June 14, 2024

In the first quarter of 2020 MENA Mergers and Acquisition transactions accounted for US$14.8 billion


Refinitiv recently released the 2020 first quarter’s investment banking analysis for the Middle East. Consistent with the report, investment banking fees within the Middle East as well as North Africa reached an calculable US$188.8 million throughout the primary quarter of 2020, up 11% from the previous year’s lag to begin with, however it surged with triple-digit gains recorded across mergers and acquisitions (M&A) consultative and equity underwriting fees.

The Financial and industrial sectors every accounted for 25% of total investment banking fees earned within the region throughout the primary quarter of 2020, and nearly half all fees were generated by firms placed within the United Arab Emirates. Jefferies LLC earned the foremost investment banking fees within the region throughout the primary quarter of 2020, a complete of US$27.8 million or a 14.7% share of the whole fee pool.

Advisory fees earned from completed M&A transactions generated US$58.4 million, up 266% year-on-year and also the highest half-moon total since 2017. Equity capital markets underwriting fees over tripled to succeed in US$15.9 million, whereas bond underwriting fees declined 47% to a four-year low of US$45.4 million. Syndicated loaning fees exaggerated 9% to US$69.1 million.

The number of deals has exaggerated 4% over constant amount. Monthly M&A has exaggerated in price for the third consecutive month, with March 2020’s US$6.1 billion marking the very best monthly total in one months. At the start of March, Austrian company OMV declared that it might increase its stake in plastics maker Borealis in an exceedingly deal price $4.7 billion, the biggest deal of the quarter.

The value of declared M&A transactions with any MENA involvement reached US$14.8 billion throughout the primary 3 months of 2020, 85% below the worth recorded throughout constant amount in 2019 that reached a record high with Saudi Aramco’s agreement to shop for a 70% stake in Saudi Basic Industries Corporation from the kingdom’s wealth fund for $69.1 billion.

Although the second highest ever first quarter total within the last decade, domestic M&A registered a 92% decline from last year to US$6.9 billion, once more thanks to the Aramco / Sabic deal Inbound M&A, involving an acquirer from outside of the region, declined 88% to a four-year low of US$1.8 billion, whereas outward-bound M&A declined 53% to US$1.4 billion.

MENA equity and equity-related supply destroyed US$782.9 million throughout the primary quarter of 2020, over four-times the worth recorded throughout constant amount last year, despite a 50% decline within the variety of deals. One initial public providing was recorded throughout the primary quarter. Saudi personal health care operator, Dr. Sulaiman Al Habib Medical cluster, raised US$699.7 million on the Saudi stock market at the start of March.

Deals within the industrials sector accounted for 43% of MENA target M&A activity throughout the primary quarter of 2020. The United Arab Emirates was the foremost targeted nation, followed by Egypt and Qatar. Barclays flat-top the any MENA involvement declared M&A money consultant league table throughout the primary quarter of 2020 with a 49% market share.

EFG Hermes, Jadwa Investment Co, and national capital Bank Ltd shared first place within the MENA electronic countermeasures league table throughout the primary quarter of 2020.

Saudi Arabia and Qatar were the foremost active establishment nations with US$9.9 billion and US$5.0 billion in bond take, severally. Saudi Arabia’s US$4.9 billion bond sale in January was each the biggest MENA bond sale and also the solely bond sale within the region throughout the primary quarter of 2020. Normal chartered took the highest spot within the MENA bond underwriter ranking throughout Q1 2020 with US$5.6 billion of connected take, or a 29% market share.

As to debt markets, MENA debt supply totalled US$19.5 billion throughout the primary quarter of 2020, down 40% from the worth recorded throughout constant amount in 2019, and a four-year low. When a powerful begin, with over US$9 billion raised in each January and February, March supply slowed to only US$571.9 million, marking the bottom monthly total since August 2019.



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