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A better day is dawning on the M&A market

CzechInvest has issued the M&A Report for the first quarter of 2021

A better day is dawning on the M&A market Source: Adobe Stock

The M&A market registered significant differences in activities among individual sectors. The most active sectors in the past year were technology, media, entertainment and telecommunications. These were followed by financial services and energy and services. The most significant decline was registered in the industrial and consumer sectors.

Despite the pandemic situation, a positive mood is becoming prevalent on the M&A market. The growth of transactions should be reflected in all sectors, with the exception of those that have been affected by anti-coronavirus measures, such as the travel industry and the hospitality sector. According to the Deloitte CFO Survey 2021, in which more than one hundred CFOs from the Czech Republic participated, a year-on-year increase of up to 28% in mergers and acquisitions is anticipated.
In the first quarter, the Czech M&A market registered the highest degree of activity in the real-estate and construction sectors, in which 44 deals were announced, followed by the industrial manufacturing and services sectors with 15 deals each.

An example of the interesting activities on the Czech M&A market is the entry of the Chinese game publisher Tencent into the domestic game company Bohemia Interactive. Heureka Group is acquiring Dataweps, which specialises in the creation of tools for product analytics, automation of e-shop processes and development of data technologies. Vítkovice Heavy Machinery has a new owner, the Olomouc-based company Skatlop, which acquired it in a public auction for the record price of CZK 1.2 billion. Airbus is investing in Skychatters, a Czech startup whose goal is to connect passengers during their travels. The Czech investment and property group Arete closed its fund and sold its property portfolio for EUR 113 million to the Cromwell Property Group of Australia. M.L. Moran Group is expanding with the addition of Woodplastic, a manufacturer of composite wood. The transaction should enable the buyer to expand to markets in Germany, Austria and Switzerland.
Details of selected mergers and acquisition are available in the attached report.

The M&A Report also contains news from the CzechLink capital-participation project, which has been in operation since August 2018. The project supports mergers, acquisitions and joint-venture partnerships between local and foreign investors and domestic parties interested in investing. The report also contains an overview of anonymised companies registered in the CzechLink project.

The M&A Report is published in electronic form on a quarterly basis. The next issue for the second quarter of 2021 will be available in the third quarter. If you would like to receive the report directly, please contact czechlink@czechinvest.org.