme

rank


Value (uS$m)


2 Standard chartered private equity 391 5


4 Bain capital 3,315 4



7 mirae Asset financial group 1,747 4

8 Affinity equity partners 945 3

9 cHAmp ventures 645 3

10 cvc capital partners 604 3

11 tpg capital 271 3

12 Hony capital 255 3

13 macquarie group 227 3

14 Headland capital partners 194 3

15 gaja capital partners 193 3Source: mergermarket

rank


Value (uS$m)




4 pacific equity partners 1,727 3

5 cHAmp ventures 604 3

6 JAfco 562 3

7 cSfB private equity 16,040 2

8 propel Investments 2,300 2

9 pamplona capital management 1,203 2

10= gimv 805 2

10= walden International Investment group 805 2

12 temasek Holdings 715 2

13 oceania capital partners 575 2

14 Affinity equity partners 568 2

15 cvc capital partners 432 2Source: mergermarket

ActIVItY tAbLe of PrIVAte eQuItY fIrMS on ASIA-PAcIfIc buYoutS

ActIVItY tAbLe of PrIVAte eQuItY fIrMS on ASIA-PAcIfIc exItS

LeAgUe tABLeS

the private equity buyout activity tables by value and volume are based on private equity firms advising the bidder on buyout deals where the dominant geography of the target company is Asia-pacific-based. the tables by value and volume have been run from 01-Jan-11 to 30-Sep-11 and exclude lapsed and withdrawn deals.

the private equity exit activity tables by value and volume are based on private equity firms advising the vendor on exit deals where the dominant geography of the target company is Asia-pacific-based. the tables by value and volume have been run from 01-Jan-11 to 30-Sep-11 and exclude lapsed and withdrawn deals.

35

ASIA-PAcIfIc

Monthly M&A Insider

trenD grApHS

ASIA-PAcIfIc M&A QuArterLY trend

0

20

40

60

80

100

120

140

160

180

Q311

Q211

Q111

Q410

Q310

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Valu

e (U

S$m

)


Num

ber of deals

0

100

200

300

400

500

600

700

800

900


0

5

10

15

20

25

Q311

Q211

Q111

Q410

Q310

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Valu

e (U

S$m

)


Num

ber of deals


0

10

20

30

40

50

60

70

80

90

100

ASIA-PAcIfIc M&A AnnuAL trend ASIA PAcIfIc M&A AnnuAL PrIVAte eQuItY trend

0

50

100

150

200

250

300

350

400

450

500

Q3 2011201020092008200720062005


Num

ber of dealsValu

e (U

S$m

)

0

500

1,000

1,500

2,000

2,500

3,000


0

10

20

30

40

50

60

70

Q3 2011201020092008200720062005

Valu

e (U

S$m

)


Num

ber of deals


0

50

100

150

200

250

300

350

ASIA-PAcIfIc M&A QuArterLY PrIVAte eQuItY trend

36

ASIA-PAcIfIc

Monthly M&A Insider

trenD grApHS

ASIA-PAcIfIc M&A geogrAPhIc breAkdoWn Q3 2011

vALUe voLUme

Australia

China

Hong Kong

India

Indonesia

Japan

Malaysia

Singapore

South Korea

Other

25.0%

3.0%2.0%

7.0%

2.0%

26.0%

6.0%

4.0% 3.0%

22.0%

Australia

China

Hong Kong

India

Indonesia

Japan

Malaysia

Singapore

South Korea

Taiwan

Other

17.0%

4.0%4.0%

10.0%

3.0%

14.0%

4.0%

10.0%

1.0%8.0%

25.0%

ASIA-PAcIfIc M&A Sector breAkdoWn Q3 2011

vALUe voLUme

25.0%

20.0%

16.0%

3.0%

15.0%

2.0%1.0%1.0%

4.6%

4.3%

1.0%

2.0%

5.2%


Consumer


Technology

Financial Services

Business Services


Leisure

Construction

Real Estate

Transportation

Media

Telecommunications

21.0%

14.0%

12.0%

10.0%

7.0%

4.0%

5.0%

6.0%

8.0%

4.0%

1.7%

3.8%2.9% 0.2%

0.6%


Consumer


Technology

Financial Services

Business Services


Leisure

Construction

Real Estate

Transportation

Media

Agriculture

Telecommunications

Defence

37

ASIA-PAcIfIc

Monthly M&A Insider

ASIA-PAcIfIc M&A deAL SIze breAkdoWn

vALUe voLUme

0

10

20

30

40

50

60

70

80

90

100

Q3 2011201020092008200720062005


US$251m-US$500m

US$501m-US$2,000m

US$2,001m-US$5,000m

>US$5,001m

23.0%

18.8%

28.6%

9.3%

20.3%

19.1%

22.0%

27.3%

11.1%

20.5%

15.6%

17.1%

30.5%

12.4%

24.4%

29.6%

15.8%

22.3%

11.8%

20.4%

19.9%

17.0%

30.5%

11.1%

21.5% 20.9%

10.3%

27.5%

29.5%

11.7%

22.2%

13.8%

31.6%

12.1%

20.2%

Per

cent

age

75

80

85

90

95

100

Q3 2011201020092008200720062005

1.0%

5.1%

4.5%

89.0%

1.1%

4.9%

4.9%

88.8%

0.9%

5.1%

5.4%

88.3%

0.9%

4.5%

5.7%

88.4%

1.0%

5.5%

5.3%

87.9% 88.4%

4.9%

4.7%

1.7% 0.8%

5.5%

5.9%

87.4%

0.3% 0.3% 0.2%0.4% 0.4% 0.4% 0.4%


US$251m-US$500m

US$501m-US$2,000m

US$2,001m-US$5,000m

>US$5,001m

Per

cent

age

trenD grApHS

ASIA-PAcIfIc Sector AnALySISSector Q3 2010 Q3 2011 % change


Industrials & chemicals 21,994 18.1% 128 30,754 24.7% 109 40% -15%

financial Services 22,793 18.8% 55 25,244 20.3% 72 11% 31%

Business Services 7,390 6.1% 64 20,488 16.4% 64 177% 0%

consumer 5,840 4.8% 82 3,521 2.8% 53 -40% -35%

energy, mining & Utilities 33,377 27.5% 72 18,877 15.2% 40 -43% -44%

technology 2,518 2.1% 49 2,539 2.0% 40 1% -18%

media 1,408 1.2% 28 1,245 1.0% 32 -12% 14%

telecommunications 341 0.3% 7 1,195 1.0% 25 250% 257%

Leisure 800 0.7% 11 1,832 1.5% 21 129% 91%

transportation 11,083 9.1% 26 5,329 4.3% 21 -52% -19%

pharma, medical & Biotech 4,903 4.0% 30 5,702 4.6% 20 16% -33%

construction 1,421 1.2% 20 1,028 0.8% 15 -28% -25%

real estate 4,005 3.3% 22 413 0.3% 9 -90% -59%

Agriculture 3,634 3.0% 12 6,429 5.2% 3 77% -75%

Defence 0 0.0% 0 0 0.0% 1 - -

total 121,507 606 124,596 525 3% -13%

Sector AnALySIS


europe


eUrope

the quarterly drop was felt across the board, with private equity buyout activity seeing a 20.6% drop from €24.7bn in Q2 to €19.6bn in Q3. exits by trade sales and secondary buyout dropped by 39.1% to €19.1bn in total.

the buyout activity in particular has been hampered by the european sovereign debt crisis, causing deals to be postponed or pulled altogether in recent weeks. Banks have become increasingly reluctant to hand out debt, especially on large cap deals, unless they are expensive terms. examples include the €920m sale of permira’s All3media, and Schneider electric’s €1bn sale of its US division, both attracting private equity interest. However, the former was cancelled and the latter has been delayed. the situation is also reflected in the average debt-to-total funding ratio for Q1-Q3 2011 which reached 54.7%. this is down from 58.8% seen in the full year 2010 and is the lowest annual ratio since 2009 (53.1%).

It appears that deal-making in europe for the remainder of the year will be heavily reliant on the strength of corporate balance sheet. those who hoarded cash in the crisis years of 2008-9 will be on the look-out for bargain assets as they should be facing less competition in a tight credit environment. nonetheless, judging from the poor Q3 performance, there doesn’t appear to be many of them left. Q4 is predicted to be a very tough environment for m&A.

