But deal volumes consistent
Middle East M&A deal value was USD 16 bn in 2017, compared to USD 37.7 bn in 2016
Best performing sectors were Financial Services, Telecommunications, and Industrials & Chemicals
Continued low oil prices continues to push companies towards M&A to gain market share
Tech disruption across a number of sectors leading to consolidation and acquisitions
Mergermarket, the leading provider of M&A data and intelligence, has reported that 2017 M&A deal value in the MENA region declined by 57.6%, despite deal count maintaining a level that was consistent with the previous year. Full year 2017 saw the announcement of 126 deals worth approximately USD 16.0 billion as compared to 129 deals in 2016 at a total value of USD 37.8 billion. Mergermarket will host its MENA Mergers 2018 forum in Dubai on 9 April. The forum will serve as a platform for key players in the M&A, private equity, and corporate restructuring space, and will be followed by the third annual Middle East M&A Awards.
The top performing sectors for M&A in the region included Financial Services with 16 deals at a total value of USD 4.5 billion, Industrials & Chemicals with 13 deals valued at over USD 3.9 billion, and Telecommunications with 7 deals valued at over USD 3.2 billion. The most significant deals in these sectors included the USD 2.2 billion deal between Tronox and The National Titanium Dioxide Company, Kingdom Holding Company’s USD 1.5 billion investment into Banque Saudi Fransi and the 12.1% stake acquired in Mobile Telecommunications Company by Oman Telecommunications Company for USD 1.4 billion.
The worst performing M&A sectors in the MENA region included Construction, with deal value falling from USD 1.3 billion in 2016 to just USD 59 million in 2017, despite consistent deal count. Other poor performing sectors included Transport, which experienced a USD 5.6 billion drop in deal value, and Technology.
Jonathan Klonowski, EMEA Research Editor at Mergermarket, added:
“The M&A market in MENA is showing real signs of strength in 2018, with a flurry of big-ticket deals already announced this year. Greater stability in commodity markets and a need to innovate should put corporates in a position to be active throughout 2018.”