Mideast M&A deal value drops 57% in 2017

The total value of merger and acquisition (M&A) deals in the Middle East and North Africa (MENA) region declined by 57.4 percent in 2017, Mergermarket said in a new report.

The region reported 126 M&A deals worth $16.0 billion last year, compared to 129 deals of $37.8 billion in 2016, it added.

The top-performing sectors included financial services with 16 deals worth $4.5 billion; industrials & chemicals with 13 deals, valued at $3.9 billion; and telecommunications with seven deals at a total value of $3.2 billion.

The most significant deals in these sectors included the $2.2 billion deal between Tronox and Cristal, a subsidiary of Saudi-listed Tasnee; Kingdom Holding Company’s $1.5 billion investment into Banque Saudi Fransi.

Another key deal was the 12.1 percent stake acquired by Oman Telecommunications Company in Mobile Telecommunications Company for $1.4 billion.

Meanwhile, the worst performing M&A sectors in the MENA region included construction, with deal value falling from $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 $5.6 billion decline in deal value, as well as technology.

“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,” Jonathan Klonowski, EMEA research editor at Mergermarket, said in the report.