Mergers and acquisitions (M&A) transactions are at an all-time high in MENA, reaching $112 billion in the first half of 2019—an increase of 213% compared the same period of last year, according to a Refinitiv report.
MENA inbound M&A also stands at a YTD all-time high of $15.1 billion. However, outbound M&A decreased from $6.5 billion in 2018 to $4.6 billion so far during 2019, the lowest volume since 2004.
Energy and power deals accounted for 80% of MENA involvement in M&A by value, followed by the financial sector with a 13.7% market share but 44 transactions—18 more than the 26 recorded in the energy and power industry.
The rise of M&As were largely driven by Saudi ARAMCO’s $69.1 billion acquisition of SABIC, according to the report.
Here are the top five MENA M&As so far in 2019.
- Saudi Aramco acquired a 70% stake in SABIC for $69.1 billion.
- Kuwait Finance House acquired Ahli United Bank for $7.6 billion.
- The US’s BlackRock and KKR acquired a 40% stake in the UAE’s ADNOC oil pipelines for $4 billion.
- Abu Dhabi Commercial Bank merged with Union National Bank. The combined entity then acquired Al Hilal Bank in a deal worth of $3.9 billion.
- The US’s Carlyle Group acquired a 30-40% stake in CEPSA, wholly owned by the UAE’s Mubadala, for $3.4 billion.