Transcription
Deal Drivers: EMEA Q1 2022A spotlight on mergers andacquisitions trends in 2022
ContentsForeword: Stumbling blocks03Outlook: EMEA heat chart04Summary: War and inflation rattle dealmakers in EMEA05UK & elux32Turkey, Middle East & Africa36CEE & SEE40About this report442
Foreword: Stumbling blocksIt’s safe to say that M&A markets the world over lost steamin Q1—and EMEA was no exception. The year started witha sell-off in growth stocks over mounting inflation concernsand the specter of rising interest rates to rein in prices.That was before Russia invaded Ukraine, further dentingconfidence and causing renewed supply chain disruptions,adding to inflationary pressures not felt for decades.As is to be expected given the circumstances, deal numbershave almost exclusively fallen across the various markets thatcomprise EMEA, with some exceptions owing to large outlierdeals in smaller markets.Overall, M&A value fell by 27% year-on-yearto 223bn compared to the first quarter of2021, while volume dropped further, falling31% to 2,007 transactions.The road aheadPredicting how M&A will perform for the rest of the year isnot easy. The ongoing conflict in Ukraine remains a majorquestion mark and has the potential to drag on. Even if peaceis reinstated, a huge amount of damage and disruption hasalready been done.And while the European Central Bank is not expected to raiserates any time soon, tightening by the Federal Reserve hasthe potential to send the US’s tech-heavy stock markets lower.No doubt, if those markets catch a cold, EMEA will sneeze.On the brighter side, Europe has made significant progressdefanging COVID with successful vaccination programs. Andalthough growth is slowing, it is still expected to be positivefor the rest of 2022. Those with strong conviction in their dealswill tune out the noise and press ahead.3
NordicsItalyIberiaBeneluxTurkey, MiddleEast & AfricaCEE & SEETOTALCEE & SEE is in second place with 583 for sale stories followedclosely by the UK & Ireland with 548. Not far behind, on analmost equal footing with DACH, is Italy. And within Italy,industrials & chemicals (I&C) and consumer deals are gettingthe most mention, with 119 and 106 apiece. This has helpedto put these two sectors right behind TMT measured acrossthe entire EMEA region.FranceFor example, Turkey, Middle East & Africa has no fewer than 150upcoming TMT asset sale stories reported by Mergermarket,with CEE & SEE coming close with 132. In total, there were 807stories regarding potential TMT targets across EMEA out of atotal of 3,621. Notably, across all sectors, Turkey, Middle East& Africa also has more deal stories to its name (660) than anyother market in EMEA.DACHTMT continues to be an out-performer and this isn’t expectedto change any time soon. A look at Mergermarket’s published“company for sale” stories show the sector is way out in frontin terms of potential deals in the making. Perhaps surprisingly,while the UK & Ireland claims 147 such stories, pipelinesappear to be building more heavily in other parts of EMEA.Heat chart based on potential companies for saleUK& IrelandOutlook:EMEA heat chartTMT147857158667226150132807Industrials & 643336672515Business services694522292624266457362Financial services592615122120138644296Pharma, medical & biotech265920251531384429287Energy, mining & 6598183297Real HotNote: The Intelligence Heat Charts are based on‘companies for sale’ tracked by Mergermarket inthe respective regions between October 01, 2021and March 31, 2022. Opportunities are capturedaccording to the dominant geography and sectorof the potential target company.4
