Mena M&A picks up
The M&A market in the Middle East and North Africa region is showing real signs of strength in 2018, with a flurry of big-ticket deals already announced this year, new data shows.
dubai — The mergers and acquisitions market in the Middle East and North Africa region is showing real signs of strength in 2018, with a flurry of big-ticket deals already announced this year, new data shows.
The recovery follows a year in which merger and acquisition deal value declined by 57.4 per cent, despite deal count maintaining a level that was consistent with the previous year.
In 2017, there were announcements of 126 deals worth $16 billion as compared to 129 deals in 2016 at a total value of $37.8 billion, according to data provided by Mergermarket.
The top-performing sectors for M&A in the region included financial services with 16 deals at a total value of $4.5 billion; industrials and chemicals with 13 deals valued at over $3.9 billion; and telecommunications with seven deals valued at over $3.2 billion, according to a report by Mergermarket.
“The M&A market in Mena is showing real signs of strength in 2018, with a flurry of big-ticket deals already announced this year. Greater stability in commodity markets and a need to innovate should put corporates in a position to be active throughout 2018,” said Jonathan Klonowski, Emea research editor at Mergermarket.
According to Intralinks Deal Flow Predictor, early-stage M&A activity in the region increased 14 per cent year-over-year in the fourth quarter of 2017, the fastest rate of growth in six quarters.
Intralinks predicts around three per cent growth in the number of M&A deals announced in first half of 2018. Strongest growth in deal announcements is expected to come from the healthcare, materials and consumer and retail sectors.
Mergermarket report said the most significant deals in these sectors included the $2.2 billion deal between Tronox and National Titanium Dioxide Company, Kingdom Holding Company’s $1.5 billion investment into Banque Saudi Fransi and the 12.1 per cent stake acquired in Mobile Telecommunications Company by Oman Telecommunications Company for $1.4 billion.
The worst-performing M&A sectors in the region included construction, with deal value falling from $1.3 billion in 2016 to just $59 million in 2017, despite consistent deal count. Other poor performing sectors included transport, which experienced a $5.6 billion drop in deal value, and technology.
— issacjohn@khaleejtimes.com