MERGERS & ACQUISITIONS
Increasing Activity Georges Massoud Head of M&A for the MENA region at JP Morgan tells MEA Finance that M&A will continue on its growth path, remaining important to the development shareholder value and regional capital markets, as well as attracting talent from around the world as many business sectors such as technology, expect a surge in activity
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&A deal value for the Middle East in FY 2021 grew nearly 60% over the previous year. Can growth in the regional M&A market be sustained?
The current trends in Middle East M&A have clearly demonstrated a shift in the market dynamics. Although governmentsponsored deals still represent a considerable part of the total deal flow, we have recently witnessed large corporate transactions as well as a strong surge in public M&A deals which have been reshaping the market. The increase in FY 2021 was partially driven by a strong global macro-economic backdrop from the Covid 19 pandemic. That being said, the Middle East M&A market has been steadily growing over the past few years and is expected to continue in that trajectory in the long run driven by: strong government privatization and investment programs, growing economies and developing sectors (technology, etc.) and a constantly
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are about to reach a relevant scale for M&A to become a more natural route for expansion.
W i l l c u r re nt M & A a ct i v i t y contribute to the long-term growth of the region’s capital markets?
Georges Massoud, Head of M&A for the MENA region, JP Morgan
evolving public market supported by ambitious initiatives (SPACs, etc.). M&A is becoming a regular topic of discussion during board meetings and is now more commonly used in the region as a tool to enhance shareholder value creation. Additionally, there are many companies in the region that have just reached, or
Banking and Finance news in the MEA market
Public M&A transactions have been on a continuous rise in the Middle East region. Saudi Arabia and the UAE have been leading the way over the past couple of years, however other markets such as Qatar and Egypt have also had their fair share in terms of market activity. Recent public transactions have been an important contributor to the development of the regional capital markets as they are now being used as blueprints for future transactions. Using publicly traded shares as a currency for transformative acquisitions is certainly a tool regional companies have become accustomed to use. We increasingly see regional companies exploring M&A as a tool for growth and value creation, before targeting an initial public offering.
