Saudi Arabia leads Middle East’s M&A activity in deal value YTD: Mergermarket

Mergers & acquisitions (M&A) targeting Saudi Arabia recorded $6.2 billion across 13 deals (year-to-date or YTD i.e. January to October 2018), compared to the $5.1 billion and 15 deals from the same period last year, the latest  report by Mergermarket on global M&A activity for November 2018 said.

The largest deal in Middle East and Africa YTD was struck in Saudi Arabia, where Saudi British Bank acquired Alawwal Bank for a total $4.8 billion, the report added.

“This is the largest transaction targeting the Saudi financial services space on Mergermarket record,” the report said, adding that the sector has seen an uptick in activity, already sending YTD value figures higher than FY 2017: $8.7 billion and 27 deals compared to $6.2 billion and 54 deals.

On an YTD basis, Middle East and Africa deal-making stood at $54.6 billion (300 deals), rendering this year the third most valuable on Mergermarket record (since 2001), after 2007 ($63.4 billion) and 2017 ($55.7 billion), the report added.

The report said following a slow summer, where trade worries and volatile markets took their toll, regional M&A is starting to pick up ahead of the year end.

However, it added that the continued strengthening of the US dollar and the higher bond yields in developed economies are hampering the region’s overall market performance, with local firms seeing their financing turn costlier.