CMS and Emerging Markets Information Service (EMIS) DealWatch announce  the release of the “Emerging Europe: M&A Report 2012.”

M&A activity in the region last year was hampered by the drawn-out debt crisis in the Eurozone, the region’s main trading partner, political turmoil in some states and tough austerity plans introduced by local governments.

According to the publication, the number of M&A transactions in Emerging European countries in 2012 neared 2,265, an almost 40% decrease in year-on-year terms.  The total value of M&A deals went down as well amounting to €121 bn, with fewer mega-ticket deals than in the year before. Rosneft’s acquisition of TNK-BP, Russia’s largest-ever takeover deal, accounted for more than a third of the overall value.

Manufacturing remains the most  active sector and mining (including oil & gas) was the leading sector in terms of deal value, with over €58bn accounting for nearly half of the overall market.

Helen Rodwell, Head of the CMS CEE Corporate Practice states:

‘The outlook for CEE for 2013 continues to be dominated by the uncertain evolution of the debt crisis in

Europe but a number of Emerging Europe countries in certain sectors are expected to slowly pick up as we move into the new year. Indeed, the CEE region remains attractive to investors.’

Graham Conlon, Head of Corporate in Ukraine, and the Private Equity Co-Leader for CEE adds:

'Many have labelled Ukraine as the last major emerging country in Europe. Whilst deal flow will probably remain relatively static overall, certain sectors such as energy and natural resources, agriculture, IT and the banking sector are nevertheless likely to see increased activity in the year ahead. CMS, as the only international law firm with English-qualified M&A expertise at partner level in Ukraine, looks forward to continuing to assist its clients in implementing high-profile M&A transactions in accordance with international quality standards.'

Boris Maleshkov, DealWatch Editor-In-Chief adds: ‘M&A activity throughout Central and Eastern Europe in 2013 will largely hinge on the availability of bank liquidity for deal financing, the implementation of austerity measures and the path of the Eurozone sovereign debt crisis’.

To get the full version of the “Emerging Europe: M&A Report 2012,” please contact Liliya Omelyanenko (liliya.omelyanenko@cms-cmck.com).