More Cross Border Deals For South Africa In 2012

05 Dec 2012

With top 10 African mergers and acquisition deals in SA so far this year, South Africa is turning out to be an investor’s delight. The country will see more investments in coming year.

Report by top research firms surveyed more than 100 mergers and acquisitions in Africa that included corporate executives, legal advisers, private equity investors and investment bankers.

More than R540bn is in liquid cash which investors are willing to invest in South Africa. Indian investors are the most active investors with more than $78bn in cash.

The mergermarket report has brought forth the fact that South Africa took the lion’s share. The country accounted for most of the top 10 mergers and acquisition deals.

"The UK and France are the two most active investors into Africa, and South Africa is the most common domestic investor — although it is worth noting that international businesses will often use South Africa as a vehicle to access other African markets," it said.

"Taking a more granular look, South Africa is responsible for a sizeable portion of African mergers and acquisitions, and was the target in half of the top 10 deals of 2012."

Report also told that two-thirds of respondents believed that South Africa would be the busiest country in coming year in terms of cross-border investments.

"One noteworthy trend has been the rise in recent years in the proportion of deals worth over $500m; in 2008, 13 deals in this category took place, representing 5% of total deal volume, but by 2011, there were 20 deals in the $500m+ category, accounting for 10% of total volume," the report said.

"Meanwhile, in terms of deal value, mergers and acquisition transactions worth over $500m accounted for 65% of the total values in 2011 compared with 49% in 2008."

South Africa Investment Visa allows foreigners to invest in the country.

Call 1800 103 1555 or mail to [email protected] for more details.