Quotes: US MENA   Enter Symbol: NewsLetter: Search: advanced

Middle Eastern Merger and Acquisition Activity Records US$43.4 billion in 2013  Join our daily free Newsletter

MENAFN Press - 21/01/2014
No. of Ratings : 0
Add to Mixx!



(MENAFN Press) Thomson Reuters today released its full year investment banking analysis for the Middle East region in 2013.



During 2013, Middle Eastern investment banking fees reached US722.2 million. According to the report, the value of announced M&A transactions with any Middle Eastern involvement reached US43.4 billion during 2013, 7% more than the US40.7 billion witnessed in the region during 2012, and marking the best full year total since 2010





Nadim Najjar, Managing Director, Middle East, Africa, and Russia / CIS, said: " Middle Eastern companies raised US4.2 billion of equity during 2013, a 39% decline from 2012 (US6.9 billion), while Middle Eastern debt issuance reached US8.1 billion during fourth quarter of 2013, up 82% from the previous quarter. Despite the quarterly uptick, only one-third of 2013 activity was seen during the second half of the year.



Mr. Najjar pointed out that the investment banking fees increased by 20% over the US602.6 million seen during 2012 recording the highest annual total in the region since 2010.



He added: "Investment banking fees from completed M&A transactions totalled US212.8 million, up 22% from 2012 (US174.0 million), and accounting for 29% of the overall fee pool. Fees from debt capital markets underwriting hit US144.1 million, up 44% from US100.0 million during the previous year, and marking the best annual total for DCM fees in the Middle East since 2010. Equity capital markets underwriting fees totalled US62.4 million, down 43% from 2012 (US108.9 million) and the lowest annual total since 2003. Investment banking fees from syndicated lending increased 38% to US303.0 million, accounting for 42% of total Middle Eastern fees, the highest share since 2004."



Mr. Najjar noted that HSBC earned the most investment banking fees in the Middle East during 2013, a total of US61.6 million for an 8.5% share of the total fee pool. HSBC topped the Middle Eastern completed M&A fee league table, as well as both the DCM and Loans underwriting fee rankings. The National Bank of Abu Dhabi took first place in the Middle Eastern ECM fee ranking with a 10.3% cut



In respect to Mergers and Acquisitions, Mr. Najjar pointed out that 2013 marked the best full year total since 2010. "Bolstered by the US7.5 billion merger of 2 UAE state-owned aluminium producers in June, materials sector was the most targeted, accounting for 23% of activity. Energy & Power and Telecoms deals also helped drive activity during 2013, with each sector accounting for 21% of Middle Eastern involvement M&A," he said.



Mr. Najjar added: "Inbound M&A totalled US6.1 billion, down 3% from the previous year. Egypt was the most popular target, while China registered the highest value of inbound M&A deals targeting the Middle East. Outbound M&A increased 11% from this time last year to total US14.8 billion. As sole advisor on the aluminium merger, Morgan Stanley topped the 2013 announced any Middle Eastern involvement M&A league table with US12.7 billion.



In the area of equity capital markets, he pointed out that Middle Eastern companies raised US4.2 billion during 2013, a 39% decline from 2012 (US6.9 billion), led by an 80% drop in follow-on offerings.



"Follow-ons accounted for 23% of equity issuance in the region during 2013, compared to 69% the previous year. Despite the fall in overall equity issuance, Initial public offerings recorded the highest level since 2008, with US2.7 billion accounting for 66% of ECM activity in the region. The strong IPO total was supported by Asiacell Telecommunication's US1.3 billion stock market debut at the beginning of the year. The United Arab Emirates was the most active nation, accounting for 45% of total equity issuance in the Middle East during 2013. As sole bookrunner on the Asiacell IPO, Rabee Securities took first place in the 2013 Middle Eastern ECM ranking with 31% of the market," he noted.



Speaking about the debt capital market activity in 2013, Mr. Najjar said: "Despite the quarterly uptick, only one-third of 2013 activity was seen during the second half of the year. Debt issuance in the region throughout 2013 totalled US38.6 billion, nearly levelling 2012's total of US38.8 billion. Investment grade corporate debt totalled US27.4 billion and accounted for 71% of the annual total."



He concluded: "The United Arab Emirates was the most active nation accounting for two-fifths of activity, followed by Saudi Arabia with 22%. International Islamic debt issuance declined 11% from 2012 to reach US32.5 billion during 2013.

HSBC took the top spot in the Middle Eastern bond ranking during 2013 with a 16% share of the market."



