The market of mergers and acquisitions in the countries from Central and East Europe shrank by 40% in 2012.
The main reasons for the registered recession is: the continues debt crisis in the Eurozone, which is a main trade partner in the Region, the political unstable situation in some of the countries and the strict plans for budget economies, implemented from the countries.
During the previous year in the region, the number of deals in the industrial field was the biggest – 395 which is nearly 18% from the grand total. The realized mergers and acquisitions in the mining sector (incl. Oil and Gas) are the biggest total value of over 58 Billion Euro. Amid the general compression of the activity of the region Bulgaria is one of the countries, in which during the previous year is observed a growth in the market. According to CMS the concluded bargains in 2012 in the country were of the total value of 1.24 Billion Euro by 1.2 Billion Euro for the year 2011.
According to the report, the fields, which attract the most the investor`s attention in 2012 are the energetics, food industry and telecommunications. In one of these fields the biggest deal for the previous year was done – the completed in November obligations reconstruction of the Bulgarian Telecommunications Company. The deal is significant for one of the main tendencies, which characterized the mergers and acquisitions market in Bulgaria in 2012 – insist on the reconstruction of liabilities and less “fresh” deals, directed on the encouragement of the growth and realization of additional advantages for the business, note the authors of the report.
As another individual feature for the local market is the domination from intern players. The expectations for the region are less optimistic, but stay restrained. According to report authors in 2013 the mergers and acquisitions activity in Central and Eastern Europe (CEU) will increase, but the market development will remain bound with the situation in the Euro Zone.
The analysts emphasize, that the CEU region remains active for the investors. As a significant reason for this is the increasing interest from China, which revealed a special credit line of 10 billion dollar for a cooperative investment projects in the infrastructure and in technologies in East Europe and a fund for an investment partnership in amount of 500 Million Dollars.