Business news from Ukraine

VOLUME OF MERGERS AND ACQUISITIONS (M&A) DEALS IN UKRAINE EXCEEDS $1 BLN IN 2017

23 March , 2018  

The volume of mergers and acquisitions (M&A) in Ukraine in 2017 increased by 37%, to $1.023 billion, their total number by 22%, to 67, such data are given in the report on the website of KPMG in Ukraine. The most active foreign investors in Ukraine in 2017 were companies from the CIS, North America and Europe. At the same time, investors registered in the CIS focused primarily on acquiring assets from Ukrainian owners in Crimea.
According to KPMG, the level of activity in the M&A area remains far from the 2013 level. In addition, the volume of mergers and acquisitions in 2017 amounted to approximately 1% of Ukraine’s GDP, which is four times less than the global level.
At the same time, the company expects further growth in the number and volume of transactions in 2018. KPMG explains its expectations with the steadily growing volume of foreign direct investment since 2014 and the increase in the number of deals in the agricultural sector against the backdrop of increased crop yields and a high export potential of the industry.
Further growth of activity in M&A is also reflected in the increased interest of Dragon Capital investment company in commercial and logistics real estate on the background of favorable market conditions and the expected high return on investment with relatively low investment risks. The interest of foreigners in the IT sector remains high because of the export orientation of the industry and its low sensitivity to local trends.