South Africa, Nigeria and Mozambique Top Africa’s M&A Activity In 2013

Written by Kevin Mwanza

South Africa, Nigeria and Mozambique were the top most targeted nations in mergers and acquisition (M&A) transactions in the sub-Sahara Africa in 2013, a report by Thomson Reuters quoted by Nigerian Tribune showed.

The report showed that investment banking fees for Sub Saharan African Investment Banking services declined slightly by 2 percent to $354.5 million compared to 2012 and was the slowest annual total for fees in the region since 2009.

According to the report, the value of announced M&A transactions involving Sub Saharan African rose 29 percent to $30.3 billion during 2013. This is said was the best annual total in the region since 2010 when it recorded deals worth $51.5 billion.

“Equity and equity-linked issuance in Sub Saharan Africa totaled $3.5 billion during 2013, while Sub Saharan African debt issuance reached $20.7 billion,” said Nadim Najjar, Managing Director, Middle East, Africa, and Russia / CIS, Thomson Reuters.

“Goldman Sachs topped the Sub Saharan African fee league table for 2013, with a 10 percent cut of the fees. Barclays and Citi followed in second and third positions, respectively.”

He noted that the most targeted nation by value during 2013 was Mozambique, accounting for 31 percent of activity due to three multi-billion dollar deals in the oil & gas sector. The next most targeted nations were South Africa and Nigeria.

South Africa and China were the most acquisitive nations, together accounting for 46 percent of all deals. Bolstered by the three Mozambican oil & gas deals, Energy & Power was the most active sector, followed by Materials and Real Estate.

The report said Bank of America Merrill Lynch took first position in the 2013 announced any Sub Saharan African involvement M&A Ranking with $5.5 billion.

Najjarin the report on Sub Sahara Africa’s investment banking analysis for 2013, that the investment banking fees from syndicated lending drove activity during 2013, reaching $104.0 million, up 7 percent compared to 2012 and the highest annual total since our records began in 2000.