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Healthcare sector leads M&A activity in Saudi Arabia

November 2015

November 8, 2015 | 11.15 | Riyadh, Saudi Arabia

The healthcare sector has led Saudi M&A activity in 2015 with record-breaking deal value, data released by Mergermarket highlights. There’s been a significant slowdown however in Saudi M&A activity during 2015, with most deals in ‘defensive’ sectors including healthcare and food & beverages. “While there has been a slowdown in deal flow this year, there is a particularly healthy pipeline of deals in the Kingdom’s Healthcare sector. Our data indicates that the value of pharma, medical and biotech deals has already hit a record-breaking total of $294m from just two transactions,” said Ruth McKee Al Ghamdi, Head of Mergermarket Middle East & North Africa.

In the first three quarters of 2015, total M&A deal value stood at $578m. The total value of Saudi company takeovers however was 38.1% lower than over the same period in 2014, with six fewer deals than in the same period last year. There have been 13 transactions in Saudi Arabia in 2015, with a combined value of $578m. Population growth is highlighted as a key driver for M&A activity in the Kingdom, creating increased demand for goods and services in the healthcare and education sectors, in particular. Mergermarket also expects changing consumer habits to spur M&A activity in the Food & Beverages industry, as more people dine out.

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