DealMakers Africa M&A Regional Analysis Q1 2019


DealMakers Africa M&A Regional Analysis Q1 2019

Published Date: 2019-05-17 | Source: DealMakers | Author: Marylou Greig

DealMakers Africa M&A Regional Analysis Q1 2019

The IMF and World Bank have reduced their 2019 regional growth forecasts as growth worries and trade war jitters threaten to spoil any rebound for emerging markets in 2019. However, economies not dependent on commodities continue to grow strongly and East Africa is currently seen as the most successful economic region on the continent.

Analysis of data by DealMakers Africa shows that the two largest transactions on the continent (excluding South Africa) during the first quarter of 2019 (Q1) were in Central Africa. The acquisition by China Molybdenum of an indirect stake in the Tenke Fungurume copper and cobalt mine in the DRC for US$1,14 billion topped the list followed by the acquisition by African Petroleum of PetroNor E&P in the Republic of Congo for A$1 billion (US$776,6 million). The largest deal in North Africa was the acquisition by Veon of the remaining 42.31% stake in Egyptian-based Global Telecon for E£10,59 billion (US$601,6 million).

In terms of regional activity, East Africa announced 27 transactions followed by West Africa (20 transactions) and Southern Africa (18 transactions) respectively. Of the 77 deal captured by DealMakers Africa for Q1 (see table) 32 of these were private equity deals. The agricultural and energy sectors were the most active followed by financial services and pharmaceuticals.

According to Nation Media Group, a Kenyan media group listed on the Nairobi Stock Exchange, East African stock markets continued to decline in Q1. Local investors have shied away from equity markets settling for exposure to alternative investment options with better returns such as government bonds to prevent value erosion from falling share prices, leaving foreign investors to dominate the equity market.

+ DealMakers Africa rankings will be released bi-annually in the H1 issue (mid-August) and the Annual issue (early March).

DealMakers Africa is the Continent's M&A publication.

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