Market Insights Financial Corporate Finance

Mergers and Acquisitions - Central Asia

Central Asia

The transaction value in the Mergers and Acquisitions market is projected to reach US$1.22bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of -32.79% resulting in a projected total amount of US$0.82bn by 2025.
The average transaction value in the Mergers and Acquisitions market amounts to US$48.57m in 2024.
From a global comparison perspective, it is shown that the highest transaction value is reached in the United States (US$1,359.00bn in 2024).

Market

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Analyst Opinion

The Mergers and Acquisitions market in Central Asia is experiencing a steady growth trajectory driven by several key factors.

Customer preferences: In Central Asia, customers are increasingly looking for strategic acquisitions that can provide them with access to new markets, technologies, and talent. This trend aligns with the global market where companies are seeking to expand their reach and capabilities through M&A activities.

Trends in the market: Taking Kazakhstan as an example, the country has seen a rise in cross-border acquisitions, particularly in the energy and natural resources sectors. This trend can be attributed to the country's abundant natural resources and its strategic location as a gateway between Europe and Asia. Additionally, there is a growing interest in technology and digital companies, reflecting the broader global shift towards digitalization and innovation.

Local special circumstances: One of the unique aspects of the M&A market in Central Asia is the influence of government policies and regulations. In countries like Uzbekistan, where economic reforms are opening up new opportunities for foreign investment, there is a surge in M&A activities across various sectors. However, political stability and regulatory transparency remain crucial factors influencing deal-making in the region.

Underlying macroeconomic factors: The macroeconomic landscape in Central Asia, including factors such as GDP growth, inflation rates, and foreign direct investment, plays a significant role in shaping the M&A market. For instance, in countries like Kyrgyzstan, where economic stability is a concern, M&A activities may be more subdued compared to other more stable economies in the region. Additionally, currency exchange rates and geopolitical developments can also impact the attractiveness of M&A deals in Central Asia.

Methodology

Data coverage:

Figures are based on the revenue generated by the Investment Banking market, as well as the transaction value, the number of transactions, and the average transactions size of the Mergers and Acquisitions (M&As) and Initial Public Offerings (IPOs) markets.

Modeling approach / Market size:

Market sizes are determined by a bottom-up approach and are based on a specific rationale for each market. As a basis for evaluating markets, we use market research and analysis, as well as data from annual financial reports. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus, such as GDP, wealth per capita, and total investment (% of GDP). This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita and total investment (% of GDP).

Additional Notes:

The market is updated twice per year in the event that market dynamics change.