(MENAFNEditorial) The value of mergers and acquisitions (M&A) targeting companies based in the Middle East fell back slightly in May 2013 to USD 1,593 million, down 11 per cent on April's figure of USD 1,781 million, according to the latest M&A report from Zephyr, the M&A database published by Bureau van Dijk. In a year-on-year comparison, however, the result stacks up well, as in May 2012 just USD 572 million-worth of deals were signed off.
Meanwhile, volume advanced 12 per cent during the month under review, increasing to 28 transactions from 25 in April, and was also higher than at the same time last year (May 2012: 22 transactions).
Middle Eastern M&A activity over the last 12 months has been characterised by a frustrating lack of consistency, but certain key sectors including hotels and real estate, retail and banking continue to perform well.
Deal values modest rather than spectacular
There were no transactions worth more than USD 1,000 million in May, which accounts for the decline in overall value for the region despite an increase in volume.
The largest deal by value during the month under review involved Dubai-based Majid Al Futtaim Holding buying the remaining 25 per cent of Majid Al Futtaim Hypermarkets from its partner, French supermarket giant Carrefour, for USD 685 million.
This was followed by a National Bank of Abu Dhabi, which raised USD 465 million from the sale of convertible bonds, in a move aimed at diversifying its funding sources and investor base. Proceeds will be used for general corporate purposes.
There was some cross-border deal-making during May, with buyers from Israel, Ireland and Korea featuring in the top 20 transactions by value, but the majority of M&A activity was domestic, and, with the exception of the Majid Al Futtaim deal, all involved minority equity stakes.
UAE top by value, Jordan by volume
The Majid Al Futtaim Hypermarkets transaction propelled the United Arab Emirates (UAE) into top spot in the value rankings with USD 1,199 million, a massive improvement on April when no value was recorded, and the country's second highest result of the last 12 months under review.
Oman was next with USD 388 million, again, its second highest result of the last 12 months; and some way behind was Jordan for which USD 6 million was recorded, a significant drop from USD 726 million in April and its worst result of the last year.
Jordan did make up some ground on volume with 16 transactions compared to 11 in the previous month; UAE ranked second with 7, the same as April's result, and Oman third with 5.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.