ME mergers and acquisitions on the rise
Manama, October 11, 2010
The third quarter of this year was the busiest period on record for Middle Eastern targeted merger and acquisition activity with $15 billion in deals done.
'The first nine months of the year has seen banks in the region kept busy with high-profile merger and acquisition transactions in the Middle East,' said Thomson Reuter Middle East and Africa managing director Russell Haworth, at the launch of the firm's third quarter Middle East investment banking analysis.
'This, along with buoyant loan activity has outshone equity and debt issuance which are both down year-on-year.'
The report covers the region's M&A, debt and equity capital markets.
The $15 billion in merger and acquisition activity was 10 times more than the same quarter last year.
Fees for the first nine months of the year grew 16 per cent for Middle Eastern banks to $444.8 million from the same period last year.
Debt issuance reached $22 billion for the first nine months of the years, down 7 per cent while equity issuance fell 2.3 per cent. Loan activity for Middle Eastern issuers and borrowers fell in the third quarter but at $18.9 billion for the year to date it is up 47 per cent compared with 2009.
Merger and acquisition activity accounted for more than half of banking fees for the first nine months of the year, followed by debt capital market (DCM) transactions and loans.
Credit Suisse topped the merger and acquisition fee rankings, HSBC topped fees for DCM, while NCB Capital was first for equity capital markets generated fees and Standard Chartered secured the highest fees for syndicated loans.
Etisalat's acquisition of a 46 per cent stake in Zain Group resulted in the telecommunications sector and Kuwait being named as the most targeted industry and country respectively during the third quarter.
Equity issuance was marginally down for the first nine months of the year to $5.2 billion.
Financials was the most active sector followed by materials and real estate with EFG Hermes and NCB Capital Corporation ranked highest.
HSBC topped the Middle Eastern bond ranking with 12 issues totalling $4.4 billion. A $3.5 billion bond issued by Qatari Diar Government ranked as the largest so far this year.
The largest loan for the year to date was issued by IPIC worth $3.58 billion. The bookrunners for the deal included Banco Santander de Negocios SA, Bank of Tokyo-Mitsubishi UFJ, HSBC holdings and National Bank of Abu Dhabi.
WestLB took the highest ranking for loans by value for the Middle East, followed by HSBC and JP Morgan.-TradeArabia News Service