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MENA mergers and acquisitions up 100 percent

Staff writer |
The value of disclosed mergers and acquisitions in the Middle East and North Africa (MENA) rose from $7.3 billion in Q1 2012 to $14.6 billion in Q1 2013, according to Ernst & Young's report.

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In Q1 2013, 98 deals were announced against 101 deals last year, a decline of 3 percent. The United Arab Emirates topped the region in total value of disclosed domestic deals, comprising approximately 54 percent ($2.2 billion), followed by Qatar also at 21 percent ($880.4 million). Saudi Arabia, Qatar and Kuwait followed with seven acquisitions each.

The top 10 deals in Q1 2013 were valued at $12.1 billion which represented 83 percent of the total disclosed MENA M&A deal value.

Of these, five are regional business buying international assets, three are regional business buying regional assets, and two are international business buying regional assets. The top deal by value was worth $6.4 billion, involving the acquisition of Orascom Telecom Holding n Egypt by Baskindale Limited in Cyprus followed by the merger of UAE-based Sorouh Real Estate and Aldar Properties for $2 billion. These two deals comprised 69 percent of the top ten disclosed MENA M&A deals by value.

Inbound disclosed deal value skyrocketed from $400 million in Q1 2012 to $7.2 billion in Q1 2013, much of which can be attributed to the announcement of Baskindale's acquisition of Orascom Telecom in Egypt for $6.4 billion.

The domestic disclosed deal value grew by 171 percent, largely on account of the merger of Aldar Properties and Sorouh Real Estate valued at $ 2 billion. The outbound disclosed deal value showed a decrease of 39 percent.


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