Deals Intelligence with Sandy Anglin: 06-24-08
- 00:02:05
- YouTube
Deals Intelligence with Sandy Anglin: 06-24-08
Deals Intelligence with Sandy Anglin of the Deals Intelligence Team at Thomson Reuters for the week of 60-24-08 Transcript: Hi, I'm Sandy Anglin, research analyst with Thomson Reuters' investment banking divison, here to give you this week's Deals Intelligence. In M&A so far this year, transactions involving US targets reached 587 billion dollars, a 38% decrease from the same period in 2007 when volume was 953 billion. When breaking the numbers down sector by sector, the gloom seems to have left no industry untouched except for Consumer Staples, the leading industry by dollar volume this year. Deals in this sector have accounted for 104 billion dollars of US target M&A transactions in 2008 compared to only 92 billion dollars of volume in the same period of 2007, a 13% increase. And, if we look a little deeper into the numbers, we can see even greater strength in the Consumer Staples sector in 2008 - the average deal is 633 million dollars this year compared to just 415 million dollars last year, or 53% higher this year than last. Some big name, high priced deals have fueled this activity. Recently, the highly publicized bid by Belgium's InBev for Anheuser-Busch contributed over 55 billion of volume to the Consumer Staples sector. Other notable deals include Mar's 23 billion dollar bid for Wrigley's, Dr Pepper Snapple's six billion dollar spin-off, Corn Product's five billion sale to Bun-Gee announced yesterday, and Folger's 3 billion dollar deal with Smuckers. On the other hand, the real estate sector saw the greatest decline year over year with volume down 80% from 2007. The largest deal here was the acquisition of New York City's landmark GM building by Real Estate Investment Trust Boston Properties from Mack-Lowe, also a REIT. Other losing industries are Industrials, down 69%, and retail, down 68% from a year ago. That's all for this week's Deals Intelligence. Be sure to check back next week for more insight and analysis from Thomson Reuters.
YouTube | June 24, 2008
