Key Note for the above data
Based on completed transactions
Q4 extends from October 1, 2011 till December 23, 2011
Includes transactions valued at over $ 5 million
|M & A activity in Sweden in 2011
||Value, million EUR
||Value, million USD
||Number of deals
M & A activity in Sweden 2011
- Number of M & A transactions in 2010: 243
- Number of M & A transactions in 2011: 256
- Value in 2010: 12.9 billion euros (Skr115 billion)
- Value in 2011: 21 billion euros (Skr187 billion)
Swedish big companies did good business during the crisis years as the value of mergers and acquisitions increasedMonday, 02 January 2012
Despite turmoil in the global economy, Swedish big companies carried out some big business transaction in the whole year 2011 lifting to some 60 percent on overall businesses conducted.
According to some exclusive data, despite 2011 being a very crisis year, it was far from dead in the market for mergers and acquisitions in Swedish the big Swedish giants were involved. On the contrary it turned out to be a great year.
The total value of all transactions increased over 60 percent - from Skr115 billion in 2010 to Skr187 billion in 2011, according to recent statistics from research firm Merger market, as reported by various Swedish business media.
The number of transactions increased slightly compared to 2010 - from 243 to 256. A number of large deals during the second and fourth quarter of the year were responsible in pulling up the value, according to reports.
"The first half was a sense of optimism and a well-functioning financial market. We saw several fine and large transactions carried out, "said Fredrik Lindqvist, vice president for corporate at the law firm Linklaters, to Swedish business daily Dagens Industri.
AdvertisementAfter a slow start in 2011, company business took momentum in the second quarter. The number of purchases increased to 76 individual businesses, compared with 57 in the previous quarter and 52 the same period last year. A few large transactions almost tripled the value of transactions were carried out compared to same quarter of the 2010.
A large business was American Thermo Fisher Scientific's acquisition of diagnostic company Phadia for Skr22 billion in May. Another was the sale of the security services company, Securitas Direct to Hellman & Friedman and Bain Capital for Skr20 billion.
But in the second half there was a clear slowdown in the transaction market, according to Fredrik Lindqvist.
"The financial environment is worse even if they are still quite okay in the Nordic countries viewed from a European perspective. It's not a total collapse. There were a few auction processes in the fall. Much of what was planned and was going to be announced in August, September and October, was either cancelled or was postponed, "he says.
In the third quarter, the number of corporate transactions and, also the total value of transactions appeared. But then, the value of business transactions grew sharply again in the fourth quarter.
The largest of the transaction was the life assurance company Skandia Liv which recently acquired insurance company Skandia from Old Mutual for Skr22 billion. The second largest deal was Sandvik's bid for the rest of the publicly listed subsidiary Seco Tools in November. Another big deal in the fourth quarter was the merger of Cloetta and Leaf for a new candy giant on the stock exchange, which was announced in December.
"Several industrial companies have increased their presence and made some nice acquisitions. The really big companies with fully stocked cash need not be adversely affected by the crisis, "says Fredrik Lindqvist.
He believes that volatility in financial markets could push forward transactions.
|The largest M & A transactions in 2011
||Buyer / Bidder
||Value of the deal, million EUR
||Value of the deal, million USD
||Old Mutual plc
||Thermo Fisher Scientific Inc
||Hellman & Friedman LLC, and Bain Capital LLC
||EQT Partners AB
||Com Hem AB
||BC Partners Limited
||The Carlyle Group LLC, Providence Equity Partners LLC, and AXA Private Equity
||Dometic International AB
||EQT Partners AB
||Dhaba in SA
||Astra Tech AB
||Seco Tools AB
||Niscayah Group AB
||Stanley Black & Decker Inc
||CVC Capital Partners Limited, and Nordic Capital
||Cardo Flow Solutions
||Assa Abloy AB
|Source: Merger Market
Compared with 2006 and 2007 there have been relatively few transactions in total in 2010 and 2011, emphasizes Fredrik Lindqvist.
"The beginning of 2011 was quite busy. I do not believe in such a hectic start to the 2012. However, in terms of activity the second half was a low point. As long as there is has not been a total collapse of the euro, we see a tendency for activity to carefully start increasing again… "he said to the paper.
By Scancomark.se Team.
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