PORTUGAL Law and Practice Contributed by: Diana Ribeiro Duarte, Pedro Capitão Barbosa and Catarina Almeida Andrade, Morais Leitão, Galvão Teles, Soares da Silva & Associados
Morais Leitão, Galvão Teles, Soares da Silva & Associados Rua Castilho, 165 1070-050 Lisbon Portugal
Tel: +351 213 817 400 Fax: +351 213 817 499 Email: mlgtslisboa@mlgts.pt Web: www.mlgts.pt
1. Transaction Activity 1.1 Private Equity Transactions and M&A Deals in General In the first half of 2024, the Portuguese M&A market tallied 244 completed transactions, with an aggregate deal value of approximately EUR4.04 billion according to TTR Data (covering the period from 1 January to 30 June 2025). This represents a 3% decline in transac - tion volume and a 12% decrease in capital deployed compared to the same period in 2024, which saw 252 deals totalling EUR4.6 billion. Regarding private equity activity, 35 private equity-backed transactions were announced in the first half of 2025, totalling an estimated EUR868 million. This reflects a decline in total deal value compared to the same period in 2024, although a direct year-on-year percentage compari - son was not provided in the source data. The most notable private equity deal in Portugal to date (where the company involved had some equity investors, including Tikehau Capital) is NOS’s acqui - sition of Claranet Portugal, valued at approximately EUR152 million, as reported by TTR Data in January 2025. This represents the highest‑value private equity- related transaction so far in 2025. 1.2 Market Activity and Impact of Macro- Economic Factors From a macroeconomic perspective, Portugal’s eco - nomic environment in 2025 mirrors broader interna - tional trends in advanced economies. Persistently ele - vated interest rates, which remain high despite recent
moderation by the European Central Bank (ECB), are continuing to dampen leveraged M&A and private equity deals, prompting a shift towards smaller, more strategic transactions and more cautious investor behaviour. Additionally, global geopolitical uncertain - ties (eg, supply chain disruptions, regional tensions) have further hindered and suppressed risk appetite, particularly in cross-border investments. From a domestic standpoint, regulatory and policy shifts continue to redirect investment flows. The end of real estate-related investments as an eligible path for Portuguese Golden Visa residency has notably reshaped capital allocation. In response, the market has seen the launch of new private equity and venture capital funds targeting Golden Visa investors, particu - larly those focused on technology, R&D, sustainabil - ity and innovation-driven sectors. Besides the Golden Visa scheme, the Portuguese private equity market continues to benefit from several other government- backed programmes, such as Programa Consolidar (attribution of EU COVID-19 recovery funds to sup - port ailing but financially viable businesses), Programa Venture Capital (attribution of EU COVID-19 recovery funds to invest in start-ups in priority sectors such as software, energy, climate and life sciences) and SIFIDE (tax break scheme available to investors of, inter alia, private equity funds that invest in R&D- focused companies), all having a positive impact and aimed towards, among other things, enhancement of the competitiveness and attractiveness of Portugal’s private equity market.
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