oecd global forum on international investment ix · oecd global forum on international investment...

OECD Global Forum on International Investment IX

The new policy frontiers of investment globalisation

December 2011

2 OECD Global Forum on International Investment IX Data as at 30th November 2011

Contents

New frontiers of international investment policy 4

Reviving private investment in the Middle East and Africa 7

The rise of governments as sources of international investment 11

International investment in agriculture 13

Dealogic 14

These charts and tables show data for international M&A flows as at 30th November 2011 They are based on custom research undertaken by Dealogic for the OECD Global Forum on International Investment


Session 1

New frontiers of international investment policy

4 OECD Global Forum on International Investment IX Data as at 30th November 2011 Copyright 2011 | Dealogic Holdings plc

Global Emerging Trends – International M&A Flows 2009 – 2011 YTD

Americas EMEA Asia Pacific

$1,010.1

$992.4

$864.1

750 800 850 900 950 1,000 1,050

2011

2010

2009

$bn

Americas Intra-Region M&A

$564.3

$686.6

$654.3

0 200 400 600 800

2011

2010

2009

$bn

EMEA Intra-Region M&A

$513.8

$539.4

$473.3

440 460 480 500 520 540 560

2011

2010

2009

$bn

Asia-Pacific Intra-Region M&A

$136

$104

$90

2011

2010

2009

$56

$53

$30

2011

2010

2009

$100

$85

$39

2011

2010

2009

$98

$164

$93

2011

2010

2009

$68

$63

$30

2011

2010

2009

$49

$51

$36

2011

2010

2009

5 Data as at 30th November 2011 OECD Global Forum on International Investment IX Copyright 2011 | Dealogic Holdings plc

Global Emerging Trends – M&A Investment Flow 2009 – 2011 YTD

0 50 100 150 200 250 300 350 400 450 500 550 600 650 700 750 800 850 900

2011

2010

2009

2011

2010

2009

2011

2010

2009

2011

2010

2009

2011

2010

2009

Can

ada

UK

Japa

nC

hina

US

$bn

Domestic M&A: Top 5 Nations 2009 - 2011 YTD

Healthcare, Finance, Telecom

Utility & Energy, Oil & Gas, Insurance

Healthcare, Utility & Energy, Technology

Utility & Energy, Finance, Real Estate

Finance, Real Estate, Mining

Technology, Finance, Real Estate

Technology, Finance, Real Estate

Finance, Real Estate, Telcom

Finance, Real Estate, Metal Steel

Finance, Transport

Real Estate, Contruction, Transport

Finance, Real Estate, Professional Services

Utility & Energy, Oil & Gas, Mining

Real Estate, Oil & Gas, Mining

Real Estate, Oil & Gas, Mining

Other Nations

0 20 40 60 80 100 120 140 160 180 200 220 240

2011

2010

2009

2011

2010

2009

2011

2010

2009

2011

2010

2009

2011

2010

2009

Bra

zil

Ch

ina

Au

stra

liaU

KU

S

$bn

Inbound Cross-Border: Top 5 Target Nations 2009 - 2011 YTD

United Kingdom, Singapore, Netherlands

United Kingdom, Canada, France

Australia, Japan, United Kingdom

United States, France, UAE

United States, Hong Kong, Canada

Japan, United States, Hong Kong

Canada, Singapore, China

United Kingdom, United States, Canada

United Kingdom, United States, Canada

United States, Hong Kong, Spain

United States, Hong Kong, Singapore

United States, Hong Kong, Singapore

United States, France, Chile

China, Spain, Chile

Japan, China, Spain

Other Nations

0 20 40 60 80 100 120 140 160 180 200 220 240

2011

2010

2009

2011

2010

2009

2011

2010

2009

2011

2010

2009

2011

2010

2009

Jap

anC

anad

aFr

ance

UK

US

$bn

Outbound M&A: Top 5 Acquiror Nations 2009 - 2011 YTD

Other Nations

United Kingdom, Canada, Netherlands

United Kingdom, Canada, Spain

United Kingdom, Canada, Luxembourg

United States, Australia, France

United States, India, Australia

United States, Australia, Spain

United Kingdom, United Kingdom, Brazil

United States, Hong Kong, Russia

United States, Italy, Spain

United Kingdom, United States, Australia

United Kingdom, United States, Australia

United States, Australia, Belgium

United States, Australia, France

United States, Australia, South Africa

United States, Switzerland, Brazil


Session 2

Reviving private investment in the Middle East and North Africa


Reviving private investment in the Middle East and North Africa

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1Q 2Q 3Q 4Q 1Q 2Q 3Q *4Q 1Q 2Q 3Q 4QTD

