Middle East and Africa’s M&A deals halved in Q1 2014

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Whilst a majority of corporate sectors have indeed posted increased sales for the first quarter in 2014 in Middle East and Africa (MEA), there are nonetheless a few sectors that have had a dip in their sales activities.

Middle East M&A deals
MEA’s M&A valuations have nearly halved in 2014’s first quarter. This is quite an unexpected turn from the wave of positivity seen previously.

One of those few domains whose sales activities that have taken a hit in the first quarter of 2014 are the Mergers and Acquisitions (M&A) sectors in the MEA region with sales deals dropping to half of their previous value. This statistic is quite startling especially when considered that the M&A sector was one of the highest gainers for the whole of last year.

Other major highlights from the latest report by M&A intelligence provider Mergermarket on Q1 2014 M&A trends:

  • The first quarter valuation figures of M&A sector after the first quarter in the current year have reduced by about 50.4%
  • Monetarily this means a reduction in M&A dealings’ valuation of about 23.14 billion dirham or US$ 6.3 billion as compared to the monetary statistics of the previous year’s M&A dealings’ valuation of about 46.24 billion dirham or US$ 12.6 billion in the same time-span
  • As compared to 2013’s fourth quarter statistical tabulation for the M&A sector, there has been a decreased of nearly 60.4% that saw valuation of nearly US$ 16 billion
  • The previously lowest statistical valuation of M&A dealings were last seen in the second quarter of 2009 with M&A deals valuing up to US$ four billion
  • This figure is thus seen to be the most valuation decrease for the M&A sector in the last five years, extending back to 2009
  • Mining, energy and utilities sector had a lot of dealings totaling to about US$ 1.2 billion but overall, their dealings still dipped to about 70% of their previous year’s dealings in the time-span

However despite these startling percentages and figures, the following positives also emerge in the M&A sector which give a lot of positivity about the overall performance of the domain. These positives include:

  • Substantial investment in the technological domain totaling to about 71.4%
  • Increase of nearly seven times in the consumers’ domain as compared to dealings in the same time-span in the previous year

It is expected that these underlying positives will tone and re-shape the trends for the Middle East and Africa’s mergers and acquisitions’ domain thereby allowing for greater depth and substantiality in their overall economic activities.

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