Slowdown in outbound M&A activity in sub-Saharan Africa

The value of announced merger and acquisition (M& A) transactions with any sub-Saharan African involvement reached US$23.4 billion during the first nine months of 2015‚ 12% more than the value registered during the same period in 2014.

This is according to Thompson Reuters latest quarterly investment banking analysis for the sub-Saharan region.

The report showed that outbound activity slowed down 34% compared to the first nine months of 2014 to reach US$3.8 billion.

South Africa’s overseas acquisitions accounted for 64% of sub-Saharan African outbound M& A activity‚ while acquisitions from Mauritius and Seychelles companies accounted for 27% and 6%‚ respectively.

Inbound M& A also saw a decline‚ down 6% to US$5.6 billion. Domestic and inter- sub-Saharan African M& A reached US$8.3 billion‚ up 39% year-on-year‚ the highest first nine months total since 2010.

The Financials industry was the most active sector‚ accounting for 18.5% of sub-Saharan African involvement M& A.

The largest deal with sub-Saharan African involvement during the first nine months of 2015 was the US$1.8 billion offer from Sonangol EP to acquire a 40% ownership interest in Kwanza Basin Blocks 21/09 20/11‚ producer

of crude petroleum and natural gas‚ from Cobalt International Energy Inc.

Rand Merchant Bank topped the sub-Saharan African involvement M& A league table for the first nine months of 2015 with US$4.3 billion.