MEA M&A activity decline 9.4 percent in 2014

08 Jan 2015

(MENAFN) The Middle East and Africa (MEA) mergers and acquisitions activity (M&A) dropped 9.4 percent in 2014 to hit USD57.9 billion in comparison with the post-crisis high of USD63.9 billion recorded in 2013,Gulf News reported.

Despite the decrease in the value of the M&A, 2014 still represented the fourth highest annual value recorded after the value of the deals fluctuated throughout the quarters of the year before registering an improvement in the fourth quarter with a 158.6 percent increase to USD22.5 billion compared with USD8.7 billion in the third quarter .

During the October-December period of 2014, four transactions each valued more than USD2 billion were registered, accounting for 23.7 per cent of 2014’s total value.

In term of sectors, the technology, media and telecommunications (TMT) sector saw 74 transactions in 2014 with a total value of USD12.3 billion, accounting for 21.2 per cent of the region’s total and representing a 12.5 per cent increase by value, while the Energy, Mining & Utilities sector registered a drop in its inbound investments, with the sector recording 59 deals at a total value of USD11.1 billion, representing a 52.2 percent drop by value and 14 fewer deals than 2013

Total inbound activity to the region declined in 2014 compared to the previous four years with deals valued at USD14.6 billion, thus decreasing 58.9 per cent from 2013’s value at USD35.6 billion, while outbound activity increased by 73.5 percent in total value to USD26.2 billion from USD15.1 billion in 2013.