Central and Eastern Europe attracted a record €42.5 billion in mergers and acquisitions in 2025, highlighting renewed investor confidence despite economic uncertainty stemming from the war in Ukraine, Germany’s slowdown, and global trade tensions. The surge in value came even as the number of deals fell by 9% to around 1,300, reflecting a shift toward larger, high-value transactions, according to a report by Forvis Mazars and Mergermarket.
The most notable deal was the €4.1 billion acquisition of Czech pharmaceutical group Zentiva by US fund GTCR, marking the largest foreign investment in the region in several years. Analysts said the decline in deal volume was largely due to external pressures, with Germany’s economic struggles prompting companies and funds to adopt a more selective approach. “Germany’s economic slowdown meant that investors were holding back. That spilled over into the central and northern parts of CEE,” said Andrija Garofulić, CEE co-lead and financial advisory partner at Forvis Mazars.
Foreign investors remain the backbone of M&A activity in the region, accounting for 43% of deals and 54% of transaction value in 2025. Most investors come from the US, UK, Germany, and France, although intra-regional investment is also increasing. Experts highlighted the region’s proximity to major EU markets, skilled workforce, lower operating costs, and regulatory stability as key drivers attracting global capital.
Poland, Austria, Romania, Lithuania, and the Czech Republic were the countries drawing the most attention. Poland, the region’s largest market, recorded a combined GDP exceeding $1 trillion for the first time in 2025, a milestone that has strengthened its global profile. Austria continues to serve as a strategic bridge between Western and Eastern Europe, while Romania’s fast-growing economy and Lithuania’s thriving technology and fintech sectors make them increasingly attractive. The Czech Republic remains a draw due to its established industrial base.
Sector trends showed that technology led in deal volume, with 20 investments focused on software, IT services, fintech, and digital infrastructure. In terms of value, financial services dominated, with transactions totaling €11.7 billion. The largest of these was the acquisition of a 49% stake in Santander Bank Polska by Erste Group for €6.8 billion.
Private equity, after several challenging years, is starting to recover. Between 2022 and 2024, firms struggled to exit previous investments, limiting their ability to attract new capital. Analysts noted that rising public spending and EU funding, combined with economic resilience, have contributed to a more positive investment climate. “Public spending is high, a lot of money is coming from EU funds, and the economy is doing well. The positive attitude of the market is one of the key elements because the money is available,” Garofulić said.
The report signals that despite external pressures, Central and Eastern Europe continues to offer a compelling gateway for global investors seeking access to European markets, particularly in high-growth sectors and countries with strong economic fundamentals.
