As Ukraine continues to resist the Russian Federation’s invasion, its M&A market in 2024 demonstrates both resilience and adaptability. While the early months of the full-scale war in 2022 likely represented an all-time low for dealmaking, today’s landscape appears far more dynamic. Although reaching and surpassing pre-war levels of activity will take time, the market is showing clear signs of recovery.
Domestic Buyers and Outbound Ventures
Ukrainian buyers continue to make their mark across a range of sectors. Local businesses have proven impressively resilient. Rather than merely holding their ground, many are actively pursuing strategic acquisitions in energy, fuel retail, manufacturing, building materials, and agriculture, among other industries. Building on past trends, Ukrainian companies this year continue to look outward. Instead of waiting passively for foreign investment to return, several businesses are exploring opportunities in foreign markets, with Poland and Romania emerging as popular destinations. These outbound transactions serve as a pathway to sustainable business growth.
Global Defense Companies and Venture Capital: A Growing Footprint
Another positive development in 2024 is the arrival and expansion of large international defense companies into Ukraine. Global players such as Rheinmetall, KNDS, and Roshel are partnering with local defense firms to set up production and repair facilities. Although still cautious, these strategic moves signal the long-term potential they see in Ukraine’s manufacturing and defense infrastructure. Simultaneously, venture capital interest in the defense technology sector is on the rise. From autonomous systems, drones, and robotics to dual-use technologies, the scope of innovation is broadening. Among the pioneers in this space, MITS Capital, D3 Venture Capital, Green Flag Ventures, and Darkstar are actively investing in Ukrainian defense startups. Deals involving companies like Himera, Swarmer, and Zvook highlight a growing confidence in Ukraine’s ability to deliver technological solutions tailored to the complexities of modern warfare. These funds not only provide essential capital but also foster strategic connections that can help Ukrainian firms scale beyond their home market.
Telecommunications, Technology, and Real Estate
Several noteworthy deals have emerged in the telecommunications and real estate sectors. NJJ Holding, the investment firm owned by Xavier Niel, led a consortium on the acquisition of Datagroup-Volia, Ukraine’s leading fixed telecom and pay TV provider, and Lifecell, the third largest telecom operator in Ukraine. Horizon Capital played a major role in getting this deal done, while EBRD and IFC provided USD 435 million in financing for this transaction. Another significant deal is the USD 200 million investment raised by Creatio, a leading no-code platform for automating CRM and enterprise workflows. The round was led by Sapphire Ventures with existing investors Volition Capital and Horizon Capital also participating in the round. These investments show sustained interest in Ukraine’s digital and communication infrastructure.
In real estate, prominent deals – such as the acquisitions of Parus Business Center and Hotel Ukraine in Kyiv – reflect renewed confidence in the country’s core commercial assets. Similarly, the purchase of West Gate Logistic by the retail chain Avrora demonstrates a growing attention to logistics and supply chain resilience, which has gained particular importance in the current regional security climate. Finally, Dragon Capital acquired the Karavan Outlet shopping mall – the largest outlet destination in the capital – from DCH Investment Management.
Agriculture
The agricultural sector continues to show impressive endurance. Strategic acquisitions like MHP SE’s purchase of Ukrainian Meat Farm LLC indicate that businesses are investing not just to weather the storm but to strengthen their overall market positions.
Banking
In October 2024, TAS Group, led by Ukrainian businessman Serhiy Tihipko, agreed to acquire 100% of Idea Bank Ukraine from Poland’s Getin Holding for a base amount of USD 34 million, which might signal a renewal of M&A activity in the banking sector as well.
Conclusion
Looking ahead, we are cautiously optimistic. While the war has introduced an undeniable layer of complexity and difficulties, Ukraine’s M&A market in 2024 reveals a remarkable capacity for adaptation and renewal. Domestic companies, whether solidifying their presence at home or seeking opportunities abroad, are actively shaping the market’s trajectory. As stability improves, we anticipate a steady return of foreign strategic buyers, adding another dimension to Ukraine’s evolving M&A ecosystem. If these trends continue, Ukraine appears poised for a more vibrant and sustainable economic recovery once peace and stability are ultimately restored.
By Andriy Romanchuk, Partner, Avellum
This article was originally published in Issue 11.12 of the CEE Legal Matters Magazine. If you would like to receive a hard copy of the magazine, you can subscribe here.
