Transaction trends: CEE dealmaking
CEE total deals 2025
Amid global trade tensions, the CEE region provided a more benign economic environment for dealmaking by strategic and financial investors last year: stronger growth was driven by domestic demand, reduced inflation, a stable monetary policy, improved consumer sentiment, and investment in the green transition.
Transaction volumes in emerging Europe showed more activity: 1568 deals were announced in 2025 compared to 1,281 deals in 2024 – a strong year-on-year increase of 22.4%. Cross-border M&A activity in the region was primarily driven by strong transaction flows from prominent investors in the US, UK, and Germany.
Total deal values also showed a strong uptick, increasing by 42.5% from EUR 25.7bn in 2024 to EUR 36.64bn in 2025. To a large degree, this was driven by a resurgence in the number of megadeals valued at EUR 1bn or more, compared with 2024. Notably, these mega deals were spread across diverse sectors, including banking, retail, and mining, which were all subject to high-value strategic consolidation.
Although the impact of US tariffs led to uncertainty that temporarily affected dealmaking activity across Europe, investor sentiment in CEE remained strong. This led to a rebound in the second half of 2025 as M&A players swiftly adapted to changing circumstances. Inevitably, some countries in the region outshone others, as is evident from the data below.
Standout sectors included Healthcare and Pharmaceuticals, underpinned by sustained demand and investor appetite, and Financial Services, where deals were driven by consolidation and digital transformation. Conversely, following several years of strong growth, there was lower activity in the Energy sector. Alongside AI’s impact on multiple sectors, consolidation, digitalisation and renewable energy stand out as long-term drivers of future growth in M&A activity across emerging Europe.
CEE dealmaking didn’t just hold up, it accelerated at pace. Megadeals across multiple sectors show investors are putting serious capital to work in the region. We’re seeing depth as well as breadth: cross border buyers are active, private equity remains highly engaged and strategic acquirers are leaning into core growth. The pipeline reflects consistent appetite for resilient assets and platforms with scale potential.
Horea Popescu
Managing Partner
Countries
In its latest Regional Economic Outlook, published in October 2025, the International Monetary Fund (IMF) forecasts that Central, Eastern, and South Eastern European (CESEE) countries grew their combined GDP by between 2.3% and 2.6% last year.
This compares very favourably with figures for GDP growth in 2025 across the EU’s three largest economies where, according to the IMF, growth momentum is “fading towards a mediocre medium-term outlook”: Germany (0.3%), France (0.7%) and Italy (0.5%). However, according to the IMF, the CESEE region is anticipated to grow by 2.5% in 2026 and 2.7% in 2027.
Of course, there is regional variation between countries in the IMF figures. From its latest report, growth is most apparent in the region’s two largest economies. Driven by strong investment and consumption, Poland’s GDP is projected to grow by 3.4% in 2026, up from 3.2% in 2025, while Turkey’s GDP is expected to rise by 3.7% in 2026, up from 3.5% last year.
But there is also concern about inflation persistence – notably in Croatia, Hungary, and Romania – which could entrench high unit‑labour cost growth and weigh on competitiveness. More broadly, the report identifies challenges facing every European country; in particular, headwinds from public spending, slower global growth, and the impact of an ageing population throughout continental Europe.
Poland remains the dominant M&A player in the region with 331 deals last year, compared with 269 deals recorded in 2024. But the real story was in total deal value, which soared by 138.3% to EUR 13.76bn. This was largely because of one megadeal, the region’s biggest deal overall last year: Austria’s Erste Bank acquisition of a 49% stake in Santander Banka Polska for EUR 7bn.
Last year’s deal volume in Hungary was also up: 74 deals compared with 63 deals in 2024. Having more than halved in 2024, deal values were again down by another 52.4% over the same period. Since the EUR 4.3bn acquisition of Budapest Airport, which boosted the 2023 figure, no deal of that magnitude has occurred. The two largest transactions last year were LG Chem’s acquisition of remaining 50% stake in LG Toray Hungary Battery Separator for estimated EUR 278.6m and iG TECH Capital’s acquisition of a 49% stake in 4iG Space and Defence Technologies for EUR 241.3m.
The Czech Republic was distinctly more robust with both deal volume and values making strong gains. Deal volume increased substantially last year, by 52.3% from 128 in 2024 to 195 deals, while total deal values also continued a three-year upward trajectory, rising by 51.9% from EUR 5.65bn to EUR 8.58bn – more than treble the 2022 figure. The standout deal was domestic: GTCR’s acquisition of Zentiva for EUR 4.1bn.
