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11-06-10

Study: MENA property industry ready for growing M&A activity

(MENAFN) A report issued by strategic management firm AT Kearney said that the time is ripe for mergers and acquisitions (M&A) in the real estate industry in the Middle East region, Trade Arabia reported. According to the report, real estate developers that seek to benefit from the current situation by adopting ï¿½game changingï¿½ initiatives such as mergers and acquisitions, are best positioned to emerge as winners when the upswing arrives. The report pointed out that several real estate firms are favorably positioned to use acquisitions as a lever for future growth and competitiveness, with statistics showing how the crisis has resulted in careful expansion plans globally as M&A deals have declined dramatically. The value of deals globally declined from $3.7 trillion in 2007 to $2.3 trillion in 2008, a staggering 38 percent slump, data showed. For the first half of 2009, statistics showed a 35 percent plunge to $1.14 trillion. Meanwhile, the global value of publicly listed companies has in general been slashed; leaving ample opportunities for forward looking companies with solid balance sheets to consider acquiring under-valued assets or corporations, the report said. M&A activity has already showed signs of recovery across sectors in the first quarter this year, it added.

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