Shell's $2.4bn Nigerian Asset Sale Dominates Africa's M&A Scene

Shell's sale of its Nigerian oil and gas assets for $2.4 billion represents the largest M&A transaction in Africa for 2024, as per DealMakers AFRICA. This divestiture, targeting a mix of local and international investors, emphasizes Nigeria’s pivotal role in driving M&A activity across the continent. Shell's strategy aligns with its broader focus on cleaner energy sources and addresses operational challenges in onshore oil fields. Nigeria has emerged as a prime destination for M&A activity in Africa, only second to Egypt, with 48 M&A deals recorded. While oil and gas still dominate, renewable energy investments are incrementally gaining traction. Rising interest rates and global economic factors pose challenges for debt financing, potentially affecting deal momentum. Experts suggest that more asset sales and industry consolidation could occur as companies adapt to shifting market conditions.