Surge in Mideast M&A activity bucks global trends in 2020

Merger and acquisition deals in the Middle East bucked global trends in 2020 to record a six per cent surge as worldwide volumes for completed deals fell by nine per cent compared to 2019, PwC said in a report released on Tuesday.

While the pandemic severely curbed M&A activity globally, dealmakers throughout the Middle East region adapted rapidly and imaginatively to the crisis, the report said.

“We are living in a new normal where businesses are having to rethink their strategies and navigate the uncertainty. It is important that they remain agile and re-evaluate their strategy since deals can no longer be put on hold,” said Romil Radia, regional deals markets leader at PwC Middle East.

The pandemic will continue to force businesses across many sectors to restructure and transform their operations in the years to come. “However, while it remains essential for dealmakers to factor in the current, uncertain environment, companies and investors should also view M&A as an opportunity to achieve their strategic objectives and it may be the best or fastest way to fill in gaps, for example, in technologies or resources,” said Radia.

PwC analysts see customer centricity, digital transformation and localisation of supply chains as some of the key factors which will influence the M&A strategy of businesses and investors across the region.