This week's $2.9 billion bid for the Asian business of SeaDrill Ltd by Malayia's SapuraKencana Petroleum Bhd and Russia's Novatek's $1.4 billion purchase of Northgas pushed the volume of emerging markets M&A to $596 .2 billion, an 8% increase compared to year-to-date 2011. Energy & power deal making activity involving companies in the emerging markets totals $157.3 billion so far this year, a 43% increase compared to last year at this time. Materials and financials M&A activity accounts for 14% and 11% of emerging markets merger volume, respectively.
Goldman Sachs tops the ranking of emerging markets financial advisors with $140.0 billion from 100 deals. Citi, seventh last year at this time, ranks second and Bank of America Merrill Lynch has moved from fifth to third.
Global High Yield Breaks All-Time Annual Record
Global high yield corporate debt issuance totals $341.6 billion for year-to-date 2012, breaking the all-time annual record set in 2010 when high yield issuers raised $322.9 billion. European issuers have raised $61.4 billion in the global high yield markets this year, also an all-time annual record. European issuers account for 18% of overall activity so far this year, down from 22% during full year 2011. Energy & power, financials and materials issuers account for 48% of high yield corporate debt issuance this year, compared to 44% during year-to-date 2011.
The composition and rank order of the top five global high yield underwriters - JPM, BofA, Deutsche, Credit Suisse and Cit - has not changed from last year at this time, although the collective market share of the top five has fallen 1.8 percentage points compared to 2011.
Largest IG Bond Offering Pushes YTD Volume up 10%
The $14.7 billion AbbVie Inc corporate debt financing package priced this week brings the volume of global investment grade corporate debt to $2.3 trillion for year-to-date 2012, a 10% increase compared to last year at this time. The deal ranks as the largest corporate debt offering this year and the second largest corporate debt offering in the healthcare sector since records began in 1980. Roche Holdings raised $16.3 billion in February 2009, setting the all-time record.
JP Morgan holds the top spot for global investment grade corporate debt underwriting with $181.4 billion from 650 deals so far this year, marking an increase of 1.6 market share points over year-to-date 2011. Citi and Deutsche Bank round out the top three.