By: Mahmoud Gamal
Dubai – Mubasher: Mergers and acquisitions (M&A) executed in UAE markets in 2016 highlight companies’ well-implemented wealth management that contributes to the general economy and the private sector, analysts told Mubasher.
Statistics by Mubasher show that the top M&A deals carried out in the UAE totalled AED 657 billion ($178.99 billion) in 2016 and involved 13 companies.
First Gulf Bank’s (FGB) merger with the National Bank of Abu Dhabi (NBAD) led M&A deals in the Gulf country. The merger deal will result in creating the UAE’s largest financial institution with total assets worth nearly AED 655 billion ($178 billion).
Coming in second place on the list is AlSafwa Islamic Financial Services’ merger with Mubasher Financial Services (MFS), which brought about Al Safwa Mubasher Financial Services as of 16 November 2016, with a capital of AED 563.88 million.
M&A deals carried out under the current difficult economic circumstances help companies boost their financial positions and their competitive edge as well as help reduce costs and operating risks, commented market analyst Mohamed Al-Azmy.
Joana Investment’s acquisition of a 6.5% stake or 99.4 million shares in Aramex comes in at third place among this year’s top M&A deals. The total value of the transaction stood at AED 437.5 million.
Moreover, Aramex acquired a 4.5% stake in Australia Post for AED 121.2 million.
Market analyst Nawwaf El-Tayea noted that one of the main benefits of M&A deals is that they reduce the time needed to create a new company. He added that these deals often result in quick revenues for the companies.
Abu Dhabi Financial Group’s (ADFG) acquisition of 48.36% of SHUAA Capital for AED 415.45 million and Bank of Khartoum’s purchase of 92.30% of Canar Telecommunications, a subsidiary of the Abu Dhabi-listed Etisalat for AED 349.66 million also made the list.
Also in 2016, Tabarak Investment acquired 32.92% of Gulf Navigation Co. for AED 181.2 million, while ADFG subsidiary Integrated Capital also purchased 5.01% of Amanat Holding for 125 million.
In March of this year, Dubai Investments acquired a 20% stake in Properties Investment for AED 95 million.
SHUAA Capital also bought 14% of Khaleeji Commercial Bank in 2016 for a total consideration of AED 92.922 million.
Despite being fewer than last year, the M&A deals executed in UAE markets in 2016 showed proper wealth management, noted Al-Tayea.
Al-Wathba Insurance purchased an AED 27.5 million 20% stake in AlRamz Corporation, which in turn acquired 5% of Marka for AED 25 million.
Translated by: Nada Adel Sobhi
