M&A deals in MENA region back to pre-pandemic levels: BCG
A report by BCG highlights that the deals reached a total value of $23.8 billion in the first nine months of 2022—up 16% from 2021.
Mergers and acquisition deals in the Middle East and North Africa (MENA) region have returned to the pre-pandemic levels, said the Boston Consulting Group (BCG) in a report. The report also said green activity reached a peak in 2021, making up 10.3% of the total transactions.
The deals reached a total value of $23.8 billion in the first nine months of 2022, across 283 deals—up 16% from 2021, as reported on Zawya.
BCG said that, since 2001, green deals have quadrupled, and it forecast that environmental considerations will motivate an increasing number of deals, despite unfavourable macroeconomic conditions.
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Green M&A deals are witnessed predominately in industries dealing with energy transition and emerging markets, with the Middle East showing the highest level of green activity globally, the report said.
Over the past decade, the energy and utility industry saw the highest share of green M&A deals and the largest increase in deals—a 98% increase from 2020-2021.
In the MENA region, green M&A increased from 5% of the total number of transactions in 2020 to 10.3% in 2021.
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Ihab Khalil, Managing Director and Senior Partner, BCG, said, "Soaring sustainability transactions in the Middle East are a clear outcome of established national transformation programmes seeking out diverse economic outputs for countries on their path to net zero."
Edited by Suman Singh
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