Auto dealmaking in 2010 could rise on recovery
PARIS (Reuters) - The value of overall automotive dealmaking could grow next year as more carmakers try to spread heavy investment costs for new technology over a greater number of production volumes, a Nomura investment banker said.
"I really expect that we'll see a significant volume in M&A again in 2010, both on a manufacturing side and even more so on the supplier side," Nomura's head of European automotive mergers and acquisitions, Klaus Pflum, told the Reuters Auto Summit.
According to Thomson Reuters data, the value of announced deals both in equity and debt for the global automotive sector surged to $115 billion this year, although roughly half stems from the June 1 reorganisation of General Motors GM.UL.
"Given that we will see some recovery in 2010, the volume might increase," he continued, cautioning however that there could be a lot of noncash deals given the tough financing climate and desire for companies to preserve their liquidity.
On Monday, parts supplier Faurecia (EPED.PA), for example, agreed to buy U.S. emissions control specialist EMCON for an undisclosed sum to be funded through a stock sale.
Below is a list of the biggest deals announced this year in the sector based on data from Thomson Reuters. Except where noted all deals are valued for 100 percent of equity and debt.
TOTAL VALUE TARGET ACQUIRER
$55.3 bln General Motors Co U.S., Canada, UAW
$18.5 bln Dr. Ing. h.c. F.Porsche AG Volkswagen
$11.0 bln Delphi Creditors
$ 9.6 bln Volkswagen (17 pct of votes) Qatar
$ 5.1 bln Porsche Holding, Salzburg Volkswagen
$ 2.7 bln Daimler (9.1 pct) Aabar AABAR.AD
$ 2.5 bln Chrysler Group LLC U.S., Canada, UAW, Fiat
$ 2.2 bln Ford debt for equity swap Continued...
