M&A Tracker Q3 2012

M&A market activity

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North America continues to shape the global M&A landscape

Continuing the trend from the last quarter, North America is driving M&A activity with the region currently holding 39% of all announced transactions volume. Even more prominent is their dominance of large deals, with 53% of all announced deal value involving a North American target.

The largest transaction announced in the region in Q3 2012 was CNOOC’s offer for Canadian oil and gas producer Nexen worth US$15b in total deal value according to Thomson One Banker.

Europe saw a fall of 39% in terms of the total deal value announced during Q3 2012.

Asia becomes the second most active region as Europe remains depressed

Reflecting the region’s ongoing economic woes, Europe saw a fall of 39% in terms of the total deal value announced during Q3 2012, with announced deal volume dropping by 24% quarter-on-quarter. Looking at the Eurozone only, deal activity fell again in this quarter, by 28% in terms of both volume and value.

Despite this trend, the second-largest transaction completed in Q3 2012 was intra-European, namely Volkswagen’s offer for Porsche, valued at US$8.9b according to Thomson One Banker.

Following a quarter-on-quarter 13% increase in deal values announced, and for the first time since the start of the M&A Tracker report in Q1 2010, Asia surpassed Europe both in terms of the total number of announced deals, currently representing 25% of global volume, and total announced deal value, currently representing 19% of global value.

This is, however, less likely to be solely a reflection of a long-term trend and rather as a result of the economic uncertainty in the Eurozone temporarily depressing M&A volumes. The third-largest deal announced in Q3 2012 was Thai Beverage’s offer for Fraser & Neave (F&N), valued at US$7.2b according to Thomson One Banker, which also involved the sale of F&N’s 40% stake in Asia Pacific Breweries to Heineken.






Figure 7. Percentage of global M&A volumes per region

Figure 7. Percentage of global M&A volumes per region ×

Figure 8. Percentage of global M&A value per region

Figure 8. Percentage of global M&A value per region

Source: The EY M&A Tracker, compiled for EY by MARC, the M&A Research Centre at Cass Business School.

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