Morocco’s Mergers and Acquisitions (M&A) activity reached unprecedented heights in 2023, with total transaction values skyrocketing to nearly MAD 1.96 trillion (USD 200 billion), according to the latest report from the Competition Council.
The total value represents a nearly 2.5-fold increase over the MAD 787.9 billion (USD 80.6 billion) recorded in 2022.
In 2023, the council reported receiving 204 requests for M&A, marking a 40% increase compared to the previous year’s total of 142 decisions in 2022.
The surge in M&A deals, totaling 191 transactions, reflects a robust increase in both volume and financial commitment compared to the previous year.
Leading sectors such as services and manufacturing drove the growth, accounting for over 43% of the total M&A volume. In addition, substantial activity in the retail, automotive, and healthcare sectors contributed to the record-breaking figures.
The spike in M&A costs comes at a time when Morocco introduced several legal reforms to streamline the regulatory environment, following the recent overhaul of the competition law.
The Competition Council’s expedited review process, which cut the average approval time to just over a month and a half, has facilitated this surge in deal-making.
While the overall value of M&A reached record-high levels, the share of M&A involving Moroccan capital decreased sharply. Investments involving Moroccan capital totaled MAD 164.8 billion (USD 16.8 billion) in 2023, down 11% compared to 2022.
Likewise, the share of overall M&A involving Moroccan capital plummeted from 24% to just over 8%, the report explains.
M&As occur when two companies merge to become one entity; the process is regulated in Morocco through the Competition Council to prevent market monopoly.