Healthcare sector leads M&A activity in Kingdom

09/11/2015 05:48 AST

THE healthcare sector has led Saudi M&A activity in 2015 with record-breaking deal value, a reflection of Saudi demographics, Mergermarket, the world’s leading news and intelligence service for mergers & acquisitions, revealed.

However, it noted that the total value of Q1-Q3 2015 deals fell 38.1% compared to same period in 2014. Total M&A deal value of $578 million in first three quarters Mergermarket has announced that its 2015 ‘Saudi Arabia M&A and Capital Markets Forum will be held at the Marriott Riyadh on Nov. 18. Data released by Mergermarket highlighted a significant slowdown in Saudi M&A activity during 2015, with most deals in ‘defensive’ sectors including healthcare and food & beverages.

In the first three quarters of 2015, the total value of Saudi company takeovers was 38.1% lower than over the same period in 2014, with six fewer deals than in the same period last year. There have been 13 transactions in Saudi Arabia in 2015, with a combined value of $578 million. Population growth is highlighted as a key driver for M&A activity in the Kingdom, creating increased demand for goods and services in the Healthcare and Education sectors, in particular. Mergermarket also expects changing consumer habits to spur M&A activity in the food & beverages industry, as more people dine out.

Ruth McKee Al Ghamdi, Head of Mergermarket Middle East & North Africa, said: “While there has been a slowdown in deal flow this year, there is a particularly healthy pipeline of deals in the Kingdom’s healthcare sector.

Our data indicates that the value of pharma, medical and biotech deals has already hit a record-breaking total of $294 million from just two transactions. The $246 million takeover of a 57% stake in Sanad Hospital by UAE-based Aster DM Healthcare in October is the highest value deal of 2015 so far, and has significantly boosted overall values.”

Mergermarket’s upcoming Saudi Arabia Forum will address the market’s most important deal drivers, as well as looking ahead to key investment trends likely to be experienced in the coming year. Capital markets and M&A professionals from the Middle East’s leading corporates, investment banks, private equity funds and financial & legal advisory firms will participate in panels, presentations, case studies and open Q&A sessions.

Saudi Gazette