Latest news with #dealvalue
Khaleej Times
2 days ago
- Business
- Khaleej Times
UAE, Saudi Arabia drive $59b merger surge in Middle East
The Middle East and North Africa's mergers and acquisitions (M&A) landscape showed remarkable momentum in the first half of 2025, with the UAE and Saudi Arabia continuing to lead the region's deal value. According to the latest EY Mena M&A Insights report, a total of 425 deals worth $58.7 billion were recorded in H1 2025, marking a 31 per cent increase in volume and a 19 per cent rise in value compared with the same period last year. The UAE and Saudi Arabia together attracted $27.9 billion in investments, reinforcing their status as the twin anchors of the region's deal-making ecosystem. The UAE accounted for $25.4 billion of this figure, underscoring its position as the top destination for international investors, while Saudi Arabia drew $2.5 billion, reflecting its growing role in diversifying beyond oil and into sectors such as chemicals, technology, industrials, and real estate. The combined contribution of these two Gulf economies amounted to nearly half of all deal value in the region, demonstrating their pivotal role in shaping the MENA investment landscape. The period was characterised by an unprecedented surge in cross-border transactions, which climbed to a five-year high. Cross-border deals accounted for 233 out of the 425 total transactions, with a combined value of $45.9 billion. This represented 55 per cent of total deal volume and 78 per cent of overall value. Chemicals and technology were the standout sectors, together contributing 67 per cent of cross-border deal value. The largest deal was the $16.5 billion acquisition of a 64 per cent stake in Borouge by Borealis AG and OMV AG, underscoring the appeal of the UAE's industrial and chemicals sector to international capital. Analysts point out that this surge in activity reflects the region's resilience and adaptability amid global headwinds. 'The positive performance in the first half of 2025 underscores the strength, dynamism, and resilience of Mena's M&A market,' said Brad Watson, Mena EY-Parthenon leader. 'We are witnessing record-breaking cross-border activity as investors look beyond short-term volatility, actively pursuing scale, innovation, and new market opportunities. The UAE, in particular, remains a magnet for global capital, supported by a stable regulatory framework and a focus on economic diversification, while regional partnerships with Europe, Asia, and North America are opening doors to fresh growth channels.' Domestic and inbound M&A also saw strong gains. Domestic deals accounted for 192 transactions worth $12.8 billion, representing 45 per cent of total volume and 22 per cent of total value, nearly doubling year-on-year. Diversified industrial products and technology were the primary drivers. The largest domestic deal was Abu Dhabi-based Group 42's $2.2 billion purchase of a 40 per cent stake in Khazna Data Center, highlighting continued investor appetite in the digital infrastructure sector. Inbound activity rose sharply, with 107 deals worth $21.5 billion, an increase of 53 per cent in volume and more than threefold in value from $6.4 billion in H1 2024. The UAE was again the standout performer, accounting for 50 per cent of inbound deal volume and an overwhelming 98 per cent of inbound value. Austria emerged as the leading investor, contributing 77 per cent of inbound deal value, driven largely by the Borouge chemicals sector transaction. Outbound deal-making also grew steadily, with 126 transactions valued at $24.4 billion, up 30 per cent in volume from the previous year. The UAE and Saudi Arabia were central players, together accounting for 87 per cent of outbound value. Prominent deals included Adnoc and OMV AG's acquisition of Canada's Nova Chemicals and Saudi Aramco's $3.5 billion purchase of Primax in South America, illustrating how Gulf energy and industrial champions are extending their global footprint. A key feature of the first half was the significant role of sovereign wealth funds and government-related entities, which contributed $21 billion across 54 deals. Entities such as the Abu Dhabi Investment Authority (Adia), Public Investment Fund (PIF), and Mubadala were highly active, focusing on chemicals, technology, and industrial sectors that align with long-term national diversification agendas. Anil Menon, Mena EY-Parthenon head of M&A and Equity Capital Markets leader, noted that the region's fundamentals remain highly attractive for investors. 'Mena's deal-making continues to thrive in 2025, reflecting investor confidence in the region's long-term fundamentals. Stable oil prices, ongoing infrastructure development, and a strategic focus on technology, chemicals, and industrials are creating solid foundations for sustained activity.'
