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DEALS INTELLIGENCE I JULY 2010

MERGERS & ACQUISITIONS SNAPSHOT


M&A COMMENTARY

●July M&A Totalled US$183bn - Global M&A reached US$182bn this month, and totalled US$1,269bln so far in 2010, up 10% from the same period
last year. US targeted M&A reached US$57bn this month, down 22% from same month last year, its lowest level of activity in July since 2004
(US$56.7bn), meanwhile European activity is up 48% from last July with US$58bn worth of deals announced. Announced Asia Pacific M&A is stable at
US$33bn.
●Private equity backed M&A up to 2 year high - With US$27.4bn announced in July, private equity backed M&A recorded its best level of activity
since July 2008 (US$30.4bn). PE backed M&A accounts for 15% of overall M&A activity. Tomkins' US$4.6bn aquisition is the largest M&A deal of the
month and the largest buyout since the 2009 buyout of IMS Healthcare by TPG Capital & Canada Pension Plan (US$5.0bln).
●Mega Deals at 18 months low - For the first time since January 2009 there were only 2 deals above the US$5bln mark in July, the US$9bln
acquisition of EDF's UK grids and the US$5.5bln acquisition of Southern Copper.
●Emerging markets M&A down in July - Emerging markets monthly M&A activity declined over the last 3 months to US$41.2bln
the lowest level of activity since April 2010 (US$36.2bln). After accounting for up to 47% of global M&A in January this year,
emerging markets now accounts for 25%.

M&A FUNDAMENTALS

ANNOUNCED M&A VOLUMES


WORLDWIDE M&A US TARGET M&A
$232
$272

$96
$95
$94
2009 ($ bln)
$215

$91
$211
$195

$189

$182

2010 ($ bln)
$178

$75
$171

$73
$167

$164

$164
$162

$71
$161

$156

$67
$152

$62

$62
$59
$128

$57

$57
$123
$108

$49

$40
$37

$29

$28
2009 ($ bln)
$11

2010 ($ bln)

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Jan-Jul 09
$1,151.6 $434.6
Jan-Jul 10
$1,268.5 10% $430.7 -1%

EUROPEAN TARGET M&A ASIA PACIFIC (EX JAPAN) TARGET M&A


$105

2009 ($ bln) 2009 ($ bln)


$90

$90

2010 ($ bln) 2010 ($ bln)


$75
$60

$60

$49
$58

$52

$52

$42
$48

$48

$40
$43
$42

$35
$34

$34
$33
$39

$32

$32
$31
$34

$27
$32

$29
$29

$23

$23

$22
$25

$20
$20

$19
$13
$14

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

$334.8 $215.8
$345.8 3% $224.1 4%

TOP 5 ANNOUNCED M&A FINANCIAL ADVISOR RANKINGS - JANUARY TO JULY 2010

ANNOUNCED WORLDWIDE M&A ANNOUNCED ANY US INVOLVEMENT


Rank Financial Advisor YoY Rk Chg. Value ($ mln) Mkt. Shr. # of deals Rank Financial Advisor YoY Rk Chg. Value ($ mln) Mkt. Shr. # of deals
1 Morgan Stanley = 251,422.8 19.6 222 1 Goldman Sachs & Co ▲2 167,361.1 31.0 107
2 Goldman Sachs & Co = 247,743.2 19.3 189 2 Morgan Stanley ▼1 145,763.4 27.0 97
3 JP Morgan ▲1 211,831.4 16.5 179 3 JP Morgan ▲1 124,057.3 23.0 87
4 Deutsche Bank AG ▲4 211,123.7 16.5 148 4 Bank of America Merrill Lync ▲2 122,953.6 22.8 84
5 Credit Suisse = 189,732.8 14.8 163 5 Deutsche Bank AG ▲12 120,379.5 22.3 70

ANNOUNCED ANY EUROPEAN INVOLVEMENT ANNOUNCED ANY ASIA PACIFIC INVOLVEMENT (EX JAPAN)
Rank Financial Advisor YoY Rk Chg. Value ($ mln) Mkt. Shr. # of deals Rank Financial Advisor YoY Rk Chg. Value ($ mln) Mkt. Shr. # of deals
1 JP Morgan ▲7 107,677.8 20.9 94 1 UBS ▲9 48,461.3 15.2 47
2 Morgan Stanley = 105,073.7 20.4 103 2 Morgan Stanley = 38,456.3 12.1 38
3 Deutsche Bank AG ▲3 103,080.9 20.0 74 3 Deutsche Bank AG ▲6 35,230.4 11.0 34
4 Goldman Sachs & Co = 91,256.7 17.7 69 4 Goldman Sachs & Co ▼3 33,693.8 10.6 53
5 Bank of America Merrill Lync ▲4 76,066.6 14.8 40 5 JP Morgan ▲2 31,169.6 9.8 29
Source: Thomson Reuters

