Record M&A results: Firm tops Australasia in major league table

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Herbert Smith Freehills (HSF) has come out on top of the latest Thomson Reuters Legal Advisor M&A League Tables, ranking first by both deal volume and total value of announced deals across Australia and NZ.

The firm also ranked second in Asia Pacific, excluding Japan, for deal volume, and sixth for deal value.

And the news just continued to get better…the tables showed that Asia Pacific’s mergers and acquisitions market experienced its strongest period of deal activity since 1980 in the first nine months of 2014, with the total value of announced deals reaching US$566.3 billion.
 
HSF partner Rebecca Maslen-Stannage told NZ Lawyer: “It’s a great time to be an M&A lawyer”.

“It feels like more of a return to business as usual – but from a few years ago,” she says. “I think we’ve had cycle-related challenges in the past few years, and especially in the past two years we’ve been very focused on cost-cutting. But once people have done that, stabilised the business and got confidence back, they look to do strategic things.”

We’ve also seen some planets align, says Maslen-Stannage, and the availability of equity and debt at the same time meant it’s been a good period to make strategic decisions.

The partner also predicts that the current surge in activity can be sustained longer term because market conditions are continuing, the IPO pipeline is strong and a range of sectors are experiencing growth.

“We often go with the ‘Dinner Index’ (how many people are eating out). You can see what the pipeline is looking like. You’ve got to get to the restaurant early at the moment or the chicken schnitzel has run out.”

Thomson Reuters' latest league tables for Asia Pacific show that the financial sector was the Asia Pacific region’s most targeted for acquisitions in the first nine months of 2014, with more than 800 deals and a total deal value of US$98.7 billion, up from US$39.1 billion in the first nine months of 2013.

During that period, Australian M&A activity more than doubled, reaching US$84.9 billion – a 52.4% jump on the same period last year where deal value peaked at US$55.7 billion. Australian cross border activity rose to US$47.8 billion while outbound activity reached US$18.5 billion.
 
Maslen-Stannage says HSF performed particularly well on the league tables because M&A is a “real flagship” of the firm.

“We judge ourselves pretty harshly if we don’t get in on a deal,” she laughs.

The lawyer adds that HSF’s diverse cross-border work has been a great booster to its M&A ranking, which flows from its strategic decision to create a global platform.

HSF’s major deals for the first nine months of 2014 include advising:
  • David Jones on a proposed A$2.15 billion takeover by South Africa-based Woolworths;
  • PanAust in its response to the A$1.5 billion takeover proposal from Guandong Rising;
  • Goodman Fielder regarding its A$1.4 billion Scheme of Arrangement with Wilmar and First Pacific;
  • UGL Limited on the A$1.215 billion sale of DTZ;
  • Citi, Deutsche Bank, HSBC, the Royal Bank of Scotland and Standard Chartered Bank as joint lead managers on a US$1 billion dual-tranche note offering by state-run Oil India Limited.

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