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Emerging Europe M&A Report 2018/19

07/02/2019

CMS is pleased to announce its Emerging Europe M&A Report 2018/19, published in cooperation with EMIS.

The report provides deal statistics from across 15 emerging markets in CEE/SEE, based on EMIS data from 2012-2018, and analysis of the latest regional trends and developments combined with commentary, insights and forecasts for 2019 prepared by CMS.

 Key conclusions 2018

  • Emerging Europe’s deal value sees a 12.5% increase year‑on‑year, hitting a total of EUR 80.5bn in 2018
  • Deal volume remained virtually flat with a 0.9% decrease from 2017
  • Telecoms & IT was the sector with the highest total deal value at EUR 18.18bn
  • Real Estate remains the most active sector with 432 deals, up 10.8% from 2017
  • Russia was the country with the highest number of deals (605) followed by Poland (323)
  • The highest growth in deal activity was witnessed in Albania – up 300% on deal volume –- followed by Serbia, which saw an increase of 40% in deal activity
  • The top foreign investor by volume was the USA (89 deals)
  • The UK is the top foreign investor value (EUR 9.77bn)

Vladimir Zenin, Head of M&A, CMS Russia, comments: “As the largest economy in the region, Russia enjoyed the top number of deals in 2018, but came 10% down year-on-year. Still, it also reflects a moderate growth estimated at 1.7% by the IMF, against 2012 when the report was first published. With almost half of the top 20 deals in 2018 Russia remains a solid M&A market notwithstanding the challenging environment complicated by sanctions.”

Outlook for 2019

One of the questions in 2019, given some of the uncertainty around global trade and growth, is whether current levels of activity can be sustained. The report found growth rates in many countries in CEE left Western Europe, USA and Japan lagging behind, and provided a backdrop that has given companies’ and investors’ confidence to look at opportunities in emerging Europe.

Perhaps the biggest threat to continued growth and the healthy M&A market in emerging Europe is what happens outside its borders. Provided the global economy remains on track, emerging Europe’s strong growth, expanding domestic markets and evolving legal and professional services ecosystems should provide investors with the confidence that they can do business in the region and maintain momentum in M&A activity.

About EMIS

EMIS provides time-sensitive, hard-to-get, relevant news, research and analytical data, peer comparisons and more for over 120 emerging markets. EMIS licenses content from the cream of the world’s macroeconomic experts, the most renowned industry research firms and the most authoritative news providers. This is combined with proprietary company and M&A research to offer a multi-faceted view of each emerging market. Formed over 20 years ago, EMIS employs nearly 300 people in 13 countries around the world, providing intelligence to nearly 2,000 clients. EMIS is part of the ISI Emerging Markets Group. For more information, please visit emis.com.

Publication
Emerging Europe M&A Report 2019
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Authors

Zenin Vladimir
Vladimir Zenin
Partner
Moscow