The value of mergers and acquisitions (M&A) in the Middle East fell to a 12-month low of $270m in July.  

On a month-on-month basis the value of activity fell 88 per cent from $2.2bn in June and total volumes declined to 59 deals from 73 transactions in June.

Year-on-year volumes were triple the 17 deals recorded in July 2009, showing that in some respects growth is making a return to the region, according to a report published by Zephyr, the M&A database published by Belgium’s Bureau van Dijk (BvD).

The largest deal by value was Kuwait’s Kipco Asset Management’s (Kamco), a subsidiary of Bahrain’s United Gulf Bank, sale of its entire 23.63 per cent stake in Kuwaiti United Healthcare for $73.32m. Only six transactions were priced higher than $10m.

Kuwait led the way in terms of the total value of deals recorded at $121m, followed by Oman with $75m, Saudi Arabia with $36m and Jordan with $31m.

Jordan recorded the highest volume of deals with 44, followed by Oman with five and Kuwait and the UAE who both closed three deals.  

The region completed $8.6bn worth of M&A in the first quarter of 2010, more than double the $3.6bn recorded in the last quarter of 2009.