Offshore Deal Activity Up In 2013, Appleby Says

by Jason Gorringe, Tax-News.com, London

20 February 2014

Offshore deal volumes rose steadily throughout 2013 reaching a total twelve-month value surpassed only three times in the last decade, Appleby's latest Offshore-i report says.

The total value of deals in 2013 hit USD151bn, of which USD47.9bn was recorded in the fourth quarter – up 32 percent from the previous quarter.

There were eleven USD1bn-plus deals in Q4 2013, almost double the number in the previous quarter, including two worth over USD2bn. The average deal size in the final quarter of last year was USD79m.

Financial services and insurance continued to be the most active sector, while mining, quarrying and manufacturing continued to see significant activity.

Q4 2013 was a breakout year for Bermuda with the value of deals done on its shores doubling; its full-year total nearly equalled that of the Cayman Islands (USD15.6bn).

Offshore ranks sixth among world regions for deal volume in Q4 2013, fifth for deal value, and third for average deal size. Only North America and South and Central America record larger average deal sizes.

Looking at the volume of deals involving offshore targets, Appleby found that 29 percent of deals are completed by offshore buyers, 47 percent by investors, and 25 percent by companies from the rest of the world.

TAGS: Offshore | mining | insurance | Bermuda | Cayman Islands | offshore | manufacturing | services | North America | Central America