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MENA M&A volumes ramp up in 1Q12; values lag
By Michel El Maalouly, M&A Analyst, Zawya
10 April 2012
The number of mergers and acquisitions in the MENA region increased 44.82% in the first quarter of 2012 compared to 1Q11, but deal values declined.
MENA M&A Q1 2012 Volume vs. Value:
MENA M&A activity rallied in terms of volume in Q1 2012, reaching a total of 126 transactions, compared to 86 deals in Q1 2011, an increase of 44.82%. On the other hand, overall deal value declined by 48.36% to an aggregate USD 8.842 billion, compared to USD 15.573 billion in the same period of 2011.
Source: Zawya M&A Monitor
MENA M&A Q1 2012 Location Analysis
Source: Zawya M&A Monitor
GCC topped the M&A tables with 47 targeted deals for a total value of USD 2.708 billion. North Africa scored 44 deals with an aggregate value of USD 1.452 billion; the remaining 14 deals took place in the Levant with a total value of USD 127 million, mainly due to International Finance Corporation's acquisition of a 25% equity stake in Medgulf Holding for USD 124 million.
Source: Zawya M&A Monitor
MENA M&A Q1 2012 Country Analysis
In volume terms, Egypt led with 28 transactions, taking 29% of the total M&A deals. The UAE with 20 transactions and Morocco with 13 deals took 19% and 12%, respectively. This structure is reshuffled when talking about value. The UAE took first place with an aggregate USD 2.47 billion primarily due to Centurion Investments' acquisition of 40% of UAE Exchange Centre for USD 2 billion; Egypt and Morocco followed with USD 1.153 billion and USD 293 million, respectively.
Source: Zawya M&A Monitor
MENA M&A Q1 2012 Sector Analysis
Financial services scored 36 M&A transactions, constituting 28% of the total. In an altered trend, the food and beverages sector followed with 17 deals, for a total of 13% of activity. The industrial manufacturing sector saw 12 transactions.
Source: Zawya M&A Monitor
In terms of value too, the financial services sector surpassed all others with USD 4.851 billion, followed by telecommunications with USD 973.15 million, driven by France Telecom' in-process acquisition of 29% equity stake in Egyptian Company for Mobile Services for USD 973.15 million. Oil and gas scored USD 852 million.
Source: Zawya M&A Monitor
The following Zawya analysts contributed to this report: Lara Ghibril Team Leader, Nadine Sharrouf IPO Analyst
The following article was originally contributed to Zawya's M&A Newsletter.
Related Content:
MENA M&A volume rises but value remains stagnant
MENA M&A Report: 1H2011 Update: Shrugging off the effects of the Arab Spring
For more information, please contact the writer:
Michel El Maalouly
M&A Analyst - Zawya
Michel@zawya.com
© Zawya 2012
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