MEA M&A value halves in Q1 2014

Value of deals plunged 50.4 per cent to Dh23.12bn

Thursday, April 03, 2014

The mergers and acquisition (M&A) market in the Middle East and Africa plunged with total value of the deals halving in the first quarter of 2014.

Data by Mergermarket, an M&A intelligence and data provider, showed that total value of deals plunged 50.4 per cent to $6.3 billion (Dh23.12 billion) in Q1 2014 compared to $12.6 billion (Dh46.24 billion) in the same quarter in 2013.

Q1 2014 was also the lowest quarter in nearly five years when the M&A value deals were worth $4 billion Q2 2009.

Following a string of double-digit billion-dollar quarters in 2013, Q1 dropped 60.4 per cent from $15.9bn in Q4 2013, single digit billion dollar quarter since Q1 2012 ($8.8bn)

The top three deals, with a combined value of $3bn, accounted for almost half of the region's M&A value.

Energy, Mining & Utilities remained the most active sectors with deals valued at $1.6bn (26.2 per cent share) but dropped 70.9 per cent compared to Q1 2013 ($5.5bn)

The Consumer sector saw a massive 700 per cent increase compared to Q1 2013, with 15 deals valued at $0.8bn compared to six deals valued at $0.1bn

Investments in the technology sector were up 71.4 per cent at $1.2bn from $0.7bn in Q1 2013.