News

Last week’s ONS 2024 has kick started the energy sector’s autumn season and we are now only two months away from ADIPEC Exhibition and Conference 2024 in Abu Dhabi, now the world’s largest energy sector exhibition and conference. Back in its usual November slot after last year’s COP28 scheduling, it starts a week earlier than normal on 4-7 November to avoid a clash with COP29 Azerbaijan.

The annual ADIPEC event serves as a strategic reference point for many businesses Middle East regional expansion, whether that is implemented by organic growth, levering of third-party ventures or accelerated growth through acquisitions. HFI has over 20 years track record of planning and implementing clients’ acquisition mandates in the Middle East and we feel the time is right to capture that expertise and experience in a new Acquisitions, Divestments & Exits Guidebook which will be launched shortly in conjunction with ADIPEC 2024.

In our experience there are six key reasons why a business may decide to set its next phase of growth through the acquisition mechanism. One reason may be the key driver but often it is a combination:-

• accelerated in-country local presence and market entry or ramp-up;
• access to new customers, contracts and revenue streams;
• access to facilities, equipment, inventories and additional capacity;
• access to a ready-made specialist technical services and/or management team with leading know-how and expertise;
• access to advanced technology and intellectual property rights; and
• absorption of competition, subject to competition law compliance and clearances.

Acquisitions in the Middle East have their own processes, trends and nuances which need to be understood and  tackled: ultimate beneficial ownership verification, the absence of published audited accounts, the proliferation of the use of local partner ventures and the change of control impacts, customer vendor registration and approval impacts, the impact of local laws, the roll out of taxation throughout the region and the need for regulatory approval of most ownership changes being just some of the key watch points. The need for dual language documentation and legalized powers of attorney and corporate documentation can also add to timetable planning and preparations.

HFI has very much appreciated to act on various acquisitions, divestments and exits over the last 12 months and we are looking forwards to the new horizons that ADIPEC 2024 and its orbit will bring. Please contact Sally Reeves, HFI's Client Relations Manager, to arrange for a copy of the e-Guidebook or to arrange a call if we can be of support with any of your MENA LPV initiatives.