M&A Barometer 2011 - Central and South Eastern Europe

25 Ianuarie 2012

ERNST & YOUNG S.R.L.

 

Introduction

In our Mergers & Acquisitions (M&A) Barometer we analyze the prevailing trend in11 Central and South Eastern European (CSE) countries (Bulgaria, Croatia, CzechRepublic, Greece, Hungary, Poland, Romania, Serbia, 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 2011compared to 2010, while in 4 countries the M&A market had shown a decline. Totalvolume in CSE increased by 11%, moreover a 48% growth in estimated value in 2011 compared to 2010.

More specifi cally, we observed a majority of domestic transactions, 57% of all deals.Also noteworthy is the fact that transactions were dominated by strategic investorsand the most active target industry was Manufacturing while in terms of value thelargest transactions occurred in Telecom & Media, Chemicals and Banking & FinancialServices.

 

Number of M&A transactions in CSE

Turkey was the most active country in terms of deal volume in 2011 closing 272 transactions during the respective period. It was followed by Poland and Romania closing 254 and 120 deals respectively.

Total number of transactions increased inthe region from 1,002 deals in 2010 to 1,116 in 2011 representing a 11% growthyear on year.

 

Estimated transactions value of the market

Total 2011 estimated transaction value in CSE market was USD 49.5bn, up 48%from the previous year. Poland ranked fi rst with an estimated value of USD 21.2billion and followed by Turkey (USD 13.7bn)  and the Czech Republic (USD 4.2bn). The signifi cant growth in terms of deal value in Poland is mainly attributable to four deals with signifi cant values (over USD 1bn) executed in 2011.

Furthermore, the number of deals with a value over USD 100 million also increasedfrom 50 in 2010 to 62 in 2011.

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