The first of a kind M&A report by Aequo and Mergermarket, an independent Mergers and Acquisitions intelligence service (London, UK).
Aequo is pleased to present the first edition of Open for Business: M&A in Ukraine, prepared in cooperation with Mergermarket, an independent Mergers and Acquisitions intelligence service (London, UK). This report provides invaluable insight into key trends in Ukraine’s M&A landscape, an outlook for 2016 and beyond.
Although deal volume slowed by 24% in 2015 to 26 deals, the expectation is that 2016 will show a marked improvement in line with legal and tax reforms, ongoing privatizations, and consolidation in distressed markets.
Key findings from the report include:
Financial services is the strongest sector for deals. In 2014-15, it contributed 43% of total M&A value, up from 7% in 2013-14. More financial services deals are expected in 2016 as the banking sector continues to consolidate.
Energy, mining and utilities is the second largest sector by deal value. It made up 29% of all M&A in 2014-15 by value and 13% by volume. The main drivers are privatisation, distressed deals and efforts to replace Russian gas supply.
TMT deals also featured prominently, with notable Ukrainian IT start-ups supporting the sector, making it attractive to both private equity and strategic investors.
E-commerce recorded growth rates of more than 30% in the last five years, in US dollars, and still retains significant upside potential as both internet penetration and online shopping’s share of total retails remain substantially lower than regional peer levels.