TOP 10 WORLDWIDE M&A DEALS - JULY 2010

Value ($mil) Rank Date Target Name Target Nation Sector Acquiror Name
9,015.9 07/30/10 EDF Energy-UK Power Distn Bus United Kingdom Energy and Power Investor Group
5,508.3 07/23/10 Southern Copper Corp United States Materials Americas Mining Corp
4,833.0 07/29/10 Sanyo Electric Co Ltd Japan High Technology Panasonic Corp
4,626.6 07/19/10 Tomkins PLC United Kingdom Industrials Pinafore Acquisitions Ltd
4,581.9 07/02/10 Accor Services France SA France Consumer Prod. & Serv. Shareholders
4,560.0 07/29/10 Panasonic Elec Works Co Ltd Japan Industrials Panasonic Corp
4,543.8 07/12/10 Hewitt Associates LLC United States Consumer Prod. & Serv. Alps Merger Corp
3,872.1 07/21/10 SSL International PLC United Kingdom Healthcare Reckitt Benckiser PLC
3,866.5 07/15/10 NBTY Inc United States Healthcare Carlyle Group LLC
3,314.3 07/22/10 AmeriCredit Corp United States Financials General Motors Co
Source: Thomson Reuters
DEALS INTELLIGENCE I JULY 2010

MERGERS & ACQUISITIONS SNAPSHOT


M&A TRENDS

WORLDWIDE ANNOUNCED PRIVATE EQUITY-BACKED M&A MEDIAN EBITDA MULTIPLE

45 Global Announced PE-backed M&A ($bn) 18% 14 PE-Backed M&A


40 PE-backed M&A as % of Total 16% 13 Global M&A
36.9

35 14% 12
34.6

30 12%
30.4

11

27.4
25 10%
10
24.5

23.8
22.3

20 20.6 8%
19.8 9

19.0
15 18.9 6%

16.6
15.8

14.6

13.9

13.7
8

13.1
10 4%
11.0
9.5

9.4
8.9

7
7.8

7.8
7.0
6.8

5 2%
6.4
6.1

5.7
5.2
4.0

1.5

0% 6

Q1 07

Q2 07

Q3 07

Q4 07

Q1 08

Q2 08

Q3 08

Q4 08

Q1 09

Q2 09

Q3 09

Q4 09

Q1 10

Q2 10

Q3 10
May-08

May-09

May-10
Jan-08

Jul-08

Jan-09

Jul-09

Jan-10

Jul-10
Mar-08

Sep-08

Mar-09

Sep-09

Mar-10
Nov-08

Nov-09

Source: Thomson Reuters


WORLDWIDE ANNOUNCED M&A BY DEAL SIZE ($BLN)

300

250

200 152.7
96.6 65.7 53.3
35.0 27.3 14.5
47.5
150 25.2 38.4
64.7 59.2
76.0 77.9 58.8 75.9 69.3 70.2 88.8
74.6 86.6
36.4 37.9 54.0 53.2 55.1
100 22.5 51.6 49.7
36.1 43.7
26.0 30.3 24.4
36.4 40.3 37.2 37.9 25.0 21.4 24.6 35.5 29.0
47.6 32.7 22.5 21.6 24.4 25.8
13.9
50 12.1 10.9 11.9 8.4
13.2 9.8
9.2 56.3 56.8 65.2 60.7 63.0
46.6 48.3 54.2 41.5 50.0 51.9 49.9 51.6
29.4 31.0 37.3 35.7 39.7 40.4
0
Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10
$.001-$500m $500m-$1b $1b-$5b $5b-Hi
Source: Thomson Reuters
WORLDWIDE M&A BY TARGET REGION ($BLN)

100% 7,187
20,405 14,311 27,649 20,508 18,031 25,185
19,921 26,172 34,464 25,412 31,249
25,660 40,217 33,400 46,948 41,610
42,608 71,573
11,097
80%
37,082
67,426
90,970 29,291 28,475 70,905
39,667 61,569 61,528
49,218 72,946 95,691 57,427
60% 74,980
59,132 94,628
57,140 94,104 27,321
36,124
105,026
40% 49,871 56,284 29,998 45,167 45,956 73,666
20,148 37,960 55,747
34,467 27,166
32,663 36,584 44,901
11,448 68,006
75,925
20% 57,549
33,818 53,906 47,938 54,058 49,797
31,396 22,837 37,133 41,630 45,707 36,276 44,552 41,203
27,501 38,778 23,321
15,059
0%
Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10
Emerging Markets Western European US Other Deverloped
Source: Thomson Reuters
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