The Egyptian market has seen an increase in acquisitions during 2022, whether from local or foreign companies, as companies are more undervalued, representing a good investment opportunity, especially with the expectations of the recovery of Egypt’s economy in the coming years.
There are many acquisitions of large and well-known entities in a number of areas in the market during 2022, particularly in the fields of banking, electricity, food, etc., many of which witnessed saw strong competition between several parties. Analysts expect more acquisitions will take place in Egypt during the coming period, due to low valuations and the expected economic recovery for Egypt, in addition to the desire of many Gulf investors to enter the Egyptian market.
Radwa El Swaify, head of research at Al Ahly Pharos, said that the rise in acquisitions during 2022 is due to several reasons, including the low companies valuation that markets are seeing due to the repercussions of the pandemic and its aftermath. It represents a great opportunity for those who have the liquidity to acquire companies and seize these opportunities. El Swaify explained that the second reason is that some of these acquisitions came from Gulf companies that put the Egyptian market in mind mainly because of the broad population base, which represents an expansion opportunity and a source of growth while diversifying investments in different markets. El Swaify expects acquisitions to continue during the coming period as valuations remain low. Many Gulf investors expressed their desire to enter the Egyptian market in certain industries. The different types of investment are all beneficial to the economy, whether they are made through acquisitions or pumping investments in new companies and factories, provided that this acquisition results in growth and an increase in the workforce and the provision of products within the market as well as export.
About the most important acquisitions:
$2 billion worth of acquisitions completed
ADQ, a subsidiary of the Abu Dhabi Sovereign Fund, executed a deal to acquire stakes from 5 major Egyptian companies listed on the EGX.
EGX officials said that deals were implemented through large-scale deals on the shares of a number of Egyptian companies listed on the EGX, with a total value of $ 2 billion.
5 Egyptian companies acquired:
The companies whose shares were acquired through a large deal whose value exceeded EGP 28 billion included 5 of the largest Egyptian companies, namely:
Commercial International Bank Alexandria Container & Cargo Handling MOPCO Abu Qir Fertilizers Fawry