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M&A market in Poland in Q4 2018

M&A market in Poland in Q4 2018

In the fourth quarter of 2018, the Polish M & A market recorded a 5% increase in the number of transactions compared to the same period in 2017. As in 2017, in 2018, 211 transactions were recorded on the mergers and acquisitions market. Despite comparable statistics, experts believe that the M & A market in Poland is a bit “short of breath". First of all, there is a slight decline in the interest of foreign investors. This is just a part of the information that can be found in the latest M & A Index Poland report created by FORDATA in cooperation with the consulting company Navigator Capital Group.

The largest M&A market transaction in Q4 2018 in Poland

In the fourth quarter of 2018, the largest transaction was the acquisition of 37% of Unipetrol shares by the PKN Orlen Group (currently the only shareholder in a Czech petrochemical company). In a press release, PKN ORLEN stated that "this procedure will enable a much more efficient operation as a whole, and will strengthen its position in a competitive market." With the acquisition of Grupa LOTOS, the Polish company will become the largest player in this part of Europe.

M&A in other industries

The largest transaction on the banking market was the takeover of the Euro Bank by the Millennium Bank for just over PLN 1.8 billion. This move will allow to acquire greater competences in the franchise model, and will strengthen the Bank's presence on the local market and in smaller cities.

In the fourth quarter of 2018, the important news for Polish brewing market was taking over the Namysłów Breweries by Grupa Żywiec related to the Dutch brewing company, Heineken. The takeover significantly widened the group's product portfolio on the domestic market, and also allowed for reaching the group of customers who were local beer enthusiasts.

One cannot forget about the takeover on the e-commerce market, where Allegro, the largest Polish e-commerce platform, has taken over eBilet, the leader in the ticket sales market in Poland. The takeover of eBilet has enabled the Allegro Group to expand its activity on the rapidly growing online ticket sales market, the size of which is estimated at approximately PLN 700 million.

M&A forecast for 2019

M & A market experts in Poland are not unanimous in their forecasts for 2019, however, the vast majority of them expect a drop in the volume and value of transactions. However, there is a dispute whether the slowdown will take place as soon as in 2019 or maybe in subsequent years. According to the experts, opportunities for maintaining the pace of the M & A market development are consolidations in the energy sector and services for industry.



Michał Dudkowiak

Lawyer

Michał Dudkowiak

Barrister, Partner

Michał Dudkowiak

Contact:

Rondo ONZ 1
00-124 Warsaw