Mr Li Ka-shing’s foray into the UK utilities marketthe Hong kong tycoon Li ka-shing, through Cheung kong Infrastructure Holdings (CkI Holdings), has been acquiring large power production and utilities assets in the Uk for two years, worth around €12.7bn. this amount is split largely between two deals: the eDF energy’s power distribution network for €7bn back in September 2010 and the €5.5bn tender offer for northumbrian Water group plc in August this year.

this level of investment by mr Li in the Uk utilities market was never seen prior to 2010, a period when CkI Holdings recorded a mere €259m of acquisitions, some of which have now been sold amidst making the mega acquisitions mentioned above.

the thirst for deal-making does not appear to be over just yet. In July this year mr Li’s son, Victor, chairman to CkI Holdings, admitted to South China morning post that the company’s strategy was to keep buying for growth. Back then, CkI Holdings was reportedly cash-rich and severely under-leveraged, with a war chest of about €1bn and debt-to-equity ratio of less than 1%. With that kind of capital structure, it is expected that mr Li will make more buys across europe, especially those countries with a more regulated utilities sector and whose governments are facing problems with high public debt levels, such as France, Italy, and portugal.

In tHe FIrSt tHree QUArterS oF 2011, eUropeAn m&A ACtIVIty totALLeD €393.6Bn, Up 22.1% From tHe SAme perIoD LASt yeAr. tHIS IS tHe HIgHeSt Q1-Q3 perIoD SInCe 2008, WHICH SAW €520Bn. HoWeVer, It AppeArS tHAt eUrope HAS experIenCeD tHe peAk oF m&A ACtIVIty For tHe yeAr In Q2, WItH €160.4Bn WortH oF DeALS AnnoUnCeD - A 22.5% InCreASe From Q1. InSteAD, Q3 experIenCeD DISAppoIntIng reSULtS, onLy BookIng €102.3Bn. tHIS IS A 36.2% Drop From Q2 AnD IS tHe LoWeSt tHIrD QUArter SInCe Q3 2009.

39

EUROPE

Monthly M&A Insider

DEAL OF THE quArTEr

Deal summmary:

Announced: 02 August 2011 Deal Value: €5,483m

Cheung Kong Infrastructure Holdings Limited (CKI), the listed Hong Kong based infrastructure group, CKH, the Hong Kong based property developer, and Li Ka Shing Foundation Limited have agreed to acquire Northumbrian Water Group Plc, the listed uK based water utility.

Structure• The transaction will be conducted via a court-

sanctioned Scheme of Arrangement under Part 26 of the Companies Act.

terMS: • 465p in cash per share.

• In addition, Northumbrian shareholders on the register on 12-Aug-11 will also remain entitled to receive the net final dividend of 9.57p per share to be paid on 09-Sep-11.

• The ex-div offer values the entire share capital of Northumbrian at £2.4bn.

• The ex-div offer represents a premium of 3.5% to Northumbrian’s closing price of 449.4p on 01-Aug-11, the last trading price prior to the formal announcement.

• This is in addition to a premium of 21.4% to the closing price of 383p on of 24-Jun-11, the last trading day prior to the announcement by CKI that it was in the preliminary stages of assessing a potential cash offer for Northumbrian.

FInAncIng:• The cash consideration payable under the acquisition will

be funded using a mixture of equity and debt funding.

• Approximately £2.2bn is being provided by the consortium of the subscription of shares in uK Water, the acquisition vehicle created by the consortium, and/or loan notes or other instruments issued by uK Water.

• CKI, CKH and the Foundation have committed to provide equity funding to uK Water in the following proportions: CKI (40%), CKH (40%) and the Foundation (20%).

• The balance of the consideration due under the acquisition is being made available by way of debt finance pursuant to a credit agreement dated 31-Jul-11 between uK Water and the royal Bank of Canada, HSBC and Barclays Capital.

BreAk Fee:• Northumbrian and CKI have entered into the Break Fee

Letter, pursuant to which Northumbrian has agreed to pay to uK Water a break fee of approximately £24.1m if, after the date of this announcement but prior to the acquisition lapsing or being withdrawn, a competing proposal or possible competing proposal is announced by Northumbrian or any other person and becomes effective, is declared unconditional in all respects or is otherwise completed.

40

EUROPE

Monthly M&A Insider

IrreVocABle unDertAkIng:• Ontario Teachers’ Pension Plan Board, which has a

beneficial holding of Northumbrian shares representing approximately 26.8%, has irrevocably undertaken to vote in favour of the scheme. It has also undertaken not to bid, or participate in any bid, for Northumbrian.

• CKI has also received non-binding letters of intent from JP Morgan Asset Management and Artemis Investment Management LLP confirming their intention to vote in favour of the scheme in respect of approximately 3.8% and 2.9% respectively.

• The directors of Northumbrian have irrevocably undertaken to vote in favour of the scheme in respect of approximately 0.07%.

• In total, therefore, CKI has received irrevocable undertakings and non-binding letters of intent to vote in favour of the scheme in respect of 33.6% of Northumbrian’s shares.

PoSt DeAl DetAIlS• It is intended that uK Water will procure that

Northumbrian applies to the LSE to cancel the admission to trading of the Northumbrian shares on the LSE’s main market for listed securities and to the uK Listing Authority to cancel the listing of the Northumbrian shares. Such cancellations to take effect on or shortly after the effective date.

conDItIonS:• Northumbrian EGM approval.

• High Court approval.

• EC approval.

BAckgrounD:• On 27-Jun-11, CKI announced that it was considering

making a potential cash bid for Northumbrian.

• On 11-Jul-11, CKI announced that it had made a revised ex-div non-binding proposal at 465p in cash per ordinary share for Northumbrian.

• CKI indicated to the Board of Northumbrian that it would have completed the sale of Cambridge Water prior to any announcement of a firm intention to make an offer for Northumbrian. CKI has sold Cambridge Water to HSBC. This transaction was competed prior to this announcement on 02-Aug-11.

DEAL OF THE quArTEr

41

europe

Monthly M&A Insider

DeAL oF tHe QUArter

Advisors

target/Seller Bidder

Financial Deutsche Bank (Alan Brown; omar Faruqui; martyn nicholas)

Financial HSBC (eric Lyons; Charles packshaw; James pincus)

Legal Allen & overy (matthew Appleton; edward Barnett);Hogan Lovells (pravin Aswani; Steven Bryan; James Down; Daniel Harrington-greenwood; Juliet meredith; guy potel)

Legal Ashurst (advising FA: Adrian Clark; Jane Fissenden; tom mercer; tim rennie);Freshfields Bruckhaus Deringer (David Aitman; edward Braham; Sam Brown; Leon Daoud; Satyen Dhana; natalie Dyce; edward Freeman; Alice greenwell; peter Hall: richard Jones; geoff o’Dea; piers prichard Jones; robin Scott; Caroline Smith; nicholas Squire; Simon Weller; Stephen Williams)mills & reeve (Claire Clarke; Stephen Hamilton)

Pr pelham Bell pottinger (Archie Berens; James Henderson)

Pr


02-Sep-11 CkI is offering a decent premium for northumbrian Water, sources say

12-Aug-11 northumbrian Water: CkI does not need to return to markets to fund bid, sources say

02-Aug-11 northumbrian Water: ofwat consultation "formality" following Cambridge sale, source says

15-Jul-11 CkI raises USD 438m at HkD 40.41 per share

12-Jul-11 CkI will need two to three weeks in preliminary due dilligence for northumbrian Water, sources say

exit multiples – Y/e 31-Mar-11 Premium analysis

Multiples Value (€m) offer price per share (€) 5.45

revenue 6.5x 835.3 1 day before 5.6%

eBItDA 11.5x 470.6 1 month before 12.5%

eBIt 15.7x 344.3 1 day after 1.2%

earnings 13.8 201.9 Pre-rumour 27.1%

42

europe

Monthly M&A Insider

DeAL oF tHe QUArter

timetable and expected events

regulatory Date notes

eC Notification 26-Aug-11 25/35 trading days for phase 1 decision, further 90/105 trading days if referred to phase 2

