Africa

Details

  • Service: Advisory, Transaction Services
  • Type: Business and industry issue
  • Date: 9/17/2012

Mergers and Acquisitions: Opportunities in Africa 

With the decline in merger and acquisition deals in South Africa, corporates in the country may have to look beyond the borders into the rest of Africa.

Although opportunities exist in the continent, the dynamics of the mergers and acquisitions landscape are not so clear cut.

 

  • Due to the underdeveloped nature of formal economies in Africa, acquisitions are only feasible on a piecemeal basis.
  • Statistics with regard to dealflow in the continent are not readily available.
  • Africa does not have substantial assets for corporations to acquire, thereby providing little opportunity for large scale M&A ventures.
  • The colonial legacy still casts a long shadow, and the continent is highly fragmented culturally and in terms of legal framework.

 

Nonetheless, the explosive growth of the telecoms industry has opened up some interesting opportunities in financial services, such as banking and insurance, retail and fast moving consumer goods (FMCGs).

 

To find out more about these and other factors affecting M&A activity in Africa, read the full article.

 

Share this

Share this

Contact

Contact

Michael Combrinck

Manager

Mergers and Accuisitions  South Africa

Tel:+27 (0)82 711 9149

michael.combrink@kpmg.co.za