For 2012, Mergers & Acquisitions in Nigeria Was Worth $7.4 Billion

Global Consulting Giant, KPMG, has said that Mergers & Acquisitions (M & A) in Nigeria for 2012 was worth $7.415 billion. This included deals that involved foreign companies and local ones. It was 379% increase from 2011, when M & A in Nigeria was $1.548 billion. Most deals were in the oil sector, and KPMG’s report states that, “M & A transactions in Nigeria showed significant decline in the fourth quarter of 2012, following completion of various deals in prior periods, particularly in the third quarter of 2012. The oil and gas sector accounted for the largest deals by value due to the activities of local and international trade buyers in fourth quarter of 2012. The Information  and Communications Technology (ICT) and oil & gas sectors accounted for the highest number of deals in fourth quarter 2012” It also submitted that, “China Petroleum Corporation (Sinopec) was involved in the largest deal in 2012 following its acquisition of 20% interest in OML 138 from Total E & P Nigeria Limited for $2.5 billion. Then Oando Plc’s acquisition of ConocoPhilips Nigerian assets was $1.8 billion. The acquisition of OML 30 by Heritage Oil Plc for $850 million and ND Western Limited’s acquisition of OML 34 for $400 million, were the top deals of 2012″ Other deals include Shanduka’s Group $335 million purchase of stake in MTN Nigeria, CAPCOM’s investment in Multilinks, Starcomms and MTS and Tiger Brands Limited’s investment in Dangote Flour Mills. For 2013, KPMG forecasts that “The nationalised banks may be involved in M & A transactions following the release of a transaction roadmap for divestment of government interest in the banks. In addition, the need for mortgage institutions to comply with the 2013 recapitalisation deadline is expected to spur M & A activities.” “Big ticket deals are expected to continue to occur in the oil and gas sector due to acquisition of IOC’s oil and gas assets by local and other international players. Government implementation of import substitution strategies and promotion of agriculture is expected to be a key driver of M & A in the consumer market sector.”