Last date for Art. 9/Art. 22 request

09-Sep-11 15 trading days from eC notification

Last day for remedies within phase 1

16-Sep-11 20 trading days from eC notification, will cause 10 trading day extension if remedies submitted

Art. 9/Art. 22 decision 23-Sep-11 10 trading days from request

eC Decision 26-Sep-11 Approved; 25 trading days from notification standard; extended by 10 trading days following submission of remedies

ec Decision

Announcement date 02-Aug-11 From the company

Scheme of Arrangement doc issued

26-Aug-11 Latest 28 calendar days from announcement

Court meeting 19-Sep-11 Approved; normally 1 month after SoA doc issued, simple majority of voting minority shareholders present and 75% of value of votes cast required

High Court 17-oct-11 dr estimated; normally 3-4 weeks after Court meeting and egm, ref sanction of SoA

effective date 18-oct-11 dr estimated; normally next trading day from High Court sanction

Settlement end date 01-nov-11 dr estimated; latest 14 calendar days from effective Datenormally 180 calendar days after SoA doc issued

company events

NWG AGM 28-Jul-11 ref Agm to approve, among other proposals, a final dividend of 9.57p per share for the year ended 31 march 2011

NWG dividend payment 09-Sep-11 ref payment day for the final dividend

NWG ex-Vote Date 15-Sep-11 4 trading days before egm

NWG ex-record Date 17-Sep-11 2 trading days before egm

NWG eGM 19-Sep-11 Approved; alongside Scheme meeting, normally 1 month from SoA doc issued; 75% of votes cast required

NWG Interim report H1-11 (dr estimated) end nov-11; ref 2011 interim results

Bidder

Cheung Kong Infrastructure Holdings Limited

Headquarters: 12/F Floor Cheung kong Centre2 Queen’s road, CentralHong kong

Sector: Construction

Description: Hong kong based diversified infrastructure group

target

Northumbrian Water Group Plc.

Headquarters: northumbria HouseAbbey roadpity me, Co DurhamUnited kingdom

Sector: Utilities

Description: Uk based supplier of water and wastewater services

43

europe

Monthly M&A Insider

top DeALS & expeCteD DeALS

toP 10 eUroPeAn AnnoUnceD DeALS oF Q3 2011Announced Bidder company target company target dominated

sectorSeller company exit multiples (x) Bid premia

1-day before

Deal value(€m)

revenue eBItDA P/e

18-Aug-11 Hewlett-packard Company

Autonomy Corporation plc technology 11.8 24.7 47.3 63.7% 7,154

02-Aug-11 Cheung kong Infrastructure Holdings Limited

northumbrian Water group plc


6.5 11.5 13.8 5.6% 5,483

01-Jul-11 national pensions reserve Fund

Allied Irish Banks plc (98.00% stake)

Financial Services n/a n/a - 5,000

30-Sep-11 polymetal International pLC

polymetal oAo (82.85% stake)


7.5 17.3 24.1 - 4,436

03-Aug-11 government of russian Federation; and Inter rAo UeS oJSC

rusHydro JSC (23.56% stake)


1.7 19.0 42.5 13.1% 3,712

30-Sep-11 Fondo de reestructuracion ordenada Bancaria

nCg Banco SA (93.16% stake)

Financial Services n/a n/a 18.1 - 2,465

26-Jul-11 government of Ireland

Irish Life & permanent group Holdings plc (99.24% stake)

Financial Services n/a n/a 26.9% 2,300

19-Jul-11 Clayton, Dubilier & rice, LLC; AxA private equity; and Caisse de Depot et placement du Quebec

SpIe SA Industrials & Chemicals

pAI partners 0.6 - 2,100

21-Jul-11 BC partners Limited Com Hem AB telecommunications the Carlyle group LLC; providence equity partners LLC; and AxA private equity

- 1,800

12-Sep-11 Colfax Corporation Charter International plc Industrials & Chemicals

13.2% 1,770

Based on announced deals, including lapsed and withdrawn bids Based on dominant geography of target company being europe Data correct as of 10-oct-11


PIPeLIne oF eUroPeAn exPecteD DeALSSituation target company Sector Potential bidder

companyFinancial adviser to bidder (B); target (t); seller (S)

Seller company Market cap/est.

value (€m)

comments

potential takeover target

SC energonuclear SA


BkB Co; Arcelormittal SA; enel SpA

government of romania

4,000 BkB Co, a South korea-based investment firm, is interested in acquiring a stake in energonuclear, the romanian power project company. However, a recent report noted that both enel and Arcelormittal could exercise the option of doubling their stakes in energonuclear to 18.3% and 12.4% respectively. the spokesperson did not comment on the possibility that BkB might end up with just 29.3% stake in the project

expected deal

energias de portugal SA


Centrais eletricas Brasileiras SA

morgan Stanley (t); Caixa Banco de Investimento (S); perella Weinberg partners (S)

government of portugal

1,748 eletrobras [eLet3, eLet6: BZ] may be close to choosing a financial advisor for the portuguese government’s sale of a 20% stake in eDp [eDp pL], said a sector source claiming knowledge of the matter.

44

europe

Monthly M&A Insider

PIPeLIne oF eUroPeAn exPecteD DeALSSituation target company Sector Potential bidder

companyFinancial adviser to bidder (B); target (t); seller (S)

Seller company Market cap/est.

value (€m)

comments

expected deal

LCH.Clearnet Ltd

Financial Services

London Stock exchange (LSe) plc; markit group Limited

1,000 London Stock exchange has revived talks over a €1bn offer for LCH.Clearnet. LSe faces stiff competition from markit which is reported to have already made an offer of around €500m

potential takeover target

Highview power Storage


matrix group (t) 100 Highview power Storage (Highview), the private British energy storage developer, is looking to raise gBp 10m over the next six months, Chief executive officer gareth Brett said. the company has appointed matrix group as advisor, he added

expected deal

AeB SpA pharma, medical & Biotech

Investindustrial SpA 33 the owners of AeB, the Italian biotechnology company, are considering an early 2012 exit, said sources familiar with the situation. Investindustrial, the Italian private equity firm acquired AeB in 2007 together with the management from pm & partners, another Italian financial investor

note: expected deals based on confirmed announcements by companies involved Source: mergermarket

top DeALS & expeCteD DeALS

45

europe

Monthly M&A Insider

LeAgUe tABLeS

VALUetoP 20 FInAncIAL ADVISerS – eUroPeAn

the financial adviser league tables by value and volume have been run from 01-Jan-11 to 30-Sep-11. the tables cover all sectors and are based on the geography of either the target, bidder or seller being european.

VoLUme

ranking Q3 2011 Q3 2010

Q3 2010 Q3 2011 company name Value (€m)

Deal count Value (€m)

Value change (%)