2009 2010 2011

$bn Cross-Border M&Afrom Non-MENA Nations: Top 5 Target Nations 2009 - 2011 YTD

Israel Egypt Morocco Algeria Iraq*Israel, $2.9bn

in 4Q 2010

0%

25%

50%

75%

100%

0

2

4

6

8

10

12

14

16

2009 1Q 2Q 3Q 4Q 2010 1Q 2Q 3Q 4Q 2011 1Q 2Q 3Q 4QTD

%$bn MENA M&A: Last 3 Years by Quarter

MENA Intra-Region MENA Inbound Americas % of Inbound Europe % of Inbound Asia Pacific % of Inbound

Strategic $m 8,283 3,539 13,305 3,305 8,632 2,110 9,933 6,330 9,110 2,125 2,377 1,527

Sponsor $m 311 192 271 2,562 65 170 260 2,111 1,182 1,504 777 -


Reviving private investment in the Middle-East and North Africa

MENA M&A: Top 10 Target Nations 2009 - 2011 YTD

Acquiror region Top Acquiror Nation Top Sectors

Domestic

$m MENA

$m Non-MENA

$m Lead Nation $m 2nd Nation $m 3rd Nation $m Lead Sector $m 2nd Sector $m 3rd Sector $m

Israel

2009 6,874 - 1,380 US 757 Germany 433 Luxembourg 170 Telecom 4,444 Finance 1,020 Technology 660

2010 2,090 - 4,237 China 2,250 US 709 Switzerland 418 Chemicals 2,496 Technology 1,075 Telecom 515

2011 4,317 - 1,620 US 933 India 362 Netherlands 94 Technology 1,573 Real Estate 846 Telecom 739

United Arab Emirates

2009 3,172 92 615 Malaysia 588 Kuwait 92 UK 17 Finance 2,121 Real Estate 1,019 Oil & Gas 413

2010 1,603 385 221 Saudi Arabia 370 UK 130 India 58 Finance 1,108 Dining & Lodg 385 Real Estate 302

2011 6,360 191 168 Oman 172 China 126 Canada 25 Real Estate 4,460 Food & Bev 1,089 Construction 635

Morocco

2009 2,451 332 290 Kuwait 332 France 261 Spain 16 Telecom 1,476 Finance 932 Chemicals 607

2010 3,486 134 1,109 France 1,089 UAE 134 US 9 Holding Co 2,635 Finance 875 Telecom 837

2011 512 5 819 Mauritius 506 France 162 UK 147 Real Estate 510 Finance 509 Food & Bev 162

Iran

2009 7,909 - - China, India - - - - - Telecom 7,909 Transport - Finance -

2010 - - - - - - - - - - - - - - -

2011 - - - US - - - - - Met. & Steel - Mining - Oil & Gas -

Saudi Arabia

2009 840 81 98 UAE 81 NZ 33 Italy 30 Con. Prod 300 Retail 227 Finance 223

2010 3,862 - 293 Australia 120 South Korea 103 US 70 Chemicals 3,748 Prof Services 181 Mining 120

2011 37 71 292 France 137 Singapore 94 Jordan 37 Met. & Steel 164 Construction 109 Mining 39

Egypt

2009 350 301 457 UK 244 US 200 Saudi Arabia 168 Finance 585 Food & Bev 115 Oil & Gas 78

2010 535 1,350 1,825 US 916 Qatar 759 Sweden 555 Oil & Gas 805 Met. & Steel 759 Construction 733

2011 129 107 62 Saudi Arabia 107 Canada 60 US 7 Food & Bev 96 Oil & Gas 62 Holding Co 42

Qatar

2009 2,393 - 50 UK 50 France - Japan - Real Estate 1,592 Finance 364 Dining & Lodg 275

2010 2,051 23 - UAE 13 Saudi Arabia 10 Germany - Transport 1,091 Finance 960 Chemicals 13

2011 109 - - France 0 Japan - Kuwait - Oil & Gas 69 Leisure & Rec 38 Chemicals 2

Kuwait

2009 1,207 25 - UAE 25 Bahrain - Lebanon - Finance 882 Real Estate 296 Oil & Gas 41

2010 1,253 331 208 Bahrain 307 Canada 208 Oman 14 Finance 762 Real Estate 486 Insurance 208

2011 852 16 - Qatar 16 UAE - Germany - Finance 352 Oil & Gas 282 Real Estate 229

Tunisia

2009 - 4 251 France 190 US 39 Hong Kong 15 Telecom 190 Transport 46 Oil & Gas 15

2010 - 1,320 31 Qatar 1,200 Kuwait 120 Australia 30 Telecom 1,201 Finance 120 Oil & Gas 30

