World Investment Report 2009: Transnational Corporations - Unctad

More documents

Recommendations

Info

CHAPTER I 11 Figure I.9. Value of global cross-border M&As and MSCI World Index, 1988–2009 a � �� Source: UNCTAD cross-border M&A database; and Morgan Stanley Capital International, MSCI World Index. a For 2009, January–June only. �� Note: The MSCI All Country World Index is a free-float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets. As atJanuary 2009, the MSCI index covered 46 countries: 23 developed and 23 emergingmarket economies. Several factors contributed to the decline. As mentioned earlier, the sharp fall in share prices on developed countries’ stock markets – where stock-market indices plunged, on average by more than 40% in 2008 – depressed the value of M&A transactions (annex table B.4). The extent of the fall in share prices was similar in all major developed economies: in the United States, the S&P 500 Index saw a 41% drop, in the euro area the DJ Euro Stoxx 50 fell by 44%, while in Japan the Nikkei fell by 44%. 12 In developed countries, share prices of the financial services industry plummeted by 60% and the value of cross-border M&A purchases by 36%, although the number of crossborder M&As shrank by only 14%. The financial crisis has also made equity and debt financing of M&A transactions more difficult and expensive. Whereas normally during times of falling corporate profits, companies tend to finance M&A deals with new stock, with the rapidly falling stock markets this is less feasible. Another impact of the crisis has been to reduce the cash financing of M&As, which had been the main method of funding in the boom years prior to 2008. At the same time, the cost of debt financing for cross-border M&As has risen, as bank lending conditions have deteriorated rapidly following tightening credit conditions and rising interest rate premiums for the corporate sector. One outcome of the �� had to be cancelled (table I.4). 13 Leveraged buyouts, which generally involve private equity funds or hedge funds, nearly dried up during the course of 2008 (section C), as banks hesitated to take the risk of extending highly leveraged loans to these funds. These funds had been among the main drivers of crossborder M&As during the period 2005–2007. The rising share of bank loans in the financing of M&As by private equity funds aggravated the decline, as private equity firms had less funds to finance M&As and as rolling over shortterm debt became more difficult. �� In developed countries, the number of mega deals declined from 274 in 2007 to 203 in 2008. In contrast, in developing countries, M&A activity remained strong in 2008, with 41 mega deals concluded, compared with 35 such deals in 2007. In the transition economies the number decreased: 7 in 2008 compared with 10 in 2007. �� Table I.3. Cross-border M&As (valued at over �� a Year Number of deals Percentage of total Value ($billion) Percentage of total 1987 19 1.6 39 40.1 1988 24 1.3 53 38.7 1989 31 1.1 68 40.8 1990 48 1.4 84 41.7 1991 13 0.3 32 27.0 1992 12 0.3 24 21.0 1993 18 0.5 38 30.5 1994 36 0.8 73 42.5 1995 44 0.8 97 41.9 1996 48 0.8 100 37.9 1997 73 1.1 146 39.4 1998 111 1.4 409 59.0 1999 137 1.5 578 64.0 2000 207 2.1 999 74.0 2001 137 1.7 451 61.7 2002 105 1.6 266 55.0 2003 78 1.2 184 44.8 2004 111 1.5 291 51.5 2005 182 2.1 569 61.3 2006 215 2.4 711 63.6 2007 319 3.0 1 197 70.4 2008 251 2.6 823 68.3 2009 a 40 1.2 171 67.2 Source: UNCTAD, cross-border M&A database (www.unctad. org/fdistatistics). a For 2009, January–June only.
12 World Investment Report 2009: Transnational Corporations, Agricultural Production and Development Table I.4. Selected cross-border M&As and privatization programmes cancelled or postponed due to the global financial crisis Acquiring company (country)/privatization Target company (country) Value Industry Samsung Electronics (Rep. of Korea) SanDisk (United States) $5.9 billion Electronics Xstrata (United Kingdom and Switzerland) Lonmin (United States) $10 billion Mining AT&T, Vodafone, Blackstone Huawei (only mobile handset business operations) (China) $2 billion Electronics Ping An Insurance (China) Fortis (Belgium) € 2.2 billion Finance Cancelled or postponed privatization