The approaching end of the year 2013 is a good opportunity to sum up the transactions finalized in 2013 in Poland. However, I will write about 2013 in the next post, let’s look now at how M&As (in terms of volume and value) can be seen for the period 2008-2012 in Poland.
Transactions in Poland (2008-2012)
While analyzing the number of transactions carried out in Poland, it must be concluded that in 2012, there has been a slump in the number of M&As in Poland. In the years 2008-2011 we have seen a constant number of transactions (nearly 500 – for 2008, and more than 500 per year during the period 2009-2011), then as early as 2012 they were only 331.
It seems Poland experienced a slowdown in the M&As market and undoubtedly a significant setback (data taken from the following reports: Emerging Europe: M&A Report 2012, CMS and DealWatch and Emerging Europe: M&A Report 2011, CMS and DealWatch. The reports are available on the website: www.cmslegal.com, it should be noted that the reports include transactions involving public entities in Poland).
This conclusion, however, is not consistent with studies that have appeared in another report prepared by the EY (which does not include transactions involving public entities in Poland) (See: EY, Central and South Eastern Europe – M&A Barometer 2012; 2010 data taken from: Bloomberg Businessweek No. 46 (71) / 2013, Polish Edition, 18-24 November 2013). According to this report in the year 2010 there was a significant decrease in the number of transactions (only 91), and through 2011-2012 one could observe a similar number of M&As (respectively 254 and 276).
Figure 1. The number of transactions in Poland (2008-2012)
The value of transactions in Poland (2008-2012)
It should also be noted that in the above two reports, significant differences exist in terms of transactions value. Let me present the CMS report at first. According to CMS report, if in 2010-2011 the total value of the transactions amounted to € 21 billion and € 18 billion respectively, in 2009 only reached € 10 billion (slightly less worth are the transactions carried out in 2012 – € 9 billion). 2008 was a disaster as the total value of the transactions amounted to only € 6 billion.
The EY report on the other hand shows that in 2010 the value of the transactions amounted to only $ 2.4 billion, in 2011 – they were worth more than $ 21 billion, while in 2012, slightly more than $ 8 billion.
Certainly more appealing to me is CMS report (it is difficult to explain the number of $ 2.4 billion in 2010 shown in the EY report, having in mind that only the bank merger between BZ WBK and Santander was worth about € 3 billion), however one should remember that CMS reports includes the privatization of companies by the state treasury in Poland.
Figure 2. The value of transactions in in Poland (2008-2012)
What is the conclusion taken from the above mentioned data? I think that to make a statement that we are dealing with a slowdown in Poland in quantity and value on the transaction market we need to wait and analyze data for 2013. I will do it in the next post so stay tuned!