Nigerian mergers and acquisitions reach $2.6 billion in the first quarter of 2024

The value of Nigerian mergers and acquisitions (M&A) that were disclosed in the first quarter of 2024 was estimated to be $2.6 billion.  

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

According to the report, Nigeria had the highest value of mergers and acquisitions in Africa, excluding South Africa during the quarter.

There were about 20 M&A deals in Nigeria during the quarter. 

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

Details of the report  

West Africa had the highest value of M&A deals with $2.623 billion and 34 deals. In the sub-region, Cote D’Ivoire had three deals worth $3.52 million, while Senegal had four deals valued at $19 million.  

Southern Africa, excluding South Africa followed with 15 deals valued at $179.05 million, as Zambia recorded five deals valued at about $169 million.  

The five deals were private equity deals, including the $145 million acquisition of a 34.64% stake in Copperbelt Energy Corporation.    

In North Africa, there were 23 M&A deals valued at $165.4 million, with Egypt’s 16 deals valued at $31.9 million and Morocco’s five deals valued at $132.9 million.  

In East Africa, there were 28 M&A deals valued at about $44 million during the quarter.  

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

In Nigeria, there were 10 private equity deals valued at about $40.25 million. However, in terms of private equity, Kenya led the African continent with 12 deals valued at $44 million.  

Details about major Nigerian deals  

The major deal that took place in Nigeria was the $2.4 billion disposal of Shell’s onshore assets to a consortium of five companies, named Renaissance, which was announced on January 16.  

According to reports, the consortium will make an initial deposit of $1.3 billion, followed by an additional cash payment of $1.1 billion related to prior receivables and cash balances in the business, with the majority expected to be paid upon completion of the transaction. 

• On February 12, Chapel Hill Denham announced a $7.4 million securitized funding for an off-grid solar program by d.light. 

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

• In March, the acquisition of KCB Group by Access Bank Plc was also announced, with the value of the deal being undisclosed.  

• There was an announcement of a 60% stake in Presco Plc by Oak and Saffron, with the value of the deal being undisclosed.  

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

• Zanza finance also received a $2.3 million funding from VCs in January.  

• Access Bank received a $75 million loan from Japan International Cooperation Agency (JICA), for financing climate change projects in Nigeria.  

• Sahel Capital awarded a $1.5 million trade finance loan to an agro-allied company, Acier Nigeria Limited in February.  

• Also, in February, All On, invested a $3 million bridge fund in Nigerian solar company, Arnergy.  

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

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

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