Privatization Trends and Major Deals of 2011 and 1H2012

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far lower than the long-run average EU share of 43.0% and; (5) there were an exceptionally large number of failed, withdrawn, and cancelled privatization sales - worth at least $34.6 billion (€26.1 billion) - during 2011 due to the emergence of the Eurozone sovereign debt crisis and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