press release

mergermarket Latin American M&A Round-up for H1 2009

14 July 2009, for immediate release

Contact:
Hannah Bagshawe
hannah.bagshawe@mergermarket.com
Tel: +44 20 7059 6118 www.mergermarket.com
mergermarket Latin America M&A Round-up H1 2009
Contents LatAm M&A down although worst might be over
• For the first half of the year M&A in Latin America reached a total of $29.1bn and 167 deals. For the same period last year, these
p.2-6 Latin America M&A overview numbers stood at $52bn and 261 deals. But yet despite the near 45% drop in value, and a 36% drop in deal volume, there are
indications that the worst may be over. Q2 saw a jump of 82% in deal value to $18.8bn compared to Q1 09, whilst deal volume
p.10-15 Brazilian M&A remained steady.
• These numbers do not compare to the same period 12 months ago, but then neither does the economic climate. With that in mind,
p.15-18 Mexican M&A deal makers will be happy to see that valuations are once again on the increase while deal activity remains steady

p.38 Criteria Brazil key factor in LatAm “recovery”

• Between 2003 and 2007, Brazil always had the greatest share of Latin American M&A value averaging 38% of total activity by value and
p.38 About mergermarket 32.6% by volume.
• For 2008 and the first half of 2009, the value of Brazilian M&A represented more than 70% of total Latin American deal value. Deal
activity meanwhile increased to over 46% of all Latin American deals over the last 18 months. Although not immune to the overall
global economic climate, Brazil remained the main driver of Latin American M&A value and is possibly the key to an improved second
half of 2009 for the region as a whole.
• Mexico, from a high of almost 40% in 2006 has dropped to just under 2% of total deal value so far this year. After two successive
increases, Chile contributed a mere 2.3% to overall deal value in 2009.

Large cap deals faring better overall, Mexico an exception

• 14 deals valued in excess of $500m were announced during H1 2009, just six deals less than the 20 recorded during the first half of
2008. This is despite the fact that the first half of 2008 had total deal values of $52bn compared to just under $30bn so far this year.
Instead, it is the ‘upper mid-market’ which seems to have suffered the most.
• 2008 as a whole saw 27 deals valued between $250m and $500m – compared to just seven so far this year, a drop of 74%. In fact, for
the first half of 2008 Latin America saw 13 deals announced in this value range .
• While this trend is true for most of the region, Mexico has suffered from the opposite. During the first six months of the year the
country has seen only two deals valued in excess of $100m, with not a single deal valued at $250m or more.

Europe dominates inbound deal flow as LatAm Energy/Mining assets are targeted

• Of the approximately $29bn worth of Latin American deals during the first half of the year, inbound deals represented 17.7% at just
over $5bn. The majority of these inbound deals came out of Europe, which represents a massive 78% of inbound deal values.
• Actual inbound deal activity stood at 61 deals, or approximately 37% of total LatAm deal activity. 55.8% of these deals involved
European bidders, while North America represented about 36% of deal flow into Latin America.
• Almost a third of all inbound deals focused on targets in the Industrials & Chemicals sector, yet these deals only represented 2.2% of
total values. Energy on the other hand saw 13 deals, or 21.3% of inbound deal activity, but represented more than half of all inbound
values. An example was Swiss mining giant Xstrata’s $2bn acquisition of local rival Glencore International’s Prodeco operations in
Colombia.

Press Release: mergermarket Latin American M&A Round-up for H1 2009 2 www.mergermarket.com
Brazil: League Tables of Financial Advisors
League Table of Financial Advisors to Latin American M&A: Value League Table of Financial Advisors to Latin American M&A: Volume
Y/E 2008 H1 2009 House Value (US$m) Deal Count Y/E 2008 H1 2009 House Value (US$m) Deal Count
6 1 UBS Investment Bank 10,865 10 1 1 UBS Investment Bank 10,865 10
1 2 Rothschild 8,452 4 6 2 Morgan Stanley 4,882 6
8 3 Banco Bradesco 5,770 5 2 3 JPMorgan 2,004 6
2 4 Morgan Stanley 4,882 6 14 4 Banco Bradesco 5,770 5
3 5 Credit Suisse 4,279 5 3 5 Credit Suisse 4,279 5
5 6 Citigroup 3,421 5 4 6 Citigroup 3,421 5
24 7 BNP Paribas 2,186 2 5 7 Rothschild 8,452 4
- 8 Vergent Partners 2,177 1 15 8 Santander Global Banking and Markets 1,796 3
64 9 Deutsche Bank 2,080 2 7 9 Goldman Sachs 953 3
4 10 JPMorgan 2,004 6 17 10 BNP Paribas 2,186 2
- 11 Banco Fator 1,895 1 36 11 Deutsche Bank 2,080 2
20 12 Santander Global Banking and Markets 1,796 3 45 12 Estater Assessoria Financeira 1,744 2
22 13 Estater Assessoria Financeira 1,744 2 47 13 HSBC Bank 1,606 2
29 14 HSBC Bank 1,606 2 9 14 PricewaterhouseCoopers 658 2
32 15= Banco Bilbao Vizcaya Argentaria 1,606 1 8 15 Bank of America Merrill Lynch 536 2
19 15= Royal Bank of Scotland Group 1,606 1 - 16 Vergent Partners 2,177 1
7 17 Goldman Sachs 953 3 - 17 Banco Fator 1,895 1
11 18 PricewaterhouseCoopers 658 2 23 18= Banco Bilbao Vizcaya Argentaria 1,606 1
46 19 Singular Partners 658 1 11 18= Royal Bank of Scotland Group 1,606 1
10 20 Bank of America Merrill Lynch 536 2 32 20 Singular Partners 658 1

