Total value of mergers & acquisitions (M&A) in the Middle East and North Africa (MENA) region in the first half of 2010 dropped by approximately 15 percent to $18.5 billion, compared to deals worth $21.7 billion announced in H1 2009, Ernst & Young said on Tuesday. Compared to the previous quarter (Q1 2010), Q2 2010 saw an increase of 85 percent in total announced deal value which is up from S$6.5 billion to $12 billion. In terms of total number of deals, there was a 12 percent decline between quarters, from 76 deals in Q1 2010 to 67 deals in Q2 2010. Phil Gandier, head of Transaction Advisory Services at Ernst & Young MENA, said: “Fewer deals took place in Q2 2010 compared to Q1 2010, but their value is significantly higher. Despite a decline in the number of deals in the past six quarters, deal value has now increased to its second highest since Q1 2009. Domestic and inbound deals have dropped in volume and value compared to Q2 2009, but outbound transactions have increased as regional The countries that experienced a large degree of domestic activity in terms of number of transactions in Q2 2010 were Kuwait (7 deals), followed by Jordan (5 deals) and Egypt, Saudi Arabia and the UAE (3 deals each). Egypt ranked highest in the region in terms of deal value, comprising approximately 28 percent of the total disclosed deal value ($624 million). Oman closely followed at 23 percent (US$525 million) and the UAE at 16 percent (US$372 million). Domestic transactions by volume (number of deals), comprising 45 percent of total announced deals in Q2 2010 outnumbered inbound and outbound deal activity, as was also the case in Q2 2009. Outbound deals held the greatest value among total announced deals, comprising $9.1 billion, or 76 percent of total announced deal value in Q2 2010. Comparatively, in Q2 2009, domestic deal activity saw the highest deal value, averaging at approximately 47 percent of total announced deal values. The sectors that attracted the most inbound deal activity in Q2 2010 were Diversified Industrial Products (3 deals) and Consumer Products (2 deals). The sector with the greatest inbound deal activity in Q2 2010 in terms of deal value was Mining, worth $464 million. The other two sectors with the highest deal value in inbound deal transactions were Diversified Industrial Products (worth $57.5 million) and Banking and Capital markets (worth $30 million).
