Mideast M&A falls to 12-month low

None of July’s deals with recorded values were worth more than $100 million

The value of mergers and acquisition (M&A) activity in the Middle East fell dramatically in July to a new 12-month low, reversing two consecutive months of growth in the region in the process.
According to the zephyr database published by Bureau van Dijk, a total of $270 million-worth of deals was recorded for the four weeks in July, an 88 per cent slump month-on-month from $2.23 billion in June 2010.
Volume also slipped in July but fell at a slower rate of a fifth to 59 deals from 73 transactions in June 2010. Despite this month-on-month decline, volume was triple the 17 deals recorded in July 2009, indicating growth, however unstable, is returning to the region.
None of July’s deals with recorded values were worth more than $100 million and only six of the top transactions by value were priced higher than $10 million. Deal value was recorded for only five countries month-on-month and Kuwait led the way with a total of $121 million.
The UAE recorded three deals worth a combined $7 million in July, a huge decline from the five deals worth $395 million recorded in June.
The top deal by value for July was by Kipco Asset Management, a subsidiary of Bahrain’s United Gulf Bank, which sold its entire 24 per cent stake in Kuwait-based healthcare company United Healthcare for $73 million.

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