Decline in M&A Activity Hits Egypt: Baker McKenzie
Globally, M&A activity declined by 6% in volume and a significant 16.4% in value throughout 2023.
According to a recent report from Baker McKenzie, Egypt saw a 53% year-over-year (YoY) decline in merger and acquisition (M&A) deals in 2023. The report highlighted a downturn in both deal volume and value, with transactions plummeting to 139 and value sinking by 62% to $3.48 billion.[1]
This trend resonated with the broader Middle East and global markets, where M&A deal values and volumes experienced a similar downturn.
Despite the overall decline, there was a glimmer of hope in the second half of 2023, with M&A deals in Egypt soaring by 32% to 79 compared to the preceding six months. The total value surged by a staggering 383% to $2.8 billion in the latter half of the year.
December witnessed a flurry of 20 deals. The value of these deals soared to $1.6 billion, surpassing monthly records set in 2022.
Zooming out to the wider Middle East region, dealmaking saw a modest decrease of 4.7% in volume and 2.2% in value. This was attributed to a sluggish performance in domestic deal volume and a notable 7% drop in cross-border deals.
Globally, M&A activity declined by 6% in volume and a significant 16.4% in value throughout 2023.