The largest deal of the year is the purchase of Dniprovskyi Iron and Steel Works by Dniprovskyi Coke Plant
In 2021, the volume of announced and completed mergers and acquisitions (M&A) in Ukraine, including corporate, privatization and venture deals of technology companies, surged by 80% to $2.14 billion against 2020. The amount of M&A deals, according to preliminary estimates of InVenture investment company, hiked by 35% to 108.
“Taking into account the low publicity and transparency of deals, we assume that the M&A market size could be at least 20% larger, i.e. $2.5 billion,” the investment company commented in the post.
The largest number of M&A deals was recorded in the following sectors:
- IT and telecommunications — 31 deals worth $756 million;
- agriculture and agribusiness — 17 deals worth $154 million;
- food — 14 deals worth $58 million;
- finance — 8 deals worth $109 million;
- mining — 8 deals worth $108 million;
- transport and storage — 8 deals worth $34 million.
The largest deal of the year is the purchase of Dniprovskyi Iron and Steel Works, a former member of ISD, by Dniprovskyi Coke Plant, part of the Metinvest Group.
Top 10 M&A deals in Ukraine in 2021
|Date||Target company||Seller||Acquirer||Country||Deal amount, $ million||Stake||Sector|
|July 2021||Dniprovskyi Iron and Steel Works (DMK)||Dniprovskyi Coke Plant / Metinvest (Rinat Akhmetov)||Ukraine||340||1||Steel industry|
|November 2021||Grammarly||Maksym Lytvyn, Oleksiy Shevchenko, Dmytro Lider||Baillie Gifford, General Catalyst, BlackRock||International||200||n/a||IT and telecommunications|
|June 2021||Wholesale Network 2011 LLC / Sky Mall shopping and entertainment center||Bank Pivdenny / Ivan Fursin||Slavian LLC (Serhiy Briukhovetsky)||Ukraine||150||1||Construction and real estate|
|March 2021||Pokrovske Colliery Group (Pokrovske Coal Company and Sviato-Varvarynska Beneficiation Plant)||Fintest Trading Co Limited (Viktor Nusenkis)||Metinvest B.V.||Ukraine||142||0.75||Petrochemical industry|
|October 2021||Glusco Energy S.A. Glusco gas station network||Nisan Moiseev||Dimitrios Anifantakis||Greece||100||1||Retail trade|
|August 2021||People.ai||Oleg Roginsky||Mubadala Investment Co., Akkadian Ventures, ICONIQ Capital, Lightspeed Venture Partners||International||100||n/a||IT and telecommunications|
|November 2021||Depositphotos, Crello||Dmitry Sergeev, EBRD, TMT Investments||VistaPrint / Cimpress||U.S.||85||1||IT and telecommunications|
|February 2021||Creatio||Katerina Kostereva||Volition Capital, Horizon Capital||U.S.||68||n/a||IT and telecommunications|
|July 2021||Cascade Agro||Cascade Investment Fund (Vitaliy Khomutynnyk)||Alfa Capital Private Enterprise||Ukraine||60||1||Agriculture|
|November 2021||Bolshevik machine-building plant||State Property Fund of Ukraine||General Commerce Ltd (Oleksiy Baranov, Volodymyr Dolgopolov, Vasyl Khmelnitsky and Andriy Ivanov / AB Pillar Holdings Limited, Laram System Closed Non-diversified Venture Corporate Investment Fund)||Ukraine||53||1||Construction and real estate|
As reported earlier, there were only 17 mergers and acquisitions worth $3 billion in the steel industry in 2020, 50% down from 2019.
The most active participants in the industry concentration were Chinese companies that intensified M&A processes ahead of the completion of the next five-year plan.
For more details read the study on “M&A in the steel industry 2020–2021”.