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Latin America: League Tables of Legal Advisors
League Table of Legal Advisors to Latin American M&A: Value League Table of Legal Advisors to Latin American M&A: Volume
Y/E 2008 H1 2009 House Value (US$m) Deal Count Y/E 2008 H1 2009 House Value (US$m) Deal Count
8 1 Machado Meyer Sendacz e Opice 11,580 9 2 1 Mattos Filho, Veiga Filho, Marrey Jr. e Quiroga Advogados 3,978 14
15 2 Simpson Thacher & Bartlett 7,427 3 4 2 Machado Meyer Sendacz e Opice 11,580 9
21 3 Freshfields Bruckhaus Deringer 6,743 4 3 3 Pinheiro Neto Advogados 2,973 7
1 4 Barbosa, Mussnich & Aragao 6,054 5 1 4 Barbosa, Mussnich & Aragao 6,054 5
110 5= Bocater, Camargo, Costa e Silva Advogados 4,583 1 12 5 Muniz Ramirez Perez-Taiman & Luna-Victoria 117 5
- 5= Fontes, Tarso Ribeiro Advogados 4,583 1 11 6 Rodrigo Elias & Medrano 43 5
4 7 Mattos Filho, Veiga Filho, Marrey Jr. e Quiroga Advogados 3,978 14 41 7 Freshfields Bruckhaus Deringer 6,743 4
6 8 Skadden Arps Slate Meagher & Flom 3,690 3 9 8 Souza, Cescon Avedissian, Barrieu e Flesch Advogados 3,106 4
36 9 Souza, Cescon Avedissian, Barrieu e Flesch Advogados 3,106 4 8 9 Shearman & Sterling 2,742 4
7 10 Pinheiro Neto Advogados 2,973 7 7 10 Tozzini Freire Teixeira E Silva Advogados 1,549 4
2 11 Shearman & Sterling 2,742 4 112 11 Xavier Bernardes Braganca 828 4
177 12 Pinheiro Guimaraes Advogados 2,164 1 25 12 Simpson Thacher & Bartlett 7,427 3
- 13= Conyers Dill & Pearman 2,000 1 15 13 Skadden Arps Slate Meagher & Flom 3,690 3
- 13= Slaughter and May 2,000 1 14 14 Cleary Gottlieb Steen & Hamilton 1,213 3
- 15= D'Empaire Reyna Bermudez Abogados 1,970 1 59 15 CMS - 3
- 15= Mitrani Caballero Ojam 1,970 1 - 16 Velloza, Girotto e Lindenbojm Advogados Associados 1,966 2
- 17 Velloza, Girotto e Lindenbojm Advogados Associados 1,966 2 60 17 Motta Fernandes Rocha Advogados 1,284 2
24 18 Franca e Nunes Pereira Advogados 1,895 1 38 18 Uria Menendez 374 2
- 19= Allens Arthur Robinson 1,606 1 51 19 Demarest e Almeida 89 2
142 19= Gilbert + Tobin 1,606 1 42 20= Dewey & LeBoeuf 45 2
* Includes lapsed and withdrawn bids 135 20= Kramer Levin Naftalis & Frankel 45 2

Press Release: mergermarket Latin American M&A Round-up for H1 2009 4 www.mergermarket.com
Latin America: M&A Activity Table H1 2009
Activity Table of Latin American M&A H1 2009
Announced Bidder Company Bidder Financial Bidder Legal Advisor Target Company Target/Seller Financial Target/Seller Legal Advisor Seller Company Deal Value
Date Advisor Advisor (US$m)
19-May-09 Perdigao SA UBS Investment Bank Bocater, Camargo, Costa Sadia SA Banco Bradesco; Barbosa, Mussnich & Aragao; Fontes, 4,583
e Silva Advogados; Rothschild Tarso Ribeiro Advogados; Freshfields
Machado Meyer Sendacz Bruckhaus Deringer
e Opice; Simpson
Thacher & Bartlett

20-Apr-09 BTG Investments LP Skadden Arps Slate Banco UBS Pactual SA Advising Seller: UBS Advising Seller: Machado Meyer UBS AG 2,500
Meagher & Flom Investment Bank Sendacz e Opice; Simpson Thacher
& Bartlett

23-Apr-09 Cemig Geracao e Morgan Stanley Machado Meyer Sendacz Terna Participacoes SA Advising Seller: Credit Advising Seller: Souza, Cescon Terna - Rete Elettrica 2,177
Transmissao SA e Opice; Pinheiro Suisse; Rothschild; Avedissian, Barrieu e Flesch Nazionale SpA
Guimaraes Advogados Vergent Partners Advogados

