Press Release - Mergermarket

Global M&A Overview: Emerging Markets
The emerging markets saw M&A activity with a total value of US$ 459.7bn in 2011, down 11.7% from 2010 (US$
520.6bn), though still the second highest total on mergermarket record (since 2001). After a bounce-back in Q3
(which saw a 16.9% increase on Q2 2011 after two successive quarters of decline in the first half of the year),
emerging market M&A reverted to a downward quarterly trend in the last quarter of the year. Q4 2011 M&A added
up to US$ 76.9bn, a 57.2% decrease from the US$ 179.9bn-worth of M&A seen in the same period in 2010, and a
41.8% decrease relative to the previous quarter (US$ 132.1.bn in Q3 2011).
BRIC M&A activity decreased by 45.9% in Q4 2011 (US$ 47.9bn) compared to Q3 2011 (US$ 88.5bn). This was the
lowest quarterly total since Q1 2009 (US$ 38.6bn) and the lowest Q4 since 2005 (US$ 23.1bn).
Emerging markets accounted for 21.3% of global M&A activity in 2011, a lower proportion than the 24.5% they
had accounted for in 2010. In the last quarter of the year, they saw 18.3% of global M&A. BRIC countries saw a total
of US$ 288.4bn-worth of M&A last year, representing 62.7% of overall emerging markets activity, down 4.2% from
the same period the previous year (US$ 301.2bn in 2010).
Inbound cross-border activity into emerging market countries in 2011 added up to US$ 200.3bn, up 19.1%
compared to 2010 (US$ 168.2bn) and the highest annual total on mergermarket record (2001). Europe is the
region that invested the most in the emerging markets in 2011, accounting for 40.2% of cross-border deal value
(US$ 80.4bn): the UK, France, Germany and the Netherlands accounting for 21.1%, 17.6% and 9.6% (for both
Germany and the Netherlands) of European-related inbound deal value respectively. Energy, Mining & Utilities
remained the busiest sector for cross-border transactions in 2011, with US$ 69.4bn-worth of deals accounting for
34.6% of all cross-border deals.
Emerging market buyout activity, valued at US$ 32.3bn, accounted for 11.6% of global buyout activity in 2011, just
up from 11.5% in 2010, and the highest contribution since 2009 (19.1%).
Goldman Sachs ranked first in the financial advisor league table for emerging markets M&A with a total value of
US$ 78.9bn. Goldman Sachs had not previously ranked first since 2002 (US$ 21.1bn).
Value of Deals ($bn)
80
70
60
50
40
30
20
10
0
Inbound Value ($bn)
Outbound Value ($bn)
Inbound Volume
Outbound Volume
Emerging Markets Inbound/Outbound M&A
350
300
250
200
150
100
50
0
Volume of Deals
Value of Deals (US$bn)
200
180
160
140
120
100
80
60
40
20
0
Other EM (Value)
BRIC (Value)
EM M&A as % of Global M&A
Emerging Markets M&A Activity Trend
Press Release: mergermarket M&A Round-up for Year End 2011
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Value (US$bn)
45
40
35
30
25
20
15
10
5
0
Value (US$bn)
% of Global BO (Value)
% of EM M&A (Value)
Emerging Markets Buyout Activity Trend
2004 2005 2006 2007 2008 2009 2010 2011
5.0%
0.0%
30%
25%
20%
15%
10%
5%
0%
25.0%
20.0%
15.0%
10.0%
Percentage (%)
% of Global M&A