Summary: War and inflation rattledealmakers in EMEADeal volume fell by 31% to 2,007 transactionsand value by 27% to a total of 223bn yearon-year in Q1 this year. Private equity hasbeen more resilient but has lost momentumall the same. There were 654 PE transactionsworth a total of 89.6bn, a 25% and 31%decrease, respectively, compared withQ1 2021.EMEA M&A activity,2019-Q1 2022As might be expected, buyout flow has held up better thanexits. The IPO window was essentially sealed off in Europein early 2022 owing to the Russia/Ukraine war, closing animportant divestment route for financial sponsors. This has leftsecondary sales and strategic exits, the latter also sufferingfrom newly risk-averse corporate acquirers. The number of exittransactions fell 37% to 216 deals and their aggregate valuefell by 41% to 34.9bn.Buyout value was down by a slightly more measured36% to 62.5bn, while the number of deals fell by 21%to 501 deals. This illustrates the relative strength of PEacquirers, who typically have a higher risk thresholdthan their corporate counterparts. If market volatilitypersists and economic growth stalls, this could createbuying opportunities for financial sponsors by takingsome of the air out of toppy EBITDA 1501,0001005000Deal value (bn)The start of the new year, however, saw activity ease offsignificantly, to levels more in line with historic precedent.Stock markets moved into negative territory in the first weeksof the year, with investors conscious of stalling growth,the prospects of runaway inflation, and imminent policymeasures to curb spiraling prices. And then came Russia‘sinvasion of Ukraine, weighing further on already dampenedrisk sentiment. This has clearly reduced M&A appetite.PE proves its resilienceDeal volumeM&A in the EMEA region barely paused for breath in 2021,matching a deal frenzy that was seen the world over. Vaccinerollouts and the reopening of economies pushed M&A volumeto highs never previously seen in Western Europe and value tolevels last reached in 2007.50Q1Q2 Q32019Q4Deal volumeQ1Q2 Q32020Q4Q1Q2 Q32021Q40Q12022Deal value (bn)Source: Mergermarket5
TMT dominatesIn line with the past few years of M&A activity, the TMT sectorcame out on top, with a total of 565 deals worth 62.2bnannounced in the first quarter of 2022. This represents a17% drop in volume and a 25% fall in value.Rather than being driven by media or technology, TMT M&Ahas been boosted by Europe’s fragmented telecoms markets.Three of the ten largest deals across the region in the firstquarter were accounted for by the telco space, a higher countthan any other sector and valued at a combined 18.2bn.Europe has been due a round of telecoms consolidation,where executives have complained of excessive competitionand cost pressures, choking investment and equity returns.Provided deals don’t get struck down by authorities, moreM&A should follow.EMEA top sectors by value I Q1 2022EUR (m)TMTEnergy, mining & utilitiesReal estateFinancial servicesIndustrials & chemicals62,22428,35227,38524,23617,984EMEA top sectors by volume I Q1 2022Deal countTMTIndustrials & chemicalsBusiness servicesConsumerPharma, medical & biotech565290255154144EMEA top bidders by value I Q1 2022EUR (m)USAUnited 811,774EMEA top bidders by volume I Q1 2022Deal countUnited KingdomUSAFranceGermanySweden2942822051691346
Real estate bucks the trendMost sectors saw drops in both value and volume, but thanksto a few bumper transactions in Europe, real estate registeredmore than a doubling in value. A total of 27.4bn in value wasannounced in Q1, a 119% rise year-on-year, despite volumeticking down from 45 to 39 over the same period.Notably, demand for office space has taken a serious hit overthe past two years as companies reappraise their workingarrangements and downsize due to hybrid approaches, withmore homeworking than in the years prior to COVID. Instead,real estate deals tend to have some operational aspect tothem, such as logistics, which has benefited from strongpandemic-related tailwinds, given the need for goods to bemoved and stored regardless of ebbs and flows in bricks andmortar retail activity.Data centers and life sciences research parks have alsobecome attractive targets in light of the need for onlinebusiness activity to be securely maintained and due toincreased levels of R&D in medicines and vaccines.EMEA top 10 announced deals, Q1 2022AnnounceddateBidder companyTarget companySectorVendor companyDeal value( m)115-Feb-22Blackstone Group Inc.Mileway BV (100% Stake)Real estate227-Mar-22Macquarie Group Limited; BritishColumbia Investment ManagementCorporation; Macquarie AssetManagement, Inc.National Grid plc (UK gastransmission and meteringbusiness) (60% Stake)Energy, mining& utilitiesNational Grid Plc9,590308-Mar-22Masmovil Ibercom S.A. (Spain Business)Orange Espagne, S.A.U. (Spainbusiness) (100% Stake)TMTOrange S.A.; MasmovilIbercom S.A.8,100421-Jan-22CSR Acquisition CorpSAZKA Entertainment AG(100% Stake)LeisureKKCG Group7,911525-Jan-22Temasek Holdings Pte. Ltd.Element Materials TechnologyGroup LimitedBusinessservicesBridgepoint Group Plc6,197615-Feb-22Intel CorporationTower Semiconductor Ltd.