29-Jan-09 Xstrata Coal South America Deutsche Bank; Conyers Dill & Pearman; Glencore International Advising Seller: Morgan Advising Seller: Slaughter and May Glencore International AG 2,000
Ltd Rothschild Freshfields Bruckhaus AG (Prodeco business Stanley
Deringer in Colombia)

07-May-09 Corporacion Venezolana de Siderurgica del Advising Seller: D'Empaire Reyna Ternium SA 1,970
Guayana Orinoco CA (59.70% Bermudez Abogados; Mitrani
stake) Caballero Ojam

09-Jan-09 Banco do Brasil SA Banco Fator; UBS Franca e Nunes Pereira Banco Votorantim Advising Seller: Machado Meyer Votorantim Financas 1,895
Investment Bank Advogados; Velloza, (50% stake) Sendacz e Opice
Girotto e Lindenbojm
Advogados Associados

15-Jun-09 Holcim Limited UBS Investment Bank Gilbert + Tobin Cemex Australia Pty Advising Seller: Advising Seller: Allens Arthur Cemex SA de CV 1,606
Ltd Banco Bilbao Vizcaya Robinson
Argentaria; BNP Paribas;
Citigroup; HSBC Bank;
Royal Bank of Scotland
Group; Santander Global
Banking and Markets

22-Jun-09 Duratex SA Satipel Industrial SA Credit Suisse 1,152

05-Mar-09 Votorantim Celulose e Estater Assessoria Bredin Prat; Motta Aracruz Celulose SA Citigroup; JPMorgan Pinheiro Neto Advogados; Advising Arainvest Participacoes SA 1,110
Papel SA Financeira Fernandes Rocha (28.03% stake) Seller: Barbosa, Mussnich & Aragao;
Advogados; Shearman Mattos Filho, Veiga Filho, Marrey
& Sterling; Tozzini Jr. e Quiroga Advogados; Pompeu,
Freire Teixeira E Silva Longo, Kignel & Cipullo Advogados;
Advogados Skadden Arps Slate Meagher & Flom

30-Jan-09 Construcoes e Comercio VBC Energia SA (50% Grupo Votorantim 1,110

Camargo Correa SA stake)

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Latin America: M&A Activity Trend
Latin American M&A Activity - Quarterly Latin American M&A Activity - Annual

60,000 180 120 600

160

50,000 100 500

140

40,000 120 80 400

Number of Deals

Number of Deals
Value (US$bn)
Value (US$m)

100

30,000 60 300

80

20,000 60 40 200

40

10,000 20 100

20

0 0 0 0
Q1 03 Q2 03 Q3 03 Q4 03 Q1 04 Q2 04 Q3 04 Q4 04 Q1 05 Q2 05 Q3 05 Q4 05 Q1 06 Q2 06 Q3 06 Q4 06 Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 2003 2004 2005 2006 2007 2008 H1 2009

Overall Value Mid-market Value Overall Volume Mid-market Volume Overall Value Mid-market Value (US$10m-US$250m) Overall Volume Mid-market Volume (US$10m-US$250m)

Latin American Cross-border M&A Activity - Quarterly Latin American Cross-border M&A Activity - Annual

30,000 80 45 250

40
70

25,000
200
35
60

20,000 30
50
150
Number of Deals

Number of Deals
Value (US$bn)
Value (US$m)

25

15,000 40

20

100
30

10,000 15

20
10
50
5,000

10
5

0 0 0 0
Q1 03 Q2 03 Q3 03 Q4 03 Q1 04 Q2 04 Q3 04 Q4 04 Q1 05 Q2 05 Q3 05 Q4 05 Q1 06 Q2 06 Q3 06 Q4 06 Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 2003 2004 2005 2006 2007 2008 H1 2009

Inbound Value Outbound Value Inbound Volume Outbound Volume Inbound Value Outbound Value Inbound Volume Outbound Volume

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Latin America: M&A Deal Size and Sector Breakdown
M&A Activity Trend Comparison - Annual Values M&A Activity Trend Comparison - Annual Volumes
(2003 =100) (2003 =100)

1,800 500

1,600 450

400
1,400

350
1,200

300

1,000

250

800

200

600
150

400
100

200
50

0 0
2003 2004 2005 2006 2007 2008 H1 2009 2003 2004 2005 2006 2007 2008 H1 2009

LatAm Brazil Mexico Chile Argentina Global LatAm Brazil Mexico Chile Argentina Global

Break up of Latin American M&A by Country: Value - Annual Break up of Latin American M&A by Country: Volume - Annual

100% 100%
4.2%
6.2% 8.0%
11.2% 2.7% 11.1%
1.4% 14.9% 1.5% 13.9%
19.0% 18.9% 17.3% 17.6% 17.6% 17.4%
90% 5.7% 90% 19.7%

13.8% 7.5% 13.0%

6.9% 10.8% 5.0%
80% 0.4% 80% 1.4%
3.4% 6.0%
0.4% 4.9% 8.8% 9.0% 7.3%
4.5% 2.3% 8.3%
9.9% 5.5% 7.2% 7.0% 1.9% 6.0%
12.6%
27.0%
70% 70% 12.0%
13.5%
13.3% 12.3% 12.8% 10.2%
Share of LatAm M&A Value

