Big and small

The growing economy combined with low interest rates and an increasing willingness on the part of banks to lend, is translating into an increased corporate appetite for M&A transactions. Reports show a healthy and steady boost in deal volumes over the past 12 months, with interest from both listed corporates and private firms looking to expand operations and diversify earnings.

2014 was characterised by small to mid-sized transactions, in both the trade and financial sponsor spheres, punctuated by a small but growing number of major deals such as Beijing Capital Group's $950m purchase of Waste Management from Transpacific Industries, and Oji/INCJ's $1.037b acquisition of Rank Group's Carter Holt Harvey Pulp & Paper business.

This trend looks set to continue in 2015, with domestic corporates pursuing strategic acquisitions (often involving vendors dealing with generational transition) and New Zealand private equity firms focusing on investments in the up to $100m segment. Blockbuster deals approaching or exceeding the $1b threshold will likely continue to be the preserve of offshore purchasers.

The information in this article is for informative purposes only and should not be relied on as legal advice. Please contact Chapman Tripp for advice tailored to your situation.