Bureau van Dijk and MENA Research Partners report on regional M&A activity till 3Q2014
Dubai, United Arab Emirates - Monday, October 20th 2014 [ME NewsWire]
Despite
pausing in the past 3rd quarter, the MENA M&A market prolonged,
during the first 9 months of the year 2014 (9m14), its recovery path
initiated post-financial crisis and in the aftermath of the Arab Spring.
The strengthening economic fundamentals, the amelioration in the risk
profile of major regional countries, the governmental implementation of
key business-friendly reforms are all stimulating factors for deal
generation activity.
While the total number of
completed deals has been stabilizing at the low-end of its range since
2009, the announced value of M&As reached $40 billion and $32
billion respectively during 9m13 and 9m14, compared to a slightly lower
9-month average of $27 billion during the previous 3 years. Such trend
is gradually reinstating the large deal sizes witnessed during the
pre-2008 years.
From a geographic perspective, deal
activity remains driven by a strong performance in GCC coupled with an
ongoing pick-up in selected Arab Spring countries like Egypt and
Morocco. GCC accounted for 44% and 43% respectively of the announced
value and the volume of completed deals during 9m2014. This is, however,
compared to 79% and 42% respectively during 9m2013, in an indication of
larger deals being closed outside the Arabian Gulf countries.
Lisa
Wright, Zephyr director said: “Despite some good performances by
individual countries in Q3 the MENA region’s results were disappointing,
particularly when compared to global values, which increased on Q2
although volume declined. In all there were 21,531 deals worth an
aggregate USD 995,017 million completed worldwide in Q3 2014, compared
to 22,427 worth USD 974,075 million in Q2.”
Cyclical
sectors continued to be a major focus for the acquirers. During 9m2014,
sectors like banks, construction and service companies accounted for a
substantial share of the regional completed M&As, prolonging the
previous years’ trend.
Minority acquisitions accounted
for most of the number of the regional deals during the 9m2014, widening
their lead over the past years relative to majority deals. This is in
line with the general perception that regional investors are less
reluctant to give up control of their business.
Foreign
acquirers have been one major component in the MENA M&A market.
During 9m14, they have accounted for 51% of the number of completed
deals, compared to 42% during 9m2013. These number are however lower
than the 9-month average of 62% witnessed during the period 2009-2012.
This reflects a growing confidence in a number of regional economies
and, in return, offers interesting exit options for local investors.
For the full report, visit: http://www.mena-rp.com/pdf/MA_MENA_3Q2014.pdf
About
MENA Research Partners (MRP) is a research outsourcing company offering
customized business intelligence to corporations in the Middle East
& North Africa (MENA). MRP services focus on economics, sectors,
equities, fixed income, foreign exchange, commodities, companies,
M&A and documentation services. MRP products include feasibility
studies, primary and secondary market research, company valuation, white
label publications, conference presentations, roadshow & pitchbook
preparation, database building. MRP client base is made up of commercial
banks, brokerage companies, advisory houses, private equity firms,
asset managers, consulting firms, governments and private corporations.
About
Bureau van Dijk (BvD) is one of the world’s leading providers of
business and M&A intelligence. BvD is best known for its range of
international company information products that combine multiple
high-quality data sources with flexible software to allow users to
manipulate data for research, marketing intelligence and analysis. BvD
publishes a range of different products like Orbis it’s Global database
of 130 million companies and Zephyr the Global M&A database. Bureau
van Dijk is present globally through a network of 32 offices, for Middle
East related inquiries please contact the Dubai office at
dubai@bvdinfo.com or visit www.bvdinfo.com
Contacts
Bureau van Dijk (BvD)
Mr. Paul Costers, Area Manager Middle East
+971-443-91703
dubai@bvdinfo.com
MENA Research Partners
Mr. Anthony Hobeika, Managing Director
+971-50-8133520
ahobeika@mena-rp.com
www.mena-rp.com .
Permalink: http://www.me-newswire.net/news/12506/en
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