A trio of cross-border M&A deals announced this week pushed the volume of worldwide cross-border M&A to $757.4 billion for year-to-date 2012, a 5% increase over the same time last year. The $23.3 billion bid for Sprint Nextel by Japan's SoftBank ranks as the largest outbound cross-border deal from a Japanese company and ranks as the largest global cross-border transaction since Roche Holding acquired the remaining Genentech in July 2008 for $46.7 billion.
United States acquirors lead cross-border volume this year for 23% of overall activity, followed by Japan which accounts for 10% of cross-border purchasing so far in 2012. Cross-border deal making in the consumer staples and industrials sectors accounts for more than half of the industry-wide total this year.
India Follow-On ECM Activity Up 45% Over 2011
This week's $509.6 million follow-on offering from TV18 Broadcast Limited brought the volume of follow-on offerings in India to $10.3 billion for year-to-date 2012, a 45% increase compared to the year ago period. Triple-digit annual percentage growth in the high technology and media & entertainment sectors has pushed up volume this year, while perennial leaders, financials and energy & power, have registered 30% and 63% gains, respectively.
Citi has taken a commanding lead in this year's ranking of India common stock bookrunners with 44% market share, up from 8% last year at this time. Citi has served as bookrunner on each of the top five offerings this year, including sole-led offerings from HFDC and Cairn India Ltd. JM Financial Group ranks second so far this year, up from fifth last year at this time.
Investment Banking Outlook: 2013
According to Thomson Reuters and Freeman Consulting's 4th Annual Survey of Corporate Decision Makers, worldwide M&A volume is expected to increase 12% compared to full-year 2012, driven by renewed activity in the healthcare and industrials sectors. Forty-four percent of respondents agreed that M&A activity in EMEA would be inhibited by limited deal financing, compared to 29% in Asia Pacific and 17% in the Americas.
Equity capital markets volume is predicted to remain near 10-year lows, with muted IPO activity due to alternatives through M&A, while bank capital raising may bolster follow-on offerings. Driven by low interest rates and the limited availability of syndicated lending, corporate bond issuance is expected to top the record-breaking levels seen in 2009.