18 June 2019

On This Day...

Zephyr, the M&A database published by Bureau van Dijk, shows that on this day in 2018, some 357 mergers and acquisitions (M&A) worth an aggregate USD 10,444 million were announced globally. Notable deals of the day included CYBG winning over the board of Virgin Money with an all-scrip proposal worth USD 2,226 million to become the sixth-largest bank in the UK and a stronger contender to the country’s large incumbent lenders. 

The only other deal worth more than USD 1,000 million announced on this day last year featured Baytex Energy making a USD 1,230 million offer to acquire Canada’s crude oil and natural gas exploration, development and production company Raging River Exploration in order to create a well-capitalised, oil-weighted firm with an attractive growth and free cash flow profile in North America worth about USD 3,710 million, including debt.

While not one of the largest deals by value announced this time last year, Google’s proposal to invest USD 500 million in Chinese online marketplace giant JD.com is worth a mention as it represents yet push into the world of e-commerce. At the time, it appeared the ultimate goal was to integrate JD.com’s technological know-how in supply chain and logistics/automated warehouse operations with Google’s worldwide consumer reach and marketing ability. Techcrunch pointed out at the time the tie-up is interesting, especially considering Google has a relationship with several other e-commerce companies, including JD.com’s main competitor in the space, Alibaba.

Going back several more years, to 18th June 2015, the largest deal of the day featured OMERS Private Equity, alongside management, signing a definitive agreement to acquire Kenan Advantage Group, North America's largest provider of liquid bulk transportation services to the fuels, chemicals, liquid foods and merchant gas markets, from Goldman Sachs Capital Partners and Centerbridge Partners for a reported USD 2,000 million. The trucking and logistics company is still part of OMER’s portfolio at the time of writing.

Meanwhile, on this day in 2013, mainland milk giant China Mengniu Dairy sought to take Yashili International Holdings private in a deal which valued the Cayman Islands-incorporated milk formula manufacturer at as much as HKD 12,460 million (USD 1,610 million at the time) in order to drive expansion and capture a larger share of the dairy market.

Zephyr shows 18th June 2007 had the highest aggregate value of deals as the 350 deals announced over the day totalled USD 18,396 million, which was bolstered by six deals each worth more than USD 1,000 million, the largest of which featured Cinven announcing the USD 2,921 million institutional buyout of BHS (Holdings), which was formed to hold 26 hospitals belonging to British United Provident Association (BUPA).

© Zephyr