Zawya
2 days ago
- Business
- Zawya
MENA M&A activity witnessed 425 deals valued at $58.7bln in H1 2025
Cross-border M&A reached a five-year high, accounting for 55% of total deal volume and 78% of total deal value Government-related entities and sovereign wealth funds contributed US$21b in deal value across 54 transactions during H1 2025 According to the latest EY MENA M&A Insights report, the MENA region recorded 425 M&A deals in the first half of 2025, marking a 31% increase in deal volume and a 19% rise in total value to US$58.7b compared with the same period in 2024. This performance builds on the steady flow of transactions seen in 2024, with strong momentum in early 2025 supported by regulatory reforms, policy shifts, and an improving macroeconomic outlook. While activity moderated slightly in Q2 due to evolving global trade policies and regional conflicts, overall market sentiment remained positive, with deal-making driven by diversification strategies and growth in high-potential sectors. Brad Watson, MENA EY-Parthenon Leader, says: ' The positive performance in the first half of 2025 underscores the strength, dynamism, and resilience of MENA's M&A market. We are witnessing record-breaking cross-border activity as investors look beyond short-term volatility, actively pursuing scale, innovation, and new market opportunities. The United Arab Emirates (UAE), in particular, remains a magnet for global capital, supported by a stable regulatory framework and a focus on economic diversification, while regional partnerships with Europe, Asia, and North America are opening doors to fresh growth channels.' In the MENA region, the UAE and the Kingdom of Saudi Arabia (KSA) received investments worth US$25.4b and US$2.5b, respectively, mainly in chemicals, technology, industrials and real estate – attracting a combined total of US$27.9b in the first half of this year. Cross-border deals reach five-year high Cross-border transactions accounted for 55% of total deal volume and 78% of total deal value in H1 2025, with 233 deals worth US$45.9b – the highest level in the past five years. Chemicals and technology together contributed 67% of cross-border deal value, led by major transactions such as Borealis AG and OMV AG's acquisition of a 64% stake in Borouge plc for US$16.5b. This reflects a 40% increase in deal volume and 7% rise in deal value when compared to H1 2024. Anil Menon, MENA EY-Parthenon Head of M&A and Equity Capital Markets Leader, says: 'MENA's dealmaking continues to thrive in 2025, reflecting investor confidence in the region's long-term fundamentals. Stable oil prices, ongoing infrastructure development, and a strategic focus on technology, chemicals, and industrials are creating solid foundations for sustained activity. As the year progresses, we expect intensifying competition for high-quality assets, particularly those that align with national transformation agendas and offer strategic value beyond financial returns.' Domestic and inbound activity remain strong During the first six months of the year, domestic transactions accounted for 45% of total deal volume and 22% of total value, with 192 deals worth US$12.8b – a 22% increase in volume and a 94% rise in value year-on-year. Diversified industrial products and technology led domestic deal value, representing over half of the total. The largest domestic deal was Group 42's US$2.2b acquisition of a 40% stake in Khazna Data Center. Inbound M&A activity rose 53% to 107 deals, with total value increasing from US$6.4b to US$21.5b in H1 2025. The UAE was the leading destination, capturing 50% of inbound deal volume and 98% of inbound value. Austria emerged as the top investor, contributing 77% of inbound deal value, driven by a landmark chemicals sector transaction. Outbound flows and sovereign-backed investments fuel growth Outbound activity reached 126 deals valued at US$24.4b in H1 2025, up 30% in volume from the same period in 2024. The UAE and KSA together accounted for 87% of outbound value, supported by government-related entities playing a major role. Notable deals included ADNOC and OMV AG's acquisition of Canada's Nova Chemicals and Saudi Aramco's US$3.5b acquisition of Primax in South America. Government-related entities and sovereign wealth funds contributed US$21b in deal value across 54 transactions, with leading players such as ADIA, PIF, and Mubadala actively targeting chemicals, technology, and industrial sectors in line with long-term diversification goals. -Ends- About EY EY | Building a better working world EY exists to build a better working world, helping to create long-term value for clients, people