Growth of The Ukrainian M&A Market

by Roman Cheplyk
Monday, December 13, 2021
2 MIN
Growth of The Ukrainian M&A Market

The Ukrainian M&A market in 2021 has grown one and a half times, even despite the reduction in the number of transactions. As expected, most purchases took place in the IT sector

According to the WSJ, the market for mergers and acquisitions in 2021 grew by 63% and amounted to $5.099 billion.

The first place in terms of volume – in the United States, they showed an increase of 90%. 

In the first place in terms of growth with a colossal + 344% Australasia, although the market itself is relatively small – $213.1 billion.

In Europe, with its second-largest volume – $1.116 billion - growth is small: 43% last year.

Slightly 21%, or up to $843.5 billion, grew in Asia.

Japan, with $84.6 billion, was the only one to show a 25% decline less than in 2020.

Globally, the post-epoch of Covid even contributed to the growth of the M&A market. As in 2019, the market remained at the level of one billion on a quarterly basis, then, after falling in the first two quarters of 2020, in the third, it jumped sharply, and now the average quarterly figure is one and a half billion. 

The bulk of transactions is concentrated in five global sectors: technology, healthcare, real estate, finance, and telecom. The Ukrainian mergers and acquisitions market in 2021 also showed a growth of 56% – from $945 million in 2020 to $1.15 billion. At the same time, despite a one-and-a-half-fold increase in volume, the number of transactions decreased by 22%. The average value of the deal is $27.6 million.

Among the trends, analysts note the gradual return of foreign strategic investors to the Ukrainian market; redistribution and consolidation of assets by local business groups in traditional sectors of the economy; gradual intensification in the segment of healthcare and retail.

Most transactions – ten for a total of $205.6 million – took place in the IT sector. Only one deal, but a major one took place in the mining and metallurgical sphere. Most deals of $438 million were made in the construction materials market, in particular in the cement business.

 

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