MENA M&A deal value drops 57.6% in 2017, with 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

Dubai, United Arab Emirates: 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.”

Mergermarket’s upcoming MENA Mergers 2018 forum is an all-encompassing annual event that offers the opportunity to network with the most prominent players executing and advising on deals in the region. The forum will be attended by leading MENA transaction professionals, who will examine deal trends in the region as well as share ideas on the outlook for M&A in the Middle East. The forum will be hosted in strategic partnership with Baker McKenzie, EY, Standard Bank, AIG, Instinctif Partners and Intralinks. It will be followed by Mergermarket’s third annual Middle East M&A Awards, which will recognise transaction advisory achievements across a range of sectors including ‘Energy, Mining & Utilities’, ‘Financial Services’, ‘Consumer’, ‘Pharma, Medical & Biotech’, ‘Telecoms, Media & Technology’ and ‘Industrials & Chemicals’.

About MENA Mergers 2018:

MENA Mergers 2018 will include the Saudi Breakfast Seminar, the Middle East M&A and Private Equity Forum and the Middle East M&A awards. The forum will focus on the main deal drivers in the MENA M&A market and look ahead to the key investment trends likely to be seen during the coming year. Panels, presentations and case studies will be given by representatives of the Middle East’s leading corporates, investment banks, private equity funds and financial & legal advisory firms. The event will be attended by corporate development and M&A teams, private equity professionals and business owners, investment bankers, financial advisors, lawyers and transaction services professionals. Mergermarket will host MENA Mergers at Jumeirah Emirates Towers, Dubai, on Monday 9th April, in strategic partnership with Baker McKenzie, EY, Standard Bank, AIG, Instinctif Partners and Intralinks. The forum will be followed by Mergermarket’s third annual Middle Eastern M&A Awards, celebrating excellence in M&A legal and financial advisory in the region.

About Mergermarket:

Mergermarket is the must-have intelligence and news service for anyone involved in mergers and acquisitions. Since the company was founded in 2000 we’ve expanded to 65 locations across Europe, North & South America, the Middle East, Africa, and Asia-Pacific. We’ve also got the largest team of dedicated M&A journalists and analysts anywhere in the world. We’re part of Acuris, which is the fastest-growing business in its sector.