Egypt’s M&A buzz continued in H1; Russia-Ukraine conflict to spur more deals

Egypt’s M&A buzz continued in H1; Russia-Ukraine conflict to spur more deals

Egypt currently stands out as a promising market for merger and acquisition (M&A) transactions. In 2021, the total volume of M&As increased by 49%, with 233 deals, and the deal value jumped by 486% compared to 2020, recording a total of $9.9 billion, according to a Baker McKenzie report.

Both domestic and cross-border deals have witnessed an increase in volume and value. The same report expects further growth in M&A transactions across multiple sectors including high-tech, education, healthcare, oil and gas, telecoms, fintech and ESG.

The economic crisis spawned by the Russian war on Ukraine is expected to accelerate the pace of acquisition deals in Egypt, specifically inbound cross-border ones.

Two months into the war, hoping to replenish the country’s dwindling foreign reserves, President Abdel Fattah el-Sissi asked the Egyptian government to prepare public offerings of more government-owned as well as military-owned companies.

Here is a list of the key deals sealed during the first half of 2022 in no particular order.

1. ADQ acquired stakes in 5 listed companies for total of $1.8 bn

In April, the Emirati holding company ADQ made five transactions to acquire stakes in Commercial International Bank (the country’s largest private bank), Fawry (Egypt’s leading e-payment giant), Alexandria Container Handling, Abu