Mideast mergers decline by 86% in H1 - report

Merger and acquisition (M&A) activity in the Middle East has registered an 86 percent year-on-year decline during the first half of 2009, according to new data.

Research compiled by M&A intelligence service provider Mergermarket shows the total value of Middle East M&A deals up until June 23 stood at $1.17 billion compared to $8.57bn in the same period last year.

The second quarter of 2009 saw just 10 deals worth $578 million compared with 12 deals worth $595m in the first quarter of this year, Emirates Business reported on Thursday.

The figures are way down on those in the first quarter of 2008 when 25 deals worth $7bn were announced in the region and in the second quarter 2008 when 31 deals worth $1.5bn were announced, the paper added.

Globally, M&A activity has witnessed a decline of 46 percent in terms of value and 52 per cent in terms of volume, according to Mergermarket.

Deals announced so far in 2009 in the Middle East and Africa amount to just 1.1 percent of the total global deals by value and two per cent by volume, the report said.

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