Finance

US forms bulk of growing Mena M&A activity

July 31, 2024, 8:55 AM

Mena investors focused on the US for M&A deals, and most inbound investment to the region came from the US

Mena M&A deals focus on US
19 agreements worth $16.6bn
US behind 98% of inbound deals

Middle East and North Africa merger and acquisition deals over the first half of this year were focused in the US.

In the opening six months of 2024, 321 deals worth $49 billion were completed in the Mena region, a 1 percent year-on-year increase in volume and 12 percent rise in value, the EY Mena M&A Insights H1 2024 report shows.

The US remained the preferred target destination for Mena outbound investors, with 19 deals totalling $16.6 billion.

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This included the largest transaction in February when Clayton, Dubilier & Rice, Stone Point Capital and Abu Dhabi’s Mubadala Investment announced their acquisition of US-based Truist Insurance Holdings for $12.4 billion.

Insurance and real estate were the most attractive sectors for investors, accounting for almost half of the total deal value.

The US contributed 98 percent of the value of inbound investment into the Mena region and US-UAE partnerships were responsible for more than 95 percent of the deal value.

The UAE and Saudi Arabia were the preferred destinations for investors.

Overall, the professional firms and services sector reported the highest volume and value of inbound deals, worth $‌2 ‌billion.

Sovereign wealth funds, such as ADIA and Mubadala from the UAE and the Public Investment Fund from Saudi Arabia, continued to lead activity in the region to support their countries’ economic strategies.

Real estate, hospitality and leisure was the main contributor to deal value, driven by increasing tourism, upcoming mega-projects and a growing middle-class income.

Consumer products and technology represented almost one-third of deal volume.

“The resilience of the regional M&A markets is underpinned by stable oil prices and continued infrastructure spending by local governments,” said EY’s Anil Menon.