UAE M&A deal value hits $10.4bn in 2018

Dubai / Emirates Business

Mergermarket, the leading provider of mergers and acquisitions (M&A) data and intelligence, has released research showing that in 2018 the Mena region experienced a significant spike in deal value, reaching $26.76 billion, compared with $15.86 billion in 2017 — an increase of 68.7%. The significant growth in deal value was driven by increased deal-making in the UAE, which more than doubled to $10.4 billion in 2018, as well as blockbuster deals in Saudi Arabia and North Africa.
Abu Dhabi National Oil Company (Adnoc) played an important role with a series of 7 divestments on its energy assets worth $6.2 billion. Meanwhile, deal count in the region jumped by 15 deals to 148, compared to 133 in 2017.
The first half of 2018 saw a considerable rise in value to $15.16 billion, from $9.13 billion in 2017, and a moderate increase in the number of deals, to 87 from 71. By contrast, the second half of the year was more subdued with 61 deals totalling $11.59 billion, due to macro-economic and geopolitical headwinds.
Cross-border Mena deals, which totalled 77 deals worth $14.21 billion, saw highest volume of inbound M&A on record and the highest value since the global financial crisis. Domestic M&A ($12.54 billion) was considerably higher than in 2017 ($8.742 billion). The increase in domestic activity was driven by two sizeable deals in Saudi: Saudi British Bank and Alawwal Bank’s $4.7 billion tie-up, the second biggest deal in regional Financial Services sector since 2001; and Saudi International Petrochemical’s $2 billion acquisition of Sahara Petrochemical.
Elaine Green, Editor of Mergermarket EMEA Bureaus, commented: “Mena M&A had a bumper year, particularly in H1, although second half was somewhat muted by macro factors. Nonetheless, 2019 is expected to see continued pickup in M&A, with deals that have been waiting in the wings coming to fruition.”