Recent analysis by the special investigation unit at Al-Eqtisadiah newspaper reported a significant upswing in corporate mergers and acquisitions across Saudi Arabia in the first half of 2013.
The report cited the signing of 22 deals worth SR15.59 billion ($4.16 billion).
The increase recorded in mergers and acquisitions was up by 21 percent in the first half of this year against its 2012 levels, SR12.4 billion ($3.3 billion).
Leading this increase was agriculture and food industry sectors in terms of the number of deals — six deals in total worth SR1.7 billion ($452 million). Cement sector followed with three deals, but the value was not disclosed.
In terms of value, industries and petrochemicals sector ranked top by only one deal concluded with an initial agreement between Sahara Petrochemical and Saudi International Petrochemical Co. (Sipchem).
The largest acquisition in 2012 was the deal of Coca Cola. It acquired a 50 percent stake in Aujan Industries, worth SR3.7 billion ($980 million).
Second came the deal by Zain Kuwait group where it increased its stake in Zain KSA from 25 percent to 37 percent, worth SR2.8 billion ($474 million). The group earlier raised its capital from SR6 billion ($1.6 billion) to SR10.8 billion ($2.88 billion). The deal was divided into the capitalization of a loan worth $400 million, and raise share capital through shareholders by subscribing to new shares worth $347 million.
Savola came third in last year's deals in terms of value whereby it increased its stake in Almarai by 6.6 percent, from 29.95 percent to 36.52 percent, worth SR2 billion ($533 million).
Corporate mergers, acquisitions up 21%
