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Despite all the turmoil, regional M&A activity was up fractionally last year: MENA closed mergers and acquisitions worth USD 86 bn in 2023, up 4% from the year before despite regional tension and global economic uncertainty, writes EY in its 2023 MENA M&A Insights update. Tech transactions led the pack, with 141 closing 2023. The energy and resources sectors — including metals and mining, oil and gas, and chemicals — also saw “significant capital deployment” for the year.
Most came from the GCC: The Gulf nations closed 565 transactions, worth some USD 83.2 bn.
The region’s sovereign wealth funds drove activity — led by the Abu Dhabi Investment Authority (ADIA), UAE’s Mubadala, the Public Investment Fund (PIF), and the Qatar Investment Authority — with a focus on “national development and investing in sectors of the future,” EY MENA strategy and transactions leader Brad Watson said.
Cross border M&As made up 72% of the total value of M&As in 2023, with North America remaining the largest target region by value — with transactions totaling USD 2.7 bn — and largest number of inbound MENA transactions — with 32. Meanwhile, domestic transactions made up 49% of the total volume of MENA M&A activity by volume for the year.
Other highlights:
- The UAE was the top inbound destination. Interest in UAE acquisitions was driven by “its business-friendly regulations and efficient legal framework.”
- Outbound M&As secured USD 53.5 bn through 208 transactions.
- The region’s largest M&A in 2023 was ADIA and Apollo Global Management’s USD 8.2 bn acquisition of Univar Solutions.
- The second- and third-largest were PIF-owned Savvy Games’ USD 4.9 bn acquisition of US mobile games developer Scopely and Blackstone and ADIA’s USD 4.7 bn acquisition of software company Cvent Holding.
Looking ahead: “We expect M&A activity in MENA to remain robust in 2024 given continuing secular trends around energy transition and digitalization of everything,” Watson said.
Asian markets are a mixed bag this morning: The Nikkei and Kospi are handily in the green, but Chinese markets remain closed for the Lunar New Year holiday, so there’s nothing to report out of Hong Kong or Shanghai. Looking ahead: Futures suggest a weak open in both Europe and on Wall Street later today.
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TASI |
12,295.91 |
+0.7% (YTD: +2.8%) |
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MSCI Tadawul 30 |
1,591.25 |
+0.7% (YTD: +2.6%) |
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USD : SAR (SAMA) |
3.75 Sell |
3.75 Buy |
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Interest rates |
6% repo |
5.5% reverse repo |
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EGX30 |
28,494.72 |
+1.1% (YTD: +14.5%) |
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ADX |
9,324.19 |
-0.2% (YTD: -2.7%) |
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DFM |
4,210.96 |
+0.7% (YTD: +3.7%) |
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S&P 500 |
5,021.84 |
-0.1% (YTD: +5.3%) |
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FTSE 100 |
7,573.69 |
+0.01% (YTD: -2.1%) |
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Euro Stoxx 50 |
4,746.35 |
+0.7% (YTD: +5%) |
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Brent crude |
82.04 |
-0.2% |
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Natural gas (Nymex) |
1.75 |
-5.4% |
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Gold |
2,033.90 |
-0.2% |
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BTC |
50,084.45 |
+4.2% (YTD: 125.5%) |
THE CLOSING BELL-
The TASI rose 0.7% yesterday on turnover of SAR 11 bn. The index is up 2.8% YTD.
In the green: Jamjoom Pharma (+9.9%), Atheeb Telecom (+9.9%) and Salama (+9.7%).
In the red: Sadafco (-7.5%), Chemical (-5.9%) and Takween (-4.5%).
Asian markets are up/down in early trading this morning and futures suggest xx
CORPORATE ACTIONS-
#1-Yamama Cement’s BoD has proposed a dividend of SAR 1 per share to eligible shareholders for FY 2023, it said in a disclosure to Tadawul yesterday. A distribution date will be determined following the approval of the general assembly, it added.
#2- The Capital Market Authority has approved a request by air conditioning services provider Shaker Group to raise its capital by 15.1% to SAR 555 mn, it said in a disclosure to Tadawul yesterday.
