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M&A activities in CEE/SEE in 2010

M&A activities have been stagnating since 2007. However, as a new study by Roland Berger shows: in 2010 number and value of M&A transactions are increasing again. In this year global M&A value recovered slightly with overall growth of 2.5%. Within this period there was a clear shift toward emerging markets – while the M&A value decreased in Europe by 15% and in North America by 8%, it grew by 48% in the rest of the world.

CEE (incl. Russia and Turkey) accounts for about 10% of total European M&A value, which is the highest percentage ever.

Russia has been able to maintain its dominant position within CEE. Between 2000 and 2010, Russia accounted for 57% of total CEE deal value as a target destination and for 79% as an acquirer country. According to the Roland Berger study, most investments (43%) went to the energy and power sector but there was also considerable growth in the telecommunications sector.

In contrast to CEE, M&A activities in SEE are still highly volatile. In general, this region has weak acquisition power, reflected in a very low average deal value. Despite this, SEE saw larger acquisition deals in 2010 than CEE. Two of these were classified among the top 15 SEE deals of the last decade: Atlantic Grupa's takeover of Droga Kolinska and Alfa Finance Holding's acquisition of Alfa Telecom Turkey. Slovenia was the most active SEE acquirer between 2000 and 2010, followed closely by Serbia. Bulgaria was by far the most favored target country.

Study author Vladmir Preveden also commented on the major differences among sectors in SEE: "The most attractive target sectors in SEE in 2010 were media and entertainment as well as consumer staples, such as agriculture, food & beverages, prescription drugs, household products and textiles." In contrast, the telecommunications and financial sectors lost the dominant position they held in 2000.
Sep 20, 2011
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