A survey has found that black economic empowerment deals rose by 29 percent in 2004, while merger and acquisition activity in South Africa rose by 18 percent to R177-billion.

The Ernst and Young review of mergers and acquisitions (M&A) found that empowerment had become a key driver in M&A growth, with 244 empowerment deals concluded last year, worth R52.9-billion, according to Business Report.

The top empowerment transactions last year included the R7.8-billion FirstRand BEE deal; the R6.6-billion sale of a 15.1 percent stake in Telkom, and the R4.1-billion acquisition of a 7.6 percent stake in Standard Bank.

Business Day reports that Ernst & Young warned the upward trend in empowerment deals could end if the government did not clarify its empowerment rules, due to uncertainty and confusion.

Globally, M&A activity prose by almost 50 percent, the survey found.

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