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5 May 2016
Pending net EUR M&A flows turn positive - Nomura
Research Team at Nomura, suggests that as the $70.2bn SABMiller acquisition of InBev has been removed from our 6M pending flows (reported by Dealogic as a EUR outflow and a US inflow), EUR now reports a net $15.4bn inflow of M&A flows in April (up $58bn from March’s net flows of -$42.9bn).
Key Quotes
“US 6M net pending inflows also declined to $35.9bn from $96.2bn previously.
Notable EUR deals in April included Irish Ardagh Group SA’s announcement of a $3.2bn cash acquisition of a US manufacturing plant. Other outflows include the $0.84bn German Freudenberg & Co KG acquisition of Swedish Trelleborg Vibracoustic GmbH, though this is largely offset by the $1.3 Canadian acquisition of German Hotelbeds SLU. As a result, M&A flows turned net inflows into EUR for the first time since June 2015.
While US pending inflows have also fallen significantly with the removal of the SABMiller deal, there are a number of large inflows in the M&A pipeline worth noting for April. These include the aforementioned $3.2bn Irish Ardagh Group SA manufacturing plant acquisition, the $2.7bn Chinese Apex Technology acquisition of Lexmark International Inc, and finally Hong Kong’s XIO Partners Ltd $1.1bn acquisition of JD Power & Associates, among others.
There are few major UK deals, and the UK still records small net pending inflows, despite the Brexit referendum date approaching.
China continues to have the largest 6M pending M&A outflows at -$94.5bn, though $44bn of this is from the China Chem acquisition of Swiss Syngenta AG. JPY 6M net pending flows remain negative at -$12.9bn.
Swedish M&A inflows were large in April, with pending cash inflows now tallying $8.6bn just below June 2014’s highs. In April there was a large $3.8bn inflow from Czech Energeticky a Prumyslovy Holding acquiring the Lignite business of the Swedish energy company Vattenfall AB.
In summary, CNY, CAD and JPY all have negative expected cash flows from net pending M&A activity, with CNY the most negative, followed by CAD and JPY.”
Key Quotes
“US 6M net pending inflows also declined to $35.9bn from $96.2bn previously.
Notable EUR deals in April included Irish Ardagh Group SA’s announcement of a $3.2bn cash acquisition of a US manufacturing plant. Other outflows include the $0.84bn German Freudenberg & Co KG acquisition of Swedish Trelleborg Vibracoustic GmbH, though this is largely offset by the $1.3 Canadian acquisition of German Hotelbeds SLU. As a result, M&A flows turned net inflows into EUR for the first time since June 2015.
While US pending inflows have also fallen significantly with the removal of the SABMiller deal, there are a number of large inflows in the M&A pipeline worth noting for April. These include the aforementioned $3.2bn Irish Ardagh Group SA manufacturing plant acquisition, the $2.7bn Chinese Apex Technology acquisition of Lexmark International Inc, and finally Hong Kong’s XIO Partners Ltd $1.1bn acquisition of JD Power & Associates, among others.
There are few major UK deals, and the UK still records small net pending inflows, despite the Brexit referendum date approaching.
China continues to have the largest 6M pending M&A outflows at -$94.5bn, though $44bn of this is from the China Chem acquisition of Swiss Syngenta AG. JPY 6M net pending flows remain negative at -$12.9bn.
Swedish M&A inflows were large in April, with pending cash inflows now tallying $8.6bn just below June 2014’s highs. In April there was a large $3.8bn inflow from Czech Energeticky a Prumyslovy Holding acquiring the Lignite business of the Swedish energy company Vattenfall AB.
In summary, CNY, CAD and JPY all have negative expected cash flows from net pending M&A activity, with CNY the most negative, followed by CAD and JPY.”