Share of LatAm M&A Volume

24.6%
60% 19.6%
60% 14.7% 8.0%
32.9% 10.2%
11.8%
9.7% 38.4% 12.9% 13.7% 13.8%
50% 50%
5.6% c
16.2%
16.8%
11.2%
40% 40% 23.0% 19.2%
18.0%
71.8% 73.5%

30% 30%
17.0%
49.6%
45.4% 46.4% 46.7%
20% 39.3% 20% 39.0%
34.0% 35.7%
28.7% 29.6% 30.2%

10% 20.3% 10%

0% 0%
2003 2004 2005 2006 2007 2008 H1 2009 2003 2004 2005 2006 2007 2008 H1 2009

Brazil Mexico Chile Argentina Colombia Other* Brazil Mexico Chile Argentina Colombia Other*

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Latin America and the World
Latin American M&A deal size breakdown - Value Latin American M&A deal size breakdown - Volume
600
120,000

500
100,000

400
80,000

Number of deals
Value (US$m)

300
60,000

200
40,000

100
20,000

0
0
2003 2004 2005 2006 2007 2008 H1 2009
2003 2004 2005 2006 2007 2008 H1 2009
Value not disclosed $5m - $14.9m $15m - $100m $101m - $250m $251m - $500m > $501m
$5m - $14.9m $15m - $100m $101m - $250m $251m - $500m > $501m

Mix of Latin American Deals by Industry Sector H1 2009 - Value Mix of Latin American Deals by Industry Sector H1 2009 - Volume

Agriculture
Real Estate 4.2%
Construction 2.2% Agriculture
Pharma, Medical & Biotech Real Estate
0.1% 6.7% 3.0%
2.5% Industrials & Chemicals
Transport 11.8% Construction Industrials & Chemicals
1.2% 3.0% 18.0%
Leisure Pharma, Medical & Biotech
0.7% 5.4%
Telecom
1.4% Transport
Media 3.6%
0.1% Leisure
2.4%

Financial Services Telecom

21.8% 2.4%
Financial Services
Media 12.0%
1.2%
Technology
1.2%
Energy, Mining & Utilities
29.4%

Business Services Business Services

1.0% 7.8%
Energy, Mining & Utilities
18.0%

Consumer
Consumer
20.9%
18.0%

Press Release: mergermarket Latin American M&A Round-up for H1 2009 8 www.mergermarket.com
Latin America and the World
Mix of Latin American Inbound Deals by Industry Sector H1 2009 - Value Mix of Latin American Inbound Deals by Industry Sector H1 2009 - Volume

Agriculture Industrials & Chemicals

6.8% 2.2% Agriculture
Construction 3.3%
Construction Financial Services 3.3%
0.4% 12.5% Pharma, Medical & Biotech
6.6%
Pharma, Medical & Biotech Industrials & Chemicals
12.8% 27.9%
Transport
Business Services 6.6%
5.3%

Consumer Technology
1.6% 1.6%
Transport
5.9%

Energy, Mining & Utilities Financial Services

21.3% 8.2%

Business Services
11.5%
Energy, Mining & Utilities Consumer
52.5% 9.8%

Mix of Latin American Inbound Deals by Target Geography H1 2009 - Value Mix of Latin American Inbound Deals by Target Geography H1 2009 - Volume

Africa & Middle East

South & Central Asia
1.6%
1.6%
Japan
4.9%
Northern Europe
4.9%

Southern Europe
12.6%
Western Europe North America
57.9% 36.1%

Southern Europe
18.0%

Northern Europe
7.5%

Japan
0.7%

North America
21.4%

Western Europe
32.8%

* GDP figures from IMF World Economic Outlook Database, April 2009 * GDP figures from IMF World Economic Outlook Database, April 2009

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Brazilian M&A roundup H1 2009
Brazilian M&A suffers overall decline despite improved second quarter Brazilian M&A Activity - Quarterly
• Total deal values in Brazil for H1 2009 are down by 43% compared to H1 2008. Brazilian M&A values stood at 30 80

$37.6bn on 112 deals in 2008, a drop of approximately $16bn to $ 21.4bn on 78 deals in 2009.
• Q2 2009 has however provided some respite as values are up by 144% on the first three months of the year. If 70
25
the high deal values seen in Brazil last year are excluded, the $15bn worth of deals recorded in Q2 2009 is the
highest total value in the region since Q1 2004. Overall, it has been the fifth highest value in a quarter since 60

2003. Deal volumes are also up by 36% compared to Q1, increasing from 33 to 45 deals.
20

Value of Deals (US$bn)

50
Valuations in Business Services and Telecoms deals hit hardest

Volume of Deals
• The Business Services sector saw a 90% drop in total deal values compared to the same period last year.
15 40
During H1 2008 the sector recorded 13 deals valued at just over $1bn compared to just $104m on nine deals
so far this year.
30
• Another sector that has felt the pinch of the global economic downturn is the Telecoms sector. H1 2008 10
saw three deals with a combined value of $8.2bn – so far this year TIM Participacoes’ $284m buy of Intelig
20
Telecomunicacoes has been the solitary deal in a sector usually driving M&A values in Brazil.
5
Agriculture boom proving attractive investment, ethanol remains vibrant 10

