If there were two areas for any investment bank’s Middle East advisory team to specialise in and prove all-round excellence in last year, they were the Kingdom of Saudi Arabia and outbound transactions. JPMorgan excelled on both counts.
In terms of announced transactions, the US bank worked on 17 M&A deals across the 12-month period, with a combined value of $25.75 billion, for a 25% market share, according to data from Dealogic. It also led in completed deals, overseeing 10 transactions, with a total value of $18.3 billion.
None of its main rivals came close to competing with those volumes and numbers.
“We witnessed a continued drive in cross-border activity and a strong momentum in consolidation efforts across sectors regionally,” says Georges Massoud, head of M&A for the Middle East and North Africa region at JPMorgan.
He also points to a rising “appetite for regional deals” across the advisory space, particularly on the part of sovereign wealth funds and financial sponsors.
There are a host of landmark deals to highlight. JPMorgan was financial adviser on Saudi Aramco’s acquisition of a 100% stake in Esmax Distribucion, a downstream fuels and lubricants retailer headquartered in Chile.
The deal, first announced in September 2023, marked Aramco’s first investment in Latin America, strengthening its presence in the region.
Two other notable Saudi Arabia-themed transactions from last year stand out. In October, Italy’s Pirelli signed a joint venture with the Public Investment Fund (PIF) to build a tyre-manufacturing facility in the Kingdom – an investment valued at $550 million. The sovereign wealth fund will hold a 75% stake in the JV, which aims to transform the onshore auto sector. JPMorgan was sole financial adviser to Pirelli.
And in June, Taiba Investments, one of the largest real-estate developers in Saudi Arabia, said it would acquire hospitality firm Dur, which runs 30 hotels dotted around the Kingdom, for $787 million. JPMorgan was financial adviser to Taiba in a deal that allows the firm to expand its reach across residential and retail property, hotels and serviced apartments.
JPMorgan completed 17 M&A deals across the 12-month period, with a combined value of $25.75 billion, for a 25% market share
JPMorgan was also financial adviser to PIF on its acquisition of Hadeed from Saudi Basic Industries for $3.33 billion. As part of the deal, announced in September, Hadeed will acquire 100% of Rajhi Steel, a strategic move to build a national steelmaking champion to meet rising local demand.
Elsewhere in the Middle East, the bank was involved in several other notable deals. In July 2023, French luxury group Kering agreed to buy 30% of Italian brand Valentino from Qatar-based investment vehicle Mayhoola. The €1.7 billion all-cash deal enables Kering and Mayhoola to explore potential future joint venture opportunities. JPMorgan acted as financial adviser to the Qatari firm.
JPMorgan was also lead financial adviser to the PIF-owned games developer Savvy Games on its acquisition of US rival Scopely in a $4.9 billion deal that will greatly accelerate Riyadh-based Savvy’s plans to become a leading player in global gaming.
“We continue to see good momentum in the next 18 to 24 months, driven by an eagerness from regional players to create shareholder value, as well as a desire to invest in high-quality growth assets,” adds Massoud.
