Turning Tides: M&A in Ukraine

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Mergermarket is pleased to present the third edition of M&A in Ukraine, published in association with Aequo. This report provides invaluable insights into key trends in Ukraine’s M&A landscape and an outlook for 2018 and beyond.
 
The Ukrainian economy in 2017 continued to build on the progress of the previous year, with the economy growing by 2.5%, up from 2.3% in 2016. World Bank data suggests that progress will continue, forecasting a 3.5% growth of Ukraine's gross domestic product in 2018.
 
Highlights from the report include:
 
  • M&A activity in Ukraine increased in 2017 with 44 deals, a slight increase from the 41 transactions seen in 2016, while deal value increased by an impressive 57% to €554m.
  • Reforms made in early 2018 posit developments in financial activity for the coming year. In February 2018, the government adopted a new law on limited liability companies that replaces outdated Soviet-era legislation, while reforms to Ukraine’s capital market infrastructure could have positive impacts on the country’s stock market.
  • 75% of deals in 2017 took place between Ukrainian firms, demonstrating a record shift towards domestic M&A activity. However, new reforms should help to significantly strengthen the business environment in Ukraine for foreign investors in the coming years.
  • The financial services sector continues to form the main centre of activity in Ukrainian M&A, accounting for 33% of total volume and 33% of total value in 2016-17. There has also been healthy sector activity elsewhere, with agriculture accounting for 33% of total deal value and significant transactions occurring across other sectors.