Posted by: africanpressorganization | 7 March 2011

The Mergermarket Group

 


 

 

The Mergermarket Group

 

 

LONDON, United-Kingdom, March 7, 2011/African Press Organization (APO)/ — As political upheaval is sweeping across North Africa and the Middle East deal makers could be forgiven for turning their attention away from Africa and to safer, more predictable grounds.

African M&A activity made a spectacular recovery in 2010, up 175% from 2009 at US$ 36.4bn, the highest since 2007, according to mergermarket data. But with emerging market investments seemingly starting to fall out of favour and in the context of a particular unstable beginning to 2011, investors have increasingly been questioning the sustainability of such revival.

“The current political turmoil in the Arab world will cast a shadow on the continent over the next few months but M&A opportunity in Africa remains strong overall,” mergermarket editor Béranger Guille said. “It might not always be traditional M&A and involve a little more effort and risk, but the returns tend to be higher.”

Outside South Africa, which accounted for 57% of the overall M&A African activity in 2010, Nigeria and Ghana will be the nations to watch in terms of consolidation in the banking and insurance sector. In the telecommunications sector, mobile penetration rates remain relatively low and this represents an opportunity for many providers to gain market share as exemplified by last year purchase of Zain’s African assets by Bharti Airtel of India.

Investors might need to take a more creative approach to M&A opportunities in Africa. This could mean getting a footing in the continent through acquisition of government owned assets being privatised, concessions and the desire for nations to form PPPs (Public Private Partnerships) with the private sector to address the continent’s lack of transport and energy infrastructure.

 

About mergermarket

mergermarket is an independent Mergers and Acquisitions (M&A) intelligence service with an unrivalled network of dedicated M&A journalists based in 62 locations across the Americas, Europe, Asia-Pacific, the Middle-East and Africa. Unlike any other service of its kind, mergermarket specialises in providing forward-looking origination and deal flow opportunities integrated with a comprehensive deals database – resulting in real revenues for clients. Visit www.mergermarket.com.

 

The Mergermarket Group is a division of the Financial Times Group, publisher of the Financial Times newspaper and FT.com. The FT Group is a division of Pearson plc, the international media group.

 

 

Contact:

Hannah Bagshawe

+44 (0)207 059 6272

hannah.bagshawe@mergermarket.com

 

SOURCE 

Mergermarket Group

 

 


 


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