(100% Stake)TMT5,140716-Mar-22Emirates Telecommunications GroupCompany PJSCEtihad Etisalat (23.01% Stake)TMT4,907806-Jan-22ALD S.A.LeasePlan Corporation N.V.FinancialservicesArdian; TDR Capital LLP;GIC Private Limited;Goldman Sachs MerchantBanking Division4,900928-Mar-22Credit Agricole S.A.; AXA S.A.Orsted A/S (1.3 GW Hornsea 2Offshore Wind Farm) (50% Stake)Energy, mining& utilitiesOrsted A/S3,5881003-Jan-22CNH Industrial N.V. (Shareholders)Iveco Group N.V.Industrials &chemicalsCNH Industrial N.V.3,48921,0007
UK & Ireland
EMEA’s biggest M&A market faltersOne impediment has been stricter antitrust enforcement.In March, the competition watchdog blocked the US 5bnmerger of global container handling firms Cargotec andKonecranes, despite the deal having already been clearedin Europe. This marks the continued divergence of the UKfrom the European Commission in the area of merger control.UK&I M&A activity,2019-Q1 2022The energy, mining & utilities (EMU) sector was the largestby value, with a total of 14.8bn—although this was a 41%decrease on Q1 2021. This was lifted by the 9.6bn offer for a60% stake in National Grid’s UK gas transmission and meteringbusiness by Australia’s Macquarie Asset Management andCanada’s British Columbia Investment Management.Another major EMU deal was France-based Credit Agricoleand AXA’s 3.6bn offer for a 50% stake in a UK offshore windfarm owned by Denmark-based energy firm Orsted. This wasthe third-biggest deal of the quarter in the region.Financial sponsors are leaning into EMU assets at a time whenthey are likely to outperform most other industries. As mightbe expected, there is a clear trend for defensive sectors tooutperform as an economy moves toward a stagflationaryenvironment. These include consumer staples, healthcare,and utilities. The energy sector also performed well, being aclear beneficiary of increasing energy commodity eal value (bn)A 42% drop in volume and a 40%fall in value compared with Q1 2021means that the region saw one of thebiggest annual drops across EMEA.Energy deals outperformDeal volumeThe UK & Ireland sub-region is consistently one of the mostactive M&A markets in EMEA and that proved to be the casein Q1 2022. A total of 428 deals worth 59.8bn in aggregatewere made, putting it out in front once again. Despite thislead, the market has underperformed in recent months.Q1Q2 Q32019Q4Q1Deal volumeQ2 Q32020Q4Q1Q2 Q32021Q40Q12022Deal value (bn)Source: Mergermarket9
TMT remains robustThe top sector in terms of deal volume was TMT, with 134deals, a 27% fall year-on-year. However, the total value of TMTdeals collapsed from 18.6bn to 9.8bn between Q1 2021and Q1 2022. The largest recorded deal in the sector came toa mere 1.2bn—Canada Pension Plan Investment Board andMotive Partners’ investment in FNZ, a technology provider forthe wealth management space. The investment fetched thecompany a valuation of 20bn.No other TMT deal made it into the top ten M&A list for theUK & Ireland in the first quarter. This may be a sign of more tocome. High-growth tickers on public equity markets have seentheir stock prices dip as concerns over possible stagflationbuild. Technology assets tend to struggle amid monetarytightening since they are valued using discounted cash flowmodels that are sensitive to rate rises. This may also play outin private markets in the coming months.UK&I top sectors by value I Q1 2022EUR (m)Energy, mining & utilitiesBusiness servicesTMTFinancial K&I top sectors by volume I Q1 2022Deal countTMTBusiness servicesFinancial servicesIndustrials & chemicalsPharma, medical & biotech13471523728UK&I top bidders by value I Q1 2022EUR (m)United 06,2455,333UK&I top bidders by volume I Q1 2022Deal countUnited KingdomUSASwedenFranceCanadaIreland (Republic)198941815131310
