Dubai: Last year turned out to be the best period for mergers and acquisitions (M&A) in the region since 2010.
According to Thomson Reuters, the value of announced M&A transactions with any Middle Eastern involvement reached $43.4 billion during 2013, seven per cent more than the $40.7 billion recorded in 2012.
According to Nadim Najjar, Thomson Reuters managing director for Middle East, Africa, and Russia/Commonwealth of Independent States, the sector was bolstered by the $7.5 billion merger of two UAE state-owned aluminium producers last June.
“[The] materials sector was the most targeted, accounting for 23 per cent of the activity. The energy and power and telecoms deals also helped drive the activity during 2013, with each sector accounting for 21 per cent of Middle Eastern involvement M&A,” he said.
Inbound M&A reached $6.1 billion, down three per cent from the previous year. Egypt was the most popular target, while China recorded the highest value of inbound M&A deals targeting the Middle East.
Outbound M&A rose 11 per cent from this time last year to $14.8 billion.
In the equity capital markets category, companies in the Middle East generated $4.2 billion last year, a 39 per cent drop from 2012.