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Getting The Deal Through, Market Intelligence – Mergers & Acquisitions, South Africa

1 November 2015
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GTDT: What trends are you seeing in overall activity levels for mergers and acquisitions in your country during the last year or so?

Ezra Davids: A combination of African-led and international cross-border acquisitions are fuelling regional M&A activity as African businesses grow in self-confidence. While the global volume of African M&A has slowed down, the volume of African-led acquisitions should see record highs in 2016. From a South African perspective, private equity and venture capital investment activity targeting South African companies has increased in the second quarter of 2015. This mirrors an increase in private equity deals globally. There is also residual strategic public M&A activity.

GTDT: Which sectors have been particularly active or stagnant? What are the underlying reasons for these activity levels? What size are typical transactions?

Ezra Davids: The most recent M&A activity in South Africa has been in the telecoms, real estate, mining and resources and private equity sectors. The average size of transactions is around US$250 million.