2011 11 - 870 Austria 866 Australia 4 UAE - Oil & Gas 870 Con. Prod 11 - -

Oman

2009 443 70 3 UAE 70 Malaysia 3 Saudi Arabia - Machinery 442 Oil & Gas 31 Food & Bev 26

2010 299 259 533 India 464 UAE 196 Saudi Arabia 63 Met. & Steel 796 Construction 89 Oil & Gas 63

2011 14 - - Bahrain 0 Australia - - - Finance 5 Construction 5 Prof Services 4


MENA Announced Deal Lists 2011 YTD

Top 10 MENA Targeted Cross-Border Deals 2011 YTD

Target Target Nationality Acquiror Acquirer Nationality Date Status Deal Value $m

Royal Dutch Shell plc (Downstream business in 14 African countries including Algeria, Ghana, Kenya and Mauritius)

Algeria Vitol Group Helios Investment

Netherlands 19th Feb 2011 Pending 1000

Pioneer Natural Resources (Pioneer Tunisian subsidiaries)

Tunisia OMV Austria 6th Jan 2011 Completed 866

Property Portfolio (Portfolio of properties comprising villas and hotels in Marrakech )

Morocco New Mauritius Hotels Mauritius 15th Apr 2011 Pending 506

Taro Pharmaceutical Industries (34%) Israel Sun Pharmaceutical Industries India 18th Oct 2011 Pending 359

Provigent Israel Broadcom United States 21st Mar 2011 Completed 313

Korek Telecom (44%) Iraq France Telecom Agility

France 14th Mar 2011 Completed 295

Ophir Optronics Israel Newport United States 7th Jul 2011 Completed 238

Pioneer Cement Industries United Arab Emirates Raysut Cement Oman 3rd Jan 2011 Completed 172

Oil & Gas Assets (Elephant oilfield in Libya) Libya Gazprom OAO Russian Federation 16th Feb 2011 Pending 170

Lesieur Cristal (41%) Morocco Sofiproteol France 13th Jul 2011 Completed 162

Top 5 MENA Intra-Region Cross-Border Deals 2011 YTD

Target Target Nationality Acquiror Acquirer Nationality Date Status Deal Value $m

Pioneer Cement Industries UAE Raysut Cement Oman 3rd Jan 2011 Completed 172

Central Electricity Generating (51%) Jordan ACWA Power Projects Saudi Arabia 2nd Jun 2011 Completed 144

El Maleka Food Industries (78%) Al Farasha

Egypt Savola G Saudi Arabia 18th Oct 2011 Pending 93

Al Masane Al Kobra Mining Saudi Arabia Arab Mining Jordan 6th Jul 2011 Completed 37

International Centre for Contracting Saudi Arabia Drake & Scull International PJSC - DSI UAE 13th Apr 2011 Completed 34


Session 3

The rise of governments as sources of international investment


Top 10 Target Nations by SWF Acquirors Globally 2006 - 2011 YTD

M&A Volumes $m Target Sectors

Target Nation 2006 2007 2008 2009 2010 2011 1 2 3

United States 1,260 28,678 12,925 16,412 1,868 - Finance Technology Leisure & Recreation

United Kingdom 4,045 6,545 9,956 5,621 1,543 - Finance Real Estate Retail

China 5,618 3,032 2,093 2,267 4,928 3,855 Finance Real Estate Technology

Spain 1,055 - - 4,376 - 10,419 Oil & Gas Utility & Energy Dining & Lodging

France 514 - 5,674 582 2,937 4,109 Utility & Energy Oil & Gas Construction

Germany 383 - - 10,632 - 79 Auto/Truck Construction Real Estate

Singapore 597 2,107 1,240 3,591 2,893 200 Technology Healthcare Food & Beverage

Australia - 924 562 6,402 198 483 Telecom Real Estate Professional Services

Kazakhstan - - - 4,311 3,043 - Finance Mining Oil & Gas

Hong Kong 4,388 220 497 909 1,000 - Transportation Insurance Metal & Steel

Government and SWF Acquisition Trends 2006 – 2011 YTD

Top 10 SWFs Globally 2006 - 2011 YTD

M&A Volumes $m Top Target Nations Top Target Sectors

SWF SWF Nation 2006 2007 2008 2009 2010 2011 Lead Nation 2nd Nation 3rd Nation Lead Sector 2nd Sector 3rd Sector

Temasek Singapore 20,852 39,924 7,471 7,303 3,996 14,766 United States Australia Hong Kong Finance Telecom Utility & Energy

