The value of mergers and acquisitions carried out by Gulf oil producers plunged by around 54.9 per cent in 2008 and most of the decline was in the fourth quarter, a Kuwait investment bank said yesterday.
The decline was a result of a severe liquidity shortage in the region's financial sector because of the global economic distress, the Kuwaiti-based Global Investment House (GIH) said in a study sent to Emirates Business.
But the report expected such activities to resurge in the short term as ailing companies will have to be either acquired or merged with strong entities, while rich firms will try to take advantage of low prices and make acquisitions. GIH said the six-nation Gulf Co-operation Council accounted for more than 58 per cent of the total value of the M&As concluded in the Middle East and North Africa region in 2008.
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