The total cumulative value of M&A deals and IPOs across offshore jurisdictions in 2014 spiked 63 per cent over the previous year, making it the biggest year in terms of dollars spent offshore in the past decade, according to a report released by Appleby, the offshore legal, fiduciary and administration services provider.
The latest edition of Offshore-i, an Appleby report that provides data and insight on merger and acquisition activity in the major offshore financial centres, focuses on transactions announced during the fourth quarter of 2014, as well as the year as a whole. The final quarter of the year maintained the run of 600-plus deals per quarter that started in early 2013, the report found.
"When looking at the year as a whole, 2014 saw 2,687 deals with an aggregate deal value of US$277bn, making it by far the best year for offshore-targeted M&A for the past decade," said Cameron Adderley, Partner and Global Head of Corporate at Appleby.
Jersey was one of just three offshore jurisdictions examined in the report to experience an uptick in both deal value and volume in the fourth quarter of 2014 when compared to the previous quarter. With 53 deals worth a total of $4.7bn (£3bn), Jersey experienced a 23 per cent increase in volume and 11 per cent increase in value over Q3 2014.
The jurisdiction was home to one of the biggest deals of Q4 2014 in which Ukrainian businessman Oleg Mkrtchan purchased an 18.5 per cent minority stake in gold producer Polyus Gold International for $1.59bn (£1.02bn).
In the fourth quarter of 2014, Guernsey experienced a massive 774 per cent increase in cumulative deal value when compared to the previous quarter, and 444 per cent increase in deal value when compared to the same quarter one year ago.
The jump in value was due in large part to the quarter's only two megadeals - defined as deals valued at more than $5bn - each involving a Guernsey target. They included British life insurer Aviva announcing its intention to acquire Friends Life Group for $8.2bn, and Pershing Square, the Guernsey trusts and funds group, announcing a planned $6.2bn IPO on the Euronext exchange in Amsterdam.
In the fourth quarter of 2014, Guernsey experienced a massive 774% increase in cumulative deal value when compared to the previous quarter and 444% increase in deal value when compared to the same quarter one year ago.
The jump in value was due in large part to the quarter's only two megadeals - defined as deals valued at more than US$5 billion - each involving a Guernsey target. They included British life insurer Aviva announcing its intention to acquire 100% of rival Friends Life Group for US$8.2 billion, and Pershing Square, the Guernsey trusts and funds group, announcing a planned US$6.2 billion Initial Public Offering (IPO) on the Euronext exchange in Amsterdam.
- See more at: http://www.guernseyfinance.com/press-room/news/2015/02/guernsey-megadeals-push-up-offshore-ma-activity-in-q4/#sthash.S9Z9INjo.dpuf
In the fourth quarter of 2014, Guernsey experienced a massive 774% increase in cumulative deal value when compared to the previous quarter and 444% increase in deal value when compared to the same quarter one year ago.
The jump in value was due in large part to the quarter's only two megadeals - defined as deals valued at more than US$5 billion - each involving a Guernsey target. They included British life insurer Aviva announcing its intention to acquire 100% of rival Friends Life Group for US$8.2 billion, and Pershing Square, the Guernsey trusts and funds group, announcing a planned US$6.2 billion Initial Public Offering (IPO) on the Euronext exchange in Amsterdam.
- See more at: http://www.guernseyfinance.com/press-room/news/2015/02/guernsey-megadeals-push-up-offshore-ma-activity-in-q4/#sthash.S9Z9INjo.dpuf
The Appleby report also noted that financial services dominate offshore activity.
In the fourth quarter of 2014, insurance and financial services stood out as the dominant sector, with 161 deals with a cumulative worth of $26.5bn, accounting for one in four deals done offshore in the time period and for more than a third of the dollars spent.