Business

Industrial and services sectors driving M&A in Czech Republic

The greatest mergers and acquisitions activity in the Czech Republic has been recorded in the industrial products and services sectors, followed by the real estate sector and the retail, consumer goods and entertainment sectors.

According to the Czech investment promotion agency, CzechInvest, 193 M&A transactions were announced in the second quarter of 2019, but the economic slowdown that characterised this sector last year will persist throughout 2019.

Financial services firm J.P. Morgan expects a few main factors to be the keys that drive M&A activity.

The first is corporate clarity, as pressure remains on companies to review their business structures and unlock value. Secondly, macroeconomic uncertainty and regulatory and geopolitical headwinds will most likely persist throughout 2019. J.P. Morgan therefore expects to see alternative sources of capital deployed in unconventional ways to facilitate M&A transactions, leading to more options for both buyers and sellers.