M&A activity in Ukraine will increase in the second half of 2021

Friday, May 21, 2021
M&A activity in Ukraine will increase in the second half of 2021

Experts expect the recovery of the M&A market in Ukraine in the second half of the year

M&A activity in Ukraine will increase in the second half of 2021, according to a new report from Aequo and Mergermarket.
This is stated in a press release from the law firm Aequo.

The report “Catching the rebound: M&A in Ukraine” highlights the key M&A trends in Ukraine in the context of COVID-19, as well as the prospects for the development of the Ukrainian M&A market in 2021 and beyond.

It is noted that the total value of public M&A transactions in Ukraine fell to € 171 million in 2020, which is the lowest annual rate since 2015.

Meanwhile, in terms of the number of deals, the market showed greater resilience as investors continued to finance smaller deals. In 2020, 54 deals were concluded in Ukraine, which exceeded the annual figures recorded in the period from 2014 to 2017.

“M&A activity in Ukraine is in line with global trends and follows a pandemic curve, as in other countries. During the lockdown in early spring, we saw clients become extremely cautious. However, starting in June (2020 - ed.), activity began to recover " notes Anna Babich, partner and head of M&A practice at Aequo.

The largest Ukrainian deal in 2020, the cost of which was publicly announced, was the acquisition of the Dnipro Hotel by Smartland from the state for € 36 million.

"This sale indicated a significant trend that is now observed in Ukraine: the planned privatization of a large number of state assets," commented in Aequo.

Last year, there were only six transactions involving private equity funds, four less than in 2019. However, the total transaction value is € 13 million, which shows an annual growth of 22%.

As Ukrinform reported earlier, 80 transactions in the field of mergers and acquisitions € 1.19 billion worth were declared in Ukraine in 2019, which is the highest annual rate since 2013.

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