Download: Chapman Tripp New Zealand Mergers and Acquisitions - trends and insights (2).pdf

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2015 was a mammoth year for global M&A, breaking 2007 records with global deal volumes above US$5 trillion. With a busy start to the year, 2016 looks set to continue 2015's theme of strong M&A volumes. Far from the usual summer doldrums, the M&A year opened strongly.

This publication explores likely trends and issues in the New Zealand M&A market this year.

Expected trends in 2016

  • Strong activity in the aged care, telecoms, primary products and energy sectors.
  • Strong private equity interest, bolstered by newly raised and hungry Australian and New Zealand funds.
  • China still in buy mode, particularly in primary products and tourism.
  • General offshore interest in New Zealand assets, particularly out of the US, driven by a weakening Kiwi dollar.
  • Banks keen to fund acquisitions, but pricing is now expected to be on an upward curve.
  • A developing taste for schemes of arrangement as an alternative to offers under the Takeovers Code.
  • Prospective local authority asset sales, with a focus on Christchurch City Council.
  • Overseas Investment Office (OIO) decision timeframes to remain an issue, but improving incrementally.
  • Premium increases for warranty and indemnity insurance and heightened underwriter scrutiny, following major claims in Australia.
  • Upcoming Base Erosion and Profit Shifting (BEPS) global tax changes will begin to impact valuation and transaction structuring.

Chapman Tripp's national M&A team partners with clients to successfully execute some of the biggest, most complex and challenging transactions in New Zealand. Our Corporate and Commercial team has advised on more M&A work than any other New Zealand firm, including many of New Zealand's most significant cross-border M&A deals.

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.