Mubasher: The total value of mergers and acquisitions (M&A) in the Middle East and North Africa (MENA) region registered an increase of 23% during the third quarter of 2017, compared to the same period last year, according to EY’s third quarter 2017 M&A report.
Total value of merger and takeover deals grew to $4.3 billion in Q3-17 from $3.5 billion in Q3-16.
The number of M&A deals declined by 10% during the same period; a total of 76 deals were announced in Q3-17 compared to 84 deals in the same quarter in 2016.
“According to the latest EY Capital Confidence Barometer, a record 65% of respondents indicated their intention to actively pursue deals in the next 12 months,” MENA transaction advisory services leader in EY, Phil Gandier, said, according to the report.
He added: “With the recent oil prices, a slow-growth environment and the diversification agendas of many MENA countries still more in the planning than execution stages, MENA executives understand that they need to ‘buy’ versus ‘build’ to remain competitive.”
The largest deal revealed in Q3-17, yet pending regulatory approvals and completion, was the takeover of a minority stake in Banque Saudi Fransi for $1.5 billion by Kingdom Holding Company (KHC).
Saudi Arabia ranked the highest among the MENA countries by value in Q3-17 with five deals totaling $1.6 billion, according to EY’s report.
Kuwait followed with five deals at a total value of $914.8 million, and the UAE with 21 deals amounting to $547.4 million.
“Of the 76 MENA deals in Q3-17, banking and capital markets was the top performing sector by deal value reaching $1.5 billion, followed by the telecom sector with a total deal value of $847 million,” EY report added.