1 1 goldman Sachs 166,297 103 107,142 55.2%

2 2 morgan Stanley 149,884 86 100,054 49.8%

10 3 Deutsche Bank 130,369 72 61,246 112.9%

4 4 Jpmorgan 129,774 85 89,832 44.5%

3 5 Credit Suisse 124,536 77 96,272 29.4%

5 6 Citigroup 100,829 57 78,031 29.2%

6 7 rothschild 61,424 131 73,499 -16.4%


16 9 HSBC 50,631 38 35,803 41.4%

9 10 Sg 50,342 51 65,502 -23.1%

12 11 Bank of America merrill Lynch 49,873 63 50,353 -1.0%

8 12 Bnp paribas 47,285 56 68,933 -31.4%


13 14 Lazard 38,238 84 42,170 -9.3%

40 15 evercore partners 36,181 15 5,777 526.3%

20 16 greenhill & Co 30,929 10 22,844 35.4%

15 17 royal Bank of Scotland group 23,985 30 36,045 -33.5%

17 18 nomura Holdings 23,011 22 32,628 -29.5%

14 19 Credit Agricole CIB 22,481 25 36,411 -38.3%

71 20 Ing 17,251 33 2,084 727.8%Source: mergermarket

ranking Q3 2011 Q3 2010



4 1 rothschild 61.4 131 119 12

1 2 kpmg 6.0 120 138 -18

9 3 goldman Sachs 16.6 103 68 35

2 4 pwC 3.9 93 123 -30

5 5 morgan Stanley 149.9 86 94 -8

10 6 Jpmorgan 129.8 85 67 18

7 7 Lazard 38.2 84 87 -3

6 8 Credit Suisse 124.5 77 89 -12

8 9 Deutsche Bank 130.4 72 73 -1

11 10 UBS Investment Bank 46.1 72 66 6

12 11 ernst & young 5.8 70 55 15

3 12 Deloitte 3.0 70 120 -50

17 13 Bank of America merrill Lynch 49.9 63 38 25

13 14 Citigroup 100.8 57 51 6

15 15 Bnp paribas 47.3 56 47 9

27 16 Sg 50.3 51 27 24

48 17 Leonardo & Co 7.6 50 12 38

19 18 Barclays Capital 56.2 45 35 10

22 19 m&A International 0.2 42 33 9

14 20 DC Advisory partners 2.5 39 48 -9Source: mergermarket

toP 20 FInAncIAL ADVISerS – eUroPeAn

46

europe

Monthly M&A Insider

LeAgUe tABLeS

VoLUmetoP 20 LegAL ADVISerS – eUroPeAn

the legal adviser league tables by value and volume have been run from 01-Jan-11 to 30-Sep-11 and include lapsed and withdrawn deals. the tables cover all sectors and are based on the geography of either the target, bidder or seller being european.

VALUe

ranking Q3 2011 Q3 2010



1 1 Linklaters 117.1 161 154 7

2 2 Freshfields Bruckhaus Deringer 130.7 158 141 17

6 3 Clifford Chance 53.7 144 107 37

4 4 Allen & overy 77.6 135 140 -5

3 5 DLA piper 15.7 127 141 -14

5 6 CmS 20.5 123 132 -9

12 7 Hogan Lovells 26.6 91 73 18

7 8 Baker & mckenzie 22.2 87 99 -12

9 9 Latham & Watkins 35.5 84 77 7

10 10 White & Case 31.0 80 77 3

11 11 Jones Day 10.8 80 75 5

8 12 Herbert Smith/gleiss Lutz/Stibbe 30.3 71 83 -12

23 13 eversheds 11.8 67 48 19

15 14 Weil gotshal & manges 37.0 64 55 9

14 15 Loyens & Loeff 15.1 57 56 1

26 16 mayer Brown 13.9 52 42 10

16 17 SJ Berwin 9.1 51 55 -4

13 18 Skadden Arps Slate meagher & Flom 37.4 50 56 -6

18 19 Slaughter and may 29.3 49 53 -4

29 20 Ashurst 22.3 46 41 5Source: mergermarket

ranking Q3 2011 Q3 2010


Deal count Value (€m)

Value change (%)

4 1 Freshfields Bruckhaus Deringer 130,687 158 127,139 2.8%

1 2 Linklaters 117,070 161 78,323 49.5%

9 3 Sullivan & Cromwell 92,078 36 98,410 -6.4%

2 4 Allen & overy 77,557 135 70,413 10.1%


10 6 Simpson thacher & Bartlett 60,628 29 61,070 -0.7%

7 7 Cleary gottlieb Steen & Hamilton 55,158 45 84,479 -34.7%

6 8 Wachtell, Lipton, rosen & katz 54,465 15 26,583 104.9%

8 9 Clifford Chance 53,672 144 56,887 -5.7%

11 10 Skadden Arps Slate meagher & Flom 37,414 50 110,954 -66.3%

12 11 Weil gotshal & manges 36,980 64 44,710 -17.3%

3 12 Cravath Swaine & moore 36,154 14 65,396 -44.7%

17 13 Latham & Watkins 35,537 84 43,821 -18.9%

13 14 Fried Frank Harris Shriver & Jacobson 35,454 10 11,489 208.6%

15 15 White & Case 30,978 80 21,609 43.4%

27 16 Dewey & LeBoeuf 30,352 31 23,868 27.2%

48 17 Herbert Smith/gleiss Lutz/Stibbe 30,284 71 79,074 -61.7%

19 18 Slaughter and may 29,256 49 95,772 -69.5%

22 19 Wiley rein 27,500 1 #n/A -

14 20 Hengeler mueller 27,223 34 6,746 303.5%Source: mergermarket

toP 20 LegAL ADVISerS – eUroPeAn

47

europe

Monthly M&A Insider

VALUe

VALUe

VoLUme

VoLUmerank

Q3 2011 company name Value (€m)

Deal count

1 nordic Capital 20,084 3

2 Coller Capital 19,222 2

3 CSFB private equity 11,207 2

4 Avista Capital partners 9,600 1

5 Silver Lake partners 6,621 2

6 Andreessen Horowitz 6,276 1


8 pAI partners 5,049 5


10 LBo France 3,277 3

11 permira 3,255 3

12 one equity partners 2,648 2

13 AxA private equity 2,640 7

14 providence equity partners 2,564 2

15 Cinven 2,470 2Source: mergermarket

rank

Q3 2011 company name Value (€m)

Deal count

1 AxA private equity 4,664 9

2 BC partners 3,961 4


4 Allianz Capital partners 2,822 2

5 Bridgepoint Capital 2,716 11

=6 Bain Capital 2,292 1

=6 Hellman & Friedman 2,292 1

8 Clayton, Dubilier & rice 2,100 1


10 CVC Capital partners 1,579 3


12 Advent International 1,525 6

13 triton partners 1,475 6

14 eurazeo 1,415 2

15 Cinven 1,252 3Source: mergermarket

rank

Q3 2011 company name Deal count

Value (€m)

1 Bridgepoint Capital 11 2,716

2 the Carlyle group 10 1,809

3 AxA private equity 9 4,664

4 Lloyds tSB Development Capital 9 224


6 Bnp paribas Developpement 8 51

7 Sun Capital partners 7 187

8 eQt partners 6 3,255

9 Advent International 6 1,525

10 triton partners 6 1,475

11 Altor equity partners 6 285

12 21 partners 6 220

13 Accent equity partners 6 179

14 Vision Capital 5 336

15 LBo France 5 200Source: mergermarket

rank

Q3 2011 company name Deal count

Value (€m)

1 Barclays private equity 9 4,763

2 mBo partenaires 8 75

3 AxA private equity 7 2,640

4 AtriA Capital partenaires 7 475

5 penta Investments 7 -

6 3i group 6 266

7 pAI partners 5 5,049

8 Bridgepoint Capital 5 1,198

9 Sigefi private equity 5 205

10 Ventizz Capital partners Advisory 5 140

11 Lloyds tSB Development Capital 5 4

12 ISIS equity partners 5 -

13 the Carlyle group 4 2,218

14 BC partners 4 816

15 parcom Capital management 4 252Source: mergermarket

ActIVItY tABLe oF PrIVAte eQUItY FIrMS on eUroPeAn BUYoUtS

ActIVItY tABLe oF PrIVAte eQUItY FIrMS on eUroPeAn exItS

the private equity buyout activity tables by value and volume are based on private equity firms advising the bidder on buyout deals where the dominant geography of the target company is european. the tables by value and volume have been run from 01-Jan-11 to 30-Sep-11 and exclude lapsed and withdrawn deals.

the private equity exit activity tables by value and volume are based on private equity firms advising the vendor on exit deals where the dominant geography of the target company is european.the tables by value and volume have been run from 01-Jan-11 to 30-Sep-11 and exclude lapsed and withdrawn deals.

