Baltic M&A Monitor 2021

11 February 2021

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Mergermarket is pleased to present the Baltic M&A Monitor, in association with Ellex. This report provides analysis of M&A activity in 2020 in Estonia, Latvia and Lithuania, along with forecasts for the year ahead.
The Baltics collectively recorded 70 M&A deals worth almost €1.2bn in 2020. These relatively small, open European economies were, of course, affected financially by the COVID-19 crisis. However, swift and decisive government action kept businesses going and underpinned investor confidence in the region.
Key findings include:
  • Estonia accounted for 41% of M&A deals overall by volume. These figures are barely changed from the year before, suggesting that 2020’s headwinds have affected the Baltic countries fairly equally.
  • Lithuania logged total deal value of €154m, a 64% decrease from 2019’s €434m. However, the aggregate was still above 2018, when just €43m worth of deals were announced. This indicates many investors were willing to go through with significant acquisitions despite the challenging circumstances, and bodes well for 2021 as postponed transactions recommence.
  • Latvia, although contributing the smallest share of M&A among the three Baltic nations, relatively speaking enjoyed the strongest year in dealmaking. Aggregate value leapt to €453m (the highest sum of the decade) across a total of 13 deals from 2019’s €345m on 12 deals. The country contributed the largest transaction of the year in the Baltics, with the Latvian government injecting €250m into airBaltic.
  • TMT was the top sector for dealmaking in 2019/20 in both volume and value terms. It accounted for 20% of all transactions – up from 17% in 2017/18 – and 31% of total deal value, up from 9% in 2017/18. It contributed three of the six biggest Baltic deals in 2020, including the second and third largest, as well as three further top-14 deals.