Country: South Africa

In our annual Africa M&A roundup (available here), we discuss in brief the developing trends from 2023, followed by a targeted review of select jurisdictional developments.

Highlights are as follows:

• M&A in Africa has not been immune to global challenges but remains resilient. There have been notable developments in the fintech and renewable energy spaces respectively and an increase in demand for African exports as the global demand for essential minerals continues to rise.
• The African Continental Free Trade Area (AfCFTA) and related agreements and protocols are gaining traction, already growing regional value chains and enhancing collaboration and capabilities.
• African deal metrics have remained largely constant. There has been an uptick in cross-border deals and restructurings, an emerging trend of joint ventures and the re-emergence of auction sales.
• Across Africa, exchanges are cutting red tape and embarking on simplification projects in an effort to increase listings amid the uptick in take-privates and unbundlings.
• Regulatory, public interest and local ownership considerations and shareholder activism are playing an increasing role in deal structuring across Africa. So too are in-country risk factors.
• Highly negotiated clauses include limitation of liability provisions, security, conditionality, purchase price mechanisms, material adverse change and force majeure clauses.
• The use of legal technology is commonplace, and pockets of differentiation are emerging as corporates capitalise on artificial intelligence, automation and legal service improvement initiatives.

For further information please contact your usual relationship partner or any one of the key contacts listed within the publication.