LeAgUe tABLeS

europe


trenD grApHS

eUroPeAn M&A QUArterLY trenD

0

100

200

300

400

500

Q311

Q211

Q111

Q410

Q310

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Valu

e (€

m)


Num

ber of deals

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000


0

10

20

30

40

50

60

70

80

90

100

110

120

Q311

Q211

Q111

Q410

Q310

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Buyout value Exit value Buyout volume Exit volume

Valu

e (€

m)

Num

ber of deals

0

50

100

150

200

250

300

350

400

450

eUroPeAn M&A AnnUAL trenD eUroPeAn M&A AnnUAL PrIVAte eQUItY trenD

0

200

400

600

800

1,000

1,200

Q3 2011201020092008200720062005


Num

ber of deals

Valu

e (€

m)

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000


0

50

100

150

200

250

300

Q3 2011201020092008200720062005

Valu

e (€

m)


Num

ber of deals


0

200

400

600

800

1,000

1,200

1,400

1,600

eUroPeAn M&A QUArterLY PrIVAte eQUItY trenD

europe


trenD grApHS

eUroPeAn M&A geogrAPHIc BreAKDown Q3 2011

VALUe VoLUme

UK

CEE

Iberia

France

Nordic

Germany

Benelux

Italy

Others

7.4%

16.1%

5.5%

17.8%

15.5%

9.2%10.7%

9.5%

8.4%

12.0%

9.3%

10.3%

5.8%

19.7%

11.7%

12.6%

5.2%

13.5%

UK

CEE

Iberia

France

Nordic

Germany

Benelux

Italy

Others

eUroPeAn M&A Sector BreAKDown Q3 2011

VALUe VoLUme

0.2%

17.4%

10.3%

0.1%

9.8%

2.3%

1.4%

1.5%

1.8% 5.9%2.6%

3.6%

5.4%

15.2%

22.6%


Consumer

Business Services

Technology

Financial Services



Construction

Leisure

Media

Transportation

Real Estate

Telecommunications

Agriculture

Defence

0.9%

22.0%

15.7%

0.2%

6.1%

4.2%

4.2%

3.6%3.6%

1.3%1.4%

14.0%7.9%

7.5%

7.4%


Consumer

Business Services

Technology

Financial Services



Construction

Leisure

Media

Transportation

Real Estate

Telecommunications

Agriculture

Defence

EUROPE


TrEND GrAPHS

euroPeAn M&A DeAl SIze BreAkDown

vALuE vOLuME

0

10

20

30

40

50

60

70

80

90

100

Q3 2011201020092008200720062005

<€250m or undisclosed value

€251m-€500m

€501m-€2,000m

€2,001m-€5,000m

>€5,001m

33.0%

15.1%

23.9%

10.1%

17.9%

35.1%

17.7%

23.2%

8.4%

15.7%

39.2%

16.4%

22.4%

8.3%

13.7%

40.3%

14.5%

19.9%

8.8%

16.6%

26.7%

20.3%

23.7%

9.0%

20.3% 17.1%

9.1%

29.9%

20.4%

23.5% 21.3%

22.1%

29.9%

10.5%

16.2%

Per

cent

age

88

90

92

94

96

98

100

Q3 2011201020092008200720062005

3.3%

0.7%

3.9%

91.6%

3.8%

0.9%

3.5%

91.4%

4.0%

0.9%

3.9%

90.8%

2.7%

0.6%

3.2%

93.1%

2.0%

0.6%

2.2%

94.9%

93.1%

2.7%

3.3%

0.7% 0.7%

3.5%

3.1%

92.5%

0.5% 0.5% 0.3%0.4% 0.4% 0.2% 0.2%

<€250m or undisclosed value

€251m-€500m

€501m-€2,000m

€2,001m-€5,000m

>€5,001m

Per

cent

age

euroPeAn Sector AnAlYSISSector Q3 2010 Q3 2011 % change

Value (€m) Mrk share Deal count Value (€m) Mrk share Deal count Value Volume

Energy, Mining & utilities 49,125 36.4% 100 28,371 27.6% 81 -42% -19%

Financial Services 13,156 9.7% 126 20,459 19.9% 88 56% -30%

Industrials & Chemicals 31,670 23.4% 230 15,675 15.2% 251 -51% 9%

Technology 6,894 5.1% 94 9,767 9.5% 83 42% -12%

Consumer 10,765 8.0% 197 8,190 8.0% 184 -24% -7%

Business Services 5,982 4.4% 166 3,635 3.5% 160 -39% -4%

Telecommunications 3,567 2.6% 23 3,085 3.0% 13 -14% -43%

Pharma, Medical & Biotech 2,589 1.9% 76 2,947 2.9% 71 14% -7%

Leisure 4,201 3.1% 46 2,583 2.5% 35 -39% -24%

Transportation 4,118 3.0% 34 2,435 2.4% 36 -41% 6%

real Estate 548 0.4% 20 2,023 2.0% 19 269% -5%

Media 562 0.4% 40 1,913 1.9% 54 240% 35%

Construction 1,288 1.0% 57 1,452 1.4% 47 13% -18%

Agriculture 555 0.4% 12 234 0.2% 11 -58% -8%

Defence 66 0.05% 1 20 0.02% 3 -70% 200%

total 135,086 1,222 102,789 1,136 -24% -7%

SECTOr ANALySIS

51

Mid

dle east &

africa


Monthly M&A Insider

tHe mIDDLe eASt & AFrICA

the m&A activity in Q3 was mainly driven by a series of large deals in the energy, mining & Utilities sector which included the acquisition of 61% stake in netafim Ltd., the Israel based provider of smart drip and micro irrigation solutions by permira, the Uk based private equity firm and the Visonic Ltd acquisition by tyco International Ltd, which amounted to US$850m and US$100m respectively. the most active sector in the meA region accounted for 41.5% of the total m&A activity in Q3 2011 with a total of US$3.25bn worth of deals, followed by Consumer representing 23.8%. the second quarter was also dominated by the energy, mining & Utilities sector accounting for 48%, while Q1 was dominated by Industrials & Chemicals accounting for 25% of the total deal value.

the top deal of the third quarter of 2011 involved Jinchuan group International resources Co. Ltd., the listed Hong kong based mining group, acquiring metorex Limited, the listed South Africa based multi-commodity mining company, for US$1.4bn. the parties mandated several advisors including one Capital and Standard Bank group Limited, which were appointed as financial advisors by the target and gained the 15th and 8th position in Q1-Q3 2011 financial advisor league table respectively, and goldman Sachs, which acted as a financial advisor on the buy-side and topped the Q1-Q3 2011 financial advisor league table with a total value credited of US$15.9bn. Looking at the legal advisors, Allen & overy LLp and edward nathan Sonnenbergs advised the bidder, while DLA Cliffe Dekker Hofmeyr advised the target. South Africa and Israel were the most active meA countries for the Q1-Q3 2011 period accounting for 40.6% and 22.8% respectively in terms of value.

Expected M&A activitythe meA region still remains an attractive possibility for international investors seeking to diversify their portfolio and profit from some high-growth opportunities.

one of the most attractive places for investors at present seems to be nigeria. the country is usually considered by investors as the first step to expand in the African region, despite the need for approval from local authorities. the Central Bank of nigeria has recently taken over some of the local commercial banks that were objects of acquisition speculations. At the same time, Bank pHB, Spring Bank and Afribank have all lost their licenses to operate in the nigerian market.

However, it is not only the financial sector that provides interesting insights into future developments. the Brazil based company, Vale, is seeking to invest in the guinea based iron ore mine project. the project is worth US$7bn and is expected to add some extra production capabilities to the world’s largest iron ore producer.

there is also some activity in the north African telecommunication market. Currently, the Algerian government is trying to take over control of Djezzy, subsidiary of egyptian orascom. the company is involved in mobile network services in Algeria. the government stated that it intends to spend around US$2.5-3bn, however the sources close to the transaction say that an independent financial advisor valued the company at US$7bn, which may turn out to be a problem for the potential bidder.

m&A ACtIVIty In tHe AFrICA & mIDDLe eASt regIon AmoUnteD to US$30.6Bn In tHe FIrSt tHree QUArterS oF 2011, repreSentIng A 20.7% DeCreASe In VALUe CompAreD to tHe SAme perIoD In 2010 (US$38.6Bn). tHIS IS A CLeAr SIgn tHAt m&A ACtIVIty In tHe regIon HAS SLoweD Down SInCe tHe reCoVery StArteD In 2010 wItH A 55% InCreASe In VALUe oVer Q1-Q3 2009. LookIng At tHe QUArterLy BreAk Down, Q1 wAS tHe moSt ACtIVe QUArter AnD StooD For 49% oF ACtIVIty For tHe FIrSt tHree QUArterS oF 2011 At US$15Bn, wHILe Q2 SAw A 49% DeCreASe In VALUe wItH US$7.7Bn wortH oF DeALS. In Q3 tHe DeAL VALUe ACtIVIty InCreASeD to US$7.8Bn, Up 1.9% From tHe preVIoUS QUArter.

