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

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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