‘Africa, Middle East M&A Activity Fell 10.4% In 8 Months’

Mergers & Acquisitions (M&A) deal activity in Africa and the Middle East fell 10.4% in the first eight months of 2024 amid challenging economic conditions, according to data and analytics company GlobalData.

Overall, global deal activity fell 15% year-on-year (YoY) to 32,050 deals, the company said. North America registered an 18.9% YoY decline, while Europe, Asia-Pacific and South and Central America reported a fall of 16.2%, 8.1% and 27.3%, respectively.

M&A deals volume fell 9.5% YoY, while private equity and venture financing transactions declined by 13.4% and 23.9% YoY, respectively. “Factors such as macroeconomic challenges and geopolitical issues are likely influencing the deal-making activity,” said Aurojyoti Bose, Lead Analyst at GlobalData, adding that dealmakers must navigate this complex environment with strategic foresight and adaptability.

The dip in deal volume, particularly in major regions, may open doors for savvy investors and companies to acquire undervalued assets and strengthen their positions for the eventual market rebound, Bose stated.

In its latest financial services M&A analysis, EY said that while M&A activity in the European financial services industry picked up in the first six months of this year, it remains muted. While the number of publicly disclosed financial services deals across Europe in H1 2024 was up 38% on the previous six months, it was down 3% year-on-year.

Total M&A value for the first half of this year also fell year-on-year, from €23.8 bn in H1 2023 to €17.1 bn in H1 2024, despite three €1 bn+ deals from large corporates across the region. However, a potential sizeable deal in the Spanish market could significantly boost deal value in the second half of this year.