EU Trends and Developments Contributed by: Vedran Obradović, Andrei Demian and Karoline Zehetmayer, LeitnerLaw Rechtsanwälte
tion certainty, even as mid-market transactions pro - gressed more slowly. Cross-border activity remained structurally important in CEE, accounting for a significant share of total deal value. Investors from the US, UK and Germany were particularly active, while Austria emerged as a key investor base, underlining its role as a regional hub for growth and consolidation. Austria itself offers a useful “micro-case” of the broad - er European pattern: 2025 saw fewer deals by count but a sharp rise in aggregate disclosed value, driven heavily by a small number of mega-deals (first and foremost Erste Group’s acquisition of a 49% stake in Santander Bank Polska). Sector performance and key industries Sector activity in 2025 was characterised by a con - centration of deal value in a limited number of strategi - cally relevant industries, in particular energy and infra - structure, as well as technology-driven businesses. Energy and infrastructure stood out as key sectors by deal value, with an increasing focus on integrated platforms and system-level assets. Transactions were often driven by the need to enhance energy security, strengthen supply chains and achieve greater scale and stability in a more volatile environment. This reflects a broader shift from standalone asset acqui - sitions toward more comprehensive, long-term stra - tegic investments. Technology remained a central driver of M&A activity, increasingly acting as a cross-sector enabler. Buy - ers focused on acquiring software, data capabilities and AI-driven solutions to improve efficiency, auto - mation and competitiveness across traditional indus - tries, including industrials and financial services. As a result, technology-related elements became embed - ded across a wide range of transactions rather than being limited to the tech sector. Other sectors, including financial services and indus - trials, saw more selective activity, primarily driven by consolidation, digital transformation and operational efficiency. Consumer and retail remained more sub -
dued, with larger transactions limited to scalable plat - forms and businesses with resilient operating models. Global M&A Comparison: Europe vs the Americas and Asia-Pacific Compared with the Americas and Asia-Pacific, Europe’s M&A market occupied a middle position in 2025. The Americas, led by the United States, remained the clear leader in deal value, supported by deep capital markets, a high concentration of mega - deals and strong momentum in technology-driven transactions. In contrast, Asia-Pacific showed a more uneven picture, with mixed performance across key markets despite continued activity in selected econo - mies. Europe operated under tighter financial and regulatory constraints than the Americas but offered greater sta - bility than the Asian-Pacific market. Dealmaking was influenced by macroeconomic uncertainty, higher financing costs and increasing regulatory require - ments. Nevertheless, transactions continued where buyers had a clear investment thesis and access to capital. In contrast to the Americas, where domestic scale and capital availability supported large trans - actions, European M&A was more often shaped by cross-border execution, sector consolidation and long-term portfolio repositioning. Sector trends further underline this positioning. In the Americas, technology-driven and large-cap transac - tions dominated activity, often linked to AI, digital infrastructure and platform expansion. In Europe, dealmaking was more closely aligned with energy, infrastructure, financial services and industrial trans - formation, reflecting structural priorities such as energy security and supply chain resilience. Overall, Europe in 2025 was neither the largest nor the fast - est-growing M&A market, but it remained strategically relevant, characterised by disciplined dealmaking, cross-border complexity and a strong focus on long- term value creation. Deal dynamics, structuring and execution A defining feature of M&A processes in 2025 was continued uncertainty around valuation. Even where buyers and sellers aligned on the strategic rationale, differences remained over recovery timelines, margin
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