BUSINESS REPORTER
MUSCAT, NOV 1
The value of announced M&A transactions with any MENA involvement reached $58.0 billion during the first nine months of 2020, according to a report by Refinitiv, one of the world’s largest providers of financial markets data and infrastructure.
It marked the third-highest year-to-date total of all-time, despite falling 52 per cent in value from the record high achieved last year with Saudi Aramco’s agreement to buy a stake in Saudi Basic Industries Corp for$69.1 billion.
About $6.3 billion worth of deals were announced during the third quarter of 2020, down 82 per cent from the previous quarter which was boosted by two mega deals — Saudi Arabia’s National Commercial Bank announced plans to acquire Samba Financial Group for $15.6 billion and a consortium of investors agreed to buy ADNOC gas pipeline assets for $10.1 billion.
Despite scoring the second-highest first nine-month total of all-time, domestic M&A registered a 71 per cent decline from last year to $25.2 billion, again due to the Aramco / Sabic deal.
Inbound M&A, involving an acquirer from outside of the region, increased 36 per cent to an all-time year-to-date high of $22.5 billion, while outbound M&A declined 47 per cent to $5.0 billion.
The financial sector was most active, with deals targeting financial companies accounting for 40 per cent of total M&A in the region during the first nine months of 2020, followed by Energy & Power with 21 per cent. Saudi Arabia was the most targeted nation, followed by The United Arab Emirates and Egypt.
Morgan Stanley topped the any MENA involvement announced M&A financial advisor league table during the first nine months of 2020 with a 45 per cent market share.
MENA equity and equity-related issuance totalled $2.6 billion during the first nine months of 2020, 7 per cent less than the value recorded during the same period last year and a three-year low after less than $80 million was raised during the second quarter.
Third quarter issuance reached $1.7 billion as Abu Dhabi National Oil Co sold $1 billion worth of shares in ADNOC Distribution, and Dubai-based social networking and entertainment platform Yalla Group raised $139.5 million through its New York listing.
First Abu Dhabi Bank PJSC takes first place in the MENA ECM league table during the first nine months of 2020, followed by Citi.
MENA debt issuance reached $92.4 billion during the first nine months of 2020, up 8 per cent from the value recorded during the same period in 2019 and an all-time year-to-date high.
After a strong start, with over $9 billion raised in both January and February, March issuance slowed to just $572.0 million.
About $52.4 billion was recorded during the second quarter of 2020, an all-time quarterly high in the region, followed by $20.5 billion during the third quarter.
The UAE and Saudi Arabia were the most active issuer nations during the first nine months of 2020 with $34.7 billion and $21.9 billion in bond proceeds, respectively.
Standard Chartered took the top spot in the MENA bond underwriter ranking during the first nine months of 2020 with $16.5 billion of related proceeds, or an 18 per cent market share.
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