Following three years of subdued M&A activity, this year could be the year the market finally gains momentum, Bain said in its latest global M&A report (pdf). The firm expects that the main barriers to M&A activity in recent years — high interest rates and regulatory challenges — will start to ease in the coming year, the report notes.

(Tap or click the headline above to read this story with all of the links to our background as well as external sources.)

New tech + national regulations to drive activity: M&A activity is going to pick up because of tech disruption and changes in global economics, the report notes, adding that companies will be looking toward consolidation in order to keep up with new technologies like AI, automation, and renewable energy, with both tech and non-tech companies looking to stay ahead. Businesses are also using M&A to adjust to new national policies and trade dynamics.

2024 IN REVIEW-

Overall M&A activity reached a modest USD 3.5 tn in 2024, up only slightly from last year’s USD 3.2 tn. A slight drop in interest rates fueled private equity interest, leading to a 29% y-o-y increase in transaction value. Meanwhile, corporate M&A experienced steady growth, rising 12% from 2023, with transaction volume also up by 7%. Despite challenges like high interest rates, companies have continued pursuing mergers and acquisitions, the management consulting firm said, noting a shift toward creating value through revenue and cost synergies.

By the sector: Consumer products saw a 19% drop in transaction value in 2024, with 60% of executives planning to sell assets in the next three years. The energy sector reached a three-year high of USD 400 bn in transactions driven by oil and gas consolidation and faster synergy realization. Retail rebounded in M&A value and volume, and 75% of executives anticipate sustained momentum in 2025.

Top M&A markets: The US and Canada led global M&A activity with a market value of USD 1.2 tn, followed by Greater China at USD 291 bn, and Japan at USD 143 bn.

EGX30

30,012

+0.9% (YTD: +0.9%)

USD (CBE)

Buy 50.23

Sell 50.37

USD (CIB)

Buy 50.25

Sell 50.35

Interest rates (CBE)

27.25% deposit

28.25% lending

Tadawul

12,434

+0.2% (YTD: +3.3%)

ADX

9,586

+0.2% (YTD: +1.8%)

DFM

5,238

-0.1% (YTD: +1.6%)

S&P 500

6,026

-1.0% (YTD: +2.5%)

FTSE 100

8,701

-0.3% (YTD: +6.5%)

Euro Stoxx 50

5,325

-0.6% (YTD: +8.8%)

Brent crude

USD 74.66

+0.5%

Natural gas (Nymex)

USD 3.31

-2.9%

Gold

USD 2,888

+0.4%

BTC

USD 96,573

+0.6% (YTD: +3.3%)

THE CLOSING BELL-

The EGX30 rose 0.9% at Thursday’s close on turnover of EGP 3.1 bn (17.4% below the 90-day average). Regional investors were the sole net sellers. The index is up 0.9% YTD.

In the green: Eastern Company (+6.6%), Sidpec (+3.6%) and Telecom Egypt (+2.4%).

In the red: Rameda Pharma (-2.2%), Beltone Holding (-2.0%) and Qalaa Holdings (-1.5%).

Tags: