Record Value of Corporate Acquisitions in Hungary

The total value of corporate mergers and acquisitions (M&A) in Hungary rose to a record high last year, with 110 transactions worth an estimated USD 9 billion. The number of deals was virtually stagnant compared to the previous year, but their estimated total value set a record with an increase of almost 40 percentage points over the period 2010-2024, according to a report published by EY-Parthenon on Wednesday.

According to the statement sent to MTI, the outstanding performance is due to a number of so-called mega-deals with a significantly higher value than the average.

The most attractive target sector in 2024 was manufacturing, with 14 deals closed. In IT, which was relegated to second place last year, a total of 11 deals were disclosed, a significant drop from the 18 deals announced in 2023. These were followed by energy and logistics with 8-8 deals, they said.

Péter Vaszari, Partner in EY-Parthenon's Strategy and Transaction Advisory practice, said in a statement that the record high value growth was accelerated by highly active strategic investors and financial investors returning to the market in increasing numbers.

The share of transactions to Hungary fell from 41% to 34% last year, while the share of domestic transactions shot up from 30% to 48%.

Among the most active investors in the domestic market are Romania, the UK, the US, Sweden and Germany. The number of Hungarian working capital investments abroad has declined in parallel: while in 2023 foreign investment accounted for 29% of all transactions, in 2024 it was only 18%. In this period, the Czech Republic and Germany were the two most popular destinations for Hungarian firms.