Business services excelsThe second-highest-value sector after EMU was businessservices, which is also the only industry in the UK & Irelandto outperform in Q1 2021’s showing—and significantlyso. There were 10.3bn worth of deals and the largest ofthese was Singaporean sovereign wealth fund Temasek’s 6.2bn acquisition of Elements Materials Technologies, aprovider of materials and product testing, failure analysis, andconsultancy services. This deal helped ensure the businessservices sector rose by 251% year-on-year.Another big business services deal saw PE firm WarburgPincus and Abu Dhabi-based sovereign wealth fundMubadala acquire a 60% stake in publishing and eventsbusiness Informa for 2bn. While Informa was historicallya media company, its increasing focus on data productsand shows means that it more closely resembles a B2Bservices firm these days. Such companies are expectedto perform well regardless of the wider economy due tothe fact their products tend to be embedded in workflowsand often benefit from sticky subscription models.Private equity has long looked for business models withpredictable cash flows and this is something lenders arelikely to increasingly favor as they weigh sector performanceover the coming 12-24 months. The outlook for deal activityis uncertain but should nonetheless be robust, supported bypositive, if weaker, economic growth than 2021.UK&I top 10 announced deals, Q1 2022AnnounceddateBidder companyTarget companySectorVendor companyDeal value( m)127-Mar-22Macquarie Group Limited; BritishColumbia Investment ManagementCorporation; Macquarie AssetManagement, Inc.National Grid plc (UK gas transmissionand metering business) (60% Stake)Energy, mining& utilitiesNational Grid Plc9,590225-Jan-22Temasek Holdings Pte. Ltd.Element Materials TechnologyGroup LimitedBusinessservicesBridgepoint Group Plc6,197328-Mar-22Credit Agricole S.A.; AXA S.A.Orsted A/S (1.3 GW Hornsea 2Offshore Wind Farm) (50% Stake)Energy, mining& utilitiesOrsted A/S3,588428-Feb-22Spectris PlcOxford Instruments Plc (100% Stake)Pharma, medical& biotech510-Feb-22Warburg Pincus LLC; MubadalaInvestment Company PJSCInforma PLC (Pharma Intelligencebusiness) (85% Stake)Businessservices631-Mar-22Royal Bank of CanadaBrewin Dolphin Holdings Plc(100% Stake)Financialservices728-Mar-22The Royal Bank of Scotland GroupPension FundThe Royal Bank of Scotland GroupPension Fund (4.71% Stake)Financialservices820-Feb-22GXO Logistics, Inc.Clipper Logistics Plc (100% Stake)Transportation1,359930-Mar-22AgilityJohn Menzies PlcTransportation1,2551011-Feb-22Canada Pension Plan InvestmentBoard; Motive PartnersFNZ (UK) Ltd (7% Stake)TMT1,2302,138Informa PLC2,0161,927HM Treasury1,45311
DACH
DACH shows serious signs of weaknessDACH M&A activity,2019-Q1 2022The DACH region saw the steepest decline in M&A value of anysub-region in EMEA in the first quarter. Deal value halved from 47.1bn in Q1 of 2021 to 23.5bn. This may reflect the macropicture in Europe’s largest economy.Germany’s strength—its large, globalized industrial sector—has also been its weakness in the past two years as worldwidesupply chain snarls have hindered growth. Joerg Wuttke,president of EU Chamber of Commerce in China, said in Aprilthat 51% of German companies’ logistics and warehousingand 46% of their supply chains are “completely disrupted orseverely impacted” by China’s COVID situation.It was not only aggregate value that fell, the number of dealsacross the German-speaking region also eased off, but at aless stark rate. A total of 322 deals were announced in Q1,a 23% year-on-year fall.450100400908035070Deal volume3006025050200401503010020500The frenzy of special purpose acquisition company (SPAC)activity that has swarmed US public markets reached theDACH region in Q1 when the cash shell CSR AcquisitionCorp acquired the Czech lottery operator formerly knownas SAZKA, which is headquartered in Switzerland. Thecompany went for 7.9bn and helped to propel leisuresector M&A to 9.1bn—a massive increase from the 330mworth of activity in Q1 2021 and putting it comfortably atthe top of the industry league table.10Q1Q2 Q32019Q4Q1Deal volumeQ2 Q32020Q4Q1Q2 Q32021Q4Deal value (bn)In Q4 2021, Germany’s GDP contracted by0.3%—the only G20 country to shrink duringthis period. The Bundesbank said in