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Hungary M&A value drops to USD 3.35 bln in 2018

The value of Hungarian mergers and acquisitions fell 17% year-on-year to an estimated USD 3.35 billion in 2018, data compiled by Big Four consultancy EY shows.

The number of disclosed mergers and acquisitions was 107, down from 133 a year before. The economic environment was favorable in 2018; however, geopolitical uncertainty left its mark, EY noted.

The pace of mergers and acquisitions decelerated, except for the real estate sector, as some buyers and sellers adopted a wait and see attitude.

M&A activity in the real estate sector was highest, with 27 deals disclosed. There were 15 disclosed deals in both the IT and Technology and in the Trade and Retail segments. The value of deals was only disclosed in 19 cases.

Almost half of M&A transactions involved two Hungarian companies, but the three biggest deals were made between Hungarians and foreigners. The biggest deal of the past year was the acquisition of Partner in Pet Food for USD 607 million by Cinven, a private equity investment firm.

The number of strategic investors reached 79 out of 107 compared to 85 out of 133 the year before. EY expects financial investors to be more active again in 2019.