52

Mid

dle east &

africa

Monthly M&A Insider

DeAL oF tHe QUArter

PlAn of MErgEr:• gtCr LLC has agreed to acquire Fundtech Ltd from

Clal Industries and Investments Ltd’s

TErMs:• All outstanding ordinary shares of Fundtech would be

converted into the right to receive US$23.33 per share in cash

• Based on 17,264,805 shares outstanding, the transaction has an implied equity value of approximately US$403m

• the offer price provides a premium of 31.4% based on Fundtech’s closing share price of US$17.73 as on 14 September 2011, the last trading day prior to the announcement.

CondITIons:• Fundtech Shareholder approval

• Antitrust approval

• Israeli tax withholdings approval

ExPECTEd CoMPlETIon:• the transaction is expected to close during the fourth

quarter of 2011.

Advisers

Target/seller Bidder

financial Citigroup financial Bmo Capital markets; Financial technology partners; moelis & Company (Stuart goldstein, kenneth Viellieu); rBS Capital markets

legal kirkland & ellis (David Fox, Dvir oren, william B Sorabella); kramer Levin naftalis & Frankel; meitar Liquornik geva & Leshem Brandwein

legal Herzog, Fox and neeman (eldar Ben-ruby, Hanan Haviv, yuval navot, Alon Sahar); Skadden Arps Slate meagher & Flom (thomas kennedy, riochard witzel Jr.)

deal summary

Announced: 16-Sep-11 deal value: US$386m

sources of funding

Equity provider Amount (Us$m) stake debt provider Terms

gtCr -n/a n/a Bmo Capital markets; newstone Capital partners; royal Bank of Canada

n/a

Exit multiples – Y/E 31-dec-10 Premium analysis

Multiples Value (Us$m) offer price per share (Us$) 23.3

revenue 2.5 x 141.94 1 day before 31.4%

EBITdA 17.2 x 20.91 1 month before 46.5%

EBIT 27 x 13.26 1 day after 1%

Earnings 29.5 x 12.53 Pre-rumour -

53

Mid

dle east &

africa

Monthly M&A Insider

DeAL oF tHe QUArter


19-sep-11 Fundtech: gtCr examined deal prior to S1

15-sep-11 Fundtech: gtCr announces proposal to acquire

16-sep-11 Fundtech agrees to be acquired by gtCr; merger agreement with S1 terminated

Bidder

GTCR, LLC

Headquarters: 300 north LaSalle Street, Suite 5600ChicagoIllinois (IL)USA

sector: Financial Services

description: private equity firm with invesment ranging between US$30m and US$250m per transaction.

Target

Fundtech Ltd

Headquarters: 10 Hamada Streetp.o. Box 4121HerzliyaIsrael

sector: Computer software

description: provider of financial transaction processing software solutions for financial institutions.

seller

Cla Industries and Investments Ltd

Headquarters: 3 Azrieli Center45 floortel AvivIsrael

sector: Financial Services

description: Investment holding company engaged, through its subsidiaries, in the establishment, acquisition, development and upgrading of companies in various industries.

54

Mid

dle east &

africa

Monthly M&A Insider

top DeALS

ToP 10 MIddlE EAsTErn & AfrICAn AnnoUnCEd dEAls of Q3 2011Announced Bidder company Target company Target dominated

sectorseller company Exit multiples (x) Bid premia

1-day before

deal value(Us$m)revenue EBITdA P/E

05-Jul-11 Jinchuan group International resources Co Ltd

metorex Limited energy, mining & Utilities

3.2 10.0% 1,393

26-Sep-11 tronox Incorporated namakwa Sands and kZn Sands mines and smelters (74% Stake); and tiwest Joint Venture (50% Stake)


exxaro resources Limited - 1,301

22-Sep-11 markstone Capital partners LLC

netafim Ltd (61% Stake) Industrials & Chemicals

tene Capital; kibbutz Hatzerim; kibbutz magal; kibbutz yiftah; and markstone Capital partners management Company

- 850

05-Aug-11 Industrial and Commercial Bank of China Limited

Standard Bank Argentina SA (80% Stake)

Financial Services

Standard Bank group Limited

n/a n/a 600

11-Jul-11 electrolux AB olympic group Financial Investments

Consumer 1.1 18.4 12.8% 565

28-Jul-11 Japan tobacco Inc Haggar Cigarette & tobaco Factory Ltd

Consumer Haggar Holding Company Ltd

9.9 450

16-Sep-11 gtCr LLC Fundtech Ltd tmt Clal Industries and Investments Ltd

2.5 17.2 29.5 31.4% 386

21-Jul-11 Arcelik Anonim Sirketi

Defy Appliances Limited Consumer Franke Artemis management Ag

0.9 7.2 - 324

29-Sep-11 Intel Corporation telmap Ltd. tmt - 300

03-Sep-11 Dno International ASA

norAk Holding AS energy, mining & Utilities

rAk petroleum public Company Limited

- 265

Based on announced deals, including lapsed and withdrawn bids Based on dominant geography of target being middle east or Africa Data correct as of 10-oct-11


55

Mid

dle east &

africa

Monthly M&A Insider

LeAgUe tABLeS

VALUeToP 20 fInAnCIAl AdVIsErs – MIddlE EAsT & AfrICA

the financial adviser league tables by value and volume have been run from 01-Jan-11 to 30-Sep-11. the tables cover all sectors and are based on the geography of either the target, bidder or seller being middle east & Africa including Israel.

VoLUme

ranking Q3 2011 Q3 2010

Q3 2010 Q3 2011 Company name Value (Us$m)

deal count Value (Us$m)

Value change (%)

5 1 goldman Sachs 2,994 4 1,038 188.4%

- 2 Standard Bank group 2,402 5 - -

2 3 Jpmorgan 2,151 2 4,042 -46.8%

- 4 moelis & Company 1,687 2 - -

- 5 one Capital 1,393 1 - -

- 6 Credit Suisse 924 2 - -

6 7 Lazard 611 3 936 -34.7%

33 8 Credit Agricole CIB 565 1 - -

16 9 rothschild 530 2 117 353%

12 10 eFg-Hermes Holding 450 1 542 -17%

- 11= Bmo Capital markets 386 1 - -

4 11= Citigroup 386 1 1,263 -69.4%

- 11= Financial technology partners 386 1 - -

- 11= rBC Capital markets 386 1 - -

- 15 Commerzbank 367 1 - -

- 16 Standard Unlu menkul Degerler 324 1 - -

- 17= Arctic Securities 265 1 - -

- 17= macquarie group 265 1 - -

- 19= Headwaters mB 226 1 - -

- 19= Stifel, nicolaus & Company 226 1 - -Source: mergermarket

ranking Q3 2011 Q3 2010



- 1 Standard Bank group 2,402 5 - -

6 2 goldman Sachs 2,994 4 2 2

7 3 Lazard 611 3 2 1

2 4 Investec 217 3 4 -1

1 5 Jpmorgan 2,151 2 4 -2

- 6 moelis & Company 1,687 2 - -

- 7 Credit Suisse 924 2 - -

10 8 rothschild 530 2 2 0

- 9 Collins Stewart 169 2 - -

- 10 Deutsche Bank 114 2 - -

- 11 rand merchant Bank 13 2 - -

- 12 one Capital 1,393 1 - -

33 13 Credit Agricole CIB 565 1 1 0

9 14 eFg-Hermes Holding 450 1 2 -1

- 15= Bmo Capital markets 386 1 - -

3 15= Citigroup 386 1 3 -2

- 15= Financial technology partners 386 1 - -

- 15= rBC Capital markets 386 1 - -

- 19 Commerzbank 367 1 - -

- 20 Standard Unlu menkul Degerler 324 1 - -Source: mergermarket

ToP 20 fInAnCIAl AdVIsErs – MIddlE EAsT & AfrICA

56

Mid

dle east &

africa

Monthly M&A Insider

LeAgUe tABLeS

VoLUmeToP 20 lEgAl AdVIsErs – MIddlE EAsT & AfrICA

the legal adviser league tables by value and volume have been run from 01-Jan-11 to 30-Sep-11 and include lapsed and withdrawn deals. the tables cover all sectors and are based on the geography of either the target, bidder or seller being middle east & Africa including Israel.