Februarythat it expects further negative growth inQ1 2022, which would put the country into atechnical recession, albeit with expectationsof a rebound in the spring.SPAC to DACHCSR Acquisition was set up by former Goldman Sachspresident and Trump administration advisor Gary Cohn andClifton Robbins, a former executive at private equity firm KKR.SAZKA, which has been renamed Allwyn Entertainment as partof the deal, is expected to bid for the UK’s National Lotterylicense, which has been held by the Canadian-owned companyCamelot since its inception in 1994. Allwyn CEO Karel Komareksaid the group is eyeing up new markets that are expected togenerate lottery ticket sales of 129bn this year.0Q12022Deal value (bn)Source: Mergermarket13
DACH top sectors by value I Q1 2022TMT volume surprisesEUR (m)LeisureTMTFinancial servicesIndustrials & CH top sectors by volume I Q1 2022Deal countTMTIndustrials & chemicalsBusiness servicesPharma, medical & biotechFinancial services10468402521In volume terms, TMT dominated M&A in the DACH region inQ1, and deals held firm with a slight uptick from 101 to 104.Meanwhile, the sheer collapse in deal value across the boardmeant that even with an 81% fall in TMT M&A value, the 3.5bnrecorded was still enough to put the sector in second position,albeit far behind leisure.Bumper TMT transactions were few and far between, withonly one in the top ten: Italian infrastructure group Atlantia’sacquisition of Siemens’ carve-out, Yunex Traffic, for 950m.Yunex Traffic supplies infrastructure and mobility services,including advanced emissions-based dynamic tolling systems,vehicle-to-infrastructure communication solutions, digitaltraffic lights, and street lighting systems.The corporate carve-out opportunityThe Yunex deal is indicative of a wider trend in Germany,where the country’s storied conglomerates are downsizingto become leaner, more focused companies. This is creatingsignificant sizable deal flow for buyers. Siemens offloadedthe mail and parcel business of Siemens Logistics for 1.15bnto technology group Körber in the first quarter and in recentyears has spun off both its energy and health equipmentdivisions, while Thyssenkrupp offloaded its elevator businessa few years ago in the biggest European PE buyout in history.DACH top bidders by value I Q1 2022EUR (m)USAGermanySwitzerlandItalySaudi Arabia10,5664,7241,800969927DACH top bidders by volume I Q1 2022Deal countGermanyUSASwitzerlandUnited KingdomNetherlands1134533201914
DACH top 10 announced deals, Q1 2022AnnounceddateBidder companyTarget companySectorVendor companyDeal value( m)121-Jan-22CSR Acquisition CorpSAZKA Entertainment AG (100%Stake)LeisureKKCG Group7,911226-Jan-22Landesbank Baden-WuerttembergBerlin Hyp AG (100% Stake)FinancialservicesLandesbank Berlin HoldingAG1,300331-Jan-22DIC Asset AGVIB Vermoegen AG (40.95% Stake)Financialservices409-Feb-22Koerber AGSiemens Logistics (mail and parcelunit) (100% Stake)TransportationSiemens AG1,150505-Jan-22Atlantia S.p.A.Yunex GmbH (100% Stake)TMTSiemens AG950624-Mar-22Undisclosed bidderGlencore Plc (1.2% Stake)Energy, mining& utilitiesQatar Investment Authority947724-Jan-22Savvy Gaming GroupFACEIT Ltd (100% Stake); ESLGaming GmbH (100% Stake)LeisureModern Times Group MTG AB927814-Mar-22Atlas Copco ABGeveke N.V. (100% Stake); LEWAGmbH (100% Stake)Industrials &chemicalsNikkiso Co., Ltd.670917-Feb-22Nitto Denko CorporationMondi Plc (Personal CareComponents business) (100% Stake)ConsumerMondi Plc6151022-Feb-22Bank of America Corporation;Davidson Kempner CapitalManagement LPHSH Portfoliomanagement AoeR(ship loan portfolio with 56 ships)(100% Stake)FinancialservicesHSH PortfoliomanagementAoeR5001,270Preparing for deal flowThe pressures of the pandemic have forced many corporatesto reconsider their business units and look at streamlining.The avalanche of liquidity that came into debt markets as aconsequence of pandemic stimulus helped companies to stayafloat over the past two years, but has also led to more carveouts being considered. Corporate debt in developed economiesstood at 102% of GDP at the end of March, compared with 92%before the outbreak of the COVID-19 pandemic. With growthshowing signs of slowing, large companies are now looking atways to raise cash to pay down that debt, including throughselling off business divisions.This bodes well for private equity in particular, which doesn’tface the same antitrust considerations as corporates, as fundsare also adept at the complex nature of carve-outs. There hasbeen prevailing caution to initiate sale processes since the warin Ukraine started. If this finds a peaceful resolution soonerrather than later, DACH corporates could once again provide arich source of deal flow.15
