Mena M&A deal value drops 57.6% in 2017

By Eudore R. Chand

DUBAI 8 April 2018: In 2017 M&A deal value in the Mena  declined by 57.4 per cent, despite deal count maintaining a level that was consistent with the previous year, according to Mergermarket.

Full year 2017 saw the announcement of 126 deals worth approximately US$16 billion as compared to 129 deals in 2016 at a total value of $37.8 billion.

The top performing sectors for M&A in the region included Financial Services with 16 deals at a total value of $4.5 billion, Industrials & Chemicals with 13 deals valued at over $3.9 billion, and Telecommunications with 7 deals valued at over $3.2 billion.

The most significant deals in these sectors included the $2.2 billion deal between Tronox and The National Titanium Dioxide Company, Kingdom Holding Company’s $1.5 billion investment into Banque Saudi Fransi and the 12.1% stake acquired in Mobile Telecommunications Company by Oman Telecommunications Company for $1.4 billion.

The worst performing M&A sectors in the Mena included Construction, with deal value falling from $1.3 billion in 2016 to just $59 million in 2017, despite consistent deal count. Other poor performing sectors included Transport, which experienced a $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.”