VALUe

ranking Q3 2011 Q3 2010



23 1 werksmans 1,776 7 1 6

14 2 Herzog, Fox and neeman 556 6 2 4

51 3 Bowman gilfillan 1,804 5 1 4

33 4 norton rose 1,406 4 1 3

- 5 Clifford Chance 950 4 - -

7 6 edward nathan Sonnenbergs 1,773 3 2 1

4 7 DLA Cliffe Dekker Hofmeyr 1,739 3 3 0

- 8 kirkland & ellis 1,687 3 - -

28 9 Freshfields Bruckhaus Deringer 817 3 1 2

- 10 Bingham mcCutchen 439 3 - -

18 11 Allen & overy 1,658 2 1 1

60 12= Jones Day 600 2 1 1

5 12= Linklaters 600 2 2 0

17 14 gibson Dunn & Crutcher 500 2 2 0

6 15 eversheds 103 2 2 0

12 16 Dewey & LeBoeuf 30 2 2 0

37 17= Blake Dawson 1,301 1 1 0

15 17= Cravath Swaine & moore 1,301 1 2 -1

10 17= Freehills 1,301 1 2 -1

22 17= minter ellison 1,301 1 1 0Source: mergermarket

ranking Q3 2011 Q3 2010


deal count Value (Us$m)

Value change (%)

50 1 Bowman gilfillan 1,804 5 14 12785.7%

13 2 werksmans 1,776 7 806 120.3%

4 3 edward nathan Sonnenbergs 1,773 3 2,822 -37.2%

33 4 DLA Cliffe Dekker Hofmeyr 1,739 3 202 760.9%

- 5 kirkland & ellis 1,687 3 - -

5 6 Allen & overy 1,658 2 2,822 -41.2%

25 7 norton rose 1,406 4 424 231.6%

34 8= Blake Dawson 1,301 1 181 618.8%

37 8= Cravath Swaine & moore 1,301 1 144 803.5%

11 8= Freehills 1,301 1 987 31.8%

12 8= minter ellison 1,301 1 806 61.4%

39 8= orrick Herrington & Sutcliffe 1,301 1 117 1012%

- 13 Clifford Chance 950 4 - -

- 14 Zellermayer pelossof & Co 850 1 - -

19 15 Freshfields Bruckhaus Deringer 817 3 650 25.7%

60 16= Jones Day 600 2 - -

2 16= Linklaters 600 2 3,047 -80.3%

- 16= Bruchou, Fernandez madero, Lombardi & mitrani 600 1 - -

- 16= Hope, Duggan & Silva 600 1 - -

- 20 Zaki Hashem & partners 565 1 - -Source: mergermarket

ToP 20 lEgAl AdVIsErs – MIddlE EAsT & AfrICA

57

Mid

dle east &

africa

Monthly M&A Insider

LeAgUe tABLeS

VALUe

VALUe

VoLUme

VoLUmerank

Q3 2011 Company name Value (Us$m)

deal count

1 Jerusalem Venture partners 30 1

2 Blackstar group 28 1

3= gemini Israel Funds 20 1

3= Index Ventures 20 1

5= Amiti Ventures 13 1

5= Intel Capital 13 1

5= walden Israel Venture Capital 13 1Source: mergermarket

rank

Q3 2011 Company name Value (Us$m)

deal count

1 permira 850 1

2 gtCr 386 1

3 Sofiproteol 163 1

4 pala Investments 141 1Source: mergermarket

rank

Q3 2011 Company name deal count

Value (Us$m)

1 permira 1 850

2 gtCr 1 386

3 Sofiproteol 1 163

4 pala Investments 1 141Source: mergermarket

rank

Q3 2011 Company name deal count

Value (Us$m)

1 Jerusalem Venture partners 1 30

2 Blackstar group 1 28

3= gemini Israel Funds 1 20

3= Index Ventures 1 20

5= Amiti Ventures 1 13

5= Intel Capital 1 13

5= walden Israel Venture Capital 1 13Source: mergermarket

ACTIVITY TABlE of PrIVATE EQUITY fIrMs on MIddlE EAsTErn & AfrICAn BUYoUTs

ACTIVITY TABlE of PrIVATE EQUITY fIrMs on MIddlE EAsTErn & AfrICAn ExITs

the private equity buyout activity tables by value and volume are based on private equity firms advising the bidder on buyout deals where the dominant geography of the target company is middle east & Africa including Israel. the tables by value and volume have been run from 01-Jan-11 to 30-Sep-11 and exclude lapsed and withdrawn deals.

the private equity exit activity tables by value and volume are based on private equity firms advising the vendor on exit deals where the dominant geography of the target company is middle east & Africa including Israel. the tables by value and volume have been run from 01-Jan-11 to 30-Sep-11 and exclude lapsed and withdrawn deals.

58

Mid

dle east &

africa

Monthly M&A Insider

trenD grApHS

MIddlE EAsTErn & AfrICAn M&A QUArTErlY TrEnd

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

Q311

Q211

Q111

Q410

Q310

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Valu

e (U

S$m

)


Num

ber of deals

0

20

40

60

80

100

120

140

160


0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

Q311

Q211

Q111

Q410

Q310

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105


Num

ber of dealsValu

e (U

S$m

)

0

5

10

15

20

25

MIddlE EAsTErn & AfrICAn M&A AnnUAl TrEnd

MIddlE EAsTErn & AfrICAn M&A AnnUAl PrIVATE EQUITY TrEnd

0

10

20

30

40

50

60

70

80

90

100

Q3 2011201020092008200720062005


Valu

e (U

S$m

)

Num

ber of deals

0

50

100

150

200

250

300

350

400

450

500


0

2

4

6

8

10

12

14

Q3 2011201020092008200720062005


Valu

e (U

S$m

)

