PwC: Greek Mergers and Acquisitions Increased in 2018

Greek companies attracted a total capital of 5.5 billion euros in 2018, according to a report on “Deals in Greece” published by financial advisor PwC.

More specifically, according to the report focusing on the “new era following the completion of the Greek banks’ divestment plans”, the number of M&A (mergers and acquisitions) transactions increased by 31 percent in 2018, with the average deal size up by 27 million euros compared to 2017.

A total of five M&As amounting to 3.8 billion euros were completed in 2018, against to 39 valued at 1.9 billion euros in 2017.

The five largest deals came to 1.8 billion euros.

According to PwC, the number of M&A deals rose significantly with their total value almost doubling. At the same time, there was a shift from micro deals (under 10 million euros) towards higher value transactions, mainly medium-sized (50 million to 100 million euros). More specifically, 13 (from nine in 2017) transactions between 10 million and 50 million euros were completed in 2018, and 17 (from three in 2017) in the 50 million to 100 million-euro value category.

Meanwhile, the value of corporate bonds issued by Greek companies came to 635 millions euros, with privatization proceeds reaching 1 billion euros and the size of deals at 75 million euros on average.

Source: PwC

Proceeds from privatizations in 2018 deviated from the 2.7 billion euro target of the state budget. Indicatively, privatizations generated a total of 5.8 billion euros in revenue in the 2011-2018 period, 4.6 billion euros of which were generated in four years alone – namely in 2011, 2013, 2017 and 2018.

For 2019, and based on agreements already in place, PwC analysts estimate the value of acquisitions and mergers to exceed 2 billion euros with privatizations expected to generate an additional 2.6 billion euros.