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Total Value of Top 3 M&A Financial Advisers Deals Surpasses $555 Billion



merger and acquisition 1

Top 3 M&A Financial Advisers Deals Rose Above $555 Billion

According to research data analyzed and published by Stock Apps, there was a 15.1% YoY decline in the number of merger and acquisition (M&A) deals in H1 2020. Globally, the number dropped to 24,698 compared to 29,096 in H1 2019. Similarly, the total deal value sank by 44.7% from $1.85 trillion to $1.02 trillion.

However, according to Refinitive, Q3 2020 got off to a record start with at least 21 deals valued at $5 billion or more. These deals were worth a total of $256 billion.

Deal Value Down by 31% in First Eight Months of 2020

Goldman Sachs had the highest deal value during H1 2020, serving as an adviser in 113 deals worth $205.9 billion. Among these deals were 41 billion-dollar transactions, including five deals worth $10 billion or more.

As a result, it was the only firm to surpass the $200 billion mark. It outpaced the second adviser, JP Morgan, by a huge margin as the latter had $178.9 billion. In total, the top three firms by deal value accounted for almost half of the total with $555.6 billion.

Only five of the top 20 advisers had positive growth year-over-year (YoY) in H1 2020, led by Societe Generale at 3,722.91%. Evercore had the largest decline of 91.15% YoY.

In terms of deal volume, Ernst & Young took the lead with 137 deals worth $30.6 billion. Deloitte had the biggest drop of 54.81%. According to PwC, there were only three megadeals in Q2 2020 compared to 18 in Q2 2019.

In Q3 2020, August saw a remarkable performance with nine deals worth $5 billion or higher. The tech sector led the surge with 27% of all activity worldwide. However, despite the strong activity noted in Q3, global deal activity was still down by 31% between January and August 2020. The US led the drop with a 50% decline, while APAC grew 9% and Europe rose by 2%.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and, with over a decade experience in the global financial markets.


Central Bank to Promote Zero Balance Account Opening to Drive Financial Inclusion



Central Bank

Banks Now Accept Zero Balance Account Opening to Deepen Financial Inclusion

In an effort to boost financial inclusion in the country, the Central Bank of Nigeria has said it would start promoting zero balance account opening to encourage and lure the unbanked into the banking system.

The apex bank disclosed this in its report titled ‘Monetary, credit, foreign trade and exchange policy guidelines for fiscal years 2020/2021’.

The report read in part, “As part of its effort towards promoting greater financial inclusion in the country, the bank shall continue to encourage banks to intensify deposit mobilisation during the 2020/2021 fiscal years.

“Accordingly, banks shall allow zero balances for opening new bank accounts and simplify their account opening processes, while adhering to Know-Your-Customer requirements.

“Banks are also encouraged to develop new products that would provide greater access to credit.”

The apex bank said the Shared Agency Network Expansion Facility, launched to deepen provision of financial services in under-served and unserved locations and drive financial inclusion through agent banking, would continue in the 2020/2021 fiscal years.

Banks, mobile money operators and super-agents would also continue to render returns in the prescribed formats and frequency to the CBN.

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Investors Oversubscribed for FGN Bonds by N205.87 Billion in October




FG October Bonds Oversubscribed by N205.87 Billion

The Debt Management Office (DMO) has said investors oversubscribed for the Federal Government’s October bonds by N205.87 billion.

The DMO stated this after concluding the monthly FGN bonds auction on Wednesday.

Two instruments of 12.5 per cent FGN March 2035 re-opening 15-year bond and 9.8 per cent FGN July 2045 re-opening 25-year bond were auctioned.

The two bonds of N15bn each with a total auction figure of N30bn received a subscription of N235.87bn.

The 15-year tenor and 25-year tenor bonds received 99 and 67 bids but recorded 21 and 26 successful bids respectively.

The amounts allotted for each of the bids were N20bn and N25bn respectively.

According to the DMO, successful bids for the 15-year tenor bond and 25-year tenor bonds were allotted at the marginal rates of 4.97 per cent and six per cent respectively.

However, it added, the original coupon rates of 12.5 per cent for the 12.5 per cent FGN March 2035 bond and the 9.8 per cent for the 9.8 per cent FGN July 2045 bonds would be maintained.

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Lafarge Africa Sustains Growth in Third Quarter, Reports N53.3bn Revenue



Lafarge Africa

Lafarge Africa Grows Revenue by 31.4 Percent to N53.3bn Revenue in Q3 2020

Lafarge Africa Plc, a cement manufacturer headquartered in Lagos, sustained its strong growth in the third quarter (Q3) ended September 30, 2020.

In the company’s financial results released on the Nigerian Stock Exchange on Friday, the cement manufacturer’s revenue rose by 31.4 percent from N45.172 billion posted in the third quarter of 2019 to N59.337 billion in the third quarter of 2020.

Similarly, operating profit grew by 7.2 percent from N7.746 billion in the corresponding quarter to N8.302 billion in the quarter under review. This strong performance continues across the board as net income expanded by 2.8 percent to N4.867 billion, up from N4.734 billion posted in the third quarter of 2019.

Lafarge earnings per share rose by 2.8 percent to 30 kobo in the third quarter, again up from the 29 kobo posted in the same period of 2019.

On the outlook for the company going forward, the company said:

 Market demand is expected to remain strong in Q4.
 Naira devaluation and inflation remain a concern in Q4.
 The implementation of our “HEALTH, COST & CASH” initiatives would continue to deliver
improvement in our performance.
 We will maintain a healthy balance sheet.

Speaking on the company’s performance, Khaled El Dokani, CEO, Lafarge Africa Plc, said “Our robust results for the first 9 months reflect the strong recovery of the demand in Q3 and the successful implementation of our “HEALTH, COST & CASH” initiatives. Both have delivered considerable improvement in recurring EBIT, net income and free cash flow, despite the impact of the COVID-19 pandemic and Naira devaluation, particularly in Q3.

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