czech Business Market Sees Billion-Euro Transactions Despite Fewer Deals
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This year, the Czech business market was marked by transactions in the order of billions of euros, led by the partnership of Daniel Křetínský’s Energy and Industrial Holding with the French state company TotalEnergies. A joint venture worth over ten billion euros will be created. A number of other large stores were also managed by Křetínský.
However, the second largest transaction was the sale of pharmaceutical group Zentiva worth over four billion euros, which was a deal between international investors.
“The Czech Republic is following the spirit of mega-transactions, both domestically by foreign investors and Czech investors abroad,” says Adam Páleníček, an expert on mergers and acquisitions at the consulting company KPMG.
This year, there will be a paradoxical situation on the market with companies. The total number of transactions will probably be lower than last year, but their total value will increase year-on-year, adds Páleníček.
The market was driven by transactions worth billions of euros
Other experts have a similar opinion. As of the beginning of December, according to information from the specialized server Merger Market, 103 deals were closed, while in the same period last year there were 115. For the whole of last year, 130 transactions with companies were concluded. “2025 will not reach the level of 2024. I do not believe that 27 transactions will be announced in the next three weeks to reach the same number as last year,” estimates Petr Dědeček, a partner at Deloitte Advisory.
Conversely, the volume of business with companies jumped significantly thanks to giant transactions.”In any case, the value will be significantly greater. Compared to 2024, more than double,” adds Jiří Hlaváč, partner of TPA Valuation & Advisory.Štěpán Flieger, head of mergers and acquisitions at the consulting company EY, evaluates this year in a similar way: “The year ending brought several really big transactions.”
The market with companies thus follows on from last year, when there was a recovery after a two-year slump caused by the war in Ukraine and the increase in the price of money on the market. Now investors’ appetite is returning, especially the biggest ones.
Market activity is slightly weaker for several reasons. “Currently, the corporate market is most affected by geopolitical uncertainty and economic stagnation in Germany, which in certain sectors also applies to the Czech Republic,” explains CEO of Patria Corporate Finance Marek Rehberger.
According to experts, the fact that from next year income from the sale of companies over forty million crowns will no longer be taxed can also play a role.
czech Billionaires’ Business Moves: A Year in Review
this year has been marked by significant activity from Czech billionaire-backed investment groups, spanning diverse sectors from telecommunications and energy to lotteries and financial services. Here’s a look at some of the most notable deals:
1. Energetický a průmyslový holding (EPH) Expands its Portfolio
Daniel Křetínský’s EPH continued its aggressive expansion strategy. the group finalized the acquisition of VNG, a German gas supplier, for an undisclosed sum.This move strengthens EPH’s position in the Central European energy market and provides greater control over gas supply chains. Furthermore,EPH increased its stake in the Czech gas pipeline operator Net4Gas.
2. Home Credit’s Strategic Shift
The Home Credit Group, controlled by Petr kellner’s PPF, is undergoing a strategic conversion. The group is focusing on streamlining its operations and reducing its presence in certain markets, while together investing in fintech solutions and digital banking platforms. This repositioning aims to enhance Home Credit’s competitiveness in the evolving financial landscape.
3. PPF Group’s Real Estate Focus
PPF Real Estate, a key component of the PPF Group, has been actively developing and acquiring real estate assets across Europe. Recent projects include large-scale residential developments in Germany and the expansion of its commercial property portfolio in Poland. The group is also exploring opportunities in the logistics and industrial real estate sectors.
4. Changes in PPF Ownership
In August, the shareholders of the PPF group – Renáta Kellnerová together with her daughters Anna Kellnerová, Lara kodl Kellnerová and Maria Isabella Kellnerová – concluded an agreement with Petr Kellner Jr. on the buyout of his ten percent minority stake in the PPF group. The group itself will buy back the shares from Kellner. It will acquire a total of 10.265 percent of its own shares, part of which it already took over in August. The deal is expected to be completed by the end of this year.
The information service Datasite states in its report, which it does in cooperation with Merger Market, the value of the transaction in the amount of 1.629 billion euros. In crowns, the amount is 39.6 billion.
