Press Release - Mergermarket

Global M&A Overview: Demerger
Global demerger activity in 2011 totalled US$ 64.3bn (just over 2010’s US$ 64.1bn) and accounted for
3% of all global M&A activity. Although the number of demergers decreased globally (36 demergers
announced in 2011), the number and aggregate value of demergers in the US and in North America
as a whole significantly increased in 2011, with the value of demerger activity in the US seeing a 307%
increase to US$ 42.7bn, and the value in North America almost quadrupling to a total of US$ 43.7bn.
North America was the region accounting for the highest number and value of demergers, with the
highest totals in the region since 2008.
Europe, however, saw the lowest total value of demergers since 2004, with 11 demergers adding
up to a total of US$ 6.4bn in 2011. It was a significant drop in value compared to 2010 (US$ 40.5bn),
although the number of deals was almost the same as in 2010 (when there were ten demergers).
North America accounted for 68.1% of global demergers in 2011, Asia-Pacific for 19.7% and Europe
for only 9.9% of global demerger transactions.
The demerger pipeline decreased slightly with the announcements and completions of several
expected deals, such as the Tyco International demerger. Kraft Foods announced the possible
demerger and the appointments of leadership of both companies in the second half of 2011.
The McGraw-Hill demerger still hinges on the management developing a separation plan for the
transaction.
Lazard was the top financial advisor in terms of deal value with five demerger deals in 2011, adding
up to US$ 21.2bn.
Value of Deals (US$bn)
250
200
150
100
50
0
Global Demerger Activity Trend
RoW Value (US$bn)
Asia-Pacific Value (US$bn)
Europe Value (US$bn)
N.America Value (US$bn)
% of Global M&A in value
2004 2005 2006 2007 2008 2009 2010 2011
Press Release: mergermarket M&A Round-up for Year End 2011
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10.0%
9.0%
8.0%
7.0%
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%
% of Global M&A