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M&A activity in emerging Europe drops 40 per cent in 2012

M&A activity in emerging Europe last year was hampered by the drawn-out debt crisis in the Eurozone, political turmoil in some states and tough austerity plans introduced by local governments, according to a report from CMS and Emerging Markets Information Service (EMIS) DealWatch.

According to Emerging Europe: M&A Report 2012, the number of M&A transactions in emerging European countries in 2012 neared 2,265, an almost 40 per cent decrease in year-on-year terms.

The total value of M&A deals went down as well amounting to EUR121bn, with fewer mega-ticket deals than in the year before. Rosneft’s acquisition of TNK-BP, Russia’s largest-ever takeover deal, accounted for more than a third of the overall value.
Manufacturing remains the most active sector and mining (including oil and gas) was the leading sector in terms of deal value, with over EUR58bn accounting for nearly half of the overall market.
Helen Rodwell, head of the CMS CEE corporate practice, says: “The outlook for CEE for 2013 continues to be dominated by the uncertain evolution of the debt crisis in Europe but a number of emerging Europe countries in certain sectors are expected to slowly pick up as we move into the New Year. Indeed, the CEE region remains attractive to investors.”
Boris Maleshkov, DealWatch editor-in-chief, says: “M&A activity throughout Central and Eastern Europe in 2013 will largely hinge on the availability of bank liquidity for deal financing, the implementation of austerity measures and the path of the Eurozone sovereign debt crisis.”

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