DOHA: The GCC region witnessed a 14 percent year-on-year increase in the total number of closed M&A transactions during Q4, 2015. Qatar closed four key deals during the first half of 2015, including two in Q4, 15.
Two of the top transactions of Qatar in Q4, 2015 involved Nebras Power and Al Meera Holding Company. Nebras acquired 9.75 percent of Phoenix Power Company and 15 percent of Phoenix Operation and Maintenance c Company in Oman. The deal value was $39m, the Kuwait Financial Centre’s (Markaz) Q4, 2015 GCC M&A report noted.
The UAE had the highest number of closed transactions among its GCC counterparts throughout Q4, 15. During the period, they accounted for 50 percent of the transactions, the highest, while Qatar accounted for 7 percent. Bahrain did not engage in any closed transactions. Saudi Arabia and the UAE were the most prevalent target countries among the top deals.
GCC acquires accounted for 63 percent of the total closed transactions during Q4, 15. The Industrials, Consumer Discretionary, and Consumer staples sectors witnessed the highest number of transactions, collectively accounting for 51 percent of the total transactions.
The education, financials, healthcare and materials sectors each accounted for 9 percent of the total number of transactions during Q4, 2015.
Each of the GCC acquirers seemed to have a different appetite in regards to M&A transactions during Q4, 15. Kuwait, Saudi and Omani acquirers preferred investing in the GCC, while UAE and Bahraini acquirers preferred investing outside the GCC region.
Q4, 15 witnessed a 60 percent increase in the number of transactions compared to Q3, 15 and a 14 percent increase compared to Q4, 2014. The final quarter of 2015 witnessed a total of 16 announced pipeline transactions.
The UAE, Saudi Arabia and Kuwait together make up 82 percent of the total announced transactions. Qatar, Oman and Bahrain make up the remaining 18 percent of the total announced transactions.
The top reported deal value during Q4, 2015 was $3.2bn. UAE and Saudi were the most prevalent target countries among the top deals.
In terms of foreign buyers’ deals in GCC, Q4, 2015 witnessed a 29 percent increase in the number of transactions compared to Q4,14. In comparison to Q3, 2015, the number of transactions rose by 80 percent. UAE attracted the highest number of foreign buyers among its GCC counterparts while Bahrain, Kuwait, and Saudi Arabia failed to attract any.
Four of the top five transactions by foreign companies included targets from UAE. Majority of the top five transactions were for stakes less than 50 percent. Three of the top transactions were closed during the final quarter.
