Fast Facts-
Worldwide M&A activity totals $2.0 trillion, up 75% compared to YTD 2013
US Target M&A activity increases 97% compared to year ago levels
European Convertibles hit $17.3 billion so far in 2014, up 24% compared to last year
Media and Healthcare M&A both see triple-digit percentage increases over 2013
Up 95% compared to 2013, High Technology ECM is biggest gainer this year
Consumer Products DCM increases 22% over 2013, strongest sector in the asset class
Weekly Highlights-
- Eight deals over $5 billion were announced this week, setting the all-time record for weekly large-cap deal making and pushing the level of deals over $5 billion to $915.9 billion for year-to-date 2014, more than triple year ago levels. Accounting for 45% of worldwide M&A so far this year, large cap deal making in the healthcare sector (12), energy & power (8) and consumer staples and media (7) make up just over 60% of the number of announced M&A deals greater than $5 billion for year-to-date 2014
- A $94.3 billion unsolicited bid from 21st Century Fox for Time Warner pushed the level of worldwide hostile or unsolicited bids to $248.0 billion, the strongest year-to-date period for unsolicited offers since 1999. Announced and pending unsolicited bids account for 12.3% of overall M&A this year, also a 15-year high
- Dai-ichi Life Insurance Co’s $2.5 billion follow-on offering marked the third largest follow-on offering in Japan this year and brings year-to-date follow-on volume to $14.7 billion, a decline of 22% compared to year-to-date 2013
- Bed Bath & Beyond’s $1.5 billion corporate debt offering this week marked the company’s first investment grade bond offering and brought year-to-date investment grade corporate debt issuance from US companies to $1.05 trillion, a 4% decline compared to a year ago
- Reynolds American’s $26.8 billion takeover or Lorillard and Imperial Tobacco’s $7.1 billion purchase of certain brands of Reynolds American pushed global consumer staples M&A to $127.0 billion for year-to-date 2014, a 40% increase compared to a year ago and the strongest year-to-date period for deal making in the sector since 2008. Centerview Partners, which advised Lorillard on this week’s deal, narrowly leads JP Morgan for the top spot for M&A advice in the sector this year. Targets in the United States account for 60% of activity this year, up from 44% last year at this time