Qatar Investment Authority Qatar 7,796 14,039 25,734 11,111 8,779 4,939 United Kingdom Germany China Finance Telecom Auto/Truck

China Investment China 541 11,381 10 8,618 7,148 5,377 United States China France Finance Utility & Energy Real Estate

Government of Singapore Investment Singapore 39,113 15,904 9,295 14,121 7,042 2,992 United Kingdom United States China Transportation Finance Utility & Energy

International Petroleum Investment UAE 789 794 1,796 15,379 3,326 9,699 Spain United Kingdom Germany Oil & Gas Finance Auto/Truck

Mubadala Development UAE 1,308 1,972 4,266 3,953 964 2,683 United States Singapore United Kingdom Technology Publishing Finance

Kuwait Investment Authority Kuwait 5,490 1,005 4,293 3,545 2,634 4 United States China Turkey Finance Real Estate Insurance

Abu Dhabi Investment Authority UAE 572 9,257 1,808 143 2,853 3,561 United States Australia Norway Finance Utility & Energy Transportation

SamrukKazyna National Welfare Fund Kazakhstan - - 345 3,372 3,043 - Kazakhstan - - Finance Mining Utility & Energy

Khazanah Nasional Malaysia 1,216 299 1,374 696 6,140 2 Malaysia Singapore UAE Healthcare Construction Real Estate

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

0

10

20

30

40

50

60

1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H

2006 2007 2008 2009 2010 2011

% $bn Government & SWF Cross-Border Acquisitions by Target Region 2006 - 2011 YTD

Asia Pacific

Americas

EMEA

SWF as % of Global M&A

0

20

40

60

80

100

120

140

160

0

10

20

30

40

50

60

70

80

Deals $bn Top 10 Government & SWF Acquiror Nations 2006 - 2011 YTD

Deal Value $bn Total No. of Deals

12 Data as at 30th November 2011 OECD Global Forum on International Investment IX

Session 4

International investment in agriculture


International investment in agriculture

*Involved in Tobacco farming

NB: Dealogic tracks the acquisition of agricultural land only if it is acquired through the purchase of an agribusiness company or where the acquirer has pre-committed an amount to future development

0

1

2

3

4

5

6

1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H

2006 2007 2008 2009 2010 2011

$bn Agribusiness M&A Cross-Border Volumes 2006 - 2011

Top Agribusiness Cross-Border Target Nations 2006 - 2011 YTD

Rank Target Nation Deal Value $m % Share Top 3 Acquiror Nations

1 Netherlands 4,060 15.6 Canada Norway United States

2 United States 3,008 11.6 Brazil Switzerland Canada

3 Canada 2,561 9.9 United States Hong Kong Ireland

4 France 2,202 8.5 United States Guadeloupe Netherlands

5 Malaysia 2,177 8.4 Singapore Australia Japan

6 Turkey 1,941 7.5 United Kingdom Canada UAE

7 United Kingdom 1,841 7.1 Netherlands Brazil Denmark

8 Brazil 1,455 5.6 United States Argentina Switzerland

9 Australia 1,308 5.0 Singapore Thailand China

10 New Zealand 862 3.3 Germany China Australia

Top Agribusiness Cross-Border Acquiror Nations 2006 - 2011 YTD

Rank Acquiror Nation Deal Value $m % Share Top 3 Target Nations

1 United States 7,346 28.3 Canada France Brazil

2 Brazil 3,611 13.9 United States United Kingdom Argentina

3 Singapore 3,446 13.3 Malaysia Australia Indonesia

4 Canada 1,921 7.4 Netherlands United States Turkey

5 United Kingdom 1,849 7.1 Turkey Israel Australia

6 Norway 1,708 6.6 Netherlands United Kingdom Sweden

7 Netherlands 763 2.9 United Kingdom Indonesia Serbia & Montenegro

8 Germany 762 2.9 Greece New Zealand Norway

9 Argentina 530 2.0 Brazil - -

10 Hong Kong 487 1.9 Vietnam China Indonesia

Top 5 Cross-Border M&A Agribusiness Deals 2006 - 2011 YTD

Ann. Date Target Target Nation Acquiror Acquiror Nation Acquiror Sector Deal Value $m

16th Sep 2009 Pilgrim's Pride (64%) United States JBS Brazil Food & Beverage 2,550

15th Aug 2011 Provimi France Cargill United States Food & Beverage 2,138

14th Dec 2006 PPB Oil Palms Malaysia Wilmar International Singapore Food & Beverage 2,069

31st Jul 2008 Rothmans* Canada Philip Morris International United States Consumer Products 2,032

22nd Feb 2008 Tekel* Turkey British American Tobacco United Kingdom Consumer Products 1,720


GENERAL

Figures based on announcement date unless otherwise stated. League tables based

on announcement date include all transactions announced during the specified

period except withdrawn or failed, and use announced or revised transaction values.

