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M&A activity falls in Q3

The number of mergers and acquisitions in Hungary dropped 22% to 21% in the third quarter for the same period a year earlier, but was up from 17% in Q2, PricewaterhouseCoopers told MTI on Thursday.

Foreign investors accounted for just 60% and 33% of M&A activity in Hungary in Q2 and Q3 2009, down from three-fourths in the same period a year earlier.

Most of the transactions in Q3 involved companies with annual revenue of less than HUF 10 billion. Six mergers and acquisitions took place in the media and entertainment sector and four were in the food industry.

Not only the share of deals made by domestic investors increased in Q3 2009, but also the number of such deals increased compared to Q2 2009 and Q3 2008. This primarily reflects the restructuring measures taken by multinational companies, i.e. multinationals selling off their Hungarian operations in parts or as a whole to local investors, sometimes former managers or owners.

This year, the level of M&A activity will be below historic levels, PricewaterhouseCoopers said, adding that they expect a number of asset deals to take place in Hungary as large multinationals continue to streamline their operations. (MTI-ECONEWS)