Supply chain is key theme for construction M&A

Supply chain is key theme for construction M&A

Investing in the supply chain has emerged as a key theme for construction mergers and acquisitions (M&A) activity as companies seek to mitigate delivery concerns as project activity ramps up in many key markets, including the Middle East.Globally, there were $212bn of construction mergers and acquisitions (M&A) deals in 2023, according to a thematic intelligence report by GlobalData.The total value of deals was down 39% when compared to the previous year. North America was the most active region by value with $98bn of deals, a drop of 40% when compared to 2022. The Middle East had $3bn of deals, which was down 25% on the previous year.By volume, there were 3,164 construction M&A deals in 2023, which was a 21% decline when compared to 2022. Again, North America was the most active region with 1,224 deals, which was 21% less than 2022. The Middle East recorded 84 deals, which was a drop of 26% when compared to the previous year.The biggest deals in the Middle East during 2023 were in Saudi Arabia, where the Public Investment Fund (PIF) invested $1.3bn in four local construction companies to support the handling of projects across the kingdom. The PIF has acquired new shares