Catching the rebound: M&A in Ukraine

20 May 2021

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Mergermarket is pleased to present the sixth edition of M&A in Ukraine, published in association with Aequo. This report provides invaluable insights into key trends in Ukrainian M&A in the face of Covid-19, whilst looking forward to how Ukraine’s economic landscape looks set to develop in 2021 and beyond.

Key findings include:

  • After several years of uninterrupted growth, 2020 saw total disclosed Ukrainian M&A deal value fall to just €171m, the lowest annual total since 2015. Deal volume proved somewhat more robust as investors continued to back smaller deals. Ukraine bore witness to 54 transactions across 2020, higher than that recorded in any year between 2014 and 2017, albeit still a drop from the 87 deals logged in 2019.
  • A fall in foreign investment accounted for a large part of this downturn in dealmaking activity. In 2019, inbound cross-border deals accounted for nearly 90% of overall disclosed deal value, compared to only 51% in 2020. Meanwhile, the country’s largest domestic deal saw the acquisition of Dnipro Hotel by Smartland from the state for a total value of €36m as part of Ukraine’s ongoing privatisation programme.
  • The TMT sector dominated Ukrainian deal activity in 2019-2020, accounting for 21% of volume and 58% of value. This trend looks set to continue as the Covid-19 pandemic has amplified the importance of the technology industry to the global economy, which is a good sign for the country and its prominent IT sector.