• Brazil’s agricultural exports reached a record $71.9bn in 2008, an increase of approximately 23% from
$58.5bn in 2007, according to the Brazilian Agricultural Ministry. It comes as no surprise then that the 0 0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
country has seen a significant increase in both the value as well as volumes of deals in this sector. 03 03 03 03 04 04 04 04 05 05 05 05 06 06 06 06 07 07 07 07 08 08 08 08 09 09

• For all of 2008, Agriculture deals represented 0.3% of Brazilian deal values and 1.8% of deal volumes or four Overall Value Mid-market Value (US$10m-US$250m) Overall Volume Mid-market Volume (US$10m-US$250m)

deals worth a combined $224m. Six months later, the sector now accounts for 7.5% of deal values and 6.4%
of deal volumes.
• Ethanol will remain a sector of great interest during the remaining 6 months of the year with the likes of BP Brazilian Cross-border M&A Activity - Quarterly
25 30
Biofuels, the Ethanol subsidiary of UK-based BP, evaluating acquisition opportunities in the Brazilian ethanol
market. The company intends to invest $1bn in the Brazilian ethanol market and create a multicluster
structure in Brazil to achieve a crushing capacity of 80m to 100m tons of sugarcane per year.
25
20
League table analysis
• UBS finishes the first half of the year on top of the Brazilian league table rankings by both value and volume.
20

Value of Deals (US$bn)

The firm worked on six deals valued at $9.2bn, a full $3bn more than Rothschild, last year’s top adviser in

Volume of Deals
15
value terms, in second on $6bn. With $5.7bn worth of deals Banco Bradesco is the only local firm to be
ranked inside the top five by value. The banking group has been the second most active in the region on five
15
deals, just ahead of Credit Suisse in third.
• In stark contrast to the financial advisory league tables, Brazilian law firms take centre stage in the legal 10

tables. With the exception of Simpson Thacher & Bartlett and Freshfields Bruckhaus Deringer the top five 10

firms by value and volume are represented by local firms. Machado Meyer tops the value table, having
worked on nine deals valued at $11.6bn so far this year. Last year’s front runner by value, Barbosa, Mussnich 5
& Aragao, is ranked in third on just over $6bn worth of deals. Despite having worked on only two deals thus 5

far, Simpson Thacher takes second place in value terms after being mandated on the two largest deals in the
region to date.
0 0
• São Paolo based Mattos Filho has been the most active firm during H1 2009, working on 14 deals valued Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
at just under $4bn. Pinheiro Neto continues to maintain its 2008 ranking as the third most active firm with 03 03 03 03 04 04 04 04 05 05 05 05 06 06 06 06 07 07 07 07 08 08 08 08 09 09

seven deals worth $3bn. Inbound Value Outbound Value Inbound Volume Outbound Volume

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Brazil: M&A Activity Table H1 2009
Activity Table of Brazilian M&A H1 2009
Announced Bidder Company Bidder Financial Advisor Bidder Legal Advisor Target Company Target/Seller Target/Seller Legal Advisor Seller Company Deal Value
Date Financial Advisor (US$m)
19-May-09 Perdigao SA UBS Investment Bank Bocater, Camargo, Costa e Sadia SA Banco Bradesco; Barbosa, Mussnich & Aragao; Fontes, Anglo American Plc 4,583
Silva Advogados; Machado Rothschild Tarso Ribeiro Advogados; Freshfields
Meyer Sendacz e Opice; Bruckhaus Deringer
Simpson Thacher & Bartlett
20-Apr-09 BTG Investments LP Skadden Arps Slate Banco UBS Pactual Advising seller: UBS Advising seller: Machado Meyer UBS AG 2,500
Meagher & Flom SA Investment Bank Sendacz e Opice; Simpson Thacher
& Bartlett
23-Apr-09 Cemig Geracao e Morgan Stanley Machado Meyer Sendacz e Terna Participacoes Advising seller: Credit Advising seller: Souza, Cescon Terna - Rete Elettrica 2,164
Transmissao SA Opice; Pinheiro Guimaraes SA Suisse; Rothschild; Avedissian, Barrieu e Flesch Nazionale SpA
Advogados Vergent Partners Advogados
9-Jan-09 Banco do Brasil SA Banco Fator; UBS Franca e Nunes Pereira Banco Votorantim Advising seller: Machado Meyer Votorantim Financas 1,895
Investment Bank Advogados; Velloza, (50% stake) Sendacz e Opice
Girotto e Lindenbojm
Advogados Associados
22-Jun-09 Duratex SA Satipel Industrial SA Credit Suisse 1,152
5-Mar-09 Votorantim Celulose e Estater Assessoria Bredin Prat; Motta Aracruz Celulose SA Citigroup; JPMorgan Pinheiro Neto Advogados; Advising Arainvest 1,110
Papel SA Financeira Fernandes Rocha (28.03% stake) Seller: Barbosa, Mussnich & Aragao; Participacoes SA
Advogados; Shearman Mattos Filho, Veiga Filho, Marrey
& Sterling; Tozzini Freire Jr. e Quiroga Advogados; Pompeu,
Teixeira E Silva Advogados Longo, Kignel & Cipullo Advogados;
Skadden Arps Slate Meagher & Flom
30-Jan-09 Construcoes e Comercio VBC Energia SA (50% Grupo Votorantim 1,110
Camargo Correa SA stake)
30-Jan-09 Vale SA Cleary Gottlieb Steen Rio Tinto plc Advising seller: Lawson Lundell Rio Tinto Plc 750
& Hamilton; Kanuka (Corumba iron ore Lawson & McIntosh; Linklaters
Thuringer; Levy & Salomao; mine and associated
Osler, Hoskin & Harcourt river logistics
operations)
4-Jun-09 Banco Bradesco SA Banco Bradesco Xavier Bernardes Braganca Banco IBI Advising seller: Credit Advising seller: Pinheiro Neto Cofra Holding AG 723
Suisse Advogados
9-Apr-09 Sanofi-Aventis SA PricewaterhouseCoopers Gouvea Vieira; Pinheiro Medley S/A Industria Singular Partners Madrona Hong Mazzuco Kawamura; 658
Neto Advogados Farmaceutica Mattos Filho, Veiga Filho, Marrey Jr. e
Quiroga Advogados

