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Merger and Acquisition

Sub Saharan Africa Mergers and Acquisition Transactions Totalled US$ 3.8 Billion in Q1 2023



merger and acquisition

Refinitiv, an LSEG (London Stock Exchange Group) business, today released the Q1 2023 investment banking analysis for the Sub-Saharan African. 

According to the report, an estimated US$64.8 million worth of investment banking fees were generated in Sub-Saharan Africa during the first quarter of 2023, down 50% from the first quarter of 2022 and the lowest first quarter total since 2010.  Fees declined 66% compared to the fourth quarter of 2022.


An estimated US$64.8 million worth of investment banking fees were generated in Sub-Saharan Africa during the first quarter of 2023, down 50% from the first quarter of 2022 and the lowest first quarter total since 2010.  Fees declined 66% compared to the fourth quarter of 2022. Equity capital markets underwriting fees totalled US$9.6 million, an increase of 9% compared to the first quarter of 2022, which ranked as the slowest first quarter for Sub-Saharan Africa IB fees since 2010.  Debt capital markets fees declined 47% to US$23.2 million, while syndicated lending fees declined 15% to a nine-year low of US$18.0 million.

Advisory fees earned from completed M&A transactions in the region reached US$14.0 million during the first quarter of 2023, down 75% from 2022 levels and marking the slowest first quarter for M&A fees in Sub-Saharan Africa since 2005. Seventy-four percent of all Sub-Saharan African fees were generated in South Africa during the first quarter of 2023, followed by Ivory coast (8%) and Nigeria (5%).  JP Morgan earned the most investment banking fees in the region during the first quarter of 2023, a total of US$14.3 million or a 22% share of the total fee pool.


The value of announced M&A transactions with any Sub-Saharan African involvement reached US$2.9 billion during the first quarter of 2023, an 80% decline compared to first quarter 2022 and the lowest first quarter total since 2003.  The number of Sub-Saharan African deals declined 30% compared to a year ago, a nine-year low. Deals involving a Sub-Saharan African target totalled US$2.3 billion during the first quarter of 2022, down 81% from 2022 levels and a three-year low.  The number of deals declined 28% from last year.  Inbound deals involving a non-Sub-Saharan African acquiror declined 85% to US$1.5 billion, while domestic deals declined 64% to US$838.6 million.  Sub-Saharan African outbound M&A totalled US$384.1 million, down 53% compared to the value recorded during 2022 and a nine-year low.

Materials deal making totalled US$699.4 million, or 30% of first quarter 2023 Sub-Saharan African involvement M&A activity, an increase of 34% compared to a year ago. Energy & Power and Consumer Products & Services rounded out the top three sectors for first quarter 2023 M&A activity.  Nigeria was the most targeted nation, followed by Zimbabwe and South Africa. Java Capital (Proprietary) Ltd topped the any Sub-Saharan African involvement announced M&A financial advisor league table during the first quarter of 2023.


Sub-Saharan African equity and equity-related issuance totalled US$276.2 million during the first quarter of 2023, a 44% decline compared to the same period in 2022.  Just one issue was recorded in the region, equalling first quarter 2021’s deal count, the lowest first quarter tally in more than two decades. South African retail firm Pepkor Holdings was the only company in the region to raise new equity funds during the first quarter of 2023, with its follow-on offering raising US$276.2 million.  No initial public offerings or convertible bonds were recorded.  Morgan Stanley and Capitalmind Investec shared first place in the Sub-Saharan African ECM underwriting league table during the first quarter of 2023.


Overall Sub-Saharan African debt capital markets activity totalled US$3.8 billion during the first quarter of 2023, down 66% compared to first quarter 2022 and the weakest opening period for DCM activity in the region since 2016. A total of 13 new offerings were brought to market in the first quarter of 2023, a 41% decline compared to a year ago and a four-year low. Ivory Coast was the most active issuer nation during the first quarter of 2023, accounting for 65% of total bond proceeds, followed by South Africa (32%). Government & Agency issuers accounted for 65% of proceeds raised during first quarter 2023, while Industrials issuance accounts for 26%. JP Morgan took the top spot in the Sub-Saharan African bond bookrunner ranking during the first quarter of 2023, with US$831.5 million of related proceeds, or a 22% market share.

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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



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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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