Poland powering growth in regional acquisition activity
The number of deals increased 38% across Poland, Hungary and the Czech Republic last year, to 355 from 257, according to the report. The highest growth was in Poland, where the number of deals grew 59%, to 129 in 1998 from 81 the previous year, the report found.
This increased Poland's share of all deals in the region to 36% from 32%. Still, the most M&A activity took place in Hungary, where the number of deals increased 37% to 149 last year from 109 in 1997.
"Poland is leading the way" in M&A activity in the region, said Sunil Bhagat, head of corporate finance at PricewaterhouseCoopers in Warsaw. "You remember a few years ago when a $5 million deal would attract a lot of attention. Now we're seeing things like Elektrim's $600 million-plus deal and others."
The report estimates total M&A activity in the region at about $5 billion, excluding privatizations and deals where the terms were not disclosed, Bhagat said. Poland accounted for the lion's share of this, he added, which was evenly distributed between cross-border and domestic deals.
Poland also led the region in the growth of domestic deals, which the report called "a major development in the market." Across the region, the number of domestic deals grew 72%. Again, it was Poland powering the trend, with the number of domestic deals more than doubling in 1998, the report said.
Domestic deals now account for 52% of all M&A activity in the region, according to the report.
The fact that M&A activity saw such growth in the region despite last year's turmoil in other emerging markets may be evidence of increased investor confidence in Poland, Hungary and the Czech Republic.
The report also noted increasing transparency in the region, evidenced by an increase in deals whose prices were disclosed. Terms were disclosed in 34% of all deals in the region last year, as compared to just 23% in 1997, the report said. Poland is also the regional leader in transparency, with prices disclosed in 52% of all deals. In Hungary, prices were released in 31% of all deals, while the Czech Republic was the least transparent, with prices being disclosed in only 10% of all deals, according to the report.
This increased Poland's share of all deals in the region to 36% from 32%. Still, the most M&A activity took place in Hungary, where the number of deals increased 37% to 149 last year from 109 in 1997.
"Poland is leading the way" in M&A activity in the region, said Sunil Bhagat, head of corporate finance at PricewaterhouseCoopers in Warsaw. "You remember a few years ago when a $5 million deal would attract a lot of attention. Now we're seeing things like Elektrim's $600 million-plus deal and others."
The report estimates total M&A activity in the region at about $5 billion, excluding privatizations and deals where the terms were not disclosed, Bhagat said. Poland accounted for the lion's share of this, he added, which was evenly distributed between cross-border and domestic deals.
Poland also led the region in the growth of domestic deals, which the report called "a major development in the market." Across the region, the number of domestic deals grew 72%. Again, it was Poland powering the trend, with the number of domestic deals more than doubling in 1998, the report said.
Domestic deals now account for 52% of all M&A activity in the region, according to the report.
The fact that M&A activity saw such growth in the region despite last year's turmoil in other emerging markets may be evidence of increased investor confidence in Poland, Hungary and the Czech Republic.
The report also noted increasing transparency in the region, evidenced by an increase in deals whose prices were disclosed. Terms were disclosed in 34% of all deals in the region last year, as compared to just 23% in 1997, the report said. Poland is also the regional leader in transparency, with prices disclosed in 52% of all deals. In Hungary, prices were released in 31% of all deals, while the Czech Republic was the least transparent, with prices being disclosed in only 10% of all deals, according to the report.
