(MENAFN- The Peninsula) By Satish Kanady I The Peninsula
DOHA: The total number of closed M & A transactions in the GCC in first quarter of 2018 grew by 38 percent compared to Q1, 2017.
One of the top five reported deal values during the first quarter was the $371m, involving Qatar Foundation acquiring 51 percent of Vodafone's stake in its Qatari operations, Kuwait Finance Centre's (Markaz) GCC M & A report for the first quarter of 2018 noted yesterday.
GCC acquirers accounted for 67 percent of the total closed transactions during Q1, 2018. The industrials and healthcare sectors witnessed the highest number of transactions, collectively accounting for 32 percent of the total transactions. The real estate, education and telecommunication services sectors, each accounted for 3 percent of the total number of transactions during the first quarter.
Each of the GCC acquirers seemed to have a different appetite with regards to M & A transactions during the first quarter. Qatari, Kuwaiti, Emirati and Omani acquirers seemed to prefer investing within their respective home country, according to Markaz.
There were a total of 12 announced transactions in the pipeline during Q1, 2018, representing a 29 percent decline in the number of announced transaction compared to Q4, 2017.
Two of the top transactions involved foreign buyers, one including the acquisition of Dalma Energy Oman and the other included the acquisition of Union Cement Company. Most of the top transactions were closed and were for majority stakes.
The first quarter witnessed a 43 percent increase in the number of completed transactions by foreign buyers (read non-GCC buyers) compared to Q1, 2017. In comparison to Q4, 2017, the number of such transactions increased by 67 percent.
Foreign acquirers didn't engage in any closed transactions involving targets in Bahrain and Qatar during Q1, 2018.
UAE was the most prevalent target country among the top transactions attracting buyers from India, Zimbabwe and China. Transactions in the region involved targets in the Energy, Industrials, Financials, and Consumer Discretionary sectors.
GCC acquirers accounted for 67 percent of the total number of transactions during the first quarter. Foreign acquirers accounted for 28 percent of the total number of transactions during the period, compared to 21 percent during Q4, 2017. However, buyer information was not available for 6 percent of the transactions in Q1, 2018.
MENAFN1804201800630000ID1096743676
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.