0

10

20

30

40

50

60

70

Num

ber of deals

MIddlE EAsTErn & AfrICAn M&A QUArTErlY PrIVATE EQUITY TrEnd

59

Mid

dle east &

africa

Monthly M&A Insider

trenD grApHS

MIddlE EAsTErn & AfrICAn M&A gEogrAPHIC BrEAKdoWn Q3 2011

MIddlE EAsTErn & AfrICAn M&A sECTor BrEAKdoWn Q3 2011

VALUe

VALUe

VoLUme

VoLUme

12.6%

0.3%<0.1%

0.2%

20.6%

13.5%

6.8%

5.1%

2.3%

0.5%

0.4%

4.2%

33.5%


Consumer

Energy, Mining & Utilites

TMT

Financial Services

Business Services


Transportation

Construction

Real Estate

Leisure

Defence

Agriculture

3.2%

2.8%

2.3%

1.8%1.8%

1.8%1.8%

1.8%1.4%

1.4%

0.9%0.5% 0.1%

6.5%

6.9%

33.2%

24.9%

South Africa

Israel

United Arab Emirates

Saudi Arabia

Nigeria

Kenya

Egypt

Morocco

Ghana

Kuwait

Jordan

Qatar

Namibia

Mozambique

Tunisia

Sudan

Ethiopia

Iraq

Zimbabwe

Sierra Leone

Algeria

Libya

Swaziland

Oman

Angola

Bahrain

Madagascar

Mauritius

2.8%2.8%

2.3% 0.9%0.5%

3.7%

13.8%

16.6%

18.0%

7.4%

8.3%

10.6%

12.4%


Consumer

Energy, Mining & Utilites

TMT

Financial Services

Business Services


Transportation

Construction

Real Estate

Leisure

Defence

Agriculture

40.6%

0.8%

2.2%

4.0%

4.8%

22.8%

7.2%

3.0%

2.2%

2.2%

0.4%0.3% 0.3%

0.6%

2.6%1.8%

0.4%0.5%2.5% 0.1%

South Africa

Israel

United Arab Emirates

Saudi Arabia

Nigeria

Kenya

Egypt

Morocco

Ghana

Kuwait

Jordan

Qatar

Namibia

Tunisia

Sudan

Ethiopia

Iraq

Zimbabwe

Sierra Leone

Algeria

Libya

60

Mid

dle east &

africa

Monthly M&A Insider

trenD grApHS

SeCtor AnALySIS

MIddlE EAsTErn & AfrICAn M&A dEAl sIZE BrEAKdoWn

VALUe VoLUme

0

10

20

30

40

50

60

70

80

90

100

Q3 2011201020092008200720062005

12.1%

21.5%

54.8%

12.5%

12.8%

65.9%

13.3%

11.3%

67.2%

17.5%

19.0%

47.7%

19.2%

13.2%

53.2%

66.9%

11.6%

11.0%

16.3%

10.3% 7.8% 7.3%14.1% 12.9% 9.3%

10.5%

9.1%

62.9%

1.3% 1.0% 0.9% 1.7% 1.6% 1.1% 1.3%

<US$14.9m or undisclosed value

US$15m-US$100m

US$101m-US$250m

US$251m-US$500m

>US$501m

Per

cent

age

0

10

20

30

40

50

60

70

80

90

100

Q3 2011201020092008200720062005

34.8%

10.7%

8.6%

5.6%

34.0%

14.2%

6.2%

9.2%

32.6%

15.4%

5.7%

7.2%

36.8%

11.2%

5.7%3.8%

32.2%

13.2%

4.1%3.4% 5.8%

5.1%

33.3%

11.2%9.2%

6.5%

40.3%36.4%

39.1%42.5% 47.1% 44.6%

46.5%

29.0%

8.8%

<US$14.9m or undisclosed value

US$15m-US$100m

US$101m-US$250m

US$251m-US$500m

>US$501m

Per

cent

age

MIddlE EAsTErn & AfrICAn sECTor AnAlYsIssector Q3 2010 Q3 2011 % change


energy, mining & Utilities 6,244 16.3% 37 10,242 33.5% 30 64% -19%

Industrials & Chemicals 1,837 4.8% 36 6,290 20.6% 39 242% 8%

Consumer 1,517 4.0% 24 4,125 13.5% 36 172% 50%

real estate 1,988 5.2% 10 3,864 12.6% 6 94% -40%

tmt 12,756 33.3% 33 2,067 6.8% 27 -84% -18%

Financial Services 5,287 13.8% 32 1,565 5.1% 23 -70% -28%

pharma, medical & Biotech 433 1.1% 12 1,277 4.2% 16 195% 33%

Business Services 3,211 8.4% 19 687 2.2% 18 -79% -5%

Construction 668 1.7% 10 173 0.6% 8 -74% -20%

transportation 959 2.5% 5 121 0.4% 6 -87% 20%

Leisure 3,150 8.2% 7 95 0.3% 5 -97% -29%

Defence 133 0.3% 3 68 0.2% 2 -49% -33%

Agriculture 176 0.5% 5 13 0.0% 1 -93% -80%

Total 5,450 86 22,298 144 309% 67%


aBO

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atiON

ABoUt merrILL CorporAtIon

Merrill Transaction and Compliance services through a broad range of tools and services, merrill Corporation streamlines document composition, filing, printing, distribution and electronic access to the transaction and regulatory compliance activities of its clients engaged in securities offerings, reorganisations, mergers and acquisitions, SeC and other regulatory filings. As a registered, third-party service provider offering public companies expert eDgArization and XBrL filing services, merrill professionals can compose, edit, electronically file, manage and distribute data in printed or electronic format.

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with merrill DataSite, all documents are captured and indexed to an online database and because all rights are designated by the client, security and control are guaranteed. each user’s ability to view, print or access source documents is set up by the client administrator and can be changed at any time. merrill DataSite provides useful tools including full search, viewer audit capability, Q&A, bulk uploads and detailed user activity tracking that help clients maintain tighter control and have greater insight into reviewer behavior.

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FoUnDeD In 1968 AnD HeADQUArtereD In St. pAUL, mInneSotA, merrILL CorporAtIon IS A LeADIng proVIDer oF oUtSoUrCeD SoLUtIonS For CompLeX BUSIneSS CommUnICAtIon AnD InFormAtIon mAnAgement. merrILL’S SerVICeS InCLUDe DoCUment AnD DAtA mAnAgement, LItIgAtIon SUpport, LAngUAge trAnSLAtIon SerVICeS, FULFILLment, ImAgIng AnD prIntIng. merrILL SerVeS tHe CorporAte, LegAL, FInAnCIAL SerVICeS, InSUrAnCe AnD reAL eStAte mArketS. wItH more tHAn 5,000 peopLe In oVer 40 DomeStIC AnD 22 InternAtIonAL LoCAtIonS, merrILL empowerS tHe CommUnICAtIonS oF tHe worLD’S LeADIng orgAnISAtIonS.


ABoUt merrILL DAtASIte

Merrill datasite – built with the client in mindmerrill DataSite was created to meet its clients’ needs and built to their specifications. Since 2002 we have consistently leveraged the experiences of our clients to add leading-edge functionality to the available toolset. merrill DataSite allows its users and administrators to:

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designate user permissions. team administrators can control which users will be able to view, print or download specific documents, folders or projects – simply and quickly.

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noW sMArTEr, fAsTEr, EAsIEr!

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About Merrill CorporAtion

ExEcutivE ManagEMEnt

Ed Bifulk president tel: +1 212 229 6563

Paul Hartzell Senior Vice president tel: +1 212 367 5950

ExEcutivE SalES

chris Beckmann regional Director, europe tel: +49 69 25617 110

alex gross regional Director, europe tel: +49 69 7593 7148

Michael Hinchliffe regional Director, europe tel: +44 20 7422 6100

Jonathan Hughes Account Manager, northern europe tel: +44 20 7422 6100

Shashank Jain representative, united Arab emirates tel: +52 55 9171 2237

alvaro Ortega regional Director, europe tel: +44 20 7422 6100

Merlin J. Piscitelli regional Director, europe tel: +44 20 7422 6100

Jérôme Pottier regional Director, France tel: +33 (0) 1 40 06 13 12

colin Schopbach regional Director, europe tel: +44 20 7422 6100

anna Scott regional Director, europe tel: +44 20 7422 6100

Hakema El-Hadad regional Director, northern Africa tel: +33 (0) 1 40 06 13 10

Mark Finnie regional Director, Hong Kong tel: +852 2536 2534

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carlos nogueira Diretor regional, brazil tel: +55 11 3895 8572

Will Brown regional Director, Canada tel: +1 514 877 5177

Hank gregory SVp, Western Canada & uS tel: + 604 603 4360

Ryan MacMillan regional Director, Canada tel: +1 416 214 2448

Michael Kennedy regional Director, boston tel: +1 207 829 4369

Ross Whittaker regional Director, new england tel: +1 617 535 1516

Forrest R. Doane regional Director, new York tel: +1 917 934 7341

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Shelle Martin regional Director, new York tel: +1 212 229 6613

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63Monthly M&a insider

www.mergermarket.comremark, part of the mergermarket group

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disclaimer

this publication contains general information and is not intended to be comprehensive nor to provide financial, investment, legal, tax or other professional advice or services. this publication is not a substitute for such professional advice or services, and it should not be acted on or relied upon or used as a basis for any investment or other decision or action that may affect you or your business. Before taking any such decision you should consult a suitably qualified professional adviser. whilst reasonable effort has been made to ensure the accuracy of the information contained in this publication, this cannot be guaranteed and neither mergermarket nor any of its subsidiaries nor any affiliate thereof or other related entity shall have any liability to any person or entity which relies on the information contained in this publication, including incidental or consequential damages arising from errors or omissions. Any such reliance is solely at the user’s risk.

remark, the events and publications arm of the mergermarket group, offers a range of publishing, research and events services that enable clients to enhance their own profile, and to develop new business opportunities with their target audience.

The following notes pertain to data contained in this publication:

• Deals are included where the deal value is greater than or equal to €5m.

• where no deal value has been disclosed, deals are included if the turnover of the target is greater than or equal to €10m.

• Deals are included in the graphs and top Deals in each section based on the dominant geography and dominant sector of the target company. Data underlying the League tables are based on deals where the bidder, target or parent geography of either is that of the geography in focus.

• Q3 2011 refers to the period 01-Jan-11 to 30-Sep-11.

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