Analytics, Latvia, Markets and Companies, Mergers and take-overs

Unlike in 2015 when activity on the Latvian M&A market was relatively even throughout the year, in 2016 activity started to increase only in the spring. Although details of the transactions were often kept secret, the deal in which Uniper Ruhrgas International sold its shares in Latvijas Gaze natural gas utility to Marguerite Fund became the most expensive transaction of last year. The value of this deal might be an estimated EUR 115-220 mln, Murinus Adviser analyst Dans Jurcans said.

The analyst said that the highest M&A activity was recorded in three sectors – health, property management and energy. In the health sector, Olainfarm pharmaceutical company purchased four enterprises, in the property management sector two large Lithuanian players purchased four Latvian companies and in the energy sector several other deals took place in addition to the sale of Latvijas Gaze shares.

According to the Murinus Advisers analyst, companies in Latvia busily expanded their operations last year, buying businesses in foreign countries, and foreign investors concluded a number of significant transactions in Latvia.

Two significant deals involving Latvian companies were concluded outside Latvia last year. Russia’s Flint Capital bought an unidentified investor’s stake in Creamfinance consumer loan provider, increasing its investment in the company to EUR 6 miln., and Valmieras Stikla Skiedra fiberglass maker sold a 33% stake in its U.S. subsidiary Valmiera Glass USA Corp to Germany’s P-D Management Industries-Technologies for about EUR 1.2 mln.

The Murinus Advisers report also notes the announced merger of the Baltic businesses of Nordea and DNB, which is scheduled for conclusion in 2017.

Murinus Advisers drew up its report based on publicly available information and financial reports. It covers M&A deals announced in Latvia in 2016 and includes more extensive descriptions of the 20 most important and interesting deals.