The industrial sector in the UAE tops GCC M&A transactions in Q3 2019, according to a report issued by the investment banking department at Kuwait Financial Centre, Markaz.

DP World’s acquisition of Topaz Energy and Marine from Renaissance Services and Standard Chartered Private Equity for a total value of $1.1 billion was the top reported deal in the Gulf region.

The remaining top transactions were split between Saudi Arabian and Kuwaiti targets. Saudi Aramco acquired of a 50 percent stake in Saudi Aramco Shell Refinery Company for $631 million, to become the sole owner of the refinery company.

The second transaction that closed in Saudi Arabia was undertaken by Fawaz Abdulaziz Al Hokair & Company as it acquired 100 percent of Innovative Union Company for $91 million.

In Kuwait, Al Ghanim Trading’s acquisition of Kuwait Investment Authority’s 16 percent stake in Gulf Bank for $504 million was the largest amongst the top transactions involving a Kuwaiti target company. The second largest was Qurain Petrochemical Industries’ acquisition of a 60 percent stake in Jassim Transport and Stevedoring for a total of $138 million.

The number of closed M&A transactions in the GCC during the quarter increased by 3 percent compared to Q3 2018 according to Markaz. Kuwait saw the highest increase in the number of closed transactions in Q3 2019 compared to Q2 2019, while Saudi Arabia recorded the highest increase in Q3 2019 compared to Q3 2018.

The majority of transactions completed during Q3 2019 and Q2 2019 were carried out by GCC acquirers. Of the total number of transactions closed during Q3 2019, GCC acquirers accounted for 67 percent while foreign acquirers accounted for 30 percent, the report showed.

The sectors that witnessed the highest level of activity during Q3 2019 were the financials, industrials, consumer discretionary and information technology sectors. Collectively, these sectors accounted for 60 percent of the total number transactions closed, Markaz said.

(Reporting by Gerard Aoun, editing by Mily Chakrabarty)

(gerard.aoun@refinitiv.com)

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