Jersey Mergers and Acquisition values triple
THE total value of Mergers and Acquisition deals in Jersey nearly tripled in 2018 when compared to the previous year, according to a report from Appleby.
The latest edition of Offshore-i highlighted a trio of mega-deals, each valued at US$ 5 billion or more which drove the figures, despite the total number of deals dipping when compared to 2017.
‘Not only did Jersey see a significant increase in total deal value in 2018, the jurisdiction had the largest average deal size of any offshore jurisdiction and accounted for nearly a quarter of the total amount spent on offshore companies over the course of the year,’ said Wendy Benjamin, partner and group head of Appleby’s corporate department in Jersey.
Jersey recorded a total of 141 deals valued at US$ 82 billion, representing a 297% increase in value over 2017. The jurisdiction was home to the highest-value offshore deal announced in 2018 – Takeda Pharmaceutical’s US$ 58.5 billion acquisition of Jersey-incorporated Shire Plc.
The Cayman Islands led the way in total deal value and were also the busiest jurisdiction for offshore deals, recording 867.
The report found acquisitions have become increasingly popular over the last two years, compared to taking a minority stake in a company or releasing more shares to investors, and now make up nearly half of all offshore M&A activity.
‘Investing companies are no longer content to just take a seat on the board, but want full control of an asset in order to gain a competitive advantage over rivals,’ said Cameron Adderley, partner and global head of corporate at Appleby.
‘This drive to do strategic deals is likely to continue, providing finance remains readily available, interest rate rises predictable, and markets stable. Gaining access to transformational technologies also remains a big incentive across almost every sector.’