France
Growth in France holds up,supporting deal valueAn aggregate deal value of 17.6bn wasrecorded, a drop of 32% compared with thesame period last year. Volume meanwhilewas down by 25% to 211 transactions.France M&A activity,2019-Q1 2022The biggest deal in the country during the period saw USPE firm Apollo Global Management acquire the terminalsbusiness of payments firm Worldline for 2.6bn, helpingthe vendor to cut its debt and simplify its corporatestructure. The payments sector has come under immensepressure in recent years in the face of mass disruption.People increasingly use their smartphones for online payments,driving a new wave of competition and the need for newinvestment. For its part, Apollo was given an attractive entryprice of just five times the carved-out business’s operatingmargin, although there is an earn-out structure in place,such that Worldline will receive more cash depending on thebusiness’s performance.453504030035250302002520150Deal value (bn)M&A in France fell as it has done in other regions, but valuehas proved to be more buoyant than in the UK & Ireland andDACH, supported by a strong showing from US investors,which represented more than a third (35.5%) of deal value.Payments sector under pressureDeal volumeThe French economy has performed relatively wellrecently, mostly because it was bouncing back frombeing more negatively impacted during the pandemicthan elsewhere in EMEA. GDP grew by 7% through 2021,ahead of the 5.3% average seen across Europe, aftershrinking by as much as 8% in 2020. A huge surge inCOVID infection rates in January and February led to higherworkplace absenteeism and curtailed growth, which isnonetheless expected to have reached 0.3% in Q1.15100105005Q1Q2 Q32019Q4Q1Deal volumeQ2 Q32020Q4Q1Q2 Q32021Q40Q12022Deal value (bn)Source: Mergermarket17
Strong TMT pipelineThe second-largest TMT deal after Worldline was not in thetech space but in telecoms. Spanish telco infrastructure firmCellnex acquired a 30% stake in On Tower France from Iliad for 950m. Iliad has seen its free cash flows come under pressureas the French telecoms group steps up its investment into nextgeneration 5G networks, the deal helping to free up capital.Cellnex has also been divesting. In March, the company agreedto divest 3,200 rooftop sites to Phoenix Tower International tosatisfy the French Competition Authority as a closing remedyfor its 5.2bn acquisition of Hivory last year, which included10,500 towers in France.The Worldline and Cellnex sales helped push TMT to the top asthe biggest M&A sector by value, deal activity falling by only11% year-on-year to 6.5bn. TMT was also the biggest sectorby volume in France: transaction numbers actually increasedfrom 54 to 67 deals as the sector supplies no shortage ofopportunities in spite of the wider dealmaking slowdown andrecent cooling of sentiment.France top sectors by value I Q1 2022EUR (m)TMTEnergy, mining & utilitiesBusiness servicesIndustrials & chemicalsConsumer6,4693,2432,8222,6191,277France top sectors by volume I Q1 2022Deal countTMTIndustrials & chemicalsBusiness servicesConsumerPharma, medical & biotech6736331916France top bidders by value I Q1 2022EUR (m)USAAustraliaFranceBelgiumHong Kong6,2402,5912,5721,8501,135France top bidders by volume I Q1 2022Deal countFranceUSAUnited KingdomSpainBelgiumGermany131211766618
