Public M&A Activity in Australia
Public M&A activity reduced in FY20, largely due to global uncertainty and economic impacts resulting from the coronavirus pandemic. The transactions accounted for in this document involve Australian ASX listed targets that were conducted (or announced as intended to be conducted) by way of takeover bid or scheme of arrangement in FY20.
Source: Australian Public M&A Report 2020, Herbert Smith Freehills
TOTAL DEAL VALUE: $13.4bn
FY19 was $45.9bn / (FY15-FY19 average: $36.1bn)
ANNOUNCED DEALS: 51
FY19 was 63 / (FY15-FY19 average: 57)
SUCCESS RATE: 63%
FY19 was 74% / (FY15-FY19 average: 71%)
MEGA DEALS >$1bn: 2
FY19 was 8 / (FY15-FY19 average: 7)
DEALS INVOLVE A PRIVATE EQUITY BIDDER: 29%
FY19 was 21% / (FY15-FY19 average: 17%)
FOREIGN BIDDERS BY VALUE: 60%
FY19 was 80% / (FY15-FY19 average: 65%)
UNSOLICITED TAKEOVER BIDS: 29%
FY19 was 62% / (FY15-FY19 average: 37%)
MEDIAN TARGET VALUE: $124m
FY19 was $109m / (FY15-FY19 average: $102.1m)
The significant reduction in total deal value ($13.4bn) relative to the number of deals (51) highlights the absence of mega deals (>$1bn), with only 2 mega deals announced - the lowest recorded in 12 years.
Private equity emerged as a keen capital provider, with the ability to look beyond the pandemic in making investment decisions.
There was a steep incline in the number of deals announced in the second half of FY20 -- prior to January 2020, 18% of deals were unsolicited and post January 2020, 43% of deals were unsolicited.
Cash has re-emerged as the preferred form of consideration, with 74% of all deals offering shareholders only cash (66%) or a choice of cash (8%) as consideration. Deals were more likely to succeed if cash was offered as a consideration.
LOCATION OF TARGETS PER STATE
VALUE OF DEALS PER SECTOR
10 LARGEST ANNOUNCED DEALS
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