Slovakia was less buoyant last year. Although deal volumes rose to 41 deals compared to 35 deals in 2024, deal values fell by 63.2% from EUR 4.19bn to EUR 1.54bn, primarily because of the absence of any EUR1bn+ deals, which had characterised the market in the previous two years. In the country’s biggest deal last year, Belgium’s KBC Group bought 365.bank for EUR 761m.
Deal volume in Bulgaria was slightly down: 82 deals in 2025 compared with a record 88 deals in the previous year. Meanwhile, deal values rose, albeit from a low level of EUR 573m in 2024, to EUR 839m last year. The largest deal saw Advent International buy TBI bank for EUR 300m.
Romanian deal volume was also strong, rebounding from 187 deals in 2024 to 272 deals last year – the highest level ever recorded. However, deal values had a more moderate increase of 4.3% from EUR 2.59bn to EUR 2.7bn. The largest deal was CVC Capital Partners-backed Mehilainen buying Regina Maria for EUR 1.15bn.
Croatian deal volume had another solid year, rising from 92 to 104 deals in 2025; again, the highest level ever recorded. But deal value fell by more than half from EUR 767m to EUR 362m. The standout deal was in the domestic food and beverage sector, where Croatian-based Zito bought 100% of Zvijezda Plus for EUR 100m.
Ukraine’s deal activity remained broadly stable year‑on‑year, reaching 132 deals with an aggregate value of EUR 739m.
Serbia had a better year. Deal volume rose from 62 in 2024 to 71, while deal values also rebounded significantly, rising 279.4 % from EUR 456m to EUR 1.73bn. Notably, two deals passed the EUR 500m mark: Dutch-based e& PPF Telecom Group bought Serbia Broadband SBB for EUR 825m and Telekom Srbija bought NetTV Plus, DTH business of SBB for EUR 652m.
Bosnia and Herzegovina experienced a notable increase in deals. Volume rose from 29 to 45 deals, while values increased dramatically from EUR 42m to EUR 1.41bn. Two deals stood out: Canada’s Dundee Precious Metals Inc bought Adriatic Metals for EUR 1.09bn, while BH Telecom Sarajevo bought Telemach BH for EUR 229.4m.
Data for Slovenian deals shows different trends in play: volume more than doubled last year from 34 to 71 deals, while value rose by a more modest 26% from EUR 425m to EUR 534 m. Although deal numbers for Montenegro also rose, from 4 to 16 last year, total value fell from EUR 75m to EUR 38.1m. Meanwhile, Albania saw growth in both volume and value: deal numbers increased from 6 to 11 while aggregate value rebounded from EUR 1.3m to EUR 81m. North Macedonia also recorded an increase, with deal numbers rising from 14 to 22 and total value moving from EUR 66m to EUR 71m.
In pharma and healthcare, there was a robust increase in the size and volume of transactions. In both sectors, demand remains strong and we expect activity will stay elevated, supported by a growing need for private healthcare. With clearer regulatory pathways and improving financing conditions, sellers are re-entering the market and buyers are acting with greater confidence.
Helen Rodwell
Partner
Sectors
As the overall volume and value of deals rose last year, there was a further realignment of investor interest between sectors. Several sectors saw a significant recovery in deal value, primarily as a result of several large deals over EUR 1bn.
Leading the way, the finance & insurance sector saw deal volume remaining solid at 89 deals, the same number as 2024, while aggregate deal values leapt from EUR 1.9bn to EUR 8.76bn an increase of 362%. In pharma & healthcare, deal volume rose from 85 to 124 as deal value soared by 679% from EUR 777m to EUR 6.05bn. Likewise, manufacturing deals were up from 180 in 2024 to 240 last year as total deal value increased from EUR 1.12bn to EUR 7.06bn.
Although the volume of Telecoms & IT deals rose less significantly last year – from 260 to 285 – deal values were sharply up from EUR 1.93bn to EUR 5.24bn. Retail also followed an upward trajectory: the number of deals jumped from 66 to 97 while deal values more than doubled from EUR 937m to EUR 2.3bn.
Despite a robust increase in Real Estate and Construction, with deal volume rising from 194 to 249, deal value remained unchanged at EUR 5.65bn. Notably, the biggest decline was in Energy & Utilities: although volume rose from 95 to 107 deals, deal values fell by 76.1% from EUR 9.74bn to EUR 2.33bn. Similarly, deal volume in Food & Beverage rose from 64 to 84 as deal value declined from EUR 2.46bn to EUR 797m.
There is increased interest and a greater desire for M&A transactions in the CEE region. Some companies have recognised that there is an opportunity. Previously, sellers had unrealistic expectations; now they want to try and sell their business at a realistic price. At the same time, investors are looking for opportunities.
