Bureau van Dijk and MENA Research Partners report on regional M&A activity for the full year 2014
Dubai, United Arab Emirates - Sunday, January 11th 2015 [ME NewsWire]
The
MENA M&A market depicted strong activity during 4Q2014, prolonging
its steady performance of the last 2 years. The sustainable economic
growth profile, driven by the large fiscal safety net, by the ongoing
diversification away from hydrocarbons and by the progressive resurgence
of key Arab Spring countries, is increasingly enlarging the depth and
outlook for new deals in the region.
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 $50 billion and $41
billion respectively during 2013 and 2014, ahead of an average of $34
billion during the previous 3 years. Such trend is reinstating the large
deal sizes witnessed during the pre-2008 years, although the gap
remains large to bridge.
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. The GCC accounts for the bulk of the deals, with 44% and 43%
respectively of the announced value and the volume of completed deals
during 2014. This is compared to 69% and 43% respectively during 2013,
in an indication of larger deals being closed outside GCC.
Lisa
Wright, Zephyr director said: “After a disappointing performance in Q3
2014, the last three months of the year represent a marked improvement
for the MENA region as aggregate deal value climbed significantly. In
all there were 137 deals worth an aggregate USD 8,977 million closed in
the MENA region in Q4 2014. However, around 45 per cent of this is
attributable to a single high value deal, namely Fonds National
d’Investissement’s USD 4,000 million acquisition of Orascom Telecom
Algerie, which completed in December. As is often the case, a large
value transaction can transform a good quarter to an excellent one.”
Cyclical
sectors continued to be a major focus for the acquirers. During 2014,
sectors like banks, construction and service companies accounted for a
substantial share of the regional completed M&As, prolonging the
previous years’ trend.
Minority deals accounted for most of the
number of the regional deals during 2014, sustaining 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&As. During 2014, they have accounted for 54%
of the number of completed deals, compared to 51% during 2013, slightly
below the average of 57% witnessed during 2009 and 2010. These numbers
reflect a confidence of global players in a large number of regional
economies and their long-term fundamentals. In return, it offers some
interesting exit options for local investors.
For the full
report, visit:
http://www.mandaportal.com/Content/Research/Middle-East/ResearchHolder/Bureau-van-Dijk-MENA-Research-Partners---MENA--%281%29
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,
+971-50-813-3520
ahobeika@mena-rp.com
www.mena-rp.com .
Permalink: http://me-newswire.net/news/13328/en
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