South Africas M&A activity drops 53% y/y to EUR 6.3bn in H1 2012 - survey.

By bne IntelliNews July 9, 2012
Total mergers and acquisitions (M&A) deal activity in South Africa is estimated at ZAR 64bn (EUR 6.3bn) for the first half of 2012, down from ZAR 136bn a year earlier, Business Day reported, quoting a research by South African corporate finance magazine DealMakers. The number of deals, however, remained nearly flat y/y in H1, indicating that companies are making smaller size transactions. Deals involving black economic empowerment (BEE) companies rose to ZAR 7.7bn in H1 from ZAR 1.2bn in the same period last year. The biggest deal in H1 2012 was the ZAR 10bn acquisition of retailer Edcons credit book by Absa bank. It was followed by the ZAR 3.4bn purchase by a consortium led by South Africas state investment agency Industrial Development Corporation (IDC) of a 74% stake in integrated steel maker Scaw South Africa from global miner Anglo American. Third came the ZAR 2.3bn purchase by investment group Mvelaphanda of the remaining 78.1% of the shares it does not hold in media group Avusa. According to DealMakers, South African M&A activity in 2012 would be the worst on record for many years.

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