Major M&A deals in the UAE in 2021

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M&As result in savings in manufacturing and service, increased competitiveness, and increased financial capabilities and efficiency, among other things.
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  • Agreements worth $11 billion were signed in the UAE in the first eight months of 2021
  • M&A are considered a means of resolving crises and encouraging economic growth

The market for mergers and acquisitions has seen a substantial increase in 2021, particularly in the UAE.

This, despite their numbers in the Middle East and North Africa (MENA) area never reaching those in the rest of the world.

According to a Boston Consulting Group (BCG) report, the value of M&A deals in the UAE rose dramatically during the first eight months of 2021, totaling $11 billion in 100 agreements.

This increase is mainly attributable to a rebound in the volume of significant acquisitions, with the value of four M&A transactions totaling more than $1 billion, accounting for a 433 percent increase over the first eight months of 2020.

Advantages of M&A

Mergers and acquisitions are considered a means of resolving crises and encouraging economic growth, particularly in light of the current state of the world economy and global markets due to the Covid-19 pandemic.

The benefits of these operations include cost savings in manufacturing and service, increased competitiveness, increased financial capabilities and efficiency, the development and facilitation of corporate governance, the ability to obtain financing from banks more quickly and easily, and is the best solution for troubled companies facing bankruptcy.

Here are some of the most significant acquisitions and mergers announced in the UAE this year.

International Holding Company merges two companies

International Holding Company, a global investment holding company founded in 1998 in Abu Dhabi, formally agreed to merge its subsidiary Al Qudra Holding Company with Tamouh Ambitions Unlimited.

This merger would bring together two investment firms working in the region’s most essential sectors, including real estate and hospitality.

Tamouh, founded in 2007 and located in Abu Dhabi, is a real-estate development company.

Its portfolio comprises several audacious projects that contribute to creating the capital’s urban future.

Al Qudra Holding is an investment company that concentrates its investments and strategic alliances through its subsidiaries in areas critical to the national economy, including oil and gas, banking, and finance.

International Holding Company acquires a variety of companies

Apart from the merger, the International Holding Company acquired several additional companies, most notably the following:

  • It purchased 40 percent of the capital of Response Plus for medical services.
  • Alpha Abu Dhabi Holding Company, a subsidiary of International Holding Company, completed the acquisition of Murban, the owner of the St Regis Saadiyat Island Resort.
  • The company’s subsidiary Zee Store acquired 60 percent of Royal Horizon Holding for an estimated $21 million.

Mubadala Investments acquires shares in Sibur of Russia

Mubadala Investment Company, Abu Dhabi’s sovereign wealth fund, announced the completion of its largest investment deal in Russia, purchasing a 1.9 percent share in Sibur, Russia’s largest integrated petrochemical company and one of the fastest-expanding in the worldwide petrochemical industry.

Etisalat Group acquires elGrocer

Etisalat Group, the UAE’s biggest telecommunications operator, signed an agreement to acquire 100 percent of Dubai-based grocery delivery platform elGrocer DMCC, strengthening both its digital portfolio and consumer engagement.

DP World acquires Imperial Logistics and Syncreon

DP World announced its acquisition of Imperial Logistics in July 2021.

Imperial Logistics, which is listed on the Johannesburg Stock Exchange, is a provider of integrated logistics services to a variety of markets with operations in Africa and Europe.

Additionally, in July, DP World Group announced the acquisition of 100 percent of Syncreon for $1.2 billion.

Agthia Group acquires BMB Group

The UAE Agthia Group, founded in 2004 and listed on the Abu Dhabi Stock Exchange, purchased BMB, a fully-integrated food company based in the UAE that manufactures a range of sweets, baking ingredients, and healthy snacks.

First Abu Dhabi Bank acquires Bank Audi in Egypt

First Abu Dhabi Bank and Bank Audi Lebanon announced in May that they had completed the former’s acquisition of 100 percent of Bank Audi Egypt’s capital.

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