Mergers & acquisitions: declining slope on Jan-May 2015
After the surge in 2014, lack of interest of international investors results in poor performance of African M&A.Between January and May 2015, foreign investment in mergers & acquisitions in Africa was $ 1.9 billion USD, down 46% compared to 2014, according to a document published by Dealogic.
It is the mining sector that dominates this type of operation, representing 16.5% of the whole; then the telecommunications sector stands at 16%, driven in particular by finalizing the acquisition of Etisalat by Morocco Telecom. In 2014, the sectors of finance and construction had been in the top three with mines.
Meanwhile, acquisitions by African investors reached 7.7 billion USD, weak performance in terms of business volumes of the last three years. However, African foreign investments rose for mergers and acquisitions in the rest of the world, reaching 14.9 billion USD.
It seems that the interest in African assets remains strong, supported by strong growth prospects, the middle class potential as well as the reduction of uncertainty, notably in South Africa and Nigeria.