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Poland is Looking Forward to a Busy Autumn: A Buzz Interview with Marcin Schulz of Linklaters

Poland is Looking Forward to a Busy Autumn: A Buzz Interview with Marcin Schulz of Linklaters

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Despite the holiday season traditionally being slow, this year has been unusually busy, according to Linklaters National Managing Partner Marcin Schulz, both with notable deals underway and a strong pipeline of anticipated M&A work post-summer.

"The holiday period, which is usually a slow time, hasn’t been that way for years – we've been very busy," Schulz points out. "However, the situation is a bit tricky and unusual, with many transactions being put on hold by sellers waiting for better valuations."

Schulz observes that "in the post-COVID era, concerns about global uncertainty – regarding the US, Taiwan, and Ukraine – have made things challenging." Still, he notes that a lot of transactions are still progressing. "From our perspective, the busiest sectors have been financial services, logistics, renewables (including offshore), IT/Tech, and industrials. A transaction that stands out in the financial services space is the acquisition by Cerberus of VeloBank in Poland. Not less attention has been attracted by the pioneering non-recourse green financing of the Baltic Power offshore wind farm, which is the first offshore wind farm to reach financial close in Poland."

Schulz adds that "the TMT sector seems to be doing pretty well, too, with the successful completion of the investment by APG in the FTTH business of Orange being followed by the InfraVia Capital Partners' investment in the FTTH business of UPC/Play or the discussions around the tower businesses in Poland and the wider region. There's a lot of activity in the telecoms sector."

Schulz believes that the autumn season will be particularly busy: "We anticipate new M&A work to commence after the summer vacations, particularly in offshore. We expect the permit holders for offshore projects in the Baltics to be seeking co-investors, likely attracting a strong group of bidders. Additionally, there’s significant activity in the renewables sector, especially in Poland and Romania, where we have been heavily involved. The focus is shifting from wind farms to photovoltaic projects, with discussions on innovative solutions like rooftop installations." He adds that "the key players in the financial services space haven’t had their last word yet, either. Consolidation is anticipated in the banking sector currently fragmented to an extent higher than seen in other jurisdictions."

Another interesting sector, according to Schulz, is real estate. "Although real estate activity across Europe is down slightly, we're staying busy. There are still transactions in this space and the level of business is picking up again. One notable transaction worth mentioning in this context is Signal Capital Partners, Griffin Capital Partners, and Echo Investment's joint venture to develop a student housing platform in Poland. Also, the demand for real estate financing is increasing, and financiers are showing renewed interest in the sector."

Additionally, "after a brief slowdown following the elections last October, state treasury companies now seem to have resumed their investment activities, following recent appointments to their governing bodies," Schulz stresses. He also draws attention to the increased interest of authorities in consumer rights protection in Poland, reporting on "a growing number of inquiries from the Polish antitrust watchdog regarding consumer rights."

"In terms of legislation, we're receiving numerous inquiries about whistleblowing regulations," Schulz continues. "Additionally, the AI Act, which has been in development for many months, will enter into force on August 1, 2024. This is a significant development for companies across all sectors, and we expect this regulation will have a similar impact to how GDPR has revolutionized data protection."

"Overall, I'm really optimistic about the outlook," he says in conclusion. "While we don’t know exactly what will happen, I’m genuinely looking forward to what’s next."