Mena M&As at 8-year high

dubai — The value of merger and acquisition (M&A) transactions with any Middle Eastern and North African involvement rose to an eight-year high $45.1 billion in the first nine months of 2018, 65 per cent more than the value recorded during the same period in 2017.

Data released by Refinitiv shows that deals with a Middle Eastern and North African target reached an all-time high rising to $27.1 billion, up 89 per cent from the same period in 2017 while inter-Mena or domestic deals were also up 106 per cent from the same 2017 period.

The upswing in M&A transactions has been driven by Saudi British Bank acquisition of the entire share of capital of Alawwal Bank for $5 billion. Mena inbound M&A currently stands at an all-time high raising to $13.1 billion while outbound M&A increased from $8.5 billion in the first nine months of 2017 to $12 billion so far this year, the report by Refinitiv, the financial and risk business division of Thomson Reuters, said.

Energy and power deals accounted for 28.9 per cent of Mena involvement M&A by value, followed by the financial sector with a 24.5 per cent market share but counting with 91 transactions, 32 more than the 59 recorded in the energy and power industry. Goldman Sachs currently leads the third quarter announced any Mena involvement M&A league table. JPMorgan and Morgan Stanley follow in second and third place.

According to the report, Mena investment banking fees totalled an estimated $684 million during the first nine months of 2018, eight per cent less than the value of fees recorded during the same period in 2017.

Debt capital markets underwriting fees totalled $180.5 million, down 13 per cent year-on-year but still the second highest fee volume for the region since our records began in 2000.

Equity capital markets fees increased 45 per cent to $74.8 million, a three-year high. Fees generated from completed M&A transactions totalled $101.6 million, a 44 per cent decrease from last year and the lowest first nine months since 2005. Syndicated loan fees reached $327 million, up eight from third quarter 2017.

The report said debt capital markets fees accounted for 26 per cent of the overall Mena investment banking fee pool, the second highest market share since 2001.