It goes without saying that elections matter when investors are looking at the attractiveness of M&A opportunities. Pending elections can freeze a market like no other political event. Conversely, elections can trigger speculative investment, driving investors with a low aversion to risk to get first-mover advantage under a new government. Here, we look at the potential impact of elections in countries that have been investment favourites in recent years.
In Malaysia and Nigeria electoral politics will continue to impose significant change on the course of public policy, stakeholder shake-ups and the flow of foreign investment. In the case of Malaysia we are now surveying the fallout from arguably the most pivotal election in the country’s history. For Nigeria, potential drama awaits. For both, it is a time of difficult decisions for foreign investors.