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Egypt bourse to see more M&As in 2015

Egypt bourse to see more M&As in 2015
EGP-Finance Association said that mergers and acquisitions (M&As) activities remarkably increased in the Egyptian Exchange (EGX) this year and will likely continue its strong momentum next year, especially in foodstuff, pharmaceuticals and petrochemicals sectors.
The bearish performance of the local bourse in the last years drove equity prices to low levels and thus created takeover opportunities in key and strategic companies, it added.
Mohsen Adel, Deputy Chairman, EGP-Finance said the last period saw investors’ tendency to seize cheap deals. He added that sectors like foodstuff, pharmaceuticals, petrochemicals and basic resources would be targets for potential acquisitions, which calls for the necessary to monitor trading in such sectors closely.
Adel also indicated that the restored confidence in Egypt’s private equity sector, in light of the global economic crisis, triggers optimism as regards investments in sectors with more growth potential like healthcare, education, consumer commodities, oil and gas.
These sectors are expected to benefit from the public spending plans and legislative changes.