About Thomson Reuters Deals
A copy of the Thomson Reuters Deals Intelligence Middle Eastern Investment Banking Analysis is attached in pdf format. Middle East includes the following countries: Bahrain, Egypt, Iraq, Iran, Jordan, Kuwait, Lebanon, Oman, Qatar, Saudi Arabia, Syria, United Arab Emirates and Yemen. Deal fees are calculated using Freeman Consulting's proprietary algorithm where spreads or fees are not disclosed. Deal fees are on a gross basis before all expenses. Each underwriter or advisor is allocated its share of deal fees using Freeman Consulting's allocation methodology, based on the number of underwriters or advisors on the deal and their role. No fees are allocated to syndicated members. Industry totals include fees on deals with undisclosed advisors.A financial glossary of terms and concepts related to the financial markets can be found at www.glossary.reuters.com About Thomson ReutersThomson Reuters is the world's leading source of intelligent information for businesses and professionals. We combine industry expertise with innovative technology to deliver critical information to leading decision makers in the financial and risk, legal, tax and accounting, intellectual property and science and media markets, powered by the world's most trusted news organization. With headquarters in New York and major operations in London and Eagan, Minnesota, Thomson Reuters employs approximately 60,000 people and operates in over 100 countries. Thomson Reuters shares are listed on the Toronto and New York Stock Exchanges. For more information, go to http://thomsonreuters.com.About Thomson Reuters Deals Intelligence Thomson Reuters Deals Intelligence, a part of Thomson Reuters Investment Banking division, brings up to the minute market intelligence to clients and the financial media through a variety of research reports including Daily Deals Insight, weekly Investment Banking Scorecard, monthly Deals Snapshots and industry-leading quarterly reviews highlighting trends in M&A and Capital Markets

 






  MENA News Headlines
 Jul 28 2014 - Muslims mark sombre Eid in bloodied GazaAFP
(MENAFN - AFP) The end of a month of fasting was supposed to be a time to celebrate for Abeer Shamali. But instead, she spent the Muslim Eid feast at the grave of her teenage son. Fellow mourners ...

 Jul 28 2014 - Radiant During RamadanMuscat Daily
(MENAFN - Muscat Daily) Keep your skin and hair glowing and shiny even as you're fasting in this holy month. Some tips... Moisturise Your skin too gets dehydrated when you fast. It is ...

 Jul 28 2014 - Cream of the CropMuscat Daily
(MENAFN - Muscat Daily) Mahmood Said Humaid al Shibli glances at the wall clock. It's 11am with change, and only two hours to ''go to plate''.  There's crepes to layer, oranges to slice and ...

 Jul 28 2014 - Coaches satisfied with Mansoor's performance at youth sailing worldsMuscat Daily
(MENAFN - Muscat Daily) Despite young Mansoor al Mahrooqi's last-place finish in a field of 57 sailors in the Laser Radial class at the ISAF Youth Sailing World Championship held recently, Oman ...

 Jul 28 2014 - ORT set for Belgian challengeMuscat Daily
(MENAFN - Muscat Daily) Oman Racing Team (ORT), led by Muscat-based racer Ahmad al Harthy, has managed just 12 points over the past three rounds of the 2014 Blancpain Endurance Series. Despite ...

 Jul 28 2014 - Alizz islamic bank reports RO2.6mn lossMuscat Daily
(MENAFN - Muscat Daily) Alizz islamic bank has reported a loss of RO2.6mn for the period ended June 30, 2014 which the bank said, in a disclosure to the Muscat Securities Market, "is in line ...

 Jul 28 2014 - Duqm Airport takes offMuscat Daily
(MENAFN - Muscat Daily) The newly opened Duqm Airport received its first Oman Air flight ahead of schedule on Wednesday with officials saying that the facility will serve as an air transport and ...

 Jul 28 2014 - All you want to know about Oman - on a busMuscat Daily
(MENAFN - Muscat Daily) Highlighting the leadership of His Majesty Sultan Qaboos bin Said, the National Centre for Statistics and Information (NCSI) has launched a new initiative that will see public ...

 Jul 28 2014 - Air fares rise by 35 as travellers rush to make the most of long breakMuscat Daily
(MENAFN - Muscat Daily) Fares of most airlines have gone up due to the increase in demand during Eid al Fitr holidays. The prices of tickets to different destinations have gone up by nearly 35 per ...

 Jul 28 2014 - MoHC invites bid for construction of $250mn Oman Cultural ComplexMuscat Daily
(MENAFN - Muscat Daily) After announcing the appointment of the UK-based international consultancy and construction company, Mace as project manager for the Oman Cultural Complex (OCC), the Ministry ...

more...


 






Google

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country

IPO News
Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

US Markets Details

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Investment Game
Economic Calendar
Financial Glossary

My MENAFN
Portfolio Tracker

Voting

Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2000 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help