Overview of 2019 Takeovers

Overview of 2019 Takeovers

2019 has seen a 20% increase in takeover transactions, with 109 transactions compared to the 91 takeover transactions announced in 2018. This staggering growth included increases of 57% in firm offers, 82% in transactions structured as contractual offers and 45% of transactions structured as scheme of arrangements. The data suggests that although the structure of scheme of arrangements remain the preferred choice of structure for transactions in 2019 (45 scheme of arrangements and 20 contractual offers) contractual offers were more popular than in 2018.

There were five contractual offers that were initially hostile which saw one transaction switching to a recommended offer (offer for Bonmarche Holding plc by Spectre Holding Limited). The surge in hostile offers in 2019 also saw two target companies withdrawing their recommendation which led the offers to lapse (offers for KCOM Group plc by Universities Superannuation Scheme and RPC plc by Apollo Global Management, LLC). 

 

The relationship between the deal volumes and deal values of firm offers in 2019 were in contrast with one another with the increase of deal volume and decrease of deal value compared with the 2018 data. There was a 58% decline in deal values for firm offers compared to 2018.

The final data for takeovers will be fully analysed and included in the upcoming Public M&A trend report which will be published in Q1 of 2020. 

 

Related Articles:
Latest Articles:
About the author:

Market Tracker is a unique service for corporate lawyers housed within Lexis®PSL Corporate. It features a powerful transaction data analysis tool for accessing, analysing and comparing the specific features of corporate transactions, with a comprehensive and searchable library of deal documentation across 14 different deal types. The Market Tracker product also includes news and analysis of key corporate deals and activity and in-depth analysis of recent trends in corporate transactions.