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Merger and Acquisition

Value of Global Mergers and Acquisitions Declines by 27% to $1.8trn

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The value of global mergers and acquisition (M&A) has declined by 27.4 per cent to $1.8trillion between January and August 2016, according to Global Merger Report released on Monday. The data contained in the Global Merger Report showed that value of M &A was $2.5 trillion between January and August 2015.

However, is has declined by 27.4 per cent this year. Monthly analysis of the data indicated that the value fell by 34.7 per cent to 946 deals worth $182.2 billion, the lowest value since August 2013.

Private equity was less active on the buyout side in August 2016 with only 138 deals worth $18.9 billion, down 51.3 per cent by value compared to the same period last year (199 deals worth $38.9 billion).

“Exits, on the other hand, were relatively stable with 138 deals worth $42.3 billion, a slight 1.1% decrease compared to August 2015 ($42.8 billion). Energy, Mining & Utilities (EMU) was the most active sector in August, contributing 15.8 per cent to the total global market share with 84 deals worth $28.8 billion, despite a 28.1 per cent drop compared to August 2015 ($40 billion),” Mergermarket intelligence said.

M&A activity targeting the Middle East & Africa region during August stood at 24 deals, worth $2.8 billion, showing a decline of 10.9 per cent compared to August 2015 when 30 deals, worth $3.1 billion was recorded. The highest valued inbound deal saw Singapore-based investment firm Yangon Investment acquiring a 52.3 per cent stake in Israeli insurance firm The Phoenix Holdings, for a total of $518 million.

In Africa, despite an overall decline in deals targeting the rest of the world, South Africa continues to dominate the region’s outbound M&A activity, accounting for a 39.2 per cent share in total outbound deal value. This figure has decreased 12.3 per cent by value to $5.9 billion in 2016, down from US$6.7bn during the same period of 2015. The deal volume, however, has increased by six to reach 21 deals to date in 2016.

According to Mergermarket intelligence, while cash-rich South African companies will continue to eye opportunities for diversification and exposure to hard currencies, many will wait to see how the British exit from the European Union (EU) could impact European growth prospects.

The continent has been one of the favoured deal destinations for South African growth due to similar time zones, relatively cheap debt and exposure to hard currency.

Domestic activity remained strong throughout 2016, with 118 deals worth $32.1 billion, representing a 192.9 per cent rise in deal value compared to the same period in 2015 ($11.0 billion in 175 deals). The transaction between South African firms Redefine Income Fund and The Pivotal Fund, valued at $756 million, was the largest deal targeting the region in August.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Merger and Acquisition

Access Bank Plc to Acquire National Bank of Kenya Limited in Landmark Deal

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Access Bank PLC, a leading financial institution based in Nigeria, has unveiled plans to acquire National Bank of Kenya Limited (NBK) in a landmark deal.

The acquisition announced by Access Holdings Plc, the flagship subsidiary of Access Bank, signifies a significant move in the bank’s African expansion strategy.

Under the binding agreement, Access Bank will acquire the entire issued share capital of NBK from Kenyan-based KCB Group Plc (KCB), which also serves as the holding company of KCB Bank Ltd, Kenya’s largest commercial bank.

This strategic transaction is aimed at repositioning Access Bank as a prominent player in the Kenyan market and establishing it as a regional hub for the East African bloc.

The deal with NBK, known for its strong presence and substantial balance sheet exceeding US$1.1 billion, presents an enticing opportunity for Access Bank to expand its footprint in the East African market.

The completion of the transaction is subject to regulatory approvals from the Central Bank of Nigeria and the Central Bank of Kenya.

Upon finalization, NBK will be integrated with Access Bank Kenya Plc to form an enlarged franchise, advancing Access Bank’s strategic objectives for the Kenyan and East African markets.

Commenting on the Transaction, Ms. Bolaji Agbede, Acting Group Chief Executive Officer of Access Holdings Plc said: “This proposed acquisition marks a significant step in the execution of our five-year strategic plan aimed at positioning the Bank as Africa’s Gateway to the World. The deal with NBK, a historically strong and well-known bank in Kenya with a balance sheet in excess of US$1.1 billion, presents a compelling opportunity to scale up our growth in the East African market. We remain confident that our investments towards diversifying and strengthening the Bank’s long-term earnings profile will deliver significant value for our shareholders, customers, and wider stakeholder groups.”

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Merger and Acquisition

Foreign Investor Eyes 7% Stake in LivingTrust Mortgage Bank Plc

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LivingTrust Mortgage Bank Plc is on the brink of a significant financial move as reports indicate a foreign investor’s interest in acquiring a seven percent stake in the institution.

According to industry insiders familiar with the matter, the prospective investor is poised to proceed with the regulatory formalities following the completion of due diligence.

The potential investment is anticipated to provide a substantial capital injection for LivingTrust Mortgage Bank Plc, paving the way for enhanced operational capabilities and strategic growth initiatives.

However, as of the time of reporting, the specifics of the investor and the financial terms of the deal remain undisclosed, pending regulatory filings and approvals.

This development comes on the heels of the recent appointment of Dr. Olumide Adedeji as the new Managing Director of LivingTrust Mortgage Bank Plc, effective March 7, 2024.

Dr. Adedeji, a seasoned finance professional with a wealth of experience garnered from esteemed institutions such as Standard Chartered Bank, FCMB, and Diamond Bank, among others, is poised to steer the bank through this potential transformative phase.

While the transaction awaits official confirmation, industry analysts speculate that the investment could signify a vote of confidence in the bank’s prospects and the broader Nigerian financial landscape.

Furthermore, it underscores the appeal of Nigerian financial institutions to foreign investors seeking strategic opportunities in emerging markets.

The move aligns with LivingTrust Mortgage Bank Plc’s commitment to fortifying its position in the market and unlocking value for its stakeholders amidst a dynamic economic environment.

As the regulatory processes unfold, stakeholders eagerly anticipate the potential implications of this strategic partnership on the bank’s trajectory and the broader financial ecosystem.

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Merger and Acquisition

EnjoyCorp Limited Secures Strategic Acquisition of Champion Breweries Plc

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EnjoyCorp Limited, a conglomerate known for its ventures in food, beverage, and hospitality, has successfully secured a strategic acquisition deal with Heineken B.V.

The agreement entails EnjoyCorp acquiring 100% of Heineken’s shareholding in The Raysun Nigeria Company Limited, which holds an 86.5% stake in Champion Breweries Plc, a prominent regional brewer listed on the Nigerian Exchange Limited (NGX).

The transaction, subject to regulatory approvals, is anticipated to conclude in the second quarter of 2024.

Heineken will extend its support to Champion Breweries for a year post-acquisition, ensuring a seamless transition of ownership.

This acquisition marks EnjoyCorp’s strategic entry into the beverage sector, aligning with its vision of catering to the diverse tastes of the African consumer market.

By integrating Champion Breweries as an anchor subsidiary, EnjoyCorp aims to strengthen its foothold in the industry.

EnjoyCorp, known for its mission to enrich life’s moments through quality brands and sustainability, sees this acquisition as a pivotal step in its journey toward transformative growth.

With a focus on innovation and community engagement, EnjoyCorp endeavors to inspire consumers to cherish life’s moments responsibly.

The acquisition underscores EnjoyCorp’s commitment to shaping the future of the beverage industry in Africa.

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