South African M&A activity declines in H1

Merger and acquisition (M&A) transactions in South Africa declined in terms of both volume and value of domestic and cross-border deals, according to analysis by law firm Baker McKenzie.

Transactions fell by 44% and 52% in terms of volume and value, respectively, in the first half of this year, with 135 deals worth $3.2-billion signed, compared with the 243 deals worth $6.6-billion signed in the first half of 2017.

“There are a number of elements causing the M&A market contraction in South Africa. We should not underestimate the impact of corruption and suboptimal governance in South Africa on the mood of investors [locally and internationally],” says Baker McKenzie managing partner and corporate/M&A practice head Morne van der Merwe.

He adds that it has proved all too easy for business…

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