and society and build trust in the capital markets. Enabled by data and technology, diverse EY teams in over 150 countries provide trust through assurance and help clients grow, transform and operate. Working across assurance, consulting, law, strategy, tax and transactions, EY teams ask better questions to find new answers for the complex issues facing our world today. EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. Information about how EY collects and uses personal data and a description of the rights individuals have under data protection legislation are available via EY member firms do not practice law where prohibited by local laws. For more information about our organization, please visit The MENA practice of EY has been operating in the region since 1923. Over the past 100 years, we have grown to over 8,000 people united across 26 offices and 15 countries, sharing the same values and an unwavering commitment to quality. As an organization, we continue to develop outstanding leaders who deliver exceptional services to our clients and who contribute to our communities. We are proud of our accomplishments over the years, reaffirming our position as the largest and most established professional services organization in the region. © 2025 EYGM Limited. All Rights Reserved. ED None This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax, legal or other professional advice. Please refer to your advisors for specific advice. About EY-Parthenon Our unique combination of transformative strategy, transactions and corporate finance delivers real-world value – solutions that work in practice, not just on paper. Benefiting from EY's full spectrum of services, we've reimagined strategic consulting to work in a world of increasing complexity. With deep functional and sector expertise, paired with innovative AI-powered technology and an investor mindset, we partner with CEOs, boards, private equity and governments every step of the way – enabling you to shape your future with confidence. EY-Parthenon is a brand under which a number of EY member firms across the globe provide strategy consulting services. For more information, please visit © 2025 EYGM Limited. All Rights Reserved.
Zawya
09-06-2025
- Business
- Zawya
MENA region records 225 M&A deals worth $46bln in Q1
Doha: According to the latest EY MENA M&A Insights 2024report, the MENA region witnessed 225 M&A deals in Q1 2025, up from the 172 deals recorded in Q1 2024, reflecting a 31% increase in deal volume when compared year-on-year. Total deal value rose by 66% to US$46bn in Q1 2025, when compared to $27.6bn in Q1 2024. Cross-border deals were the primary driver of M&A activity in the MENA region, contributing 52% of total deal volume with 117 deals and 81% of total deal value at $37.3bn. The first quarter of 2025 recorded the highest cross-border deal activity both in volume and value when compared to the same period in the past five years, as companies increasingly pursued growth and diversification beyond domestic markets. Brad Watson, MENA EY-Parthenon Leader, says: 'In 2024 we saw a steady flow of M&A deals and the MENA region continues to exhibit a robust influx of M&A transactions in 2025. This is supported by regulatory reforms, policy shifts, and a favorable macroeconomic outlook, including easing interest rates and improved investor sentiment.' 'This growth is also reflected in the steady increase of domestic M&A activity, whichcontributed48% of total deal volume in Q1 2025. The rise in domestic M&A transactions aligns with the IMF projection that MENA GDP will grow by 3.6% this year and is further supported by the strong global M&A momentum. Companies are realigning their strategies to better accommodate the need for diversification, digital transformation, and the integration of emerging technologies.' In the MENA region, the United Arab Emirates (UAE) remained the top target country with 63 deals totaling $20.3bn in Q1 2025. Kuwait ranked second in terms of deal proceeds, reaching $2.3bn, driven by two major transactions in the Diversified Industrial Products and Power & Utilities sectors. During the first three months of 2025, Canada attracted the highest outbound deal value from MENA investors at US$6.4b, while the USA remained the preferred target destination in terms of deal volume. Sovereign Wealth Funds (SWFs) like ADIA, PIF, and Mubadala, along with other government-related entities (GREs), remained key M&A drivers in Q1 2025, aligning with national economic strategies and diversification goals. In the first quarter of 2025, M&A activity in the MENA region witnessed a 20% increase in deal volume