MENA M&A sees more deals in 1H12 but lower deal values
But values lag as geopolitical, macroeconomic and sovereign risks play spoilsport, writes Zawya's Michel El Maalouly.
ZAWYA
July 9, 2012
10 July 2012 As MENA M&A activity witnessed an impressive increase in terms of volume and value in the last four consecutive quarters, the first six months of 2012 were able to sustain the positive trend. The number of deals increased by 24.45% compared to 1H11, reaching 229. However, total deal value dropped 4% to USD 22 billion, compared to 1H11's USD 23 billion.
Companies are playing, but they are doing smaller transactions due to the uncertainty posed by geopolitical, macroeconomic, political, sovereign and microeconomic risks. But the trend appears to be upward, with the second quarter of 2012 increasing total deal value by 113% to a five-year high of USD 15 billion, compared to USD 7 billion in 1Q12.
