Egypt registers first-half primary surplus of EGP 3.2 billion    ITFC approves $2.6 billion financing for Egypt    Hitachi to connect Gulf of Suez wind farm with Egypt national power grid    Egypt works on charting cooperation strategies with international institutions for 5 years: Al-Mashat    Maha karara joins AAIB as Head of Corporate Communications, Sustainability    Over 2.4 million newborns examined for hearing impairment: Health Ministry    Netflix releases trailer of Arab adaption of 'Perfect Strangers' film    Balqees to headline concert celebrating launch of streaming giant LIVENow in MENA    Sawsan Badr to be honoured at Aswan Women Film Festival    Al-Sisi follows up on 'Great Transfiguration Project' in St. Catherine    Cairo, London stress need to strengthen cooperation to face climate change    Foreigners account for 22.6% of Egypt's T-bills issuances in 1H 2021: CBE    MP Abdel Hady Al-Qasby calls government to facilitate and support NGOs    Egypt's ambassador to Italy passes away    Egypt confirms readiness to help African countries face terrorism and extremism    An estimated 235 million people needed humanitarian assistance and protection in 2021, an increase of 40% compared to 2020: IOM Egypt    Egypt, DRC discuss water cooperation during WYF    Egypt, DR Congo discuss boosting bilateral cooperation during WYF    Cameroonian police probe assault on three Algerian journalists covering AFCON    Pharaohs start AFCON 2021 campaign with fierce clash against Nigeria    Foreign Ministry opens capacity building course for French-speaking African diplomats    BRICS development bank admits Egypt as new member    Nermien Ismail Schools opens a new campus in O'West    Netherlands Embassy, E7kky Magazine celebrate success of 21 Egyptian women    Women make up 45% of Egyptian Atomic Energy Authority staff    Yas Island hosts travel partners at Formula 1 Etihad Airways Abu Dhabi Grand Prix 2021    Olaf Scholz becomes Germany's new leader, ending Merkel 16-year historic era    Egypt's trade with Nile basin countries climbs 26% y-o-y in 9 months    The unvaccinated prohibited from entry to Egypt state institutions starting December 1    Egypt's iron and steel exports jump 197% in 8 months    Ethiopia halts work at its embassy in Egypt for 'economic reasons'    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Russia says it's in sync with US, China, Pakistan on Taliban    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    Brazil calls up 8 EPL players for World Cup qualifying    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Sisi calls on House, Senate to commence second legislative sessions on 3, 5 October    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    Qa'a play showing at Lycee El Horreya Theatre, Alexandria is a must go    On International Museum Day, Egypt opens two new museums at Cairo Airport    Old Cairo's Al-Fustat will be revamped on Egyptian President's directives    

Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.

Value of MENA's Mergers & Acquisitions Drops 40% in Q1 2012
Published in Amwal Al Ghad on 25 - 04 - 2012

According to Ernst & Young's MENA Mergers & Acquisitions update, the total value of mergers and acquisitions (M&As) announced in the Middle East and North Africa (MENA) region dropped by 40%, to US$8.5 billion in Q1 2012 from US$14.1 billion in Q1 2011.
Compared to the previous quarter (Q4 2011) which saw announced deals worth US$7.2 billion, the total M&A deal value (US$8.5 billion) in the first quarter of this year jumped by 18.1%.
The volume of announced M&A deals increased by 7%, from 98 deals in Q1 2011 to 105 deals in Q1 2012. Average announced deal size was down 34.7%, from US$372.1 million in Q1 2011 to US$ 242.9 million in Q1 2012.
Phil Gandier, MENA Head of Transaction Advisory Services at Ernst & Young: "We are still seeing a level of caution in the regional markets. Overall, the positive news from the 2012 Q1 M&A numbers is that the start of this year has been better in comparison to the start of 2011."
"A total of 19 sovereign wealth and private equity deals took place in Q1 2012, with 10 deals in the month of March alone. This could mean that private equity players, who are usually the first movers in M&A, are taking comfort from upward revisions of regional economic growth projections and are gaining in transaction confidence," added Phil.
The top 10 deals in Q1 2012 are valued at US$7.27 Bn or 85.5% of the total regional M&A deal value. Of these, five are outbound (regional business buying international assets), three are domestic (regional business buying regional assets) and two are inbound (international business buying regional assets).
The top two deals by value in Q1 2012 are both worth US$2 Bn and involve UAE SWF/PE firms buying global assets.
These deals are Mubadala Development's acquisition of Brazil's Grupo EBX and Centurion Investment Company's acquisition of India's UAE Exchange & Financial Services.
The third spot went to France Telecom SA who bought a US$973 Mn stake in Egyptian Company for Mobile Services.
The fourth and fifth spots were occupied by Qatari investors buying UK and UAE assets.
These include the US$525 Mn announced deal of Qatar Investment Authority buying One Cabot Square in the UK, and Mannai Corporation's US$445 Mn investment in Damas International respectively.

With a disclosed deal value of US$5.5 Bn in Q1 2012, outbound1 deals make up 64.7% of M&A transactions in Q1 2012.
Domestic and inbound deals were both 17.64% of total value at US$1.5 Bn each. In the cross-border segment, average size of inbound deals increased by 68.9%, rising from US $113.1Mn in Q1 2011 to US $191 Mn in Q1 2012.
Average announced deal size in the outbound category dropped 34.2% in value between the two periods, from US$691 Mn in Q1 2011 to US$454.8 Mn in Q1 2012.
Average domestic deal size dropped by 65.4% from US$292.2 Mn in Q1 2011 to US$101.1 Mn in Q1 2012, as Zawya stated.
"Regional investors continue to dominate the M&A market and continue on their path of large international investments for solid assets. This trend will continue going forward," said Phil.
In terms of total domestic deal value in Q1 2012, Consumer Products assets have replaced Real Estate as the most sought after sector in MENA, valued at US$572Mn.
Real Estate saw deals worth US$562.1 Mn, followed by Transportation and Insurance deals worth US$140 Mn and US$125 Mn, respectively.
In terms of total volume of domestic deals, Consumer Products led with seven, followed by Real Estate, Banking and Capital Markets, and Diversified Industrial Products, all with six deals.
UAE topped the region in terms of total value, comprising approximately 29% of total domestic disclosed deal value (worth US$445 Mn); followed by Qatar also at 29% of total domestic deal value (worth US$439.6 Mn); and Saudi Arabia at third position with 20 % of deal values worth US$304 Mn.
In terms of deal volume in Q1 2012, the main countries targeted for domestic deal activity in MENA include the UAE with 13 deals, followed by Saudi Arabia and Egypt with 7 deals each.
In this study, Ernst & Young have categorized deals as Outbound- MENA investors doing deals outside the MENA region, Domestic- MENA investors doing deals in MENA region, and Inbound- non-MENA investors doing deals in the MENA region

Clic here to read the story from its source.