The volume of global M&A transactions rose 14% y-o-y to USD 846.8 bn by 25 September, signaling persistent appetite despite market headwinds, Reuters reports, citing Dealogic data.

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What the data shows: US M&A activity took a hit, dropping 8% y-o-y to USD 338 bn, largely due to regulatory scrutiny, market volatility, and high interest rates. Asia-Pacific led the charge with a 54% y-o-y surge in transaction volume to USD 273 bn, while Europe posted a 7% y-o-y increase, reaching USD 160 bn, the data showed.

Regulatory pressures put a damper on megadeals this year: Tougher antitrust scrutiny stalled megadeals surpassing USD 25 bn, with no transactions over USD 50 bn signed this year, according to the newswire. Increased scrutiny from antitrust watchdogs is partly to blame, analysts say.

The number of mid-sized M&A transactions increased 27% y-o-y, with 12 transactions ranging from USD 5 bn to USD 10 bn taking place so far this year, up from 10 in the same period last year, according to the data.

The biggest M&A transactions this year: Mars ’ USD 36 bn acquisition of snack-maker Kellanova, Blackstone ’s USD 16 bn buyout of AirTrunk, and Verizon ’s USD 9.6 bn purchase of Frontier Communications topped 3Q 2024’s largest transactions so far.

A slowdown in 4Q? Investors are expecting transactions to slow down ahead of the upcoming US elections, though analysts expect them to rebound early in 2025 as the US Federal Reserve’s interest rate cuts give a boost to the economy.

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THE CLOSING BELL: TADAWUL-

The TASI rose 0.3% on Thursday on turnover of SAR 8.3 bn. The index is up 3.4% YTD.

In the green: Arab Sea (+9.9%), Batic (+8.5%) and Alistithmar Reit (+7.8%).

In the red: Aljazira Reit (-3.2%), Red Sea (-3.0%) and SPM (-2.2%).

THE CLOSING BELL: NOMU-

The NomuC fell 0.5% on Thursday on turnover of SAR 37.3 mn. The index is up 4.1% YTD.

In the green: Edarat (+7.6%), Apico (+7.5%) and Naas Petrol (+6.3%).

In the red: AlMohafaza for Education (-8.1%), Ghida AlSultan (-6.5%) and Mobi Industry (-5.5%)

CORPORATE ACTIONS-

BinDawood’s board of directors signed off on appointing SNB Capital as a market maker for its shares, it said in a disclosure to Tadawul. This is still subject to regulatory approvals, with the appointment set to run for 12 months from when the agreement is finalized.

Savola Group’s board is seeking to reduce the company’s capital by 73.5% to SAR 3 bn by canceling 834 mn shares and distributing the company's stake in Almarai to eligible shareholders, based on the market value of Almarai shares on the distribution date, it said in disclosures to Tadawul here and here. The reduction is intended to optimize Savola’s capital structure, as the capital is deemed excessive for current needs. Riyad Capital has been appointed as the financial advisor.

Pending approvals: The creditors’ objection period opened Thursday, 26 September and will conclude on Sunday, 10 November, it said in a third statement. Creditors may object by sending a registered letter with supporting documents to the company. The move is also subject to the approval of the Capital Market Authority the General Assembly, which will occur after the objection period concludes.

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