Financial sponsors in France are unfazedPE activity was especially strong in France. Although volumedipped by 14% to 104 deals in Q1, value ticked up by 2%to a total of 13.2bn. The Apollo/Worldline deal was boththe biggest PE transaction and largest M&A deal overallin France. What’s more, five of the ten largest deals in thecountry were PE buyouts over the first quarter.France continues to be a major hub of activity for financialsponsors in Europe. While the UK holds the top position asthe highest-value buyout market, on the continent Franceand Germany have historically vied for second place. Inparticular, France has a strong, dynamic mid-market with anumber of blue-chip managers active in the space, includingArdian, Eurazeo, and PAI Partners, and more recentlythe Canadian pension funds such as Caisse de dépôt etplacement du Québec, PSP, and OMERS have set up theirown direct investment programs. Given the industry’s recentperformance in spite of everything that has been thrown itsway at the macro level, private equity is likely to continuecontributing significantly to overall M&A performance in thecountry through 2022.France top 10 announced deals, Q1 2022AnnounceddateBidder companyTarget companySectorVendor company121-Feb-22Apollo Global Management, LLCWorldline S.A. (Terminals, Solutions& Services Business) (100% Stake)TMTWorldline S.A.2,600207-Mar-22Muenchener RueckversicherungGesellschaft Aktiengesellschaft;Macquarie Group Limited; MEAGMUNICH ERGO Asset ManagementGmbH; British Columbia InvestmentManagement Corporation; MacquarieAsset Management, Inc.Reden Solar SAS (100% Stake)Energy, mining& utilitiesEurazeo S.A.; InfraViaCapital Partners2,500319-Jan-22Bain Capital, LP.; Existing Management;NB Renaissance PartnersInetum S.A.BusinessservicesMannai CorporationQ.S.C.2,002414-Feb-22D'Ieteren Group S.A.Parts Holding Europe SAS(100% Stake)Industrials &chemicalsBain Capital, LP.1,700522-Mar-22Primavera Capital AcquisitionCorporationJeanne Lanvin S.A. (100% Stake)ConsumerFosun Holdings Ltd1,135625-Feb-22Cellnex Telecom, S.A.On Tower France (30% Stake)TMTIliad S.A.950724-Feb-22Energy Infrastructure Partners AGBoralex Inc. (France basedoperations) (30% Stake)Energy, mining& utilitiesBoralex Inc.532811-Jan-22KKR & Co., Inc.; Eurazeo S.A.; TechnologyCrossover Ventures; Insight Partners;Tiger Global Management, LLC; TencentHoldings Ltd.; Alven Capital PartnersS.A.; DST Global; Valar Ventures; GaingelsLLC; Alkeon Capital Management, LLC;Exor SeedsQonto SAS (11.05% Stake)TMT486912-Jan-22General Atlantic Service Company, L.P.;Eurazeo S.A.; Generation InvestmentManagement LLP; Aglae Ventures;Sprints Capital Management LimitedJung SAS (8.95% Stake)TMT4481024-Jan-22Wendel S.A.Association of Certified Anti-MoneyLaundering Specialists (98% Stake)BusinessservicesAdtalem GlobalEducation Inc.Deal value( m)44219
Nordics
Nordics activity weakens in Q1Nordics M&A activity,2019-Q1 2022The Swedish economy, the largest in the sub-region, hascaught up with its pre-pandemic level and is expected toincrease by 3.4% in 2022, fueled by the removal of COVIDrestrictions and a continued rebound of consumptionand investment. This should support confidence amongdealmakers for the rest of the year, provided there are nofurther unexpected geopolitical or macro shocks.Net returns6006050050400403003020020100100Q1Q2 Q32019Q4Q1Deal volumeQ2 Q32020Q4Q1Q2 Q32021Q4The largest deal of the year was hotly contested. NTS,a Norwegian salmon-farming company, was subject to abidding war from competitors Mowi and SalMar. Initially,Mowi offered 2.6bn, before SalMar put in a counterofferof 2.7bn. The acquisition brings SalMar close to Mowi’sstatus as the largest salmon-farming company in the world.Deal value (bn)This more or less tracked the wider EMEAregion and comes as the Nordics performsrelatively well economically. The weakestgrowth in 2021 came from Finland andNorway at 3%, with Sweden expanding atthe top end of 4%.Deal volumeThere were 296 deals in the Nordics region, a 37% year-onyear drop compared with Q1 2021. Total value also fell, by32% to 15.8bn.NTS and SalMar already have history. In August 2021, NTS beatSalMar to the purchase of a 70% stake in salmon-farming firmNRS, which it then merged with SalmoNor—itself a combinationof Midt-Norsk Havbruk and SalmoNor. The deal will benefit fromstrong underlying food demand. According to research by ateam led by
03 05 04 08 12 16 20 24 28 32 36 40 44 Contents Foreword: Stumbling blocks Summary: War and inflation rattle dealmakers in EMEA Outlook: EMEA heat chart UK & Ireland
