Report: M&A market fails to live up to expectations
Despite high hopes for the mergers and acquisitions market, 2014 was a disappointing year, according to the “Emerging Europe: M&A Report”, released today by CMS, AIG and EMIS.
“The number of deals did increase somewhat in 2014; however, deal value decreased significantly," the report said. "As in 2012 and 2013, the Hungarian State and state-owned entities (MNV Zrt., the Hungarian National Asset Management Company; NISZ Zrt., the National Infocommunication Company; and MNB, the National Bank of Hungary) were the most active players on Hungary’s M&A market, completing by far the largest deals of the year."
The two biggest acquisitions cited by the report were the purchase of two banks, FHB and MKB by state entities. The biggest private deal cited was a cash infusion of EUR 45.6 million into Prezi, one of Hungary's most successful tech startups.
“Other state acquisitions involved mainly utilities, as well as manufacturers in ‘strategic industries’, such as the acquisition of Bombardier Transportation MÁV Hungary Kft., related to the railway industry. However, these acquisitions were not driven by market opportunities, but by economic and political considerations” the report says.
The following is a table taken from the report.
Policymakers Cut Central Bank Base Rate by 50 bp to 7.75%
Bulgaria's Household Income, Spending Rise 20% in 2023
Spar Magyarország Revenue Climbs Close to 16% in 2023
Hungary Launches HUF 15 bln Tourism Sector Support Program
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.
