NBU's currency control complicates intl transactions, inhibits M&A – opinion
The currency control of the National Bank of Ukraine (NBU) complicates international transactions and inhibits M&A, noted the participants of the M&A panel at the second Ukrainian PE & VC Summit in Warsaw.
"The participants discussed the current challenges of the Ukrainian M&A market: currency controls hold capital hostage and complicate international deals, the domestic M&A market is active, but closing deals in hryvnia is still not easy. The average term for concluding a deal has increased from one to two to three years," the information from the investment company umgi of the SCM group states, citing umgi's Chief Investment Officer Nadia Kaznacheyeva, who was a speaker at the event.
According to her, the geographical expansion of Ukrainian companies continues, although financing and securing deals remain difficult. At the same time, strategic investors are cautious - predictability is needed to regain interest.
"Forecast for 2025: activity is expected to increase in agro, IT, energy, logistics, infrastructure and, possibly, in miltech. Industrial minerals are an important asset for the country's recovery. Despite all the difficulties, the market is gradually coming to life," according to the information.
umgi is an investment company focused on developing businesses in the raw materials and processing sectors. Founded in 2006 by the SKM group. Investment focus: mineral extraction; management of by-products and production waste; production of industrial goods and services. The total value of portfolio companies is estimated at over $500 million.