while deal value rose significantly reaching US$8.7b as compared to $1.69bn recorded in Q1 2024. The technology sector led domestic M&A activity in MENA in Q1 2025, contributing 37% of total domestic deal value and 27% of total domestic deal volume. The largest domestic deal during the first quarter of the year was a $2.2bn acquisition where Group 42, an Abu Dhabi based AI and cloud computing firm, agreed to acquire a 40% stake in Khazna Data Centres, a digital infrastructure provider. Anil Menon (pictured), MENA EY-Parthenon Head of M&A and Equity Capital Markets Leader, says: 'The MENA deal markets remained resilient despite lack of clarity on two fronts: the impact of monetary policy on cost ofcapital and the ongoing tariff and trade discussions. The MENA deal book for the remainder of 2025 is promising and we can expect to see increased activity in consumer, technology, and energy sectors. In addition, with AI expected to drive material shifts in fundamental value, we can expect to see significant capital allocation in technology.' © Dar Al Sharq Press, Printing and Distribution. All Rights Reserved. Provided by SyndiGate Media Inc. (
Zawya
28-05-2025
- Business
- Zawya
MENA region recorded 225 M&A deals with a value of $46bln during Q1 2025
Cross-border deals where the primary driver of M&A activity in the MENA region with 117 deals valued at US$37.3b The UAE remains the top target country in Q1 2025 with 63 deals totaling US$20.3b Dubai, UAE – According to the latest EY MENA M&A Insights 2024 report, the MENA region witnessed 225 M&A deals in Q1 2025, up from the 172 deals recorded in Q1 2024, reflecting a 31% increase in deal volume when compared year-on-year. Total deal value rose by 66% to US$46.0b in Q1 2025, when compared to US$27.6b in Q1 2024. Cross-border deals were the primary driver of M&A activity in the MENA region, contributing 52% of total deal volume with 117 deals and 81% of total deal value at US$37.3b. The first quarter of 2025 recorded the highest cross-border deal activity both in volume and value when compared to the same period in the past five years, as companies increasingly pursued growth and diversification beyond domestic markets. Brad Watson, MENA EY-Parthenon Leader, says: 'In 2024 we saw a steady flow of M&A deals and the MENA region continues to exhibit a robust influx of M&A transactions in 2025. This is supported by regulatory reforms, policy shifts, and a favorable macroeconomic outlook, including easing interest rates and improved investor sentiment.' 'This growth is also reflected in the steady increase of domestic M&A activity, which contributed 48% of total deal volume in Q1 2025. The rise in domestic M&A transactions aligns with the IMF projection that MENA GDP will grow by 3.6% this year and is further supported by the strong global M&A momentum. Companies are realigning their strategies to better accommodate the need for diversification, digital transformation, and the integration of emerging technologies.' In the MENA region, the United Arab Emirates (UAE) remained the top target country with 63 deals totaling US$20.3b in Q1 2025. Kuwait ranked second in terms of deal proceeds, reaching US$2.3b, driven by two major transactions in the Diversified Industrial Products and Power & Utilities sectors. During the first three months of 2025, Canada attracted the highest outbound deal value from MENA investors at US$6.4b, while the USA remained the preferred target destination in terms of deal volume. Sovereign Wealth Funds (SWFs) like ADIA, PIF, and Mubadala, along with other government-related entities (GREs), remained key M&A drivers in Q1 2025, aligning with national economic strategies and diversification goals. Domestic M&A activity continues to rise from previous years In the first quarter of 2025, M&A activity in the MENA region witnessed a 20% increase in deal volume while deal value rose significantly reaching US$8.7b as compared to US$1.69b recorded in Q1 2024. The technology sector led domestic M&A activity in MENA in Q1 2025, contributing 37% of total domestic deal value and 27% of total domestic deal volume. The largest domestic deal during the first quarter of the year was a US$2.2b acquisition where Group 42, an Abu Dhabi based AI and cloud computing firm, agreed to acquire a 40% stake in Khazna Data Centres, a digital infrastructure provider. Intraregional deals involving the UAE, Kuwait, and the Kingdom of Saudi Arabia (KSA) accounted for 83% of total domestic deal value and 56% of total domestic deal volume, highlighting strong intraregional M&A activity, particularly in the technology, industrials, and real estate