The global telecoms sector is now this year’s busiest in terms of M&A, thanks mainly to some sizeable emerging markets deals, writes Financial News.
Citing data compiler Dealogic, the publication notes that telecoms bankers are having their best year…
The global telecoms sector is now this year’s busiest in terms of M&A, thanks mainly to some sizeable emerging markets deals, writes Financial News.
Citing data compiler Dealogic, the publication notes that telecoms bankers are having their best year since 2005 with transactions already totalling US$138.4bn. Dealogic’s total for telecoms deals in 2009 was US$203.2bn.
Topping the charts so far this year are América Móvil’s US$243bn acquisition of Carso Global Telecom, CenturyTel’s US$22.3bn takeover of Qwest Communications and Bharti Airtel’s US$10.7bn purchase of Zain’s African assets.
Dan Bailey, co-head of EMEA TMT at Citigroup was citing saying that strong, well capitalised companies in emerging markets were now in a position to utilise their cash to buy out weaker rivals. Jack Callaway, co-head of communications and media at Barclays Capital, meanwhile, noted that global players were eyeing emerging markets expansion and well as in-region consolidation to achieve enhanced revenue growth and free cashflow growth.
The article noted other deals that, if successful, could up telecoms sector M&A volumes, such as Telefónica’s attempt to buy out Portugal Telecom’s 50% stake in Vivo, Reliance’s sale of a 26% stake and possible further efforts by MTN to make large-scale tie-ups.
Early next month, TelecomFinance will be compiling its own first-half league tables for M&A, loans and bonds in the global telecoms sector. Please send all deal data to caroline.lauer@telecomfinance.com
