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SA accounts for 59% of Africa’s outbound M&A activity – study

12th May 2017

By: Megan van Wyngaardt

Creamer Media Contributing Editor Online

     

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The value of announced merger and acquisition (M&A) transactions with any sub- Saharan African involvement reached $10.1-billion during the first quarter of 2017, the highest opening-quarter total in six years, research firm Thomson Reuters Africa has found.

In its intelligence analysis of sub-Saharan African deals for the first quarter, the company highlights that inbound M&A activity reached a seven- year high of $6.4-billion, more than five times the value recorded in the first three months of last year, with the US, China and Switzerland leading investments.

Domestic and inter-sub-Saharan African M&A totalled $1.5-billion, up 130% year-on-year, while outbound M&A declined 40% to $794.6-million.

South Africa’s overseas acquisitions accounted for 59% of sub-Saharan African outbound M&A activity, while companies headquartered in the Seychelles and Mauritius accounted for 23% and 18% of sub-Saharan African outbound M&A activity respectively.

The biggest deal clinched during the quarter was US oil and gas company Exxon Mobil buying a 25% stake of a Mozambique liquefied natural gas project from Italy’s Eni for $2.8-billion. The deal helped boost the value of deals in the energy and power sector to $4.2-billion.

Bank of America Merrill Lynch topped the first-quarter Any Sub-Saharan African Involvement Announced M&A Financial Adviser League Table with a 28% share of the market.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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