The deal value of mergers (M&A) in the Middle East and North Africa (MENA) region declined by 57.6 percent in 2017 mostly due to weak performance of construction and transport sector in the region, said Mergermarket, a Dubai-based provider of M&A data and intelligence on Monday.
The declined occurred although "the deal count maintained at a level that was consistent with the previous year," said Mergermarket.
Full year 2017 saw the announcement of 126 deals worth approximately 16 billion U.S. dollars compared to 129 deals in 2016 at a total value of 37.8 billion U.S. dollars, said the report.
The top performing sectors for M&A in the region included Financial Services with 16 deals at a total value of 4.5 billion U.S. dollars, Industrials and Chemicals with 13 deals valued at over 3.9 billion U.S. dollars, and Telecommunications with 7 deals valued at over 3.2 billion U.S. dollars.
The worst performing M&A sectors in the MENA region included Construction, with deal value falling from 1.3 billion U.S. dollars in 2016 to just 59 million U.S. dollars in 2017, "despite consistent deal count," said Mergermarket.
Other poor performing sectors included Transport, which experienced a 5.6 billion U.S. dollars drop in deal value, and Technology.
Regarding the outlook for 2018, Jonathan Klonowski, EMEA Research Editor at Mergermarket, said "The M&A market in MENA is showing real signs of strength in 2018, with a flurry of big-ticket deals already announced this year."
He added "Greater stability in commodity markets and a need to innovate should put corporates in a position to be active throughout 2018."
The declined occurred although "the deal count maintained at a level that was consistent with the previous year," said Mergermarket.
Full year 2017 saw the announcement of 126 deals worth approximately 16 billion U.S. dollars compared to 129 deals in 2016 at a total value of 37.8 billion U.S. dollars, said the report.
The top performing sectors for M&A in the region included Financial Services with 16 deals at a total value of 4.5 billion U.S. dollars, Industrials and Chemicals with 13 deals valued at over 3.9 billion U.S. dollars, and Telecommunications with 7 deals valued at over 3.2 billion U.S. dollars.
The worst performing M&A sectors in the MENA region included Construction, with deal value falling from 1.3 billion U.S. dollars in 2016 to just 59 million U.S. dollars in 2017, "despite consistent deal count," said Mergermarket.
Other poor performing sectors included Transport, which experienced a 5.6 billion U.S. dollars drop in deal value, and Technology.
Regarding the outlook for 2018, Jonathan Klonowski, EMEA Research Editor at Mergermarket, said "The M&A market in MENA is showing real signs of strength in 2018, with a flurry of big-ticket deals already announced this year."
He added "Greater stability in commodity markets and a need to innovate should put corporates in a position to be active throughout 2018."
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