Mena region witnesses surge in M&A activity
The Middle East and North Africa (Mena) region witnessed a surge in merger and acquisition (M&A) activity during the first nine months of 2024, with a total of 522 deals valued at $71 billion, according to the EY Mena M&A Insights report.
Compared to the same period in 2023, deal volume increased by 9 per cent, while deal value rose by 7pc. The UAE and Saudi Arabia emerged as the preferred destinations for investors, attracting 239 deals worth a combined $24.5 billion.
Sovereign wealth funds (SWFs), including Abu Dhabi Investment Authority (ADIA), Mubadala from the UAE, and the Public Investment Fund (PIF) from Saudi Arabia, continued to drive deal activity in the region, aligning with their countries’ economic strategies.
Cross-border M&As played a significant role, contributing 52pc of the overall volume and 73pc of the value. Domestic M&A value increased year-over-year by 44pc to reach $19.3bn, primarily driven by government-related entities (GREs) transactions in the oil and gas, metals and mining, and chemicals sectors.
The US remained the top target destination for Mena investors, with 32 deals worth $18.3bn. The US-UAE Business Council has been instrumental in promoting partnerships between US companies and UAE public and private sector stakeholders.
EY Mena strategy and transactions leader Brad Watson said, “Deal activity in the Mena region has seen a notable improvement this year, driven by strategic policy shifts, the liberalisation of investment regulations, and robust capital inflows from investors.”
Ten of the Mena region’s highest-valued M&As were concentrated in the GCC. The largest transaction involved Clayton Dubilier & Rice, Stone Point Capital, and Mubadala Investment’s acquisition of Truist Insurance Holdings for $12.4bn.
Insurance and oil and gas were the most attractive sectors, representing 34% of total deal value.
GCC players were involved in 81pc of domestic deals, with the UAE and Saudi Arabia accounting for 56pc of the overall domestic M&A volume.
The US and the UK accounted for 42pc of total inbound M&A activity. The UAE represented 60pc of the total inbound M&A volume and 67pc of the value.
The US and China accounted for 70pc of the outbound deal value. Asia and North America contributed 46pc and 77pc of the total outbound deals by volume and value, respectively.
EY Mena head of M&A and equity capital markets leader Anil Menon expects the Mena M&A market to end the year with more than 700 deals, approaching the historic five-year high of 750 deals.
Source: https://www.gdnonline.com/Details/1337647
