MENA M&A deal value drops 57.6% in 2017: report

Full year 2017 saw the announcement of 126 deals worth approximately $16.0 billion

  
First Abu Dhabi Bank head office situated at Khalifa Business Park in Abu Dhabi. Image used for illustrative purpose.

First Abu Dhabi Bank head office situated at Khalifa Business Park in Abu Dhabi. Image used for illustrative purpose.

First Abu Dhabi Bank/ Handout via Thomson Reuters Zawya
The value of mergers and acquisitions (M&A) in the Mena region declined by 57.6 per cent in 2017, despite deal count maintaining a level that was consistent with the previous year, a report said.

Full year 2017 saw the announcement of 126 deals worth approximately $16.0 billion as compared to 129 deals in 2016 at a total value of $37.8 billion, reported Mergermarket, a leading provider of M&A data and intelligence.

Mergermarket will host its Mena Mergers 2018 forum in Dubai on April 9. The forum will serve as a platform for key players in the M&A, private equity, and corporate restructuring space, and will be followed by the third annual Middle East M&A Awards.

The top performing sectors for M&A in the region included financial services with 16 deals at a total value of $4.5 billion, Industrials & Chemicals with 13 deals valued at over $3.9 billion, and telecommunications with seven deals valued at over $3.2 billion.

The most significant deals in these sectors included the $2.2 billion deal between Tronox and The National Titanium Dioxide Company, Kingdom Holding Company’s $1.5 billion investment into Banque Saudi Fransi and the 12.1 per cent stake acquired in Mobile Telecommunications Company by Oman Telecommunications Company for $1.4 billion.

The worst performing M&A sectors in the Mena region included construction, with deal value falling from $1.3 billion in 2016 to just $59 million in 2017, despite consistent deal count. Other poor performing sectors included Transport, which experienced a $5.6 billion drop in deal value, and Technology.

Jonathan Klonowski, EMEA research editor at Mergermarket, said: “The M&A market in Mena is showing real signs of strength in 2018, with a flurry of big-ticket deals already announced this year. Greater stability in commodity markets and a need to innovate should put corporates in a position to be active throughout 2018.” – TradeArabia News Service

آ© Copyright 2014 www.tradearabia.com

Copyright 2018 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (Syndigate.info).

More From Equities