Rising to the challenge: M&A in Ukraine
Ukraine dealmaking saw an uptick in 2016, with deal volume rising by 35% year on year
Aequo is pleased to present the second edition of M&A in Ukraine, published in association with Mergermarket. This report provides invaluable insight into key trends in Ukraine’s M&A landscape and outlook for 2017 and beyond.
After two exceptionally difficult years, the Ukrainian economy showed signs of recovery in 2016 – GDP grew by 1% in 2016, following a 9.9% contraction in 2015, and growth is expected to pick up to 2% in 2017, according to World Bank data.
Key findings include:
Helped by the improving macroeconomic environment (Ukraine’s GDP grew by 1% in 2016, following a 9.9% contraction in 2015), the M&A market saw an uptick, with deal volume rising from 26 to 35. Disclosed value doubled to €310m, although this figure was boosted by UniCredit’s sale of Ukrsotsbank to ABH Holdings for €281m.
Ongoing consolidation in the financial services sector accounted for 43% of deal volume over the past two years. Outside financial services, lively sectors included energy, agriculture, where domestic players are looking to increase their land holdings, and TMT, particularly information and communications technologies (ICT) outsourcing.
Private equity (PE) activity in Ukraine has been subdued over the past three years. And activity was fairly static in 2016, with just four deals, all with undisclosed values.
Looking ahead, the Mergermarket Heat Chart, which logs ‘companies for sale stories’ for the past six months, shows that the consumer sector is generating the highest number of M&A targets (10), followed by financial services and industrial & chemicals with seven each.
In cooperation with Mergermarket
Mergermarket is an independent Mergers and Acquisitions (M&A) intelligence service with an unrivalled network of dedicated M&A journalists based in 62 locations across the Americas, Europe, Asia-Pacific, the Middle-East and Africa. Unlike any other service of its kind, Mergermarket specializes in providing forward-looking origination and deal flow opportunities integrated with a comprehensive deals database – resulting in real revenues for clients. Visit www.mergermarket.com.