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Brazil: League Tables of Financial Advisors
League Table of Financial Advisors to Brazilian M&A: Value League Table of Financial Advisors to Brazilian M&A: Volume
Y/E 2008 H1 2009 House Value (US$m) Deal Count Y/E 2008 H1 2009 House Value (US$m) Deal Count
6 1 UBS Investment Bank 9,214 6 1 1 UBS Investment Bank 9,214 6
1 2 Rothschild 6,008 2 10 2 Banco Bradesco 5,770 5
8 3 Banco Bradesco 5,770 5 2 3 Credit Suisse 4,266 5
3 4 Credit Suisse 4,266 5 4 4 JPMorgan 1,854 5
2 5 Morgan Stanley 2,697 3 6 5 Morgan Stanley 2,697 3
- 6 Vergent Partners 2,164 1 5 6 Rothschild 6,008 2
- 7 Banco Fator 1,895 1 27 7 Estater Assessoria Financeira 1,744 2
7 8 JPMorgan 1,854 5 7 8 Goldman Sachs 803 2
14 9 Estater Assessoria Financeira 1,744 2 8 9 PricewaterhouseCoopers 658 2
4 10 Citigroup 1,110 1 - 10 Vergent Partners 2,164 1
5 11 Goldman Sachs 803 2 - 11 Banco Fator 1,895 1
11 12 PricewaterhouseCoopers 658 2 3 12 Citigroup 1,110 1
30 13 Singular Partners 658 1 21 13 Singular Partners 658 1
- 14 Valuation Consultoria Empresarial 249 1 - 14 Valuation Consultoria Empresarial 249 1
- 15= Genuity Capital Markets 200 1 - 15= Genuity Capital Markets 200 1
- 15= National Bank Financial 200 1 - 15= National Bank Financial 200 1

Press Release: mergermarket Latin American M&A Round-up for H1 2009 12 www.mergermarket.com
Brazil: League Tables of Legal Advisors
League Table of Legal Advisors to Brazilian M&A: Value League Table of Legal Advisors to Brazilian M&A: Volume
Y/E 2008 H1 2009 House Value (US$m) Deal Count Y/E 2008 H1 2009 House Value (US$m) Deal Count
7 1 Machado Meyer Sendacz e Opice 11,580 9 2 1 Mattos Filho, Veiga Filho, Marrey Jr. e Quiroga Advogados 3,978 14
39 2 Simpson Thacher & Bartlett 7,083 2 4 2 Machado Meyer Sendacz e Opice 11,580 9
1 3 Barbosa, Mussnich & Aragao 6,054 5 3 3 Pinheiro Neto Advogados 2,973 7
19 4 Freshfields Bruckhaus Deringer 4,743 2 1 4 Barbosa, Mussnich & Aragao 6,054 5
49 5= Bocater, Camargo, Costa e Silva Advogados 4,583 1 6 5 Tozzini Freire Teixeira E Silva Advogados 1,549 4
- 5= Fontes, Tarso Ribeiro Advogados 4,583 1 54 6 Xavier Bernardes Braganca 828 4
3 8 Mattos Filho, Veiga Filho, Marrey Jr. e Quiroga Advogados 3,978 14 11 7 Skadden Arps Slate Meagher & Flom 3,690 3
8 7 Skadden Arps Slate Meagher & Flom 3,690 3 7 8 Souza, Cescon Avedissian, Barrieu e Flesch Advogados 2,798 3
5 9 Pinheiro Neto Advogados 2,973 7 48 9 Simpson Thacher & Bartlett 7,083 2
20 10 Souza, Cescon Avedissian, Barrieu e Flesch Advogados 2,798 3 21 10 Freshfields Bruckhaus Deringer 4,743 2
82 11 Pinheiro Guimaraes Advogados 2,164 1 - 11 Velloza, Girotto e Lindenbojm Advogados Associados 1,966 2
- 12 Velloza, Girotto e Lindenbojm Advogados Associados 1,966 2 8 12 Shearman & Sterling 1,744 2
16 13 Franca e Nunes Pereira Advogados 1,895 1 22 13 Motta Fernandes Rocha Advogados 1,284 2
2 14 Shearman & Sterling 1,744 2 17 14 Demarest e Almeida 89 2
15 15 Tozzini Freire Teixeira E Silva Advogados 1,549 4 - 15 Trench, Rossi & Watanabe 43 2
* Includes lapsed and withdrawn bids

