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M&A Africa:12 Deals That Took Place In The First Half Of 2016

M&A Africa:12 Deals That Took Place In The First Half Of 2016

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2015 was a big year for big deals in M&A Africa. But 2016 is shaping up to be even bigger with deal-makers in the regions M&A market expecting  a high level of activity to continue this year, as companies look for ways to build their business in a slow-growth economy by acquiring or merging with other firms.

On the private equity end of things, the level of investment in sub-Saharan Africa is also expected to be more than that of 2015 as more investors score the regions for better deals in fast-growing consumer markets and infrastructure projects.

Below are top 12 mergers and acquisitions that have already taken place in 2016

Sources; Bloomberg, Financial Times, The Star, Yahoo Finance, African Business Central, Sunday Standard, Graphic Online, Techzim, Medias24, Chronicle, The Nation, Forbes, Business Daily, The Africa Report

M&A Africa
Chase Bank in Nairobi, April 6, 2016. Photo: Salaton Njau/nairobinews.nation.co.ke

KCB acquires troubled Chase Bank

Kenya Commercial Bank (KCB), the biggest bank by asset value in Kenya, acquired Chase Bank in April 2014. Chase Bank had been placed in receivership after experiencing liquidity constraints due to a deposit run-in and misreported loans. Chase Bank was re-opened after its acquisition by KCB for undisclosed amount.

M&A Africa
african-markets.com

Atlas Mara Limited acquires Banque Populaire du Rwanda

Atlas Mara Limited bought a majority stake of 62 percent in the Banque Populaire du Rwanda (BPR) in January 2016. Atlas Mara Limited invested $20.4 million into BPR. The acquisition also merged BRD Commercial Bank which was bought by Atlas Mara Limited in 2014. It made BPR the second biggest bank in Rwanda by assets, estimated to be worth US$325 million.

M&A Africa
(Image: lindaikejisblog.com)

Letshego Holdings Limited acquires ownership in FBN Microfinance Bank

It is a financial-services provider in Botswana. The institution is spread in Southern and East Africa. In January 2016, it acquired 100 percent ownership in FBN Microfinance Bank, initially owned by FBN Holdings Plc in Nigeria. The acquisition marked the start of Letshego Holdings Limited operations in West Africa, spreading its network to ten African countries. It has a client base of at least 385, 000 customers.

M&A Africa
trendsofbiz.com

Barclays Plc Sells 12.2% in Barclays Africa Group

In early 2016, global banking services provider, Barclays Plc announced its decision to exit it African market 2016, by selling its 62 percent majority shares in Barclays Africa Group Limited (BAGL). In May 2016, existing and new investors acquired 12.2 percent of its stake in the African unit. BAGL operates in 12 African markets.

M&A Africa
Image: graphic.com.gh

Ghana EXIM Bank is created

In June 2016, the government of Ghana started the process of merging Export Trade Agricultural and Industrial Development Fund (EDAIF), the Export Finance Company Limited (EFCL) and the Eximguaranty Company Ghana Limited (ECL) into a new bank, Ghana Export Import (Ghana EXIM) Bank. The new bank is set to start operation in September 2016 upon completion of the process. Passage of the Ghana EXIM Bank Act 2016 (Act 911) earlier in the year by parliament made the merger possible.

thezimmail.co.zw
thezimmail.co.zw

Zimbabean Govt. Acquires Telecel Zimbabwe

In April 2016, the government of Zimbabwe purchased 60 percent stake in Telecel Zimbabwe, a local mobile phone service provider in the Southern Africa nation. It acquired the shares from VimpelCom, leading telecommunications firm in the world, with headquarters in Amsterdam, The Netherlands.  The acquisition increased Telecel Zimbabwe’s valuation to $250 million.

Image: lematin.ma
Image: lematin.ma

German-based Allianz Group acquires Zurich Assurance Maroc

Zurich Assurance Maroc, one of the biggest insurance providers in Morocco with more than half a million customers, was acquired by Allianz Group, at a price of 244 million Euros in June 2016. The acquisition is awaiting regulatory approval. Allianz Group is a global giant in provision of insurance, banking and asset management services. It has headquarters in Munich, Germany.

Image: africamoney.info
Image: africamoney.info

MicroCred Acquires MicroKing Finance

In January 2016, MicroCred, a French company and AfricInvest Financial Sector Fund, based in Tunisia, completed its 100 percent shares acquisition in MicroKing Finance, a micro-lending institution that was owned by AfrAsia Bank Zimbabwe, which collapsed in January 2015. The two firms invested $25 million in the micro-finance institution.

constructionreviewonline.com
constructionreviewonline.com

Lafarge Africa Plc Buys More Stake In Unicem

It is a building solutions company in Sub-Saharan Africa. It is a subsidiary of LafargeHolcim Group, based in France. In May 2016, it acquired 50 percent equity interest in United Cement Company of Nigeria Limited (Unicem). The acquisition brought the total equity interest to 80 percent, Lafarge Africa Plc had acquired 30 percent equity interest in Unicem in October 2015.

Issad Rebrab. Photo: Venturesafrica.com
Issad Rebrab. Photo: Venturesafrica.com

Issad Rebrab acquires El Khabar Media Group

Issad Rebrab, the richest man in Algeria with a net worth of $3.3 billion, acquired El Khabar Media Group, one of the biggest media conglomerates in the Northern Africa nation in April 2016. The acquisition was worth $45 million. The media house owns a television channel, a printing press and a distribution firm.

M&A Africa
Image: proflife.co.zm

Prudential Plc Acquires Zambia’s Professional Life Assurance

In February 2016, Prudential Plc., a global insurance services provider based in London, acquired Professional Life Assurance, the fourth life insurance firm in Zambia. The acquisition marked Prudential Plc’s entry into the Zambian market, after Kenya, Ghana and Uganda.

M&A Africa
Image: preciseethiopia.com

Schulze Global Investments Acquires Ethiopia’s Dairy Firm MB Plc

US-based private equity and venture capital firm, Schulze Global Investments, acquired 45 percent shares in MB Plc, a dairy products company in Ethiopia, in January 2016. MB Plc was established in 2000 and operates under the trade name, Family Milk, which is one of its key dairy products. Ethiopia has the highest number of milking cows on the continent.