Bulgaria
- Market size of USD 2.4bn and deal volume of 64 transactions.
- Total average deal size: USD 52.2m.
- Most active industries: financial services, media, manufacturing and services.
- British investors more than doubled investments in Bulgaria, focusing on services and financial services.
- Third largest privatisation in CEE is the acquisition of Varna Thermal Power Plant by Ceske Energeticke Zavody as (CEZ) for USD 260m.
Croatia
- Market size of USD 4.3bn and deal volume of 41 transactions.
- Total average deal size: USD 160.8m.
- Number one for M&A market growth – the value of deals rose from USD 1.2bn to USD 4.3bn.
- Financial services and media deals accounted for 24% and 10%, respectively, of Croatian M&A deal volume by number, outperforming the regional average of 16% and 5%.
- Two mega-deals occurred in 2006, HVB Splitska Banka was bought by France’s Societe Generale and Pliva was acquired by Barr Pharmaceuticals Inc of the US.
Czech Republic
- The M&A is robust by number of transactions in 2006, increasing by 11%.
- Deal volume of 269 transactions.
- Total average deal size: USD 91.8m.
- The Czech was the second largest outbound investor within CEE with 44 outward transactions of which 33 are completed in the region.
- The USD 1.5bn takeover of Radiokomunikace by a private equity consortium – comprising Lehman Brothers, Mid Europa Partners and Al/Bateen investment – was the largest telecoms transaction in CEE.
Hungary
- Along with Czech Republic and Poland, Hungary is an engine of the M&A market in CEE with a deal aggregate of USD 9.8bn.
- Market size of USD 9.8bn and deal volume of 168 transactions.
- Total average deal size: USD 89m.
- Transaction growth of 114% last year by value made Hungary the CEE country with the second-fastest expanding CEE M&A market.
- Deals in the energy & utilities sector increased from nine to 21 transactions, with five transactions completed by French investors.
- Average deal size in financial services, pharmaceuticals & chemicals and energy & utilities last year rose to USD 300m or higher.
Poland
- Market size of USD 10.9bn and deal volume of 398 transactions.
- Total average deal size: USD 33.3m.
- Robust M&A market growth with deal values and volume growing by 38% and 24% respectively.
- IT relevant transactions nearly doubled both in volume and value with the average deal size reaching USD 20m.
- 17 mega-deals in Poland with four USD 100m-plus deals each in the energy & utilities and retail & wholesale sectors.
Romania
- Market size of USD 5.2bn and deal volume of 136 transactions.
- Total average deal size: USD 44.2m.
- Most attractive industries: manufacturing, financial services, media and pharmaceuticals & chemicals.
- Average deal size in financial services reached USD 125m based on 76% disclosure rate in this segment, followed by pharmaceuticals & chemicals (USD 56.8m) and construction (USD 43.3m).
- UK investors doubled their commitments – from 7 to 15 transactions while their US counterparts maintained their presence with 11 closed deals in 2006 compared with ten deals in 2005.
- Mega-deals volume doubled from 6 in 2005 to 12 in 2006.
Russian Federation
- M&A market growth of 111% last year – up from USD 53bn to USD 111bn in 2006, representing nearly 70% of CEE’s M&A market.
- Deal volume shot up from 706 to 1,210 in 2006 of which 922 deals were completed by domestic companies. Deal volume growth of 71% ranks Russia second in this category.
- Russia saw 142 transactions valued at over USD 100m last year. The total average deal size was USD 181m.
- Hottest industries were manufacturing (including metals), financial services and energy & utilities.
- An increased presence from UK and US investors who closed 59 deals in 2006 compared with 42 in 2005.
- Russia closed 102 outward transactions in 2006, and the main targets of Russian investors were Ukraine (22), UK (8) and US (7).
- A total number of 158 privatisations averaged at USD 9.1m.
Serbia
- An M&A market size of USD 1.7bn and 55 completed deals produced and average deal size of USD 33.7m in 2006
- Serbia saw a high proportion of financial services deals, 16 out of total 55 transactions, with an average value of USD 50m.
- Main investors: Austria, Germany, Hungary and Slovenia.
- Retail & wholesale and food & beverages accounted for 25% of all transaction in 2006, both scored well above regional average of 6% and 10% respectively.
- A total number of 210 privatisations averaged at USD 13m.
Slovakia
- Runner-up based on growth of number of transactions in 2006 (103 publicly disclosed deals in 2006, compared to only 81 in 2005).
- Total average deal size: USD 40.4m.
- High concentration of bidders, Austria, Czech Republic and UK accounting for 63% of all inward deals.
- Domestic deals doubled from 18 to 36 transactions.
- Hottest industries: manufacturing, food & beverages and services.
Slovenia
- Market size of USD 664m and deal volume of 36 transactions.
- The total average deal size last year was USD 21.2m.
- Outward deals nearly doubled from eight to 14 last year, focusing mainly on Bosnia Herzegovina and Serbia.
- Hot-spots of Slovenian M&A activity were financial services, manufacturing, media and retail & wholesale. Average deal size of USD 15.5m in financial services sector and USD 71.3m in retail & wholesale.
Ukraine
- The M&A market increased in size from USD 2.3bn in 2005 to USD 3.4bn in 2006, with an average deal value of USD 45m.
- Deal volume rocketed from 85 in 2005 to 171 in 2006 – up 101%, making Ukraine the fastest growing M&A market in CEE.
- Main investors: Russia, Poland and UK.
- Hot industries: manufacturing, financial services and food & beverages.
- Average deal size of USD 114m in financial services, USD 14m in manufacturing, USD 11m in retail & wholesale.
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