The number of acquisitions and mergers in the Emerging Europe region increased in 2024 compared to the previous year, but the value of transactions shows a contrary trend. According to a report by CMS, last year there were 1,281 transactions recorded in this region, while the total value of deals fell by 30.9 percent year-on-year – from €37.24 billion in 2023 to €25.72 billion in 2024. This is primarily the result of a relative absence of megadeals valued over €1 billion, of which there were several the year before. Instead, there has been a shift towards small and medium acquisitions, with the average deal value dropping to €20.1 million in 2024 from €31.4 million in 2023.
The same trend was observed in Croatia: the volume of deals increased from 83 to 92, but the value of acquisitions fell by nearly 60 percent to €767 million. The largest acquisition was Podravka’s takeover of Fortenova’s agricultural business for €333 million. A €100 million investment in Rimac’s Project 3 Mobility by TASARU Mobility Investments and other portfolio investors is the second largest transaction in 2024, sharing this position with Bosqar’s acquisition of a 67 percent stake in Mlinar. Among the five largest transactions is the EBRD’s investment in Podravka Agri (a 15 percent stake) worth €50 million, as well as a joint investment by Allianz Croatia, PBZ Card, the Plodinec family, and the company Mlin i Pekare in Čakovečki mlinovi.
Among the five largest M&A transactions in Slovenia in 2024, two acquisitions by Croatian investors stand out – the entry of M Plus Group into Panvita and the acquisition of the Ferbo project by Primo Real Estate, owned by AZ pension funds.
When it comes to trends that have marked the M&A market in the Emerging market region, there is a noticeable increase in investments from strategic investors at the expense of PE funds, as well as a rise in investments from so-called family offices.
The growth of family offices in Central and Eastern Europe reflects the global increase in family wealth, which is expected to continue. Throughout the region, their number has increased. The factors behind this increase are varied: greater concentration of wealth, transfer of generational wealth, liquidity events arising from the sale of family businesses, and a shift towards tailored investment strategies. Typically, family offices invest through direct and indirect investments with pockets of local capital in the CEE region that is now being allocated at the domestic and regional level, across Western Europe and beyond, the report states.
The most active sector last year was ‘Energy and Utilities,’ where the value of deals increased by 162 percent, followed by real estate, where the value of deals rose from €3.19 billion to €5.65 billion. A high growth in transaction value was also recorded in the food sector – 157 percent.
