M&A activity in CEE and Czech Republic – 3Q 2022
The CEE M&A market saw a slight decrease in activity in terms of the number of transactions, by approximately 10% in 3Q 2022, compared to the previous quarter. Despite the drop in the number of transactions, there was an increase in the number of transactions compared to the previous quarter. The volume was almost unchanged year-on-year. By volume, overlapping transactions with a known purchase price accounted for approximately 1% of M&A market activity in 3Q 2022. Year-on-year, the number of transactions with a known purchase price in the CEE region decreased by 25%. The energy sector was the most significant area in terms of disclosed transaction volume in 3Q 2022. It accounted for 70% of the total transaction volume. Excluding the impact of the largest transaction, the volume of transactions in the CEE region with a known purchase price was EUR 4,240 million, a significant decrease compared to the previous quarter.
The most significant disclosed transaction in CEE in 3Q 2022 (66% of the total volume) was the takeover of Polish gas firm PGNiG by PKN Orlen, which owns Czech Unipetrol. This merger is part of a broader plan by the Polish government to increase its control over the economy and create a large group that can compete with global players. Once the merger is completed at the end of this year, PKN will present its strategy, which will focus on Poland’s energy security and the transformation of the energy sector. PKN also said that the merger with PGNiG and Lotos (the most significant transaction of the last quarter) will increase the state’s stake in PKN to 52%.