MENA M&A Activities Maintain Growth with $69.1bn in Deals: EY
Mergers and acquisitions (M&A) activities in the Middle East and North Africa (MENA) region experienced a year-on-year rise of 23 percent, reaching $69.1 billion through 649 deals in the first nine months of this year.
In its latest report, professional services firm EY highlighted that Gulf Cooperation Council (GCC) countries contributed significantly to the activity with 500 deals valued at $65.9 billion.
The rise in cross-border deal activity showcases the growing appetite of companies for international expansion and portfolio diversification, according to Brad Watson, Strategy and Transactions Leader at EY MENA.The UAE reported the region's largest M&A deal this year, involving the acquisition of a 64 percent stake in Borouge by Austrian energy group OMV and its subsidiary Borealis for $16.5 billion.
The second-largest deal was Abu Dhabi National Oil Co.'s acquisition of a 46.94 percent stake in Canada-based NOVA Chemicals for $6.3 billion, one of the largest transactions in the global petrochemical sector.Outbound deals dominated the regional landscape, contributing the largest share of transaction value with 189 deals amounting to $28.5 billion.
Canada attracted the highest outbound deal value from MENA investors at $7.1 billion.
The UAE and Saudi Arabia were among the top MENA bidders, together accounting for 85 percent of total outbound deal value.Inbound investments in the first nine months of this year rose by 25 percent in volume and 34 percent in value compared to the same period last year.
Austria emerged as the top investor nation, driven by the Borouge acquisition by OMV and Borealis.
The UAE maintained strong foreign direct investment momentum, driven by its stable economy and investor-friendly policies.Chemicals and technology were the leading contributors to total deal value at $23.9 billion and $12.2 billion, respectively.
Government-related entities in MENA focused their outbound investments on energy and utilities infrastructure, technology, logistics, and industrial production, accounting for 39 out of 189 outbound deals, representing 66 percent of total value.The technology and consumer products sectors continued to draw strong investor interest, fueled by digital transformation and evolving consumer behavior across the region.
Sovereign wealth funds remained key M&A drivers, executing 22 deals during the first nine months of this year, with investments concentrated in technology, consumer products, and professional services sectors.
The rise in cross-border deal activity showcases the growing appetite of companies for international expansion and portfolio diversification, according to Brad Watson, Strategy and Transactions Leader at EY MENA.The UAE reported the region's largest M&A deal this year, involving the acquisition of a 64 percent stake in Borouge by Austrian energy group OMV and its subsidiary Borealis for $16.5 billion.
The second-largest deal was Abu Dhabi National Oil Co.'s acquisition of a 46.94 percent stake in Canada-based NOVA Chemicals for $6.3 billion, one of the largest transactions in the global petrochemical sector.Outbound deals dominated the regional landscape, contributing the largest share of transaction value with 189 deals amounting to $28.5 billion.
Canada attracted the highest outbound deal value from MENA investors at $7.1 billion.
The UAE and Saudi Arabia were among the top MENA bidders, together accounting for 85 percent of total outbound deal value.Inbound investments in the first nine months of this year rose by 25 percent in volume and 34 percent in value compared to the same period last year.
Austria emerged as the top investor nation, driven by the Borouge acquisition by OMV and Borealis.
The UAE maintained strong foreign direct investment momentum, driven by its stable economy and investor-friendly policies.Chemicals and technology were the leading contributors to total deal value at $23.9 billion and $12.2 billion, respectively.
Government-related entities in MENA focused their outbound investments on energy and utilities infrastructure, technology, logistics, and industrial production, accounting for 39 out of 189 outbound deals, representing 66 percent of total value.The technology and consumer products sectors continued to draw strong investor interest, fueled by digital transformation and evolving consumer behavior across the region.
Sovereign wealth funds remained key M&A drivers, executing 22 deals during the first nine months of this year, with investments concentrated in technology, consumer products, and professional services sectors.
