Oct 10 2010

UAE ranked most acquisitive in Middle East

The UAE has been ranked as the most acquisitive Middle Eastern country for the first nine months of this year, according to Thomson Reuters Q3 review of the Middle East's mergers and acquisition (M&A) activity.

The country accounted for 57 per cent of the total M&A.

"The UAE is the most acquisitive Middle Eastern country for the first nine months of 2010 with 57.8 per cent. Kuwaiti companies are the most attractive to Middle Eastern acquirers, with 37 per cent of the activity," said the review.

The UAE is followed by Qatar, Saudi Arabia, Egypt, Bahrain, Kuwait, Lebanon, Iran and Oman, as the top 10 Middle East acquirers.

Kuwait, on the other hands, is ranked as the most acquired Middle Eastern country, according to the review that covered the region's M&A, debt and equity capital markets.

Kuwait is followed by the UAE, Qatar, Egypt, Saudi Arabia, Oman, Lebanon, Bahrain, Iran and Jordan.

The review said the total Middle Eastern targeted M&A for Q3 this year reached $15 billion, up 10 times compared to the same quarter last year, and the busiest quarter on record.

Additionally, the year-to-date M&A figures reached $27 billion, the most active first nine months of the year on record.

The top Middle Eastern targeted deal for this year involved Etisalat, which planned to acquire a 46 per cent stake in Zain Group, the review that covered the region's M&A, debt and equity capital markets said.

Telecommunications emerged as the most targeted industry in the Middle East with $12 billion, up from $8.1 million in same period last year, followed by real estate, financials, industries, and materials sectors respectively.

The review also included rankings of banks and advisors operating in the Middle East based on deal activity and fees and provides and independent assessment of the market.

Morgan Stanley topped the M&A Middle Eastern involvement ranking with $26.3 billion, with BNP Paribas coming in second with $14 billion followed by Barclays Capital with $12.4 billion, the biggest mover was BNP Paribas which jumped up 24 places into the top 5.

As regards equity capital markets, equity issuance so far this year reached $5.2 billion for the first nine months of this year down 2.3 per cent year-on-year. Follow-ons are the most active issue type this year with $3.3 billion or 64 per cent of the activity, the review said.

Financials is the most active industry in the Middle East year to date with 50 per cent of the activity, followed by materials and real estate coming second and third respectively.

By Staff

© Emirates 24|7 2010

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