“Emerging Europe: M&A Report 2011”, indicates a 12% y/y rise in M&A activity in the region in 2011 – CMS and DealWatch
11.04.2012Company: CMS
April 11, 2012 – CMS and Emerging Markets Information Service (EMIS) DealWatch announce today the release of the “Emerging Europe: M&A Report 2011.” According to the publication, the number of M&A transactions registered in Emerging European countries in 2011 neared 3,800, an almost 12% growth in year-on-year terms. This tops the record-high of 2008, when 3,723 deals were reported. The total value of M&A deals remained flat in 2011, amounting to EUR 150 billion, with fewer mega-ticket deals than in the year before.
The most attractive industry for M&A investments in 2011 was manufacturing. There were 753 deals registered in the sector, which represents almost 20% of transactions. Finance and insurance with 409 deals, was closely followed by services and wholesale & retail trade (396 and 392 deals, respectively). In terms of the aggregate deal value, mining took first position with nearly a third of the total transaction value being registered in this industry. Finance and insurance followed with over 12%, while manufacturing was third with a little more than 11% share.
Helen Rodwell, Head of the CMS CEE Corporate Practice states: “2011 produced a steady deal flow across the region, however they continued to be protracted and the risk of deals not reaching signing or financial close remained high. The banks played an even greater role in the outcome of due diligence exercises and the structure of deals, as financing remained heavily constrained and bank lending practices were more cautious than ever. The ability of buyers to deal with a basket of currencies, and hedge against currency fluctuations, in cross-border deals has become a strategic advantage over the last 12 months.”
Boris Maleshkov, DealWatch Editor-In-Chief adds “Mergers and acquisitions activity in 2011 was on the rise, but company valuations lowered when compared to 2010 and many deals were stalled by anxiety over the Eurozone crisis. The gloom, however, seems to be lifting and we keep a positive outlook for M&A volume in 2012. Poland and Russia are likely to witness growth in deal activity this year due to stable macroeconomic environment, improving financing conditions and ambitious privatization programs.”
To acquire the full version of the “Emerging Europe: M&A Report 2011,” please contact Jakub Siekierzynski (jsiekierzynski@securities.com), or Melania Kozyra (melania.kozyra@cms-cmck.com).
