Middle East mergers and acquisitions (M&A) activities have returned to pre-pandemic levels according to a new report by the Boston Consulting Group (BCG).
BCG’s 19th annual analysis titled ‘The 2022 M&A Report,’ shows the Middle East recording 283 deals in the first three quarters of 2022 – an increase of 16% from the same period last year – with a total value of $23.8 billion.
The Boston Consulting Group (BCG) has mentioned in a press release that the report also forecasts the environmental considerations will motivate an increasing number of deals, despite unfavorable macroeconomic conditions, with ‘green’ M&A deals increasing from 5% in 2020 to 10.3% in 2021 suggesting that more dealmakers are recognizing the value-creating potential of these transactions.
BCG’s analysis has revealed a clear upward trend in ‘green’-related deals over the past decade, with the strongest acceleration occurring in 2021 when Middle East deal volumes nearly doubled to 10.3% following two softer years for broader M&A activity and green transactions.
It further disclosed that despite the substantial premium they often command, green deals globally generally create more value than non-green deals upon announcement and over the ensuing two years, the BCG said.