23 March 2022
Puls Biznesu: The war stopped acquisitions in the East
Companies and investors tend to transfer some of their capital from the East to Poland. But how the unrest in the region will affect the behavior of firms and investors in the long term?
The Polish Development Fund records many signals about the willingness to relocate factories or service centers to Poland. Our expert, Rafał Kozłowski (Counsel & Attorney-at-law), comments for Puls Biznesu on the current situation on the M&A market in the region and shares his assumptions about what we may expect in the near future regarding this industry:
“Even for Polish sellers who are not the most affected by these circumstances, I assume greater restraint from global buyers due to the proximity of the war. The cost of external financing of the transaction will also increase for local buyers. […] In the short term, transactions can be expected in cases where both sides are determined or the buyer seizes the opportunity. However, in the longer term, I assume greater activity on the M&A market in our region and further consolidation in many sectors. The security and stability gained through partnerships with major buyers can prove crucial in difficult times. […] The current situation, in particular the sanctions of Western countries, will most likely close the M&A market to foreign investments in Russia and Belarus. However, I would not expect a significant transfer of this money to Poland. These are geographically close markets, but at the same time they are very different. ”
The full text of the article is available on pb.pl.
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