THAT’S NOT CHICKEN FEED

THE TO­TAL VALUE OF M&A AC­TIV­ITY IN AUS­TRALIA FELL FOR THE SEC­OND STRAIGHT QUAR­TER.

The Australian - The Deal - - Trends Peoplemeet The Boss Events -

Mac­quarie Group was the top-rank­ing fi­nan­cial ad­viser on merger and ac­qui­si­tion deals in Aus­tralia in a slow­first quar­ter, ac­cord­ing to the Hong Kong-based M&A tracker Merg­er­mar­ket. Mac­quarie ad­vised on six deals worth $2.47 bil­lion over the quar­ter, with In­vestec and No­mura Hold­ings com­ing equal sec­ond with deals to­talling $ 1 bil­lion each.

Mac­quarie, No­mura and In­vestec all ad­vised on the quar­ter’s big­gest deal, the $1 bil­lion takeover of Aus­tralia’s largest poul­try pro­ducer, Ing­ham En­ter­prises, by US-based pri­vate eq­uity firm TPG. The house­hold-name chicken busi­ness had been in the Ing­ham fam­ily for 94 years. The deal was sealed af­ter TPG’s Asian chief, Aus­tralian Ben Gray, out­bid Chi­nese agribusi­ness com­pany New Hope, US in­vest­ment group Black­stone and pri­vate eq­uity group Affin­ity.

Com­ing in at No 4 on the league ta­ble of M&A ad­vis­ers was min­ing spe­cial­ist RFC Am­brian (two deals; $875mil­lion), fol­lowed by­Mor­gan Stan­ley (two deals; $673mil­lion).

The sec­ond-largest deal was the $779mil­lion ac­qui­si­tion of a 70 per cent stake in theEx­e­goGroup, an auto parts sup­plier and owner of the Repco chain of stores, by the At­lanta-based Gen­uine Parts Com­pany. RFC Am­brian ad­vised on the third-largest deal, Puma En­ergy’s $625mil­lion ac­qui­si­tion of in­de­pen­dent oil com­pany Aus­fuel from Aus­tralian pri­vate eq­uity fir­mArcher Cap­i­tal.

Merg­er­mar­ket re­ports that the to­tal value of M&A ac­tiv­ity in Aus­tralia fell for the sec­ond straight quar­ter, to $6.2 bil­lion, the weak­est open­ing quar­ter for nine years. At just more than $70 bil­lion, deal-mak­ing in the Asi­aPa­cific re­gion as a whole was down to a level not seen since the end of 2004.

Her­bert Smith Free­hills and King & WoodMallesons topped the le­gal ad­viser rank­ings by both value and vol­ume of deals in Aus­tralia.

“De­spite a dras­tic slow­down in over­all M&A ac­tiv­ity, 14 of the top 15 fi­nan­cial ad­vis­ers saw in­creases in the value of their man­dates com­pared with the first quar­ter of 2012,” Merg­er­mar­ket re­ports. “Gold­man Sachs was the only firm to buck the trend with a de­crease of more than 30 per cent [by value], but it fin­ished sec­ond by deal count.”

Newspapers in English

Newspapers from Australia

© PressReader. All rights reserved.