Markaz: GIG reigns the top Kuwaiti-led transactions for 2021 with the acquisition of AXA S.A.’s Gulf-based operations

Markaz: GIG reigns the top Kuwaiti-led transactions for 2021 with the acquisition of AXA S.A.’s Gulf-based operations

The report also highlights the largest transactions taken on by Kuwaiti buyers throughout 2019 and 2020, starting with Boursa Kuwait Securities Company (Boursa Kuwait), who took on the largest transaction for 2020. Boursa Kuwait successfully acquired a 13% stake in Kuwait Clearing Company for a total consideration of USD 39.2 million. Alghanim Trading Company reigned the top transactions for 2019 by a landslide when it sealed a deal for a 16% stake in Gulf Bank for a total consideration of USD 501.0 million, at ~ USD 1.0 per share. Note, Alghanim Trading Company acquired the shares from Kuwait Investment Authority, and in doing so, raised its total stake in Gulf Bank to 33%.

M&A Growth (by Kuwaiti Buyers)

According to Markaz’s report, Kuwaiti acquirers sealed a total of 33 transactions throughout 2021, which demonstrates a 38% growth year over year and a 13% decline in activity between 2019 and 2021. Kuwaiti acquirers primarily acquired local companies and acquired companies based in other parts of the GCC as well as countries cross-border, to a lesser extent. This is evident as 78% of the transactions that Kuwaiti buyers closed throughout 2019-2021 involved Kuwaiti companies, followed by GCC and cross-border targets, at 15% and 7%,