GIC, Temasek drive state owned-funds’ $24.6b M&A spree in Q3

Photo: Reuters

Sovereign wealth funds increased their merger and acquisition activity to $24.6 billion in the third quarter, propelled by deals involving Singapore’s GIC Pte and Temasek Holdings as well as China Investment Corp.

Such state-owned funds were involved in 49 announced deals, up from 46 with a total value of $15.5 billion in the previous quarter, Refinitiv data showed. The bumper second-quarter total was the highest since the $35.8 billion hit in Q2 2018.

The fourth quarter is also gearing up to be a bumper period for deals, with Abu Dhabi Investment Authority this month involved in a 10.2 billion Swiss francs ($10.3 billion) deal to buy Nestlé’s Nestlé Skin Health.

The largest deal during the third quarter involved GIC and Canada’s Brookfield Asset Management agreeing to buy U.S. freight railroad owner Genesee & Wyoming Inc (GWR.AX) in a deal valued at about $8.7 billion including debt, according to Refinitiv data.

“This kind of business is stable and provides security in times of big uncertainty over returns and yields,” said Javier Capapé, director of the sovereign wealth research at IE Center for the Governance of Change.

GIC also participated in taking private New York-listed Tallgrass Energy, alongside Blackstone Infrastructure Partners and Enagás.

The deal showed GIC’s interest in exploring private assets, which fit better in long-term investment strategies, while also tapping opportunities in the U.S. shale industry, said Capapé.

Despite uncertainty about Britain’s planned exit from the European Union, several of the deals involved British assets.

Saudi Arabian sovereign wealth fund Public Investment Fund invested $550 million in Babylon Healthcare Services, while Abu Dhabi Investment Authority agreed to take a 30% stake in British home appliance care specialist Domestic & General.

Reuters

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.