Data from Refinitiv reveals that announced M&A transactions with MENA involvement totaled $8.3B in Q1 2023, which is a 65% decrease from Q1 2022. The MENA Investment Banking Review from Refinitiv also indicates that the number of deal announcements in the region decreased by 26% compared to 2022, marking the slowest start to a year since 2020.
Deals involving a MENA target hit a seven-year low of $2.9B in Q1 2023, a 75% decline from a year ago, with the number of deals down 22% from last year. Inbound deals with non-MENA acquirers fell by 72% to $742.3M, while domestic deals decreased by 76% in value to $2.2B. Lastly, MENA outbound M&A was $5B, down by 46% compared to Q1 2022.
Saudi oil giant Aramco’s plans to acquire a 10% stake in China’s privately controlled Rongsheng Petrochemical Co for about $3.6B was the top deal with MENA involvement. This was followed by another deal in which the kingdom’s sovereign wealth fund invested a total of $1.3B in four local construction firms.
India’s eyewear retailer Lenskart’s deal with Abu Dhabi Investment Authority (ADIA), which raised $500M in funding was ranked as the third top deal with MENA involvement by Refinitiv.
The industrials sector was most active, with deals targeting industrial companies accounting for 45% of MENA target M&A during Q1 2022, followed by the consumer products & services sector with 15%. Saudi Arabia was the most targeted nation, followed by UAE and Egypt.