CROATIA Law and Practice Contributed by: Iva Basarić, Marija Gregorić and Matija Skender, Babic & Partners
Babić & Partners Trg Dražena Petrovića 3, 13th floor 10000 Zagreb Croatia
Tel: +385 1 3821 124 Fax: +385 1 3820 541
Email: office@babic-partners.hr Web: www.babic-partners.hr
1. Trends 1.1 M&A Market
The COVID-19 pandemic no longer affects the major - ity of industries and did not play an important role in distinguishing certain industries as being less interest - ing for investors.
After a significant decline in M&A activity in Croatia in 2023 and slow progress in 2024, in 2025 there was a more significant rebound and increase in volume of M&A deals. The market is also signalling a more active and dynamic 2026. Most acquisition opportunities seem to have existed in the tourism, food and beverage, healthcare and life sciences, and IT sectors, while a slight decline has been visible in the energy and industrial sector. Also, sustainability and ESG are starting to play an increas - ingly significant role in M&A in Croatia. 1.2 Key Trends Strategic investors remained an important force on the buyer side over the past year, while many of the exit - ing shareholders/sellers were local corporates rather than foreign investors leaving the Croatian market. Croatia continues to be attractive to foreign (interna - tional) investors and cross-border deals make up a large portion of the M&A activity. Private equity seems to continue steering the transaction work. 1.3 Key Industries IT, tourism, healthcare and life sciences have been at the forefront of M&A activity, with increased interest in the food and beverage industry, and real estate and infrastructure. A slight decline has been seen in inter - est in the energy sector, although renewables seem to continue to hold a strong position.
2. Overview of Regulatory Field 2.1 Acquiring a Company
In Croatia, M&A deals are most typically structured as share deals, with asset/business transfer deals being somewhat less frequent. Deal structuring is dependent on many factors, such as: • whether the company is listed or privately owned; • the size of the company; • whether financing is required to fund the acquisi - tion; and • whether regulatory approvals are required to close the transaction. Most frequently, private transactions (which form the most significant part of local M&A activity) will not be signed and closed on the same day, but rather there will be a particular period between the signing and closing (the duration of which is dependent on the complexity of the transaction) during which condi - tions precedent will need to be fulfilled (or ultimately waived, if waiver is possible). 2.2 Primary Regulators There is no singular regulator in charge of M&A activ - ity in Croatia.
359 CHAMBERS.COM
Powered by FlippingBook