Professional Documents
Culture Documents
GLOBAL TRENDS
Global cross sector M&A activity fared much better than the automotive sector in 2012 with deal volumes declining by 7% and deal value declining by 17% as compared to 2011
2012 2011
$30.2 bn $44.9 bn
REGIONAL TRENDS
EUROPE: Due to the current economic crisis and ensuing austerity measures, Europes share of M&A activity declined. Europe accounted for the largest acquirer region in terms of value with a 43% share in 2012 Three of the top five deals by disclosed value were transacted by European acquirers of which two were intra-regional deals. NORTH AMERICA North America underwent restructuring during the 20082009 recession, but is providing strategic buyers with the financial resources to execute M&A strategies North American acquirers share of global M&A increased from 20% in 2010 to 27% in 2012
NATIONAL TRENDS
2003 45
2004 36
2005 39
2006 33
2007TOTAL 38 275
3000
2000 1000 0 2000 2002 2004 2006 2008
Date effective
8/1/2012
Target name
Dr Ing hcF Porsche AG Ducati Motor Holding SpA Proton Holdings Berhad Toyota Auto Body Co Ltd GAC Changfeng Motor Co Ltd Avtovaz PSA Peugeot Citroen SA Kanto Auto Works Ltd Guangqi Mitsubishi Automobile
Target nation
Germany
Acquirer name
Volkswagen AG Automobili Lamborghini SpA
Acquirer nation
Germany
% shares acquired
50
7/19/2012
Italy
Italy
100
1,046
TRADE
3 4
3/16/2012 1/1/2012
Malaysia Japan
100 43
963 957
TRADE TRADE
5 6 7 8
GAC
China
71
Rostekhnologii Russia 29 General Motors Co United States 7 Toyota Motor Corp Japan 50
10/11/2012
China
10
3/28/2012
50
219
FIN
50
202
TRADE
Date effective
Mar-08 Mar-10 Apr-05
Acquirer nation
India India India
% shares acquired
100 100 Merger
4 5 6 7 8 9 10
Tata finance India Daewoo Commercial Vehicle company Korea HV Transmissions India Avia Optare Erik Buell Racing Universal Components KTM power sports AG
India India
102
Czech Republic Ashok leyland India UK US UK Austria Ashok leyland India Hero motor corp India TVS Bajaj India India
35 5 10 6600 69
BAJAJ - KTM
In addition to selling imported as well as locally assembled KTM branded bikes in India, Bajaj Auto intends to utilize the partnership for jointly manufacturing complex, high-end and powerful engines in the near future The alliance gave Bajaj Auto a much needed access to KTMs intricate engine technology Bajaj will tap into KTMs extensive service and dealer network spread across premium markets like Europe, while KTM will use Bajajs influence in China, one of the worlds largest two-wheeler markets. Bajaj spent about Rs 700 crore in KTM, mainly to buy shares in KTM, earlier it spent Rs 135 crore to buy 10% share in KTM.
TATA - DAEWOO
Tata Motors, today completed the acquisition of the Korea-based Daewoo Commercial Vehicle Co.(DWCV) for $102 million as part of its strategy to become a global player The acquisition would mark a major commitment on behalf of the Tatas to make DWCV an "extremely profitable' Tata Daewoo exports trucks to more than 40 countries including the UAE, Algeria and South Africa, as well as domestic sales in India. Tata Motors' plan for M&As is clear. Praveen Kadle, executive director finance and corporate affairs, says, "We acquire a company only if it gives us a new technology, new markets, new products, new customer bases or a new product development capability. The deal must also make financial sense."
REFERNCES
http://www.automopedia.org/2009/05/05/a-brief-history-of-automotivemergers/ http://www.cbc.ca/news/canada/a-timeline-of-auto-industry-mergers1.709231 http://www.tata.com/article.aspx?artid=4A44Rb8r5C8= Driving Value:2012 Automotive M&A Insights ; Published in April 2013 www.pwc.com/auto
THANK YOU