19 Jun 2019, Stella Zlatareva, EMIS M&A Team
May's Top Deals per region
Mergers and acquisitions (M&A) in the Polish real estate market kept the momentum going in May 2019. The largest deal in the entire Emerging Europe region was the sale of two shopping centres in the Polish cities of Koszalin and Lublin by Austria-based Atrium European Real Estate for EUR 298mn (USD 334.8mn). The buyer is German real estate investment company ECE Real Estate Partners. The company, which has a portfolio of 20 shopping centres across six countries, is paying a 3% premium to the assets’ book value. Atrium Felicity in Lublin and Atrium Koszalin span a combined 120,000 m2 of leasable area.
Africa and the Middle East
Almost any mega-deal will certainly lead to divestments. That is the case with U.S. oil major Occidental Petroleum, which earlier this year won the takeover battle against Chevron for control of its domestic rival Anadarko. In order to partially pay for the USD 38bn deal, Occidental agreed to sell Anadarko's African oil and gas assets to French major Total for USD 8.8bn. The deal was the largest one in Africa and MENA in May and comprised oil and gas production assets in Algeria, Ghana, Mozambique and South Africa. The assets represent around 1.2 billion barrels of oil-equivalent (boe) proven and probable reserves (2P) plus 2 billion boe of long-term natural gas resources in Mozambique.
Latin America and the Caribbean
Shaking up the healthcare market in Brazil, the country’s largest healthcare plans operator in Northern Brazil Hapvida inked a deal to buy local hospitals operator Grupo Sao Francisco. Hapvida is acquiring the company for an Enterprise value of BRL 5bn (USD 1.27bn) and will have 5.8 million healthcare services clients as a result of the purchase. In the short-term, the buyer will remain on the lookout for acquisition targets, its chief executive noted.
The top deal in emerging Asia in May featured Shenzhen-listed game developer Zhejiang Century Huatong Group and its target, local peer Shengyue Network Technology. The purchase price of CNY 29.8bn (USD 4.3bn) will be covered in both cash and shares. With the acquisition, Zhejiang Century Huatong will be able to further strengthen its brand presence and market foothold in the gaming industry through horizontal integration. The deal comes against the backdrop of governmental and market pressure on the gaming industry and is expected to help the companies optimise their operations.