Japan Target M&A Hits $24 billion, up 1% from 2011

Asahi Group Holdings $1.5 billion purchase of Japanese soft-drink maker, Calpis Co Ltd fueled a strong week for Japanese target M&A activity, which reached $24.0 billion for year-to-date 2012, moving into positive territory compared to last year at this time. JFE Holdings also announced the purchase of a remaining 60% interest in JFE Shoji Holdings, a Tokyo-based materials distributor. Deal making in the materials sector has more than doubled compared to a year ago, and along with the real estate, energy & power and high technology sectors, accounts for 61% of year-to-date M&A activity in Japan.

Nomura Securities, an advisor to Asahi and JFE Holdings, holds the top spot for Japan M&A advisory so far this year.

Consumer Products Leads UK Follow-On Activity

A $1.9 billion accelerated bookbuild offering for shares of Reckitt Benckiser Group PLC, brings the volume of UK follow-on activity to $5.9 billion for year-to-date 2012, an increase of 40% compared to last year at this time. Accelerated and block trade offerings account for 77% of UK follow-on activity this year.

Bank of America Merrill Lynch managed the share sale and currently holds the top spot for UK follow-on underwriting this year, with 36.5% of the market. Citi and JP Morgan round out the top three with 19.4% and 15.8%, respectively. Follow-on activity for UK consumer products companies accounts for more than one-third of year-to-date issuance, followed by energy & power (23.6%) and materials (18.0%).

Domestic Deals Push Canada M&A Up 22% YTD

While the value of announced M&A deals with the involvement of at least one Canadian company totals $68.6 billion for year-to-date 2012, an increase of 22% compared to last year at this time, domestic merger activity within Canada totals $28.7 billion, an increase of 85% over 2011, driven by a flurry of deals in the energy & power, real estate and media & entertainment sectors. Domestic M&A accounts for 41% of year-to-date activity.

RBC Capital Markets holds the top financial advisory spot for deals involving Canadian companies, with 37 deals and a value of $21.5 billion. TD Securities and Bank of America Merrill Lynch round out the top three advisors, with just over $16 billion in advisory work so far this year.


Thomson Reuters
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