CYPRUS Law and Practice Contributed by: Kyriacos Scordis, Sofia Tryfonos Avraam and Anna Borovska, Scordis, Papapetrou & Co LLC
Scordis, Papapetrou & Co LLC 30, Karpenisi Street 1077 Nicosia Cyprus
Tel: +357 22 843 000 Fax: +357 22 843 444
Email: info@scordispapapetrou.com Web: www.scordispapapetrou.com
1. Trends 1.1 M&A Market
the energy sector received a new impetus due to the shift by Europe and other countries away from Russian energy to alternative energy sup - pliers (or potential energy suppliers). As a result, the existing fields of hydrocarbons in the exclu - sive economic zone of Cyprus come under the spotlight, and, together with the ongoing explo - ration efforts by ExxonMobil, Total and ENI, significant international M&A opportunities are likely to emerge in the future. 1.2 Key Trends Top M&A activities in 2024 continued to revolve around banks, the tourist industry, real estate, renewable energy, telecommunications, technol - ogy and the health sector. The introduction of the new Long-Term Strat - egy for the Sustainable Development of Cyprus, prepared by the Economy and Competitive - ness Council with EU funding, proposes a new development model until 2035 which will render Cyprus as “one of the best places in the world to live, work and be active” . A green and digital transition is at the heart of the strategy, while the goal is to shape the economy in such a way that it is strong enough to absorb external shocks in the future and to strengthen emerging sectors, in which Cyprus has a comparative advantage and
While the deal-making pace of M&A activity both globally and in Cyprus had slowed down as a result of the war in Ukraine, Cyprus’s economy has been resilient to the effects of the war and it is has already seen very strong M&A growth. Notable transactions that developed in the course of 2024 include the acquisition of CNP Insurance by Hellenic Bank, and those that developed in 2024 with completion expected in 2025 are (i) the acquisition of a significant stake in Hellenic Bank (second largest bank in Cyprus) by Eurobank of Greece, building on this position over the year, with an expected complete takeo - ver and merger of Hellenic Bank with Eurobank’s Cyprus subsidiary at some point in 2025, and (ii) the acquisition of 100% of the Superhome DIY retail chain by a Greek investor. In addition, there are certain sectors that con - tinue to expand despite the current economic climate: amongst these are specific construc - tion and real estate segments, while M&A in rela - tion to tourism, financial services and the health services sector has continued to grow at an increased pace as buyers with long-term plans look for relevant opportunities. Investments in
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