(MENAFN) According to a report by Baker & McKenzie Habib Al Mulla, the value of cross-border Merger and Acquisition (M&A) activity in the Middle East region has risen significantly in 2014 in terms of both their value and number, Emirates 24/7 reported.
As of 14 December 2014, the total value of Middle East inbound M&A activity has surpassed the value registered in 2013, increasing by 53 percent to reach USD9.5 billion, while in terms of countries, the US led the list of countries with the highest deal value with 49.8 percent, followed by China with 10.3 per cent and Switzerland 7.1 per cent, and in terms of number of deals, the US had the most number of transactions with 43 deals, followed by India and China, both with 8 deals.
In terms of sectors, the Media and Entertainment sector was the largest recipient of inbound M&A activity in terms of value with almost 36 percent share, due largely to the USD3.2 billion sale of Orbit Showtime Network Co to an undisclosed US private equity firm, with the deal becoming the largest deal in the sector since 2010.
Meanwhile, the Middle East outbound M&A activity in 2014 increased by 67 percent compared with the full year of 2013 to reach USD29.23 billion, with the UK being the largest recipients of Middle East outbound M&A activity in terms of value with 45.7 percent followed by the US with 8.6 percent, and South Korea with 6.8 per cent, while in term of deal count, the US with 45 deals, followed by the UK and Egypt with 18 deals, registered the highest numbers.
In terms of sectors, the Middle East companies invested in real estate, energy and power, financials, and healthcare, with the 4 sectors accounting for over 80 percent of total deal value, while in terms of deal count, media and entertainment, industrials, real estate, and energy and power have seen the most number of transactions.
The outbound M&A activity was centered on South Korea, the UK, and Egypt in term of the value of the deals, with these countries receiving almost 96 percent of total deal value for the period, while in terms of transaction numbers, Egypt has the highest so far with 6 deals, followed by Spain and the UK with 4 deals each.
In term of sectors, energy and power, real estate, and materials received the largest investment, representing almost 90 percent of total deal value for the period, while industrials and materials sectors have been the most targeted industry with 5 deals each in terms of transaction volume.
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