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.

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 towards 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 with a market value of USD 1.2 tn, followed by Greater China at USD 291 bn, and Japan at USD 143 bn.

TASI

12,434

+0.2% (YTD: +3.3%)

MSCI Tadawul 30

1,546

+0.1% (YTD: +2.4%)

NomuC

31,386

+0.4% (YTD: -0.3%)

USD : SAR (SAMA)

USD 3.75 Sell

USD 3.75 Buy

Interest rates

5.0% repo

4.5% reverse repo

EGX30

30,012

+0.9% (YTD: +0.9%)

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 2,887.60

+0.4%

BTC

USD 96,573

+0.6% (YTD: +3.3%)

THE CLOSING BELL: TADAWUL-

The TASI rose 0.2% last Thursday on turnover of SAR 6.9 bn. The index is up 3.3% YTD.

In the green: Amak (+7.5%), Thimar (+5.8%) and MCDC (+4.4%).

In the red: Mutakamela (-2.2%), Tanmiah (-2%) and SIIG (-1.7%).

THE CLOSING BELL: NOMU-

The NomuC rose 0.4% last Thursday on turnover of SAR 45.7 mn. The index is down 0.3% YTD.

In the green: Leaf (+8.9%), Ghida Alsultan (+8.2%) and Aqaseem (+5.9%).

In the red: TMC (-8.5%), Alqemam (-6.9%) and Mulkia (-5.4%).

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