112 deal worth 100 billion dirhams in 6 yearsTruth Consultancy
UAE companies need financial crises and record 73 acquisitions and mergers
Posted: Sunday, October 16, 2016
Bassam Abdasameea (Abu Dhabi)
Total cases of acquisitions and mergers, and the purchase of shares for projects within the state and between the state and other countries during the period from 2010-2016, approximately 112 transactions of which 76 acquisition and 5 cases of merger and 31 deal to buy shares, and the number of completed transactions during that period, 73 transactions, while sure to complete 24 deal, currently being worked on making procedures and about 15 transactions in the stage of negotiations, according to a study issued by the Truth for economic Consultancy company.
The study released titled «mergers and acquisitions in the UAE», that the UAE was a pioneer in the trend towards mergers in the region and sets new rules of economic and geopolitical current changes, noting that the merger constitutes a bulwark of financial crises that may occur in the future.
He predicted satisfaction Muslim, general manager of the company «Truth» in a press conference yesterday, to witness the coming period, more cases of integration in all economic sectors, particularly the financial sector, both in the bank, or brokerage companies and insurance companies, attributing this to the repercussions of the fall in prices oil and slowing global economic growth, especially in China in anticipation of international economic variables is calculated.
He noted that the study, titled «mergers and acquisitions in the UAE», showed that the total operations of $ 112 process distributed among the 76 acquisitions and 5 mergers and 31 Transaction stakes «, pointing out that the year 2013 saw the largest cases of mergers and acquisitions and the purchase of shares with 28 deal In second place came the year 2012 the number of 24 transactions, while the public record in 2014 about 18 transactions last year and 12 the acquisition and the purchase of two transactions Hss.utaba: The current year has seen eight acquisitions and a merger one and 6 stakes trades.
He said Muslim: «data showed that the mergers and acquisitions and the purchase of shares of the projects deals in the country amounted to 39 transactions by 35% of the total number of transactions, while acquired deals that have been signed between the resident companies in foreign companies and 65% of the total transactions number 73 deal.
He attributed the increase appetite for mergers and acquisitions to its role in reducing the costs and quality of production and to provide adequate capital to achieve corporate objectives and limit competition and open new markets and create jobs and lower the cost of funding, as well as that the merger is a way for companies to get rid of financial, administrative and operational challenges, allowing State to strengthen its economy and increase strong funding to maintain the internal and external capital markets and creating strong entities can compete and increase the head cross-border capital flows.
He said mosallam, the mergers that have taken place in the UAE during the past period was the operations successful, most notably the merger of Emal and Dubal to create a giant capable of competing locally and externally entity, as strong indications emerged in the cases that have occurred in increased production efficiency and competitiveness and increase profits.
He stressed that the frameworks and legislation in force in the state currently, private competition law, issued in 2012, does not allow for cases of monopoly as a result of these operations, which eliminates the occurrence of monopolistic own operations and the negative impact on the market as a result of mergers and acquisitions fears.
He pointed out that there are some negative factors that may result from operations Alandmagiat and acquisitions and the purchase of shares, such as job cuts and lay off some workers, where some of these cases resulted in a reduction of the employment rates of between 20 to 30%.
He called on Muslims to take advantage of the growth processes that occur as a result of mergers and acquisitions attracting skilled labor with high efficiencies that are dispensed as a result of mergers.
He said Muslim «The economic variables that have emerged in light of what we call globalization system to concern commercial companies on the economic future survival and ability to competitiveness, which encouraged some companies, and forced some another to search for the achievement of economic concentration to cope with those changes», pointing out that the merger one of the means to achieve economic concentration and the most common.
He explained that the mergers and acquisitions business in the corporate legal and financial process and achieve economic unification of efforts and energies aggregation and exchange of experience, and the concentration of capital and the development of performance and creating the right environment for innovation.