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Merger and Acquisition

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




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,, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Merger and Acquisition

Nigerian Exchange Group Plc Acquires 5% Stake in Ethiopian Securities Exchange



Nigerian Exchange Limited - Investors King

Nigerian Exchange Group Plc (NGX) has announced the acquisition of a 5% stake in the Ethiopian Securities Exchange (ESX).

The investment marks a significant milestone for NGX as it seeks to bolster its capital-market activities in East Africa and beyond.

The Lagos-based NGX, formerly known as the Nigerian Stock Exchange, revealed that it participated in a capital-raising exercise alongside institutional investors such as FSD Africa and Trade and Development Bank Group.

While the exact amount of NGX’s investment remains undisclosed, the company indicated that the percentage shareholding could potentially increase to 10% pending approval by NGX’s board.

NGX’s decision to invest in ESX aligns with its broader strategic objectives of facilitating cross-border investment flows, enhancing liquidity, and promoting economic development across the continent.

Temi Popoola, Chief Executive Officer of NGX, emphasized the significance of strategic partnerships and investments in driving growth and fostering collaboration within the African capital markets landscape.

The move comes as NGX transitions from a mutual company owned by stockbrokers to an organization held by shareholders. In 2021, NGX listed its shares on the NGX All Share Index, a move aimed at enhancing access to funding and expanding its capital-market operations both domestically and internationally.

Commenting on the investment in ESX, NGX highlighted its confidence in the potential of Ethiopia’s rapidly growing economy and capital market. By acquiring a stake in ESX, NGX seeks to leverage its expertise and resources to contribute to the development of Ethiopia’s financial sector while also tapping into new growth opportunities.

Following the capitalization of ESX, the Ethiopian government retains a 25% shareholding in the exchange. NGX’s investment not only strengthens its presence in East Africa but also underscores its commitment to fostering collaboration and partnerships across the African continent.

As part of the investment agreement, Temi Popoola, NGX’s CEO, is set to join ESX’s board, further solidifying the ties between the two exchanges.

This move is expected to facilitate greater collaboration and knowledge sharing, ultimately benefiting investors and market participants in both Nigeria and Ethiopia.

With NGX’s acquisition of a stake in ESX, the African capital markets landscape stands to witness increased integration and collaboration, paving the way for enhanced liquidity, deeper market penetration, and accelerated economic growth across the continent.

As NGX continues to expand its reach and influence, its investment in ESX marks a significant step forward in its journey towards becoming a leading player in the African financial ecosystem.

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Merger and Acquisition

Canal+ Makes Bold $2.9 Billion Offer for MultiChoice, Eyes African Expansion



Multichoice Nigeria - Investors King

Canal+, a subsidiary of Vivendi SE, has formally tabled a $2.9 billion all-cash offer for MultiChoice Group Ltd., a major South African broadcaster.

This move comes as part of Canal+’s broader strategy to bolster its presence on the continent by leveraging MultiChoice’s extensive reach and resources.

The offer, which values MultiChoice’s shares at 125 rand ($6.7) apiece, represents a significant milestone in Canal+’s pursuit of expansion opportunities in Africa.

MultiChoice, in a filing jointly made with Canal+, confirmed the offer, which will now be subject to review by a newly constituted independent board of MultiChoice.

This bid represents Canal+’s commitment to navigate the complexities of South Africa’s regulatory environment, particularly concerning foreign media ownership restrictions.

Reports suggest that discussions are underway involving South African billionaire Patrice Motsepe, indicating potential collaboration to facilitate the deal.

Canal+ has expressed its intent to not only acquire existing MultiChoice shares but also reserve the right to purchase additional shares in the market. If acquired at prices exceeding the initial offer, Canal+ has committed to adjusting the bid price accordingly.

The French media conglomerate’s interest in MultiChoice dates back to 2020 when it began acquiring shares, ultimately surpassing the 35% ownership threshold this year, thereby triggering a mandatory takeover offer.

Vivendi has identified Africa as a key growth market, given its burgeoning population and economic potential. The proposed acquisition of MultiChoice aligns with Vivendi’s broader strategy to capitalize on high-growth regions.

MultiChoice, founded in South Africa in 1985 and subsequently expanded across the continent, has emerged as a prominent player in the African media landscape. Its spin-off from Naspers Ltd. in 2019 paved the way for independent operations and strategic partnerships.

The potential merger of Canal+ operations with MultiChoice could create a media powerhouse boasting nearly 50 million subscribers across the continent.

This consolidation could facilitate increased investments in local content production and sports broadcasting, catering to diverse audiences and enhancing cultural representation.

While the offer awaits deliberation by MultiChoice’s board, industry analysts anticipate robust discussions considering the significant implications for both companies and the broader African media industry. If successful, Canal+’s bid for MultiChoice could reshape the African media landscape, ushering in a new era of competition and innovation in the sector.

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Merger and Acquisition

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



Access bank

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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