By: Eman Ghaly
In 2017 a number of Qatari companies, both listed and unlisted, carried out acquisitions. In this report, Mubasher highlights the top acquisitions carried out this year:
In March, Qatar’s prime minister Sheikh Abdullah bin Nasser bin Khalifa Al Thani and his British counterpart Theresa May signed an agreement whereby the Qatar Investment Authority (QIA) acquired 61% of UK gas distribution company National Grid.
Meanwhile, Katara Hospitality, which owns 42 hotels in 12 countries, bought Switzerland-based Bürgenstock Resort for $1 billion.
Similarly, Al Faisal Holding Company acquired Banif Bank’s stake in Malta as a part of its expansion and investment strategy.
In August, Qatar Solar Technologies acquired 49% of Germany-based SolarWorld.
Qatar Airways
Qatar Airways carried out several acquisition deals during 2017, including buying AQA Holding without revealing the value of the deal.
In November, Qatar Airways announced signing an agreement to buy a 9.61% stake in Cathay Pacific Airways, representing around 378.19 million stocks, valued at $661 million.
This agreement enhances Qatar Airways’ investment strategy, as it currently possesses 20% of International Airline Group (IAG), 10% of South America’s LATAM Airlines, and 49% of Italy’s Meridiana.
Listed companies’ M&As
On the same note, companies listed on the Qatar Stock Exchange (QSE) conducted several mergers and acquisitions (M&As) and focused widely on transactions outside the market.
Nebras Power, the investment arm of Qatar Electricity and Water Company (QEWC), bought a 35.5% stake in Indonesia’s independent power producer PT Paiton Energy, previously held by France’s ENGIE.
Nebras is 60% owned by QEWC, while the remaining 40% in the company are divided equally between Qatar Holding and Qatar Petroleum (QP).
Earlier in 2017, QEWC revealed that its subsidiary Nebras Power had acquired BTU Power Company and its stakes in Asia Gulf Power Holding Company and Asia Gulf Power Service Company. The acquisition was valued at $93 million.
Later in the year, QEWC acquired 24% of Jordan-based Al Manakher power station (IPP4), highlighting that the acquisition will be completed in April 2018.
Qatar Industries Manufacturing Company (QIMC) previously declared that it purchased an additional 10% of Gulf Formaldehyde Company, raising its stake to 30%.
2018 M&As
In 2018, Masraf Al Rayan, Barwa Bank, and International Bank of Qatar (IBQ) are in talks over a widely-anticipated merger, which will form the largest Islamic bank in Qatar and the Middle East's third-biggest bank with total assets of QAR 160 billion and a capital of QAR 22 billion.
In December 2016, the three Qatari banks revealed merger plans.
In 2017, Al Mannai pursued raising its stake in GFI Informatique, citing plans to acquire 29% of the company in 2017 and 15% in the following year. However, it only acquired 17% of GFI Informatique at EUR 89.8 million (QAR 388.9 million), bringing its stake to 81%.
Translated by: Kholoud Mohamed Hussein