5. Allwyn is expanding in the US
The Allwyn International lottery group from Karel Komárek’s KKCG empire went shopping in the USA. Allwyn will buy a roughly 62.3 percent stake in the American company PrizePicks for $1.6 billion (33.4 billion crowns).
The transaction values the entire company at $2.5 billion. It is a company that runs so-called daily fantasy sports. It is the North American market leader in this area. If the company does well and meets the tent targets, the purchase price can increase significantly, which would than value the company at $4.15 billion. “this is a significant European investment and allwyn’s largest investment ever in the United States,” commented Robert Chvátal, CEO of Allwyn.
6. Investments in the German energy industry
The investment group ResInvest Group carried out a large transaction in Germany. It bought the Datteln 4 coal-fired power plant from the German energy giant Uniper for one billion euros (over 24 billion crowns). The German energy firm, nationalized during the energy crisis in 2022, had to dispose of the one gigawatt plant as part of the government’s rescue plan.
Behind the ResInvest group is Tomáš Novotný, former manager of Daniel Křetínský’s Energy and Industrial Holding. The Novotné group is very active in the energy sector, such as last year it acquired four coal resources in Germany and the Netherlands from the American company Riverstone Energy. Their combined output is 1,650 megawatts, which is almost half the output of the coal-fired power plants that the ČEZ Group has in the Czech Republic.
7. Telecommunications morning in Serbia
The first joint investment of the PPF Group and the Emirates Telecommunications Group Company through the company E& PPF Telecom Group took place in Serbia. For 825 million euros (roughly twenty billion crowns), E& PPF comp
Major Czech and Slovak Investment Deals of 2024
Here’s a recap of significant investment and acquisition activity involving Czech and Slovak companies in 2024:
9. J&T Arch Investments Acquires Stake in allwyn International
J&T Arch Investments, the largest fund in the Czech and slovak markets, purchased a 4.27% stake in Allwyn International,the lottery group owned by KKCG,the investment group of billionaire Karel Komárek. The investment totaled approximately €500 million (CZK 12.1 billion), valuing Allwyn International at €11.2 billion.https://www.reuters.com/business/jt-arch-investments-buy-427-stake-allwyn-international-2024-01-18/ Štěpán Flieger, head of mergers and acquisitions at EY, commented that the deal exemplifies Czech capital supporting the growth of globally-reaching companies.
Allwyn International is currently pursuing a merger with Greek betting company OPAP, in which it already holds a 51.78% stake. Following the merger, the combined entity intends to list its shares on a major international stock exchange. Allwyn operates in Austria, the Czech Republic, Greece, Cyprus, Italy, Grate Britain, and the United States. https://allwyn.co.uk/news/allwyn-and-opap-agree-merger-terms/
10. Daniel Křetínský’s EP Equity Investment Acquires Aures Holdings
In mid-December, daniel Křetínský’s EP Equity Investment group completed the acquisition of Aures Holdings, the operator of the AAA Auto and Mototechna car dealerships. The seller was Abris Capital partners, which had invested in Aures Holdings since 2014. https://ep-equity.cz/en/news/ep-equity-investment-acquires-aures-holdings/
While the transaction price was not publicly disclosed, estimates suggest an enterprise value of around CZK 12 billion, approximately seven times the company’s 2024 EBITDA. Aures Holdings sells approximately 110,000 used cars annually and operates over seventy locations across four countries. https://www.moorerczech.com/en/news/ep-equity-investment-acquires-aures-holdings/
11. Colt CZ Group to acquire Nitrocellulose Producer for CZK 22 Billion
Colt CZ group agreed to acquire a producer of energetic nitrocellulose, a crucial component in gunpowder and ammunition production, in a deal valued at CZK 22 billion (including debt). The acquisition will be financed through a combination of cash and the issuance of new colt CZ shares, representing approximately 40% of the purchase price. https://www.colt.cz/en/investors/news/colt-cz-group-to-acquire-nitrocellulose-producer/ This acquisition secures a vital raw material supply for Colt CZ’s ammunition manufacturing operations.
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