In SA’s dynamic and complex market, an international perspective is crucial for successfully closing merger and acquisition (M&A) deals.
Investec has strengthened its execution of cross-border M&A mandates by aligning operations across 10 international offices with a single goal: achieving better client outcomes.
Ruven Naidoo, Investec’s head of advisory in SA, notes that this collaboration provides a significant advantage for clients navigating M&A transactions.
Rising local M&A activity
Globally, M&A has remained resilient, continuing to increase despite fluid market conditions, with momentum led by the US and the technology sector.
In 2025, SA also experienced increased activity, but the local context was distinct, characterised by a low-growth environment and structural economic constraints that influenced corporate decision-making.
Against this backdrop, Naidoo says many local corporates are increasingly using M&A as a practical tool to turn defence into offence.
“M&A deals help drive growth, protect or improve margins, and diversify several risk factors, all in an environment where this may be challenging to achieve organically,” says Naidoo.
Translating cross-border interest into action
Despite domestic headwinds, Investec observed a notable increase in active cross-border activity, as foreign investors have reassessed South African opportunities with greater nuance.
“The increased willingness of foreign investors to prioritise opportunity and strategic importance over domestic risk has only been possible due to the demonstrable resilience of corporate SA in dealing with domestic issues.
“As a result, we are seeing more inbound M&A interest translate into action,” says Naidoo.
In this context, Luke Spells, Investec’s head of advisory in the UK, adds that cross-border transactions succeed when global ambition is matched with local execution excellence.
“Investec’s international M&A platform ensures that clients experience a single, coordinated advisory team, regardless of where capital originates or where opportunity lies,” he says.
M&A prerequisites: preparation, purpose, and people
While market conditions vary, Naidoo argues that the fundamentals of successful dealmaking remain consistent, particularly when deals become time-sensitive or complex.
“Intent and effort are not always enough. Purpose matters to align outcomes, and enhanced preparation is non-negotiable,” he says.
“Many deals veer off the desired path because execution readiness was incorrectly evaluated, and not enough preparatory work was done before getting into the throes of the M&A process.”
Alignment on deal rationale is also essential to withstand pressure points in a transaction process, asserts Naidoo.
“However, ultimately, the human element is decisive. Always pick people over process and nurture relationships. Dealmaking is not mechanical,” he advises.
‘One team’ outcomes across borders
Investec believes the value of its international presence is most evident in completed transactions delivered as a cross-border advisory service.
Select recent examples include advising on:
- The sale of SA-based Holdsport Group to UK-based Frasers Group
- The acquisition of minorities by India-based Natco Pharma Limited and delisting of Adcock Ingram
- The demerger of Valterra from Anglo American and listing on the London Stock Exchange
2026 M&A outlook
Investec expects SA M&A activity to remain resilient in the year ahead, with the market influenced by macroeconomic outcomes, growth forecasts, and the cost of capital.
“We anticipate continued defensive domestic dealmaking, while well-positioned corporates may also increasingly pursue outbound M&A as a response to domestic conditions,” Naidoo says.
In this context, Investec’s ability to offer international perspectives with local execution is a clear differentiator for clients trying to get complex inbound or outbound deals done.
This article was sponsored by Investec.
