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Acquisition-Related Volume ($bn) - DCM vs ECM (1 Jan - 5 May)

May 5, 2016

By Alex Clayton

$33.3bn: 2016 YTD acquisition-related ECM volume

Global acquisition‐related ECM volume stands at $33.3bn via 127 deals in 2016 YTD, making it the second largest YTD total on record, behind last year’s $44.2bn via 122 deals. Asia Pacific and Americas issuers account for 95.5% of acquisition‐related ECM volume, with a $14.6bn (58 deals) and $17.2bn (39 deals), respectively. EMEA, however, has contributed only $1.5bn via 30 deals to the total

This global trend is also replicated in the bond market, with acquisition‐related DCM volume* totaling $130.9bn via 50 deals so far in 2016, second only to $155.4bn issued via 82 deals in the same period of 2015. Conversely, EMEA is the leading region for acquisition‐related DCM, with $72.7bn via 15 deals, making up 55.6% of global volume

Global acquisition‐related loan* volume, however, has dropped 4% year‐on‐year to $232.0bn, down from $240.8bn in 2015, which is the fourth highest YTD total on record

Five $1bn+ acquisition-related ECM deals in 2016

There have been five $1bn+ acquisition‐related ECM transactions in 2016 so far, all from Asia Pacific or Americas issuers. Two of these transactions have raised over $3bn and come from the utility & energy sector, with China Yangtze Power Co ($3.7bn) and TransCanada Corp ($3.3bn) pricing on April 15 and March 17, respectively

Utility & energy leads 2016 YTD acquisition‐related ECM volume with $9.6bn via 13 deals, whilst real estate (16 deals) is the most active sector for the second straight YTD period (23 deals in 2015)

$1.04tr: global M&A volume down 19% Y-o-Y

Global M&A volume has just surpassed the $1tr mark in 2016 YTD, although volume of $1.04tr has dropped 19% year‐on‐year from $1.29tr in 2015 YTD, which is the third highest YTD total on record behind 2007 ($1.72tr) and 2000 ($1.36tr)

RBC leads acquisition-related bookrunner ranking

RBC Capital Markets tops the global acquisition‐related ECM bookrunner ranking in 2016 YTD, with a 9.2% market share. CITIC Securities and Huatai Securities follow with 9.0% and 8.2%, respectively

*DCM and Loan acquisition-related volumes include LBO, MBO, and Spinoff deals