Today’s emergency loan to Credit Suisse has lifted spirits, after US tech bank Silicon Valley Bank (SVB) gave markets the jitters with its sudden collapse.
These are of course individual incidences, but after a terrible year for issuance marked by the war in Ukraine and soaring inflation, with pursuant interest rate hikes, tough deal making conditions have set the tone in 1Q and show no signs of reversal.
This week, our reporters and analysts have been on top of the impact of these macro events across individual companies, as well as chasing pipeline deals and upcoming regulatory changes.
With all the uncertainty in the market, timing is now crucial for M&A, with bankers now pegging hopes on 2H23 to early 2024 for “a splurge of M&A activity” in the UK, writes Min Ho.
Companies exploring options include Hawksmoor, the Graphite Capital-backed premium steakhouse chain, which is working to better understand the US market, and GL Education, a UK-based global provider of education assessment.
With SVB dominating headlines, Kevin Ketchum and Kevin McCaffery questioned whether the volatility in the banking sector could impact First Horizon’s [NYSE:FHN] negotiations with TD Bank [TSX:TD].
TD announced a USD 14.3bn agreement to acquire FHN just over a year ago, but US and Canadian regulatory clearance is still pending. It’s unclear if this latest crisis could change the thinking of regulators, specifically as it applies to a merger involving a regional bank.
Despite the persistent volatility, there are always pipeline deals bubbling in the background.
Jessica Wong and Eva Ng write that Barclays has been mandated to sell Horangi Cyber Security, a Singapore-based cybersecurity platform operator.
The co-founders are happy to entertain approaches from any interested parties, but strategic buyers such as technology companies are highly preferred.
In Spain, Rupert Cocke analyses the prospects for Vodafone [LON:VOD] to reconsider its Iberian strategy as it seeks a new CEO for that market. A full exit from Spain should not be ruled out, the article says.
With timing such a crucial aspect in turbulent markets, it is no surprise to see “phoenix deals” rise from the ashes of failed and stalled processes.
Rebecca Wenzel and Deborah Balsham write that Independence Dental, the Firmament Group-backed dental services organisation (DSO), has mandated Moelis to run an expected sale process, after no trade was announced from late-stage deal talks last June.
Some welcome news for dealmakers will be news that China’s merger review regulator has decided to set up a merger review database after more than 14 years of conducting antitrust reviews of business concentrations, Lisha Zhou and Shirley Feng reveal. The move should facilitate the review process in the longer term, but is likely to cause delays to reviews taking place as it is being constructed.
And finally, with events season coming into full swing, you can tune into some of the fantastic discussions held regarding private equity exits in this macro environment at our AVCJ forum in Australia last week and the broader M&A market there.
Don’t forget, the next event will be our M&A Forum Germany in Frankfurt, which I will personally be chairing. Looking forward to seeing you there on 18 April.
Thanks so much for reading, please reach out with feedback, deal tips and suggestions.
Lucinda Guthrie
Executive Editor, Mergermarket
Lucinda.Guthrie@iongroup.com
News & analysis
Rainmakers expect busier H2 pipeline as economic uncertainty abates
NEWS ANALYSIS EMEA
Timing has been one of the most cited words among UK advisors polled by Mergermarket as they reassess the prospect of launching long held-off sale processes in the hopes of a...
Luxor seems to fall short at Ritchie Bros, Pfizer pays up for Seagen, SVB fallout threatens First Horizon’s negotiations with TD Bank – Morning Flash
NEWS ANALYSIS AMERICAS
Luxor Capital's crusade at Ritchie Bros Auctioneers [NYSE:RBA] looks to have just fallen short, with preliminary results indicating...
Horangi Cyber Security put up for sale via Barclays
BREAKING NEWS APAC
Horangi Cyber Security, a Singapore-based cybersecurity platform operator, has been put up for sale, said two sources familiar with...
Vodafone: Appointment of new Spanish CEO could trigger strategic pivot – bankers
NEWS ANALYSIS EMEA
The appointment of a new CEO for Vodafone's [LON:VOD] Spanish business could serve as a trigger for the company to reconsider its...
Independence Dental to revisit sale alongside Moelis, sources say
BREAKING NEWS AMERICAS
Independence Dental, the Firmament Group-backed dental services organization (DSO), has mandated Moelis to run an expected sale...
China’s merger review regulator sets up database; timeline impact likely
NEWS ANALYSIS APAC
After more than 14 years of conducting antitrust reviews of business concentrations, China’s merger review regulator has decided to set up...
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