sectors. MENA region remains an attractive destination for foreign direct investment The MENA region continues to emerge as one of the most attractive destinations for foreign direct investment during the first few months of 2025, with inbound deal volume surging by 21% and deal value reaching US$17.6b, when compared to US$2.5b in Q1 2024. The UAE remains the leading destination for foreign direct investment in the MENA region in Q1 2025, capturing 53% of total inbound deal volume and 99% of the total inbound deal value. Austria was the top investor country, accounting for 94% of total inbound deal value, largely driven by a major transaction in the chemicals sector. Outbound M&A activity highlights diversification efforts During the first three months of 2025, outbound deal volume increased by 63% when compared to Q1 2024, with a total deal value of US$19.7b, contributing 43% of overall deal value. The UAE and KSA led the outbound investment from the MENA region, accounting for 77% of total deal volume and 94% of total outbound value. Though chemicals and oil & gas dominated in outbound deal value, outbound deal volume was primarily focused on technology, diversified industrial products, and professional services. This trend reflects the region's broader diversification strategy into high-growth global sectors. The UK was the leading destination for outbound M&A deals from MENA by volume, recording 13 transactions in Q1 2025. Canada and Peru together contributed 50% of total outbound deal value driven primarily by a major transaction in Canada's chemical sector. ADNOC and Austria's OMV AG has agreed to acquire Canada's Nova chemicals for US$6.3b by holding 46.94% each in the newly formed Borouge International Group. Anil Menon, MENA EY-Parthenon Head of M&A and Equity Capital Markets Leader, says: 'The MENA deal markets remained resilient despite lack of clarity on two fronts: the impact of monetary policy on cost of capital and the ongoing tariff and trade discussions. The MENA deal book for the remainder of 2025 is promising and we can expect to see increased activity in consumer, technology, and energy sectors. In addition, with AI expected to drive material shifts in fundamental value, we can expect to see significant capital allocation in technology.' -Ends- About EY | Building a better working world EY exists to build a better working world, helping to create long-term value for clients, people and society and build trust in the capital markets. Enabled by data and technology, diverse EY teams in over 150 countries provide trust through assurance and help clients grow, transform and operate. Working across assurance, consulting, law, strategy, tax and transactions, EY teams ask better questions to find new answers for the complex issues facing our world today. EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. Information about how EY collects and uses personal data and a description of the rights individuals have under data protection legislation are available via EY member firms do not practice law where prohibited by local laws. For more information about our organization, please visit The MENA practice of EY has been operating in the region since 1923. Over the past 100 years, we have grown to over 8,000 people united across 26 offices and 15 countries, sharing the same values and an unwavering commitment to quality. As an organization, we continue to develop outstanding leaders who deliver exceptional services to our clients and who contribute to our communities. We are proud of our accomplishments over the years, reaffirming our position as the largest and most established professional services organization in the region. © 2025 EYGM Limited. All Rights Reserved. ED None This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax, legal or other professional advice. Please refer to your advisors for specific advice. About EY-Parthenon Our unique combination of transformative strategy, transactions and corporate finance delivers real-world value – solutions that work in practice, not just on paper. Benefiting from EY's full spectrum of services, we've reimagined strategic consulting to work in a world of increasing complexity. With deep functional and sector expertise, paired with innovative AI-powered technology and an investor mindset, we partner with CEOs, boards, private equity and governments every step of the way – enabling you to shape your future with confidence. EY-Parthenon is a brand under which a number of EY member firms across the globe provide strategy consulting services. For more information, please visit © 2025 EYGM Limited. All Rights Reserved.
