Regional dealmakers remain cautious about the prospects of an M&A recovery in Central and Eastern Europe (CEE). Nonetheless, in spite of fears surrounding a second wave of the pandemic, activity is reigniting in selected sectors, albeit under "new normal" conditions.

At the half-year stage, US dealflow was down sharply whilst China was least impacted. Megadeals declined although mid-market showed resiliency. Meanwhile, private equity's global M&A market share reached record level.

Watch Mergermarket’s Virtual Event on the M&A market outlook in the CEE region here.

The CEE region saw a healthy level of dealmaking prior to the outbreak of coronavirus, but saw a fall in March as M&A across Europe began to slow. The region saw a clear decline by value, although fared better than other parts of Europe, while the deal count fell to its lowest point in several years.

• Silk Road geopolitics could play role in M&A pickup
• Infrastructure & energy, construction, pharma & cosmetics among potential target sectors
• Deal execution, government regulations hamper dealmaking

Central and Eastern Europe remains attractive to dealmakers as 89% of survey respondents say they would invest in the region again.

• Regional dealmakers cautiously optimistic despite fears of global downturn
• TMT, mining and resources among active fields
• Polish mBank’s sale, Orlen-Lotos merger and Innogy’s Czech retail business sale among sizable upcoming deals

Mergermarket, the leading provider of M&A data and intelligence, has released new data finding that the Central and Eastern Europe (CEE) region has remained resolute in 2019, dipping by 15.9% by value versus around 25% across Europe.

Here are 5 reasons why CEE M&A has remained broadly  in line with 2018’s figures amid global concerns. 

Buoyed by more than a 4% GDP growth across much of the region, together with increased foreign investment and private equity activity, Central and Eastern Europe saw healthy levels of M&A in 2018. However, concerns over a potential impending global economic slowdown are likely to impact M&A volumes in 2019, experts told Mergermarket.

99% of dealmakers would do business in the CEE region again.

Krzysztof Urbański, Director of M&A at Orange spoke to Olivia Cummins about telecom transactions and deals ahead of this year's CEE M&A and Private Equity Forum.