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Brazil: M&A Deal Value and Sector Breakdown
Mix of Brazilian Deals by Deal Size - Value Mix of Brazilian Deals by Deal Size - Volume
80 250

70

200
60
Value of Deals (US$bn)

50

Volume of Deals
150

40

100
30

20
50

10

0 0
2003 2004 2005 2006 2007 2008 H1 2009 2003 2004 2005 2006 2007 2008 H1 2009

US$5m-US$14.9m US$15m-US$100m US$101m-US$250m US$251m-US$500m > US$501m Value not disclosed US$5m-US$14.9m US$15m-US$100m US$101m-US$250m US$251m-US$500m > US$501m

Mix of Brazilian Deals by Industry Sector H1 2009 - Value Mix of Brazilian Deals by Industry Sector H1 2009 - Volume
Agriculture Industrials & Chemicals Agriculture
7.5% 6.2% 6.4% Industrials & Chemicals
11.5%
Real Estate Real Estate
3.0% 5.1%
Pharma, Medical & Biotech
3.2% Construction
Transport
1.4% 2.6%

Leisure Pharma, Medical & Biotech

0.9% 3.8%
Telecom
1.3% Financial Services
Financial Services Transport 15.4%
28.3% 5.1%

Leisure
2.6%

Telecom
Energy, Mining & Utilities 1.3% Media
21.3% 1.3%
Technology
1.3%

Business Services
11.5%
Business Services
0.5%
Energy, Mining & Utilities
14.1%

Consumer Consumer
26.4% 17.9%

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Brazil: Inbound M&A Sector and Geography Breakdown
Mix of Brazilian Inbound Deals by Industry Sector H1 2009 - Value Mix of Brazilian Inbound Deals by Industry Sector H1 2009 - Volume
Agriculture Industrials & Chemicals Agriculture
0.6% 0.5% Construction 4.0%
4.0% Industrials & Chemicals
16.0%

Financial Services Pharma, Medical & Biotech

23.8% 8.0%

Pharma, Medical & Biotech

34.8%
Transport Financial Services
8.0% 8.0%

Business Services
4.2%

Consumer
1.1%

Business Services
20.0%
Energy, Mining & Utilities
24.0%

Energy, Mining & Utilities

Transport 21.9%
13.0%
Consumer
8.0%

Mix of Brazilian Inbound Deals by Bidder Geography H1 2009 - Value Mix of Brazilian Inbound Deals by Bidder Geography H1 2009 - Volume
Northern Europe Japan
1.6% Japan
0.9%
8.0%

Southern Europe Northern Europe

15.4% 4.0%

North America
34.8% Southern Europe North America
12.0% 36.0%

Western Europe
47.3% Western Europe
40.0%

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Mexican M&A roundup H1 2009

Mexican M&A Activity - Quarterly Mexican Cross-border M&A Activity - Quarterly

40,000 35 18,000 20

18
16,000
35,000
30

16
14,000
30,000
25
14
12,000

25,000
12

Number of Deals

Number of Deals
20
Value (US$m)

Value (US$m)
10,000

20,000 10

8,000
15
8
15,000
6,000
6
10
10,000
4,000
4

5
5,000
2,000
2

0 0 0 0
Q1 03 Q2 03 Q3 03 Q4 03 Q1 04 Q2 04 Q3 04 Q4 04 Q1 05 Q2 05 Q3 05 Q4 05 Q1 06 Q2 06 Q3 06 Q4 06 Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q1 03 Q2 03 Q3 03 Q4 03 Q1 04 Q2 04 Q3 04 Q4 04 Q1 05 Q2 05 Q3 05 Q4 05 Q1 06 Q2 06 Q3 06 Q4 06 Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09

Overall Value Mid-market Value Overall Volume Mid-market Volume Inbound Value Outbound Value Inbound Volume Outbound Volume

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Mexico: M&A Activity Table H1 2009
Activity Table of Russian M&A H1 2009
Announced Bidder Company Bidder Financial Bidder Legal Advisor Target Company Target/Seller Financial Target/Seller Legal Seller Company Deal Value
Date Advisor Advisor Advisor (US$m)
15-Jun-09 Holcim Limited UBS Investment Gilbert + Tobin Cemex Australia Pty Ltd Advising Seller: Banco Advising Seller: Allens Cemex SA de CV 1,606
Bank Bilbao Vizcaya Argentaria; Arthur Robinson
BNP Paribas; Citigroup;
HSBC Bank; Royal Bank of
Scotland Group; Santander
Global Banking and
Markets
08-May-09 Grupo Lala SA De CV Rothschild Cleary Gottlieb Steen & National Dairy Holdings Advising Seller: SunTrust Advising Seller: Baker Dairy Farmers of America 435
Hamilton LP Robinson Humphrey Botts Inc
Capital Markets

