Privatization Trends and Major Deals of 2011 and 1H2012

17 Pages Posted: 28 Aug 2012

See all articles by William L. Megginson

William L. Megginson

University of Oklahoma

Bernardo Bortolotti

Bocconi University; University of Turin

Date Written: August 27, 2012

Abstract

This article details major privatization deals executed during 2011 and the first half of 2012 and surveys trends shaping the privatization landscape worldwide. We document several important facts, including the following: Governments raised only $94.4 billion (€68.2 billion) through privatization sales during 2011, less than half the record $213.6 billion (€159.9 billion) raised during 2010; Share issue privatizations (SIPs) accounted for roughly half (47%) of this total - far lower than usual and the three-quarter share of world privatizations SIPs accounted for in 2010 - though 2011’s largest deal was the $8.70 billion (€6.13 billion) AIG seasoned equity offering in May; China regained its traditional position as the country that raised more proceeds [19 deals worth $14.2 billion (€10.2 billion)] through privatization sales than any other, followed by Australia, the United States, Russia, and Ireland - the leading EU privatizer of 2011; The €19.5 billion ($26.4 billion) raised by EU governments represented only 27.9% of the worldwide total, far lower than the long-run average EU share of 43.0% and; (5) there were an exceptionally large number of failed, withdrawn, and cancelled privatization sales - worth at least $34.6 billion (€26.1 billion) - during 2011 due to the emergence of the Eurozone sovereign debt crisis and the resulting freeze-up of global financial markets.

Keywords: privatization, government ownership

JEL Classification: G32

Suggested Citation

Megginson, William L. and Bortolotti, Bernardo, Privatization Trends and Major Deals of 2011 and 1H2012 (August 27, 2012). Available at SSRN: https://ssrn.com/abstract=2136779 or http://dx.doi.org/10.2139/ssrn.2136779

William L. Megginson (Contact Author)

University of Oklahoma ( email )

307 W Brooks, 205A Adams Hall
Norman, OK 73019
United States
(405) 325-2058 (Phone)
(405) 325-1957 (Fax)

HOME PAGE: http://faculty-staff.ou.edu/M/William.L.Megginson-

Bernardo Bortolotti

Bocconi University ( email )

Via Sarfatti 25
Milan, MI 20136
Italy

University of Turin

Via Po 53
Torino, Turin - Piedmont 10100
Italy

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