Radivoje Petrikić
Partner
Private equity
Notwithstanding a more selective investment environment, private equity continues to be a prominent feature of emerging Europe deals. In search of good value, PE firms look for opportunities in many sectors; in particular, driving consolidation in healthcare and banking, and supporting overall deal volumes across the region. There is further room for growth, especially in greater consolidation between fragmented operations across different markets.
In both deal volume and value, PE involvement remained consistent last year: PE deal volume rose by 18.7% to an all-time high of 330 deals compared to 278 deals in 2024, while deal value increased by 24.2% to EUR 17.24bn. Among the largest PE deals, GTCR acquired Zentiva in the Czech Republic for EUR 4.1bn, CVC Capital Partners acquired Regina Maria/MediGroup in Romania and Serbia for EUR 1.3bn, and Colt CZ Group acquired Synthesia Nitrocellulose from Kaprain Group in the Czech Republic for EUR 897m.
Private equity players still have sizeable funds to deploy and are looking to capture value in various sectors. We expect a slight increase in PE exits and ongoing activity with respect to add-on transactions. Cash-rich corporate acquirers will also continue to be active, seeking to expand their core business.
Alexander Rakosi
Partner
Foreign vs regional
In terms of deal volume among foreign investors, US investors remain in pole position: the number of US-originated deals again rose from 102 last year to 126 in 2025, while deal value rebounded strongly from EUR 1.26bn in 2024 to EUR 6.19bn last year. Taking the top position by value, Austria rose from EUR 174m in 2024 to EUR 7.09bn last year as the number of Austrian deals increased from 34 to 46. In third place by overall value, the Netherlands increased from EUR 790m in 2024 to EUR 1.37bn last year, just ahead of Denmark which took fourth place with EUR 1.3bn.
The UK remains the second most active foreign investor and the largest European investor in CEE, with
87 deals, up from 68 in 2024. By value, the UK slipped to ninth place, down from EUR 548m to EUR 498.8m. Once again, the third largest by transaction volume, with 71 deals up from 55, Germany was ranked seventh by value. The fifth largest investor by value at EUR 1.13bn, Canada was thirteenth largest overall by volume at 16 deals, up from 14 in the previous year. By value, the other top ten investor countries were Belgium, Japan, and UAE, and.
Total cross-border deal activity rose from 776 deals to 953 deals, while aggregate value recovered from EUR 23.3bn to EUR 32.2bn. Domestic deal volumes also grew from 505 to 616 as values grew strongly from EUR 2.4bn to EUR 4.5bn. In emerging Europe, the largest investor country was Poland at EUR 2.49bn, followed by the Czech Republic at EUR 2.29bn, Hungary (up from EUR 569m to EUR 1.01 bn) and Serbia, up from EUR 106m to EUR 752m.
It's a good sign that deal volume is consistent: despite various tensions, activity is still robust and we had more high value deals last year. In terms of sectors, there were large transactions in healthcare and pharmaceutical manufacturing, as well as banking, retail, and mining. Consolidation and strategic investment proved to be critical factors for investors.
Velizar Velikov, Head of EMIS M&A Database
Deal drivers
Deal activity in emerging Europe was reinvigorated last year with cross-border M&A continuing to play a critical role in the region. Robust deal activity coincided with swelling values: there were high-value transactions in banking, healthcare, and retail, which underscored the appeal of CEE markets to international investors. Although overall deal volume was similar to 2024, total deal values surged, led by a handful of big-ticket transactions. Five deals over EUR 1bn were recorded in 2025, compared to just two in 2024.
Investors in emerging Europe are driven by several factors. They look set to benefit from high levels of sustained growth, stable economic management, and an increasingly digitalised economy. The need for strategic consolidation is also key, particularly among the region’s SMEs and large family businesses. This makes CEE attractive for future M&A activity as cross-border deals consistently outnumber domestic deals.
In terms of macro trends, M&A deals in the region are also driven by continued technological transformation, the twin drivers of sustainability and renewable energy, as well as nearshoring and increased defence spending.
Inevitably, the increased proliferation of AI will continue to drive the volume and value of deals across multiple sectors and between jurisdictions. Ultimately, the impetus for future deals will be led by the CEE economies themselves as they continue to grow at a robust level, creating new opportunities for international investors.
Outlook
Emerging Europe is both remarkably resilient and economically successful. It therefore remains an attractive destination for international investors and dealmakers alike, as evidenced by last year’s deal volumes and values across different sectors in a wide range of countries in the region.
Underpinned by megadeals in 2025 and a healthy pipeline of mid-sized transactions, the future of cross-border M&A transactions looks set to be equally robust in the next 12 months with buyers from multiple countries remaining active investors across different sectors. Confident in the region’s resilience, buyers will continue to capitalise on emerging Europe’s diverse investment opportunities.
