Cairo-Saudi Arabia has come first in the value of integration and acquisition deals of the first quarter of this year in the Middle East, while the UAE came first regarding the size of operations.
Baker McKenzie reported a relapse in the size of operations size on the international level, given the increase in political tension and economic uncertainty. The index, however, showed that operations were stable in the Middle East.
According to the report, the Middle East index in the first quarter registered 141.3 points – a drop compared to the previous quarter (189.9 points) and the first quarter of last year (155.6 points).
There was a slight increase in the value of integration and acquisition operations that target the Middle East compared to the fourth quarter from USD2.66 billion to USD2.96 billion. This is also considered huge rise compared to the first quarter of 2016 in which the value of the same amount of deals was USD349 million.
The United States led these operations regarding their size and value as the biggest bidder in the second quarter after conducting two operations worth USD2.89 billion and USD2.21 billion.
The energy and facilities sector witnessed the highest number of operations in quarter one.
North America was a safe haven in the first quarter of the current year – the US represented 94% of the integration and acquisition operations value in the region. BREXIT and the controversial electoral campaigns also affected the European Union (EU) integration and acquisition activities that represented only 17% compared to 35% since 2009.
The sector of consumable services topped the acquisition and integration operations as to the value, registering 142 deals worth USD 113.3 billion while the technology sector registered 182 deals worth USD 14.9 billion.