M&A Activity in Serbia from 2104 until 2019

16/07/2019

In the last five years, M&A activity has significantly increased in South East Europe, particularly in Serbia experiencing the highest year-over-year growth in 2017 (Graph 1). The increase in M&A activity in Serbia has been strong in the manufacturing, automotive components, financial services, technology, software development, food and beverage, and retail sectors. Serbian industries attracted foreign investors from China, France, Netherlands, United Arab Emirates, United Kingdom, and the United States of America.

In addition, increased M&A activity in Serbia is a result of Serbia’s geopolitical position and its long-term economic potential. Serbia is a part of CEFTA (Central European Free Trade Agreement), which gives Serbian companies tariff-free access to the 30 million consumers market. Furthermore, Serbia is in the process of accession to the European Union.  Serbian government also signed a free-trade deal with the Eurasian European Union, with which it is currently trading goods worth around 8% of the annual GDP. The government has also strengthened its strategic partnership with China and has ratified a free-trade agreement for agricultural goods with Turkey. Hence, the investment climate in Serbia appears favorable, assuring that M&A activity in Serbia will continue to grow steadily.

Most notable deals from 2014 to 2019

Target Name Sub-Sector Acquirer Name Acquirer Country Announced Deal Value Year
Telenor Serbia Telecommunication PPF Group Netherlands EUR 985 million 2018
Belgrade Nikola Tesla Airport (25-year concession) Transportation Vinci Airports S.A.S. France EUR 501 million 2018
Rudarsko Topionicarski Basen Bor Grupa Mining Zijin Mining Group Co., Ltd China EUR 299.61 million 2018
Bambi a.d. F&B Coca-Cola Hellenic Bottling Company SA US EUR 260 million 2019
Knjaz Milos a.d. F&B PepsiCo Inc and Karlovarske mineralni vody US and Czech Republic EUR 200 million 2019
Fabrika Hartije d.o.o and Avala Ada d.o.o Manufacturing Smurfit Kappa Group PLC Ireland EUR 133 million 2018
PKB Korporacija a.d. Agriculture Al Dahra Agriculture UAE EUR 131.67 million 2018
Galenika a.d. Pharmaceuticals EMS S.A. Brazil EUR 41 million 2017
Altech Serbia F&B Lesaffre et Compagnie SA France EUR 40 million 2017
AskGamblers.com Media Catena Media Plc Malta EUR 15 million 2016
Fabrika Maziva FAM Chemicals Valvoline Inc. US EUR 9.5 million 2019
Fabrika Akumulatora Sombor Automotive Industry Batagon International AG Switzerland EUR 7 million 2017

Source: MergerMarket.com