Mergers and acquisitions in Nigeria reached $2.6 billion in Q1 2024

The value of mergers and acquisitions (M&A) in Nigeria disclosed in the first quarter of 2024 was estimated at $2.6 billion.

This is according to the DealMakers Africa report for Q1 2024.

According to the report, Nigeria recorded the highest value of M&A deals in Africa this quarter, excluding South Africa.

About 20 M&A deals were completed in Nigeria this quarter.

Shell’s sale of its onshore assets in Nigeria for $2.4 billion was considered the largest M&A deal in Africa during the period, following 102 deals valued at $3.01 billion across the continent.

Report Details

West Africa had the highest M&A deal value, $2.623 billion with 34 deals. In this sub-region, Côte d’Ivoire had three deals worth $3.52 million, while Senegal had four deals worth $19 million.

South Africa (excluding South Africa) came second with 15 deals worth a total of $179.05 million, while Zambia recorded five deals worth a total of around $169 million.

Five transactions involved private equity investments, including the acquisition of a 34.64% stake in Copperbelt Energy Corporation for $145 million.

North Africa saw 23 M&A transactions with a total value of USD 165.4 million, with Egypt recording 16 transactions with a total value of USD 31.9 million and Morocco recording five transactions with a total value of USD 132.9 million.

In East Africa, 28 M&A deals were completed this quarter with a total value of approximately $44 million.

The report also included details of private equity deals that took place in Africa during the period. It noted that 62 private equity deals worth approximately $303.3 million took place in Africa during the quarter.

Nigeria had 10 private equity deals worth around $40.25 million. However, when it comes to private equity, Kenya led the African continent with 12 deals worth $44 million.

Details of major Nigerian transactions

The largest transaction in Nigeria was the sale of Shell assets for $2.4 billion to a consortium of five companies called Renaissance, announced on January 16.

The consortium is reportedly making an initial payment of $1.3 billion, followed by an additional cash payment of $1.1 billion related to pre-existing receivables and cash balances at the company. The majority of the amount is expected to be paid upon completion of the transaction.

• On February 12, Chapel Hill Denham announced a $7.4 million equity investment in its off-grid solar program through d.light.

• In January, Access Bank announced the acquisition of a 69.67% majority stake in Uganda’s Finance Trust Bank.

• In March, Access Bank Plc also announced the acquisition of KCB Group. The value of the transaction was not disclosed.

• Oak and Saffron has announced the acquisition of a 60% stake in Presco Plc, for an undisclosed value.

• In January, fintech platform Cleva received $1.5 million in pre-seed funding from a group of venture capitalists.

• Zanza Finance also received $2.3 million in funding from venture capitalists in January.

• Access Bank has received a $75 million loan from the Japan International Cooperation Agency (JICA) to finance climate change projects in Nigeria.

• In February, Sahel Capital provided a $1.5 million trade finance loan to agribusiness company Acier Nigeria Limited.

• Additionally, in February, All On invested $3 million from its bridge fund in Nigerian solar energy company Arnergy.

• In February, Carbon acquired Vella Finance, while Universal Music Group also acquired a majority stake in Mavins Global for an undisclosed amount.

• In March, a consortium of VC firms invested $100 million in Moove’s Series B funding round.

• In March, a group of investors including Société Générale, Bank Muscat and Intesa Sanpolo Bank Luxembourg SA provided a $1.16 billion syndicated loan to Africa Finance Corporation.