Un two-speed market characterized the trend, in 2011, of corporate merger and acquisition processes, a segment in which cross-border transactions increasingly dominate, especially within the European market, reflecting the growing openness to the movement of capital within the Union with respect to other macro-areas.
On a global scale, the equivalent value of first ten operations suffered a substantial contraction in the five-year period, from 416 billion in 2007 to 182 in 2011. In Europe, where the "thud" of Germany is recorded, as much as 41% of interventions in volume and 31% in value compared to the scenario global, demonstrating, as already mentioned, the greater dynamism of intra-European financial flows.
THEoutlook for 2012, published in the "Kpmg Mergers & Acquisitions Report", predicts that the stagnation of the European macroeconomic situation will impact on the dynamics of the M&A market. Particularly significant will be the trend towards the consolidation of strategic sectors, within which assets considered no longer central will be disposed of. From this point of view, the case of Ansaldo Breda, a Finmeccanica investee which is arousing considerable interest both in Asia and in Spain, sets the standard, following the announcement of the recovery plan by the public holding which provides for the sale of the non-core subsidiaries to restore balance sheets often negative.
Data for the first quarter of 2012 are not very encouraging: the value of the transactions completed within the first half of 2012 appears to have dropped significantly (from 265 billion in 2011 to 145 in the same two-month period, in the new year). The same trend is recorded in the number of transactions, even in the case of those only announced: the market is cautious and awaits developments in the global economic scenario.
If the global figure for 2011 shows a recovery in mergers and acquisitions, in the second half of the year – due to the sovereign debt crisis – flows slowed down, especially due to the lack of funding. The growth in countervalues (+42% compared to 2010) can be explained in the light of a general contraction in activity to the detriment of minor transactions: a few large transactions dominated the market. Among these, it was often the acquisitions following Public Purchase Offers that occupied the largest share of value.
Over 70% of the values are the prerogative of cross-border operations, confirming a certain anemic nature of the internal market: in the ranking of the top ten completed transactions, all were of international caliber, and eight were closed by foreign operators entering Italy, while only two "Italy on foreign" transactions enter the ranking: the Cdp-Trans Austria Gasleitung GmbH agreement (for the acquisition of 89% of the Austrian gas transport company) and the Prysmian SpA–Draka Holding NV agreement
Strong dynamism was registered in the M&A activity of private equity and venture capital funds in the first half of 2011, but also in this market segment the freezing of the financial markets slowed down sharply.
The analysis by sector reveals the majority share of acquisitions (in value) in the Consumer Markets sector (32%). Followed by Private Equity (21%), financial services (16%), industrial markets and stock markets paired at 10%. The utilities and services (4%) and information technology (3%) sectors close the ranking.
Attachments: Report-MA-2011_KPMG_0312.pdf
