Contributed By CHSH Cerha Hempel Spiegelfeld Hlawati
After 2017, which proved to be a record-breaking year, the number and volume of deals with Austrian involvement is now declining. In 2018, there were 324 M&A transactions involving Austrian companies, compared to 345 in 2017. This corresponds to a 6.1% decrease in M&A transactions.
The transaction volume also fell from EUR14.7 billion in 2017 to EUR7.9 billion in 2018. In 2017, four M&A transactions involving Austrian companies exceeded the volume of EUR1 billion, whereas only two transactions exceeded this threshold in 2018.
In 2018, 38% or 123 of the 324 M&A transactions, compared to 132 transactions (38.3%) in 2017, were inbound M&A transactions, ie, where foreign investors sought to acquire Austrian targets or their shares. The number of outbound M&A transactions (where Austrian investors sought to acquire foreign targets or their shares) increased to 132 (40.7%) in 2018, up from 116 (33.6%) in 2017.
The volume of inbound transactions in 2018 amounted to EUR3.8 billion, compared to EUR6.8 billion in 2017. The top five inbound transactions in 2018 represented a volume of EUR3 billion, whereas in 2017 one transaction on its own (the takeover offer made by Vonovia regarding BUWOG) accounted for EUR5.6 billion. Austrian companies spent EUR3.2 billion on outbound transactions, with the top five outbound transactions accounting for a volume of EUR2.6 billion. By comparison, Austrian companies spent EUR4.5 billion on outbound transactions in 2017.
Domestic M&A transactions, where both the target and the buyer are Austrian, accounted for 21.3% or 69 out of 324 M&A transactions in 2018, compared to a total of 97 domestic transactions in 2017.