In Japan, the announcement date is considered the date on which full terms are

disclosed.

Announced league tables are based on transaction value at announcement of most

recent terms.

Transactions not denominated in US dollars are converted to a US dollar equivalent

at the date of announcement.

Tables in this document are complete and current to the best of Dealogic’s

knowledge. While an ‘official’ snapshot of the investment banking landscape as of

the date of publication, league tables are subject to retroactive change due to a

variety of factors, including, but not limited to, revaluation, withdrawal or

termination, and changes in advisor roles.

To be eligible for league table credit, a financial advisor must submit notification of

involvement in a transaction before the deadline, subject to certain restrictions and

amendments (refer to official documentation).

ELIGIBILITY

Both target and acquiror advisors are eligible for league table credit.

The group head (the investment banking division name of the parent entity) appears

in league tables.

Financial advisor league tables include the following roles: Financial Advisor,

Fairness Opinions.

Advisors to the acquiror are eligible for full league table credit when advising the

acquiror or its parent. Advisors to companies with a controlling stake, but less than

50%, of the acquiror are eligible for proportionate credit, if criteria are met.

Advisors to the target are eligible for full league table credit when advising a

shareholder with an interest of at least 50% in the target. Advisors to shareholders

with minority interest in the target are also eligible for league table credit in

proportion to the stake held. In the case of pending competing offers, the target

advisor to the largest offer only is eligible for credit.

Rumors, preliminary discussions, buybacks, carve-outs and withdrawn deals are not

included in league tables, unless otherwise specified.

Region-specific league tables are based upon target, acquiror, acquiring subsidiary

or divestor nationality, primarily the nationality of headquarters of the parent, and if

that is unclear, the nationality of incorporation.

VALUATION

The Dealogic valuation methodology defines the value of a transaction as the cost to

acquiror. In all cases, only the percentage acquired is eligible for league table credit.

League tables appearing in this report are ordered by Deal Value, defined as amount

paid by the acquiror for the target, including net debt.

COVERAGE

Acquisitions, acquisitions of assets (divestitures), and stake purchases.

Mergers, Joint Ventures, Spin-offs & Split-offs.

Privatizations, Government-awarded PCS/wireless licenses.

Pharmaceutical rights and brands.

Real estate property transactions defined as managed companies, portfolios or

completed buildings only, are tracked and eligible if valued $100m or above.

Buyback transactions structured as public tender offers, as divestments or as a

defensive technique in response to an unsolicited takeover approach.

Recapitalizations & restructurings.

Debt-for-equity recapitalizations

Restricted Preferred share issuance and Mandatory Convertible Debt

RANKING CRITERIA

Volume Rankings: Excludes withdrawn deals, buyback programs and carve-outs,

includes assumption of debt; Based on eligible credit amount. Due to credit being

given to each advisor on a deal, the sum of the Market shares will not equal 100%

(Financial Sponsor Rankings exclude add-on transactions)

Revenue Rankings: Dealogic Revenue Analytics employed where fees are not

disclosed; Amalgamation of realized fees from announced and completed deals

Dealogic M&A Coverage & Criteria The following is an Executive Summary of the coverage & criteria used to produce this document. To obtain a comprehensive document detailing Dealogic’s precise scope, policies and methodologies, please contact one of the analysts.


About Dealogic

Dealogic is the platform utilized by investment banks worldwide to optimize performance and improve competitiveness.

Implemented across strategy, capital markets, sales, coverage banking and compliance, firms rely on Dealogic to interconnect their professionals to more effectively identify opportunities, cover the right clients, evaluate investor appetite, execute deals reliably and to ultimately win more business.

Dealogic is the only firm in the world providing the technology, content and consulting used by investment banks to manage and align their core operating units, leading to increased profitability and productivity.

More than 25 years’ experience and a deep knowledge of the capital markets has put Dealogic in a unique position to foster numerous long standing relationships and to work in close partnership with investment banks globally.

Data, research and rankings used within this report are produced via M&A Analytics, a component of Dealogic’s Investment Banking Management Platform.


Further Information

For further information please contact:

Daniel Stuart-Smith, Head of M&A (+44) 20 7395 6645 [email protected]

Ekene Aina, Relationship Associate (+44) 20 7440 6423 [email protected]

General Enquiries (+44) 20 7440 6313 [email protected]

oecd global forum on international investment ix · oecd global forum on international investment...

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