M&A activity targeting Africa recorded 244 deals worth US $39bn in 2016, resulting in an increase of 49.1% by value compared to 2015 (302 deals, US $26.2bn) to reach its highest annual figure since 2010 (179 deals, US $40.3bn). The most targeted countries by deal count were South Africa (125 deals, US $20.6bn), Nigeria (19 deals, US $1.6bn), Egypt (18 deals, US $2bn) and Kenya (16 deals, US $409m). The most targeted sector was Consumer (46 deals, US $15.4bn), which soared 15.2x by value over 2015 (52 deals, US $1bn).

Top Deals

Bidvest Group  Limited sells Bid Corp to its Shareholders

The highest valued deal of the year in Africa, at €5.7bn, was food service company Bid Corp being sold by its parent company Bidvest Group to Bidvest’s shareholders.  Standard Bank group provided financial advice for Bidvest Group on the transaction, whereas the shareholders had no unified financial advisors. 

Rockcastle Global  Real Estate Company Limited sells to New Europe Property Investments Plc

At $3.5bn, this real estate company acquisition lands second on the list.  Announced late in the year in December, this deal helped to capped off Q4 in African M&A.  The sellers had no financial advising, while the buyers were advised by Java Capital and JP Morgan.

The Coca Cola  Beverages reacquire controlling interest in their African division from  Anheuser-Busch InBev

In addition to the second-ranked deal, this $3.1bn deal capped off a strong Q4 showing in African M&A.  The deal resulted in 54.5% of the company changing hands, making Coca-Cola controlling shareholders. Lazard advised Anheuser-Busch on the deal, while Coca Cola went unadvised.

China Molybdenum  Co. Ltd purchases 56% of Tenke Fungurume Mining SA from Freeport-McMoRan Inc

Holding one of the world’s largest copper and cobalt resources certainly adds value, as Chinese molybdenum and tungsten producer China Molybdenum paid $2.5bn for 56% stake in Tenke Fungurume.  Tenke Fungurume was previously controlled by Freeport-McMoRan, and American gold, silver, and copper producer.   They sought no financial advising, while China Molybdenum were advised by Citi.

Steinhoff  International Holdings sells 8.81% stake to Lancaster 101 Proprietary Limited  and Upington Investment Holdings BV

Steinhoff International Holdings, a South African retail holding company, sold 8.81% stake of itself, which was the fifth highest deal by value alone at $2.1bn.  Investment company Lancaster 101 Proprietary Limited and holding company Upington Investment Holdings each bought the stake.  Neither the sellers nor the buyers had any financial advising for the deal.

League Tables

Standard Bank Group, advising the top deal, topped the list in this year’s tables with $7.6bn in value.  Lazard jumped to second from 19^th, due in large part to their sole role in advising the Coca Cola/Anheuser-Busch deal.  Their ending total was $6.5bn.

To learn about the trends that sparked these day, consider attending Deal Drivers Africa 2017. Visit the event website for more information