Analysis by DealMakers AFRICA of the M&A data for 2022 (excluding South Africa and failed deals) shows 687 local deals were announced across the continent, valued at US$17,53 billion – almost 15% lower than 2021’s deal value.
The slowdown in activity witnessed in the second half of the year was the result of macroeconomic factors such as the war in Ukraine, inflationary pressures and rising interest rates, and while these are likely to keep activity subdued for now, impacting on market sentiment, valuations and the cost of debt financing, it is important to note that the numbers are nevertheless back to their pre-COVID levels. The caveat here, however, is that this is thanks to private capital investors, rather than a return to ‘normal’ pre-COVID conditions.
Private Equity activity continues to grow and, in 2022, it represented two-thirds of the deals announced, valued at $4,67 billion. A closer look at the regional numbers speaks to this rise in private equity and impact investing. The three most active regions – East, West and North Africa account for 97% of these deals announced, and 83% of all M&A activity for the period. In terms of total deals, West Africa continued to dominate, recording $3,29 billion by value, with Nigeria the centre of activity (135 deals). It was followed by East Africa, which recorded deal values in aggregate of $2,88 billion. Kenya was the most active of the East African countries, recording 123 deals of the 162 for the region.
Of the top 10 deals for 2022 by value, the largest was the acquisition in March by MSC Mediterranean Shipping Company of the African transport and logistics business of Balloré S.A. for €5,7 billion (US$6,32 billion). Given the global energy crises, brought to a head by the conflict between Russia and Ukraine, it is unsurprising that five of these deals are energy related.
The awards ceremony was held at Villa Rosa Kempinski on 14 March 2023 and recognised the work carried out by the advisers in the mergers and acquisition and general corporate finance space during 2022.
EAST AFRICA
The winner of the East Africa Deal of the Year was KCB Group’s acquisition of Trust Merchant Bank (TMB). The acquisition provides KCB with an opportunity to tap the immense trade opportunities that come with the DRC’s recent admission to the East Africa Community. Advisers to the winning transaction were Deloitte, Bowmans, Stein Scop and EY.
Amethis Retail’s exit of its investment in Naivas, Kenya’s largest retail chain, was named Private Equity Deal of the Year. The deal estimated to be worth US$151,97 million is c. three times the price paid by the minority shareholders just two years ago in 2020. The advisory firms to the deal were Rothchild & Co., Bowmans, Benoit Chambers, Kaplan & Stratton, PwC and EY.
The following awards were made on the night to the top financial and legal advisers to the East African mergers and acquisition industry:
Mergers & Acquisitions
Financial Adviser by deal value
1st Strand Hanson
2nd Ekta Partners
3rd Stanbic Bank Kenya
Financial Adviser by deal flow
1st tie Standard Bank Kenya and I&M Burbidge Capital
3rd tie Horizon Africa Capital and Ekta Partners
Legal Adviser by deal value
1st Goodwin Procter
2nd Bowmans
3rd Freshfields Bruckhaus Deringer
Legal Adviser by deal flow
1st Bowmans
2nd Kaplan & Stratton
3rd Anjarwalla & Khanna
General Corporate Finance
Financial Adviser by transaction value
1st tie NCBA Investment Bank and Lions Head Global Partners
3rd Verdant Capital
Financial Adviser by transaction flow
1st Verdant Capital
2nd tie Lions Head Global Partners, NCBA Investment Bank and I&M Burbidge Capital
Legal Adviser by transaction value
1st Kaplan & Stratton
2nd DLA Piper Africa | IKM Advocates
3rd tie Anjarwalla & Khanna and White & Case
Legal Adviser by transaction flow
1st Kaplan & Stratton
2nd DLA Piper Africa | IKM Advocates
3rd tie Anjarwalla & Khanna and Mboya Wangong’u & Waiyaki Advocates
WEST AFRICA
The winner of the West Africa Deal of the Year was Access for the formation of Access Pensions. The merger creates Nigeria’s fourth largest Pension Fund Administrator by assets under management, enabling it to leverage the synergies of the merged entities and a wider distribution network. Advisers to the winning transaction were Coronation Merchant Bank, Banwo & Ighodalo, Aluko Oyebode and Jackson Etti & Edu.
The winning Private Equity Deal of the Year for the West African region was Verod Capital’s investment in Medplus. Advisers to the transaction were Stanbic IBTC Capital, Templars, G Elias and Banwo & Ighodalo. The investment was funded by Verod’s Capital Growth Fund III, targeting mid-sized growth companies in Anglophone West Africa, with the primary focus on Nigeria and Ghana. The investment is part of its broader strategy to deepen access and affordability in the healthcare sector.
The following awards were made on the night to the top financial and legal advisers to the West African mergers and acquisition industry:
Mergers & Acquisitions
Financial Adviser by deal value
1st Scotiabank
2nd tie Canaccord Genuity, Durose Asset Management and Treadstone Resource Partners
Financial Adviser by deal flow
1st tie Scotiabank, Stanbic IBTC Capital, Coronation Merchant Bank and Enexus Finance
Legal Adviser by deal value
1st Udo Udoma & Belo-Osagie
2nd White & Case
3rd Olaniwun Ajayi
Legal Adviser by deal flow
1st G Elias
2nd Banwo & Ighodalo
3rd tie Asafo & Co and Aluko & Oyebode
General Corporate Finance
Financial Adviser by transaction value
1st Stanbic IBTC Capital
2nd UCML Capital
3rd Standard Chartered
Financial Adviser by transaction flow
1st United Capital
2nd tie Stanbic IBTC Capital and FSDH Capital
Legal Adviser by transaction value
1st Banwo & Ighodalo
2nd Udo Udoma & Belo-Osagie
3rd G Elias
Legal Adviser by transaction flow
1st G Elias
2nd Banwo & Ighodalo
3rd Udo Udoma & Belo-Osagie
The DealMakers AFRICA’s Special Recognition Award was awarded to the Sanlam Allianz joint venture. This is the second time the award has been made and seeks to acknowledge and showcase a deal or transaction, the characteristics of which are noteworthy and make a significant contribution to the region or industry. This award is not region specific. The joint venture reshapes the African insurance industry involving 27 countries and 12 overlapping countries, creating complexity in terms of valuations, due diligence and regulatory approvals. Advisers included financial, legal and transitional support teams across the continent.
During 2023, DealMakers AFRICA hopes to expand to provide league tables – not only for East and West Africa, but also North Africa. It is anticipated that the next DealMakers AFRICA Awards for 2023 will be held in March 2024 in West Africa.
The latest magazine can be accessed as a free-to-read publication at www.dealmakersdigital.co.za
DealMakers AFRICA is Africa’s corporate finance magazine.
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