Mergers and acquisitions in Central and
The number of deal rose by 5.6% to 1,229 but the number of “megadeals” valued at €1bn or more was down from 10 in 2021 to only three, demonstrating the increased caution of investors in a year of financial volatility marked by soaring energy prices and inflation, rising interest rates, falling growth and Russia’s invasion of
“In spite of extraordinarily difficult circumstances, M&A activity in emerging
According to the report, the weak macroeconomic backdrop and the spectre of possible recession are likely to stifle M&A in the coming months, but the region’s strong fundamentals will continue to underpin activity in the medium term.
One hopeful sign is that private equity and venture capital firms are said to be sitting on €1.23trn and €547bn of dry powder, respectively, which is yet to be put to work. PE executives believe a downturn will ultimately spur M&A, according to a survey of more than 200 dealmakers EMIS carried out last autumn.
In 2022 telecoms and IT was once again the number one sector for M&A activity in terms of numbers, with 336 deals (compared to 278 in 2021) but there was a 77% plunge to €3.78bn in value (€16.4bn). Real estate was the second busiest, with 205 deals (215) but with a 34% rise in volume to €7.82bn (€5.8bn).
Ranked by deal values, mining, including oil and gas, ranked above real estate at €7.98bn because of the €7.9bn acquisition of Polish state-owned oil and gas company PGNiG by state-owned energy group
Despite turmoil on the energy markets, the energy and utilities sector still saw 69 transactions, including notable activity in renewables, with a total value of €4.03bn.
The biggest deals after the
The number of listings plunged from 60 to just 13, with IPO values falling from €8.6bn to just €40m, with the largest listing – Telematic Interactive Bulgaria on the
The report estimates that there are now an estimated 34 unicorns in the region, up from just six in 2015.
Private equity deal volumes edged up 32 to a new five-year high of 289. In contrast, deal values were at the lowest level in five years, at €9.99bn, down from €13bn in 2021. Private equity investors were involved in half the top 10 deals.
US investors were once again the most active foreign investor from outside the region, as the number of US deals rose from 103 in 2021 to 126. The US was also the leading source of foreign investment, with €3.49bn of deals, though that was down from the previous year’s high of €8.67bn.
This year the CMS annual M&A report did not include
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