02-Apr-09 Caja de Ahorros del KPMG Abogados Credito Inmobiliario GMAC-RFC Auritec SA 195
Mediterraneo Terras

19-Mar-09 Grupo Financiero JPMorgan Inter National Bank (30% 150

Banorte SA de CV stake)

27-Feb-09 GE Energy Financial Vinson & Elkins ATP Innovator (49% Advising Seller: Goldman ATP Oil & Gas Corporation 150
Services Inc stake) Sachs; SMH Capital
28-Jan-09 Grupo Nacional de Nutresa SA de CV 94
Chocolates SA
15-Jun-09 Martin Marietta Materials Cemex Inc (three US Cemex SA de CV 65
Inc quarries); and Granit
Canyon quarry (Cemex
Inc and Martin Marietta
Materials Joint Venture)
(49% stake)
21-Jan-09 Alfonso Nacer Gobera El Financiero 42
(Private Investor); and
Jorge Nacer Gobera
(Private investor)
25-May-09 Cie Berriz de Mexico SA Internal Uria Menendez Pemsa - Pintura, CIE DESC AUTOMOTIVE, 30
de CV Estampado y Montaje SAPI de CV
SA de CV
30-Mar-09 Metronet SA de CV Fried Frank Harris Shriver & Diveo Broadband Hogan & Hartson Diveo Broadband 25
Jacobson; Latham & Watkins Networks Inc (Mexican Networks Inc
Subsidiaries)

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Mexico: M&A Deal Value and Sector Breakdown
Mexican M&A deal size breakdown - Value Mexican M&A deal size breakdown - Volume
100
45,000
> $501m
> $501m $251m - $500m
$251m - $500m 90 $101m - $250m
40,000 $101m - $250m $15m - $100m
$15m - $100m $5m - $14.9m
$5m - $14.9m 80 Value not disclosed
35,000

70

30,000

Number of deals
60
Value (US$m)

25,000
50

20,000
40

15,000
30

10,000 20

5,000 10

0
0
2003 2004 2005 2006 2007 2008 H1 2009
2003 2004 2005 2006 2007 2008 H1 2009

Mix of Mexican Deals by Industry Sector H1 2009 - Value Mix of Mexican Deals by Industry Sector H1 2009 - Volume

Telecom Industrials & Chemicals Transport

4.4% 8.0% 4.3%
Telecom
Media
4.3%
7.4%
Media
4.3%

Consumer
8.7%
Industrials & Chemicals
39.1%
Consumer
17.7%

Financial Services
34.5% Energy, Mining & Utilities
8.7%

Pharma, Medical & Biotech

13.0%

Energy, Mining & Utilities

28.0% Financial Services
17.4%

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Criteria
All data is based on transactions over US$5m announced between 1 January 2009 and 30 June 2009, About mergermarket
unless stated otherwise. Deals with undisclosed deal values are included where the target’s turnover
exceeds US$10m. Deals where the stake acquired is less than 30% will only be included if their value mergermarket is a mergers & acquisitions (M&A) intelligence service.
is greater than US$100m. Activities excluded from the league tables include property transactions
mergermarket is part of The Mergermarket Group which has over 450 employees worldwide
and restructurings where the ultimate shareholders’ interests are not changed.
and regional head offices in New York, London and Hong Kong.
The M&A activity tables and league tables are based on the dominant geography of any of the
In any market, the life blood of advisers is deal flow. mergermarket is unique in the provision
target, bidder or seller. The overall trend graphs and pie charts are based on the dominant
of origination intelligence to the investment banking, legal, private equity, acquisition
geography of the target only; while the cross-border trend graphs and pie charts are based on
finance, public relations (PR) and corporate markets.
the dominant geography of the target and the bidder. All sector breakdowns are based on the
dominant sector of the target only. With an unrivalled network of analysts covering M&A in the Americas, Europe, Middle-East,
Africa and Asia-Pacific, mergermarket generates proprietary intelligence and delivers it
The trend graphs are based on transactions announced in the given time periods.
together with daily aggregated content, on its mergermarket.com platform and by real-time
For this report, “inbound” refers to deals where the dominant geography of the target is the email alerts to subscribers.
indicated country and the dominant geography of the bidder is outside of the indicated country;
This wealth of intelligence, together with a series of deal databases, individual and house
“outbound” refers to deals where the dominant geography of the target is outside of the indicated
league tables, profiles and editorial have proven time and time again that this product
country and the dominant geography of the bidder is the indicated country. “Mid-market” refers to
can and does generate real revenues for clients. This is apparent when you see that
deals valued between US$10m and US$250m.
mergermarket is used by over 1500 of the world’s foremost advisory firms to assist in their
Unless stated otherwise, all data excludes lapsed and withdrawn bids. origination process.

All data correct as of 14 July, 2009.

Contact:
Hannah Bagshawe
hannah.bagshawe@mergermarket.com
Tel: +44 20 7059 6118

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