However, despite higher deal volume, the aggregate deal value fell by 30.9% to EUR25.72 billion. Values were impacted by the relative absence of “megadeals” valued at EUR1 billion or more. In 2024, there was a shift towards small and mid- market deals. Average deal value fell to EUR20.1 million in 2024 compared with EUR31.4 million in 2023.
“Despite some short-term challenges, dealmaking in the CEE region remains attractive for international investors, as shown by higher deal volumes in a range of countries and sectors last year. As optimism looks set to become the hallmark of 2025, buyers will continue to capitalize on the region’s diverse investment opportunities,” stated Horea Popescu, Partner at CMS Romania.
Cross border deals remained strong with activity increasing to 776 deals, 31 higher than the previous year. Standout performers for M&A included the United States, which retained its top position by deal count (102), and the UK, which ranked as the second most active foreign investor (68) despite deal volume decreasing. Aggregate deal value reduced from EUR35.5 billion to EUR23.3 billion, with Luxembourg ranking in first place by deal value (EUR2.01 billion).
Poland maintained its position as a major M&A market (269 deals at EUR5.77 billion) and Romania was the region’s second most active jurisdiction (187 deals), however, both saw overall reductions in deal volume compared with 2023. Countries where deal activity increased included Bulgaria (88 deals), Croatia (92 deals) and Hungary (63 deals), where volumes rose by 7.3%, 10.8% and 10.5% respectively. Several countries saw deal values fall compared with 2023, including Poland and Hungary, due to fewer megadeals. However, the Czech Republic and Slovakia present a more complex picture as deal volume fell by 7.2% (128 deals) and 14.6% (35 deals) respectively – but deal values jumped by 53.8% (EUR5.65 billion) and 25.5% (EUR4.19 billion).
The report shows that there were significant shifts in the sectors driving deal activity. By recorded deal value, the largest sectors were Energy & Utilities, Real Estate & Construction and Food & Beverage. Energy & Utilities saw deal value increase by 162% (rising from EUR3.72 billion to EUR9.75 billion). Real Estate and Construction saw an increase in both deal volume (194, up from 158) and value (EUR5.65 billion, up by 77.2% from EUR3.19 billion).
“The M&A sector in the CEE region is continuing an exciting period of transformation, driven by regulatory changes, new technologies, energy transition, and developing business strategies,” added Horea Popescu, Partner at CMS Romania.
“Companies in the manufacturing and industrial sectors, particularly in Romania, as well as in the region, are leveraging acquisitions to enter new geographic markets, diversify their product lines, and enhance their technological capabilities,” stated Rodica Manea, Partner at CMS Romania.
In 2024, Emerging Europe saw private equity deal volume increase by 12.6% to 278 deals. However, reflecting the wider trend seen across the region, private equity deal value fell by 11.4% to EUR13.88 billion. Notable deals included Blackstone’s acquisition of a portfolio of ten
logistics assets in the Czech Republic and Slovakia for EUR470 million and CVC Capital Partners’ acquisition of Partner in Pet Food (PPF) in Hungary for EUR2 billion, which was the largest transaction by value.