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Consumer products deals quarterly, April - June 2011 - Europe remains most active region for consumer product deals - EY - Global

Consumer products deals quarterly, April - June 2011

Europe remains most active region for consumer product deals

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On a long-term moving average basis, Russia is showing strong growth in deal volumes in comparison to the other BRIC nations.

Europe once again accounted for the largest proportion of cross-border deal activity in terms of volume in Q2 11, both as the buyer and seller. In the second quarter this dominance was also replicated in value terms, with Europe accounting for approximately 70% of buyer and seller value.

There were 123 cross-border deals in Q2 11, an increase of 12 deals compared to Q1 11. Europe's proportion of buyer region deal volume was static at 49%, but its share of seller region deals increased to 53% in Q2 11 from 46% in Q1 11. This increase meant Europe changed, in volume terms, from being a net buyer in Q1 11 (net two deals purchased) to a net seller in Q2 11 (net four deals sold).

Regional volume comparisons, Q1 08 to Q2 11


Regional volume comparisons, Q1 08 to Q2 11

Source: EY’s analysis of FactSet Mergerstat data from Q1 08 to Q2 11.

Deals involving BRIC nations increased by 8 transactions (14%) to reach 64 deals, slightly below the long-term average of 67 deals per quarter. The increase in deal volume was led by Russia, with an increase of 10 deals to 29 deals. On a long-term moving average basis, Russia is showing strong growth in deal volumes in comparison to the other BRIC nations.

Europe accounted for 75% of buyer region value and 72% of seller region value in Q2 11. North America's share of buyer value declined by $10.3b (91%) from Q1 11 to give a buyer value total of $1.1b in Q2 11. From a North American buyer perspective, the first quarter included the $6.1b purchase of Danisco by E.I.C. and a further five deals, all from the Q1 11 top 10 deals, with a combined value of $4.4b. All of those transactions were individually larger than any North American buying deal in Q2 11.

Regional value comparisons, Q1 08 to Q2 11


Regional value comparisons, Q1 08 to Q2 11

Source: EY’s analysis of FactSet Mergerstat data from Q1 08 to Q2 11.

In Q2 11 deal values were disclosed for 48 of the 123 total crossborder deals (39%), equating to an average disclosed deal value of $133m. In comparison in Q1 11 58 (52%) of the deals had a disclosed vale, equating to an average of $295m.



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