2018年-普华永道全球_Global_engineering_and_construction_deals_insights_Q1_2018_6页_1mb

PwC Deals Summary: Global Engineering and Construction Q1 2018

Core Content

This report provides insights into the M&A activity in the Engineering and Construction (E&C) sector during the first quarter of 2018. It highlights key trends, deal values, volumes, and regional contributions, as well as the role of strategic versus financial investors.

Main Trends and Highlights

• Deal Value:

  • Q1 2018 deal value was $14.5 billion, which is 57% lower than Q4 2017 but only 4% lower than Q1 2017.
  • The largest deal of the quarter was Atlantia's $3.1 billion bid for Abertis Infraestructuras.

• Deal Volume:

  • There were 567 deals in Q1 2018, a 16% decrease compared to Q1 2017.
  • Cross-border deals contributed significantly to deal value, while domestic transactions remained the main driver of volume.

• Average Deal Size:

  • The average deal size was $78 million, 27% lower than the three-year quarterly average but 20% higher than Q1 2017.

• Megadeals:

  • No megadeals (deals of $5 billion or more) were announced in Q1 2018.

• Sector Contributions:

  • The Construction Materials Manufacturing category accounted for the highest share of deal value, with 6 of the top 10 deals falling into this category.
  • Construction and Civil Engineering categories were the main contributors to deal volume.

• Investor Activity:

  • Strategic investors dominated deal activity, accounting for 72% of value and 66% of volume.
  • Financial investors saw a decline in their share of deal value, likely due to reduced national investment sentiment.

• Regional Analysis:

  • Asia and Oceania, North America, and UK and Eurozone were the most active regions in terms of deal volume.
  • North America had the highest target value, while Asia and Oceania contributed the most in acquisition value.
  • Inbound investment from China to North America dropped to its lowest level in three years, indicating potential trade conflict impacts.

Key Observations

• Trade Policy Impact:

  • Trade disputes, particularly between the US and China, and tariff announcements are expected to muzzle M&A activity in the coming months.
  • The NAFTA discussions have a positive outlook, with optimism from US Vice President Mike Pence.

• Sector Fundamentals:

  • Despite the slow start in 2018, sector fundamentals remain positive due to strong housing and infrastructure investment globally.

• Seasonality and Sentiment:

  • A slight seasonal dip in deal activity is noted, but concerns over trade conflicts appear to be a significant factor.
  • The inbound activity from Asia dropped to its lowest level in three years, which may affect long-term growth projections.

Top 10 E&C Deals in Q1 2018

Outlook

• M&A activity in the E&C sector slowed at the beginning of 2018.
• The impact of trade disputes is expected to continue affecting deal activity in the coming months.
• Fundamentals remain positive, with strong housing and infrastructure investment making the sector attractive for investment.

About PwC’s Deals Practice

• PwC provides M&A advisory services to E&C companies and private equity firms.
• The team combines E&C industry expertise with local market knowledge to offer integrated solutions.
• Services include deal identification, due diligence, transaction structuring, tax, valuation, and post-deal support.
• PwC has over 20,000 practitioners globally, capable of supporting transactions anywhere.

Data Sources

• The data is sourced from Thomson Reuters and includes deals with SIC codes in the 60 E&C industry groups.
• Certain adjustments were made to exclude non-E&C transactions and include relevant deals not captured by SIC codes.
• The analysis covers deals from January 1, 2015, to March 31, 2018, with status including completed, partially completed, pending, and pending regulatory.