Finance & Capital Market

MENA mergers and acquisition deals hit $109bn in 2021

Middle East and North Africa (MENA) mergers and acquisition transactions totalled $109 billion in 2021, up 57% from previous year and the third $100 billion year on record, said a Refinitiv report.
Refinitiv, a London Stock Exchange Group Business, released the Middle East and North Africa Investment Banking Report for 2021.
 
A total of 1,141 deals was recorded in 2021, a 40% increase from 2020 and the highest annual total since records began in 1980. M&A involving a MENA target reached $72.9 billion, making it the second-highest total since records began in 1980 and the strongest year of the number of deals with 863 deals in 2021. 
 
According to the report, investment banking fees in MENA totalled $1.4 billion in the full year of 2021, up 3% from the same period last year and the second-highest total on record.
 
MENA equity capital markets (ECM) raised $14.5 billion from 42 offerings in 2021, a 193% increase in proceeds from last year and a 13-year high in the number of ECM deals. Debt Capital Markets (DCM) in the MENA region totalled $107.5 billion from 152 issuances in 2021, down 12% in proceeds compared to the same period last year.
 
Commenting on the report, Saiem Jalil, Deals Intelligence Analyst, Refinitiv, said: “Despite the uncertainties around the pandemic and outlook for 2021, M&A in the MENA region recovered strongly. 2021 was the first year M&A with any MENA involvement surpassed 1,000 deals demonstrating growing optimism in the region. Strong recovery in business performance throughout 2021 demonstrated a return for capital markets driving momentum, contributed by ECM proceeds up 193% to US$14.5 billion and investment-grade corporate debt at record levels with US$66 billion in proceeds.”
 
Completed mergers and acquisition fees declined 26% to $317.2 million, making up 22% of the total investment banking fee pool. Equity capital markets recorded their strongest year in 13 years, producing $334.4 million in fees, a 251% increase from last year. Equity underwriting fees made up 23% of the total fee pool, the highest proportion since 2008.
 
Inbound M&A reached record levels with $45.4 billion of M&A activity in 2021, up 88% and the highest level since records began in 1980. Outbound M&A totalled $30.2 billion in 2021, up 198% from 2020 and a six-year high. The largest M&A deal in the MENA region of 2021 was Aramco Gas Pipelines Co in a deal worth $15.5 billion lease and leaseback agreement for its gas pipeline network. Energy and Power was the most active sector with US$38.8 billion in deal activity, representing a 189% increase from last year.
 
Saudi Arabia was the most targeted nation with $27.3 billion in M&A activity, equivalent to half of target M&A recorded in the region. JP Morgan topped the any MENA Involvement M&A league table in 2021 with $43.3 billion in related activity or a 40% share of the market. Goldman Sachs came second with a 37% share of the market. - TradeArabia News Service