Despite a challenging macroeconomic backdrop, M&A activity in Central and Eastern Europe gained new momentum in 2Q2025. EY-Parthenon’s fresh outlook reveals growing investor appetite for strategic, high-value transactions and industries positioned for long-term growth.
The second quarter of 2025 showed that the M&A landscape in Central and Eastern Europe remains resilient, demonstrating a noticeable shift toward larger, more strategic transactions. According to “CEE Mergers & Acquisitions 2Q2025: Market Outlook and Highlights” by EY-Parthenon, the region continues to attract investors despite a complex economic and geopolitical environment.
A combination of factors — from accelerating digitalization and ongoing nearshoring to rising defense budgets — is shaping a renewed wave of interest in strategic assets. Against this backdrop, companies and investors increasingly prioritize deals that provide scale, stability, and long-term value creation.
In 2Q2025, the region recorded 245 deals, reflecting an 8% decline quarter over quarter and a 36% drop year over year. However, the overall decline in volume was offset by a strong increase in deal value: total transaction value reached US$22.6 billion, up 30% from the previous quarter and 7% year over year. This confirms a clear shift toward mid-sized and large transactions driven by strategic, rather than purely financial, considerations.
Poland remained the most active market with 63 deals valued at US$9.8 billion, supported by robust activity in healthcare, technology, and energy. Consolidation in the banking sector continues to attract strategic buyers and specialized investors.
Turkey held its position as the second-largest market by volume (17% of regional activity), with 42 deals amounting to US$5.7 billion. Technology, consumer industries, and defense remained key targets, backed by state-supported initiatives and growing investment in digital services.
Greece and Romania also drew heightened investor interest, where fewer transactions were balanced by higher-value individual deals.
The Baltics accounted for 19% of all CEE transactions, with investors particularly focused on tech and service companies offering export potential and relative resilience to geopolitical uncertainty.
Technology remained the most active sector with 56 deals valued at US$4.4 billion. Deal value surged by an impressive 286% year over year, as investors continued to seek mature tech companies with strong scaling potential and competitive advantages.
The consumer sector saw a moderation in activity — 35 deals totaling US$508 million — yet remains strategically important as companies restructure operations, consolidate, and reoptimize supply chains.
In aerospace, defense, and transportation, demand strengthened with 27 deals valued at US$1.1 billion, reflecting the region’s increased focus on defense capabilities and infrastructure modernization.
Domestic transactions accounted for 56% of deal volume, while inbound investments represented the majority of value — US$14.8 billion, up 141% from the previous quarter. This underscores the continued return of international capital to the region.
Outbound activity slowed to 31 deals worth US$719 million, signaling cautious expansion strategies among CEE-based companies amid a shifting global trade landscape.
Corporate buyers continued to dominate with 182 deals totaling US$17.3 billion. Private equity activity softened, resulting in 63 transactions worth US$5.3 billion, largely due to more conservative risk assessments.
Still, the share of foreign PE investors grew (23.8%), highlighting sustained global interest in strategic CEE assets.
EY-Parthenon forecasts moderate yet uneven economic growth across the region. Poland and the Czech Republic remain among the more stable economies, while other markets may experience slower momentum. Nearshoring, digital transformation, decarbonization, and expanding defense budgets are expected to remain key drivers of investment decisions throughout 2025.
For an international B2B payments platform like MAGMA, understanding cross-border investment trends is essential. As companies expand across new markets, engage in strategic acquisitions, and integrate operations across borders, the need for reliable, fast, and flexible international payments grows substantially. We closely monitor studies like this one to ensure our clients receive solutions aligned with evolving economic trends and the realities of global business.
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