Investors injected a record €42.5 billion into mergers and acquisitions across Central and Eastern Europe in 2025. This surge, marked by fewer but larger transactions, indicates growing confidence in the region's economic outlook.
The value of deals climbed 36% year-over-year, despite a 9% drop in transaction volume to approximately 1,300. This shift highlights a strategic focus on acquiring substantial assets.
A pivotal deal was the €4.1 billion acquisition of Czech pharmaceutical firm Zentiva by U.S. fund GTCR, representing the region's largest foreign investment in years. Experts attribute the decrease in deal numbers to external economic pressures, particularly Germany's slowdown, prompting a more selective investment approach.
Central and Eastern Europe continues to attract foreign capital, which accounts for a significant portion of M&A activity. The region's appeal lies in its strong economic growth, EU membership, regulatory stability, skilled workforce, and lower operating costs compared to Western Europe.
Technology, health, and finance sectors led M&A activity. Technology saw 20 investments, with software, IT services, fintech, and digital infrastructure as key targets. Financial services led in value, with €11.7 billion in deals, including Erste Group's €6.8 billion purchase of a 49% stake in Santander Bank Polska.
Poland emerged as the region's largest market, with its GDP exceeding $1 trillion, positioning it as a rising global player. Lithuania is recognized for its technology and fintech sectors, while Romania attracts investment with its fast-growing economy. Austria serves as a strategic gateway, and the Czech Republic benefits from its established industrial base.