M&A Barometer CSE H1 2011

25 August 2011

ERNST & YOUNG S.R.L.

In our Mergers & Acquisitions (M&A) Barometer we analyze the prevailing trend in 10 Central and South-Eastern  European countries (Bulgaria, Croatia, Czech Republic, Greece, Hungary, Poland, Romania, Slovakia, Slovenia and Turkey). Although the countries under review vary in size, background and economic growth, most of them have experienced an increased M&A activity in terms of volume in H1 2011 compared to H1 2010, while in 4 countries the M&A market had shown a decline. Total volume in CSE increased by 5%, moreover a 117% growth in estimated value in H1 2011 compared to H1 2010.

More specifically, we observed a majority of domestic transactions, 58% of all deals. Also noteworthy is the fact that transactions were dominated by strategic investors and the most active target industry was Manufacturing while in terms of value the largest transactions occurred in Telecom & Media, Chemicals and Banking & Financial Services.

 

Highlights – H1 2011

• Top 3 countries by number of transactions: Poland, Turkey, Hungary

• Number of closed transactions: 597

• Estimated market size: USD 28.6bn

• Top three most active industries in CSE (by volume):

• Manufacturing (86 deals)
• Services (64 deals)
• Energy & Mining (60 deals)

• Top three most active industries in CSE (by value):

• Telecom & Media
• Chemicals
• Banking & Financial Services

• Average deal size of deals over USD 100m: USD 450m

• Average deal size of deals below USD 100m: USD 14m

• Number of deals over USD 100m, as % of total deal volume: 5.5%

• Disclosure rate of transaction value or deal size: 44.2%

 

Number of M&A transactions in CSE

Poland was the most active country in terms of deal volume in H1 2011 closing 163 transactions during the respective period. It was followed by Turkey and Hungary closing 130 and 69 deals respectively.

Total number of transactions increased in the region from 571 deals in H1 2010 to 597 in H1 2011 representing a 5% growth year on year.

 

Estimated transactions value of the market

Total H1 2011 estimated transaction value in CSE market was USD 28.9bn, up 117% from the previous year. Poland ranked first with an estimated value of USD 16.9 billion and followed by Turkey (USD 6.5bn) and Hungary (USD 1.4bn). The outstanding growth in terms of deal value in Poland is mainly attributable to two deals with significant values executed in H1 2011.

Furthermore, the number of deals with a value over USD 100 million also increased from 31 in H1 2010 to 33 in H1 2011.

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