The mergers and acquisitions (M&A) deal activity in the Middle East region started the year on a rather subdued note, according to the latest reports from Zephyr, the comprehensive database of deal information.

The first quarter of the current year saw 93 transactions worth a combined $2.62 billion recorded in the region, the M&A database stated.

The decision by Doha Bank to increase its capital by 50 per cent in two phases gave the Qatari lender first and second position in the deal rankings by value. In the first phase of the exercise, the bank increased its capital by an initial 25 per cent via a rights issue to raise $426 million.

In the second, the lender will increase its capital by another 25 per cent by issuing global depository receipts worth $805 million.

Globally, activity targeting companies based in North America declined in the first quarter, despite three blockbuster deals during the period.

There were 3,179 transactions worth a combined $278.043 billion, which in monetary terms was down 21 per cent on fourth quarter of 2012 but 33 per cent higher than a year ago.

By contrast, private equity investment picture was much more encouraging, as deal value rose from $44.493 billion last quarter to $77.281 billion.

The volume and value of deals targeting companies based in Asia Pacific and Central Asia fell to their lowest level in the last two years, with total of 3,445 transactions worth a combined $118.809 billion recorded, and was all the more disappointing because it halted two consecutive quarters of growth.

On the flip-side, the value of private equity investment in the region increased 7 per cent quarter-on-quarter-year from $5.009 billion to $5.351 billion, despite a 14 per cent decline in volume.

Similarly, Western European deal activity took a knock, with the region recording its lowest result for the last two years, despite 19 blockbuster deals in the first three months of the year.

The volume of investment targeting the region fell back 28 per cent to 3,989 deals from 5,503 transactions in the fourth quarter of last year, while value declined at a faster rate of 47 per cent to 106.322 billion euros from 202.472 billion euros.

Two Russian investors, through the acquisition vehicles Lizarazu and Receza, acquired a 38 per cent stake in Polyus Gold International of the UK from Onexim Holdings for 4.181 billion euros in the period's largest transaction by value.

Finally, M&A activity targeting companies based in Central and Eastern Europe and Russia weakened quarter-on-quarter, with deal value in the former declining 37 per cent from 39.223 billion euros to 24.886 billion euros, while in the latter the fall was even steeper, as deal value almost halved from 31.982 billion euros to 16.752 billion euros.-TradeArabia News Service