New CMS, AIG and EMIS DealWatch report shows slower M&A deal flow in 2014 and cautious optimism for 2015.

CMS Cameron McKenna, 
Kyiv, Ukraine, Mon, Feb 09, 2015

M&A activity in emerging Europe saw a sharp 43%drop in deal values in 2014, falling from €112 billion in 2013 to €64 billionin 2014. 

The number of deals announced with a value above €1million recorded a 14% annual decline to 2,198 transactions. 

-       Manufacturingwas the most active sector by number of deals,with 364 deals representing 17% of all transactions. 

-       Mining(including oil & gas) was the leading sector in terms of deal value, at over €10 billion,accounting for nearly 17% of the overall market. 

-       M&A inRussia accounted for 33% of all deals in emerging Europe and 47% of the totaldeal value in 2014. Poland came second with a 13% share of deal numbers,closely followed by Turkey with 12%. 

-       Privateequity funds – known for their higher risk appetite – had a relatively goodyear in the region as the number of PE-related deals rose by 6% to 248. 

HelenRodwell, CMS CEE Corporate Partner states: 

‘There aresigns of market recovery across the region. We are witnessing increasinginterest from global private equity players both in midsize – and often familyor founder-owned – businesses across the region as well as in larger assetsthat are coming onto the market due to privatisation programmes or secondarysales, including various infrastructure assets. Although the levels of activityacross the region still vary widely – with countries such as the Czech Republicand Slovakia showing record deal volumes – on the whole we are upbeat about theyear to come.’

Radivoje Petrikić, CMS CEE Corporate Partner adds:

 ‘CMSremains optimistic about deal flow in CEE in 2015. Deals that are currently inthe pipeline, as well as new deals resulting from numerous restructuringprojects in the region, are sure to keep us busy in the coming year.' 

BorisMaleshkov, Headof Editorial, EMIS adds: 

‘Tensions between Moscow and Kiev as well asrenewed speculation of Greece’s potential exit from the Eurozone will be a dragon regional M&A activity in 2015. However, we believe that largetransactions in Poland, especially in the energy and banking sectors, and theambitious privatisation programmes launched by the governments in Turkey andRomania, will bring some relief to regional market players.’ 

AngusMarshall, AIG comments: 

‘We are observing that W&I insurance isbecoming an increasingly regular feature of the M&A landscape in the regionand noted a record number of policies being issued in 2014, especially forproperty transactions. We anticipate demand for W&I insurance on propertytransactions to remain strong in 2015, and regional interest in W&Iinsurance for non-property M&A transactions to expand significantly, withPoland leading the way.’ 

To acquire the full version ofthe “Emerging Europe: M&A Report 2014/15,” please contact Melania Kozyra (melania.kozyra@cms-cmck.com) or EMISPRO DealWatch marketing team(emis-europe@securities.com). 

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CMS

Founded in 1999, CMS is a full-service top 10 international law firm,based on the number of lawyers (Am Law 2013 Global 100). With 59 offices in 33countries across the world, employing over 3,000 lawyers, CMS has longstandingexpertise both at advising in its local jurisdictions and across borders. CMSacts for a large number of Fortune 500 companies and the FT European 500 andfor the majority of the DAX 30.  Revenuestotalled €842m in 2013. 

CMS provides a wide range of expertise across 18 expert practice andsector areas including Corporate, Energy, Funds, Lifesciences/Pharmaceuticals,TMC, Tax, Banking and Finance, Commercial, Competition, Dispute Resolution,Employment, Intellectual Property and Real Estate & Construction. 

For more information, please visit www.cmslegal.com. 

CMS offices and associated offices: Aberdeen, Algiers, Amsterdam,Antwerp, Barcelona, Beijing, Belgrade, Berlin, Bratislava, Bristol, Brussels,Bucharest, Budapest, Casablanca, Cologne, Dubai, Duesseldorf, Edinburgh, Frankfurt, Geneva, Glasgow, Hamburg,Istanbul, Kyiv, Leipzig, Lisbon, Ljubljana, London, Luxembourg, Lyon, Madrid,Mexico City, Milan, Montenegro, Moscow, Munich, Muscat, Paris, Prague, Rio deJaneiro, Rome, Sarajevo, Seville, Shanghai, Sofia, Strasbourg, Stuttgart, Tirana,Utrecht, Vienna, Warsaw, Zagreb and Zurich.       

 EMIS 

Founded in 1994, EMIS (formerly known as ISI EmergingMarkets) was acquired by Euromoney Institutional Investor PLC in 1999. EMISdelivers electronic information products, by subscription, to institutionalcustomers through its global network of offices. EMIS provides hard-to-getinformation covering more than 100 emerging markets. Its flagship products areEMIS Intelligence and EMIS Professional 

For over two decades, customers across the globe have reliedon EMIS to target, analyse and act on information about emerging markets. Wegather deep, rich company and industry intelligence, hard-to-get information,research and analytical data, peer comparisons and more to help you and yourclients make well-informed decisions. We are your one central point of contactto deliver the news and content that you need. Personalisation is the hallmarkof our services, so you receive just the kind and amount of information you wantto see, in a single country, or a group of countries.

 AIG 

AmericanInternational Group, Inc. (AIG) is a leading international insuranceorganization serving customers in more than 130 countries and jurisdictions.AIG companies serve commercial, institutional, and individual customers throughone of the most extensive worldwide property-casualty networks of any insurer.In addition, AIG companies are leading providers of life insurance andretirement services in the United States. AIG common stock is listed on the NewYork Stock Exchange and the T