CVC looking for Middle East opportunity
LONDON: CVC Capital Partners is considering its first investment in the Middle East as Europe’s largest private equity company works to expand its business into new geographies, say sources.
The London-based buyout firm has considered potential targets including United Arab Emiratesbased shisha maker Al Fakher Tobacco Trading as well as education companies. CVC was also one of the companies considering a bid for a stake in property developer Emaar Properties PJSC’s entertainment division.
The buyout firm has been looking at opportunities to make full or partial investments in the Middle East for some time and is attracted by the region’s youngand-growing population, said a source.
A sharp drop in oil prices in the last few years and its impact on local economies has also pushed some businesses to look for investors.
Foreign bidders have been buying more assets in the Middle East and Africa in the last 12 months, agreeing to spend US$28.5 billion (RM119.58 billion) in the period, 26 per cent higher than the previous year, according to data compiled by Bloomberg.
Amazon.com Inc agreed to buy Dubai-based online retailer Souq.com in March in a bet that e-commerce in the region is poised to take off.
CVC has holdings worldwide, including in the United States, Sweden, Iceland and Malaysia. Bloomberg