MENA M&A deal value surges to $13.9bln in Q1

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The value of announced M&A transactions with any Middle Eastern and North African involvement reached $13.9 billion during first quarter 2018, seven per cent more than the value recorded during the same 2017quarter and a three-year high.

Nadim Najjar, Managing Director, Middle East and North Africa, Thomson Reuters, said deals with a Middle Eastern and North African target reached an eight-year high rising to $11.2 billion, up 50 per cent from the same period in 2017 while inter-Mena or domestic deals reached a five-year high, also up 42 per cent from year-on-year.

Driven by Total SA's acquisition of 20 per cent of Umm Shaif and Nasr concession of Abu Dhabi National Oil Co for $1.1 billion, Mena inbound M&A currently stands at an all-time high. At the same time, outbound M&A decreased from $3.3 billion in first quarter 2017 to $779 million so far this year, Thomson Reuters said.

Energy & Power deals accounted for 54 per cent of Middle Eastern and North African involvement M&A by value and despite having the same number of transactions as the financial sector, the latter only accounts for 10.7 per cent of the region's M&A activity.

Middle Eastern and North African equity and equity-related issuance totalled $1.4 billion during first quarter 2018, a 158 per cent increase year-on-year. Out of the six transactions announced so far this year, five have been follow-on offerings, raising a total of $1.3 billion and accounting for 92 per cent of the quarter's ECM activity in the region. Orange Egypt follow-on raised $866 million and stands out as the biggest deal for first quarter 2018. EFG Hermes leads the Middle Eastern and North African ECM ranking with a 63.4 per cent market share.

Despite showing a 25 per cent decrease compared to Q1 2017, debt issuance in the Middle Eastern and North African region is at its second highest level since our records began, reaching $23.9 billion so far this year. The UAE was the most active nation in the region accounting for 33.3 per cent of activity by value, followed by Oman with 29 per cent. International Islamic debt issuance increased nine per cent from first quarter 2017 to reach $13.6 billion so far during 2018.

According to Thomson Reuters, Middle Eastern & North African investment banking fees totalled an estimated $243.1 million during first quarter 2018, six per cent less than the value of fees recorded during the same 2017 quarter.

"Debt capital markets underwriting fees totalled US$62.9 million. Despite being down 18 per cent year-on-year, this was the second highest start of the year in the region since our records began in 2000," said Najjar.