Punta Colonet (Mexico) $6 billion Ports Cancelled or postponed privatization Kuwait Airways (Kuwait) - Airlines Cancelled or postponed privatization La Poste (France) - Postal services Cancelled or postponed privatization TeliaSonera (Sweden) - Telecoms Cancelled or postponed privatization Nordea (Sweden) - Finance Cancelled or postponed privatization Oman Telecommunication Company (25%) - Telecoms Cancelled or postponed privatization SBAB (Sweden) - Finance Source: UNCTAD, 2009a. In terms of value, in the first half of 2009 M&A deals fell not only in developed countries, but also in developing and transition economies (figures I.10 a, b and c). In the latter economies, this was partly the result of shrinking exports and lower prices of energy and other natural resources, which made target firms less attractive. (ii) Downturn in greenfield investments since end 2008 Greenfield investment projects (new investments and expansion of existing facilities) began to feel the impact of the crisis only in the fourth quarter of 2008. The number of such investments actually increased markedly during the first three quarters of that year, reaching over 11,000. It thus almost equalled the total for the whole of 2007 14 (annex tables A.I.1–A.I.2 for country and industry breakdown data, respectively). But from September 2008 onwards there has been a continuous decline in the monthly flow of projects. 15 As with M&As, recent announcements in various industries mention the cancellation or postponement of many projects, 16 the consequences of which will be fully felt in 2009. 4. Uneven impact of the crisis on different regions and sectors The impact of the crisis on FDI patterns in 2008 has varied by region, Figure I.10. Value of global cross-border M&As, by quarter, 2006–2009 (Billions of dollars) �� Source: UNCTAD cross-border M&A database (www.unctad.org/fdistatistics). a Net sales on the basis of the region of the immediate acquired company. b South-East Europe and CIS. Note: Net cross-border M&A sales in a host economy are sales of companies in the host economy to foreign TNCs (excluding sales of foreign affiliates in the host economy). Net cross-border M&A purchases by a home economy are purchases of foreign companies abroad by home-based TNCs (excluding sales of foreign affiliates of home-based TNCs). The data cover only those deals that involved an acquisition of an equity stake of more than 10%.
Page 2 and 3: UNITED NATIONS CONFERENCE ON TRADE
Page 4 and 5: PREFACE World foreign direct invest
Page 6 and 7: ACKNOWLEDGEMENTS The World Investme
Page 8 and 9: TABLE OF CONTENTS Page PREFACE.....
Page 10 and 11: Page b. Outward FDI: moderate but a
Page 12 and 13: 3. Addressing environmental and soc
Page 14 and 15: Page I.24. Number of IIAs concluded
Page 16 and 17: A.I.6. Estimated world inward FDI f
Page 18 and 19: KEY MESSAGES FDI TRENDS, POLICIES A
Page 20 and 21: OVERVIEW xix Amid a sharpening fina
Page 22 and 23: OVERVIEW xxi TNCs in international
Page 24 and 25: OVERVIEW xxiii been expressed that
Page 26 and 27: OVERVIEW xxv TRANSNATIONAL CORPORAT
Page 28 and 29: OVERVIEW xxvii The universe of agri
Page 30 and 31: OVERVIEW xxix role TNCs could play
Page 32 and 33: OVERVIEW xxxi Host countries should
Page 34: PART ONE FDI TRENDS, POLICIES AND P
Page 37 and 38: 4 World Investment Report 2009: Tra
Page 43: 10 World Investment Report 2009: Tr
Page 47 and 48: 14 World Investment Report 2009: Tr
Page 95 and 96:
62 World Investment Report 2009: Tr
Page 97 and 98:
Page 99 and 100:
Page 101 and 102:
Page 103 and 104:
Page 105 and 106:
Page 107 and 108:
Page 109 and 110:
Page 111 and 112:
Page 113 and 114:
Page 115 and 116:
Page 117 and 118:
Page 119 and 120:
Page 121 and 122:
Page 123 and 124:
Page 126 and 127:
INTRODUCTION For the greater part o
Page 128 and 129:
CHAPTER III TNCS AND AGRICULTURAL P
Page 130 and 131:
CHAPTER III 97 significant agent fo
Page 132 and 133:
CHAPTER III 99 Table III.2. Agricul
Page 134 and 135:
CHAPTER III 101 pesticides and chem
Page 136 and 137:
CHAPTER III 103 ��
Page 138 and 139:
CHAPTER III 105 Table III.5. Biofue
Page 140 and 141:
CHAPTER III 107 Figure III.3. A typ
Page 142 and 143:
CHAPTER III 109 Box III.4. The OLI
Page 144 and 145:
