The value of mergers and acquisitions (M&A) transactions with any Middle Eastern involvement reached $33.7 billion during the first nine months of 2015, marking a 23 per cent year-on-year growth, said an industry expert.

This marks the best annual start since 2010, added Nadim Najjar, managing director, Mena, Thomson Reuters, a global source of intelligent information for businesses.

“Middle Eastern equity and equity-related issuance totalled $2.6 billion during the third quarter of 2015, a slight decline from the second quarter of this year. Middle Eastern debt issuance reached $16.1 billion during the third quarter of 2015, more than double the value raised during the previous quarter,” he explained, commenting on the quarterly investment banking analysis for the Middle East region released by Thomson Reuters.

According to estimates from Thomson Reuters / Freeman Consulting, Middle Eastern investment banking fees reached $480.5 million during the nine months of 2015, 22 per cent less than the value recorded during the first nine months of 2014 and the lowest first nine month total since 2012.

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 per cent compared to last year, while fees from completed M&A transactions totalled $177.6 million, a 1 per cent decline from the first nine months of 2014, and accounting for 37 per cent of the overall Middle Eastern investment banking fee pool, the highest first nine month share since records began in 1980.

Syndicated lending fees totalled $174.4 million, down 36 per cent from the first nine months of 2014, while fees from debt capital markets underwriting declined 42 per cent year-on-year to $47.8 million.

HSBC earned the most investment banking fees in the Middle East during the first nine months of 2015, a total of $53.0 million for an 11.0 per cent share of the total fee pool.  HSBC topped both the completed M&A and the ECM underwriting fee rankings, while Nomura was first for DCM underwriting.  Mitsubishi UFJ Financial Group took the top spot in the Middle Eastern syndicated loans fee ranking.

As for M&A deals, outbound M&A drove activity, up 57 per cent from the first nine months of 2014 to reach $17.2 billion, the highest first nine month total since 2009.  Qatar’s overseas acquisitions accounted for 55 per cent of Middle Eastern outbound M&A activity, while acquisitions by Saudi Arabian and UAE companies accounted for 27 per cent and 11 per cent, respectively.  Domestic and inter-Middle Eastern M&A decreased 2 per cent year-on-year to $8.5 billion.

Inbound M&A also saw a marked increased, up 154 per cent to $4.6 billion.   Energy & power was the most active sector, accounting for 31 per cent of Middle Eastern involvement M&A.  The largest deal with Middle Eastern involvement during the third quarter of 2015 was the $3.1 billion 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 $7.8 billion.
 
Despite the quarterly decline of ECMs, Middle Eastern ECM increased 6 per cent year-on-year to reach $5.5 billion during the first nine months of 2015, marking the best first nine months by proceeds raised since 2012.

Ten initial public offerings raised $2.5 billion and accounted for 45 per cent of first nine month activity in the region.

Follow-on and convertible offerings accounted for 15 per cent and 40 per cent, respectively.  Abu Dhabi Islamic Bank PSJC raised $137.2 million 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 per cent market share.
 
As for Debt Capital Markets, despite the quarterly increase, first nine bond issuance in the region decreased 27 per cent from last year to $24.4 billion during the first nine months f of 2015, marking the lowest first nine month total since 2011.

The United Arab Emirates was the most active nation accounting for 70 per cent of activity, followed by Egypt with 8 per cent.  International Islamic debt issuance declined 26 per cent year-on-year to reach $21.4 billion during the first nine months of 2015.  Nomura took the top spot in the Middle Eastern bond ranking during the first nine months of 2015 with a 33 per cent share of the market. – TradeArabia News Service