By Satish Kanady
DOHA: Qatar topped the M&A activities in the Middle East during the first nine months of this year. Qatar’s overseas acquisitions accounted for 55 percent of Middle Eastern outbound M&A activity, while acquisitions by Saudi Arabian and UAE companies accounted for 27 percent and 11 percent, respectively.
The total value of outbound deals from the region for the first nine months of the year stood at $17.2bn and Qatar’s share was more than half of it. The region’s outbound M&A activity was up 57 percent from the first nine months of 2014 , the highest first nine-month total since 2009.
Thomson Reuters’ quarterly investment banking analysis for the Middle East region noted China, Germany and UK were the most targeted nations in terms of M&A deals for the first nine months of the year. With 29 percent, China was the most targeted nation, followed by Germany and UK.
Energy & power was the most active sector, accounting for 31 percent of Middle Eastern involvement M&A. The largest deal with Middle Eastern involvement during the third quarter of 2015 was the $3.1bn offer for the synthetic rubber business of Germany’s Lanxess AG by Aramco Overseas Co BV. Bank of America Merrill Lynch topped the 9M 2015 announced any Middle Eastern involvement M&A league table with $7.8bn.
Despite the quarterly decline of equity capital markets (ECMs), Middle Eastern ECM increased 6 percent year-on-year to reach $5.5bn during the first nine months of 2015, marking the best first nine months by proceeds raised since 2012. Ten initial public offerings raised $2.5bn and accounted for 45 percent of first nine-month activity in the region. Follow-on and convertible offerings accounted for 15 percent and 40 percent, respectively. Abu Dhabi Islamic Bank PSJC raised $137.2m from a follow-on stock offering in September, the largest equity offering in the region during the third quarter of 2015. HSBC took first place in the 9M 2015 Middle Eastern ECM ranking with an 18.3 percent market share.
According to estimates from Thomson Reuters/Freeman Consulting, Middle Eastern investment banking fees reached $480.5m, 22 percent less than the value recorded during the first nine months of 2014 and the lowest first nine month total since 2012.
Nadim Najjar, Managing Director, Mena, Thomson Reuters, said: “The value of announced M&A transactions with any Middle Eastern involvement reached $33.7bn during the first nine months of 2015, 23 percent more than the value registered during the same period in 2014 and marking the best annual start since 2010.”
“Middle Eastern equity and equity-related issuance totalled $2.6bn during the third quarter of 2015, a slight decline from the second quarter of this year. Middle Eastern debt issuance reached $16.1bn during the third quarter of 2015, more than double the value raised during the previous quarter,” he added.
In respect to investment banking fees, not one investment banking component saw year-over-year percentage gains during the first nine months of 2015, with equity capital markets underwriting declining 3 percent compared to last year, while fees from completed M&A transactions totalled $177.6m, a 1 percent decline from the first nine months of 2014.
The Peninsula