CHAPTER III 111 Much of the analysi
Page 146 and 147:
CHAPTER III 113 Figure III.6. Share
Page 148 and 149:
CHAPTER III 115 Table III.8. Compar
Page 150 and 151:
CHAPTER III 117 Table III.9. Inward
Page 152 and 153:
CHAPTER III 119 In recent years, co
Page 154 and 155:
CHAPTER III 121 has been engaged in
Page 156 and 157:
CHAPTER III 123 Figure III.14. Inve
Page 158 and 159:
CHAPTER III 125 bottom nine compani
Page 160 and 161:
CHAPTER III 127 Box III.10. Selecte
Page 162 and 163:
CHAPTER III 129 Table III.13. Examp
Page 164 and 165:
CHAPTER III 131 4 For instance, the
Page 166 and 167:
CHAPTER IV DEVELOPMENT IMPLICATIONS
Page 168 and 169:
CHAPTER IV 135 Box IV.1. TNC partic
Page 170 and 171:
CHAPTER IV 137 Box IV.3. The signif
Page 172 and 173:
CHAPTER IV 139 Sachs, 2001). Withou
Page 174 and 175:
CHAPTER IV 141 such as BASF, Dupont
Page 176 and 177:
CHAPTER IV 143 collective actions i
Page 178 and 179:
CHAPTER IV 145 cocoa and banana pla
Page 180 and 181:
CHAPTER IV 147 produce sold by Shop
Page 182 and 183:
CHAPTER IV 149 of TNCs - internatio
Page 184 and 185:
CHAPTER IV 151 international agribu
Page 186 and 187:
CHAPTER IV 153 to mitigate power as
Page 188 and 189:
CHAPTER IV 155 including least deve
Page 190 and 191:
CHAPTER IV 157 directly in agricult
Page 192 and 193:
CHAPTER IV 159 acquired by foreign
Page 194 and 195:
CHAPTER IV 161 themselves or by the
Page 196 and 197:
CHAPTER IV 163 in farming the same
Page 198 and 199:
CHAPTER IV 165 producing simple, la
Page 200 and 201:
CHAPTER V POLICY CHALLENGES AND OPT
Page 202 and 203:
CHAPTER V 169 b. Land and water use
Page 204 and 205:
CHAPTER V 171 Table V.1. Percentage
Page 206 and 207:
CHAPTER V 173 improve life for loca
Page 208 and 209:
CHAPTER V 175 them with seeds, pest
Page 210 and 211:
CHAPTER V 177 3. Addressing environ
Page 212 and 213:
CHAPTER V 179 productive uses and u
Page 214 and 215:
CHAPTER V 181 Box V.10. Sector-spec
Page 216 and 217:
CHAPTER V 183 Box V.11. Trade barri
Page 218 and 219:
CHAPTER V 185 Box V.12. China’s p
Page 220 and 221:
CHAPTER V 187 agricultural producti
Page 222 and 223:
CHAPTER V 189 advancing by the end
Page 224 and 225:
CHAPTER V 191 industry. However, ex
Page 226 and 227:
CHAPTER V 193 10 11 12 13 14 15 16
Page 228 and 229:
EPILOGUE Building on advanced techn
Page 230 and 231:
AAAID (2002). Arab Authority for Ag
Page 232 and 233:
REFERENCES 199 China, Ministry of A
Page 234 and 235:
REFERENCES 201 FARA (Forum for Agri
Page 236 and 237:
REFERENCES 203 International Instit
Page 238 and 239:
REFERENCES 205 Pardey, G. Philippe
Page 240 and 241:
REFERENCES 207 Tauli-Corpuz, Victor
Page 242 and 243:
REFERENCES 209 United Nations (2004
Page 244 and 245:
ANNEXES 2009
Page 246 and 247:
ANNEX A 213 Annex table A.I.1. Numb
Page 248 and 249:
ANNEX A 215 Annex table A.I.2. Numb
Page 250 and 251:
ANNEX A 217 Annex table A.I.3. Cros
Page 252 and 253:
ANNEX A 219 Sector/industry Annex t
Page 254 and 255:
ANNEX A 221 Annex table A.I.7. Esti
Page 256 and 257:
ANNEX A 223 Region/economy Year Ann
Page 258 and 259:
ANNEX A 225 Annex table A.I.9. The
Page 260 and 261:
Page 262 and 263:
Page 264 and 265:
Page 266 and 267:
Page 268 and 269:
ANNEX A 235 Table A.I.13. IIAs (oth
Page 270 and 271:
ANNEX A 237 Annex table A.III.3. In
Page 272 and 273:
ANNEX A 239 Annex table A.III.4. Th
Page 274 and 275:
ANNEX A 241 Annex table A.III.6. Th
Page 276 and 277:
DEFINITIONS AND SOURCES 243 DEFINIT
Page 278 and 279:
DEFINITIONS AND SOURCES 245 C. Data
Page 280 and 281:
ANNEX B 247 Region/economy ��
Page 282 and 283:
Page 284 and 285:
Page 286 and 287:
Page 288 and 289:
ANNEX B 255 ��
Page 290 and 291:
ANNEX B 257 ��
Page 292 and 293:
ANNEX B 259 ��
Page 294 and 295:
ANNEX B 261 ��
Page 296 and 297:
ANNEX B 263 ��
Page 298 and 299:
ANNEX B 265 ��
Page 300 and 301:
ANNEX B 267 ��
Page 302 and 303:
ANNEX B 269 ��
Page 304 and 305:
ANNEX B 271 ��
Page 306 and 307:
ANNEX B 273 ��
Page 308 and 309:
SELECTED UNCTAD PUBLICATIONS ON TNC
Page 310 and 311:
SELECTED UNCTAD PUBLICATIONS ON TNC
Page 312 and 313:
QUESTIONNAIRE World Investment Repo
Page 314:
GE.09- United Nations UNCTAD/WIR/20
show all

World Investment Report 2009: Transnational Corporations - Unctad

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?