The number of merger and acquisition (M&A) deals in Egypt fell 53% year-on-year (YoY) to 139 in 2023, while value declined 62% YoY to $3.48 billion, according to a Baker McKenzie report.

The trend mirrored the decline in the Middle East and global deal values and volume.

However, M&A deals rose 32% to 79 in the second half of 2023 compared to 60 in the first half of 2023. The total value surged by 383% to $2.8 billion in H2 2023 from $597 million in the first six months of last year.

December emerged as the strongest month, witnessing 20 deals. Value-wise, it outperformed all other months in the year, reaching $1.6 billion, surpassing the monthly values recorded in 2022.

In the Middle East, dealmaking decreased by 4.7% in deal volume and 2.2% in value terms due to the stagnant performance of domestic deal volume and a 7% decline in cross-border deal volume.

Domestic deal volume significantly declined nearly half (51%), totaling 52 for the full year compared to 106 deals in 2022. Conversely, the full-year value increased by 48% YoY, reaching $ 1.8 billion.

In contrast, cross-border transactions saw a decline in both deal volumes and values YoY. Transaction volume fell from 189 to 87, and values dropped by 80% YoY to $1.6 billion.

“In the face of the global downturn in M&A activity, the Middle East’s performance reflects a nuanced landscape, with a slight reduction in deal volume offset by a resilient average deal value,” said Mohamed Ghannam, Managing Partner at Helmy, Hamza & Partners, Baker McKenzie Cairo.

Globally, M&A activity decreased by 6% in deal volume and 16.4% in deal value in 2023.

(Editing by Seban Scaria