M&A activities in Hungary exceed $9 bln

Competition

More than 600 merger-and-acquistions transactions were carried out in Hungary in the period of 2010-2015, with a total value of more than $9.1 billion, EY said in a market analysis published today. 

The market performance of Hungarian M&A transactions were chiefly influenced by global trends, however, the country slightly lagged behind in its response to processes of the global market. 

EY added in the report that there is a significant correlation between changes in the countryʼs GDP and the number of M&A deals carried out in Hungary.

Analysts are expecting gradual expansion in the following years, according to EY.

More than 90% of the M&A transactions in the period were under $100 million in value, with the biggest deal being the Chinese Wanhua group’s purchase of Borsodchem Zrt. for $930 million in 2011, followed by Hungarian oil company MOL’s purchase of Eni in Czech Republic, Slovakia and Romania, for more than $600 million, and Richter Gedeon’s investment in Switzerland with the purchase of PregLem for $442 mln.

In the majority of the cases both the company making the purchase and the company being purchased were Hungarians firms active in the market in 60% of the cases during the period, the EY report shows. With regards to foreign companies making purchases in the Hungarian market, U.S. and German companies were the most active with 33 and 21 transactions, respectively.

The most dominant sector in terms of the number of M&A transactions was the IT and technology sector with a total of 131 completed M&A deals. 

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