According to KPMG in Ukraine’s M&A Radar report for H1 2025, Ukrainian M&A market demonstrated growth in the first half of the year despite a backdrop of muted GDP growth expectations and persistent wartime disruption. Driven by domestic deal-making and strategic acquisitions both at home and abroad, both deal volume and value increased by 26% and 21%, respectively, highlighting the Ukrainian M&A market’s adaptability in the face of ongoing adversity.

“As a market, Ukraine is seeing a decisive shift toward domestic consolidation and targeted expansion, with landmark deals like Kyivstar-Uklon and MHP-Uvesa accounting for the majority of disclosed deal value in H1 2025. These transactions reflect a strategic focus on business expansion and integration , particularly in the tech and agri-food sectors. While inbound activity remains cautious, local champions are actively deploying capital to strengthen competitive positioning and build future-ready business models,” says Svitlana Shcherbatyuk, Head of Transaction Services, Deal Advisory, KPMG in Ukraine.

By the Numbers: A Market in Motion

Ukraine recorded 34 M&A deals in H1 2025 (versus 27 in the same period last year), with the total disclosed deal value rising to USD716 million compared to H1 2024. While only 50% of transactions disclosed financial details (down from 59% in H1 2024), the average transaction size climbed to USD42 million (up from USD37 million). Two notable deals drove this surge: MHP’s EUR270 million acquisition of Spanish poultry and pork producer Uvesa, and Kyivstar’s USD155 million acquisition of ride-hailing platform Uklon.

Domestic Deals Lead the Charge

Domestic M&A activity emerged as the primary M&A growth engine in H1 2025, accounting for more than half of total deal value (USD367 million across 25 transactions). While this represented a sharp increase from a 20% share in H1 2024, it should be noted that Kyivstar’s acquisition of Uklon alone contributed 42% of total domestic M&A value. Nonetheless, with deals spread across real estate, agriculture, innovation and tech, oil and gas, and consumer markets, Ukraine’s internal market continues to attract capital despite ongoing war risks.

Alongside Uklon, Kyivstar’s broader strategic pivot from telecom operator to digital ecosystem player has also gained traction, with the company looking to boost its eHealth portfolio by acquiring Helsi for USD10.5 million and eyeing a USD30–80 million deal for online pharmacy platform Tabletki.ua.

Outbound M&A: Europe Beckons

Outbound deal value in H1 2025 soared to USD329 million, driven almost entirely by MHP’s transformative Uvesa deal. While total outbound deal volume dropped (five transactions vs eight in H1 2024), Ukrainian corporations continue to demonstrate ambitious moves abroad in both Europe (USD319 million across four deals) and North America (in a single deal worth USD10 million).

MHP’s cross-border expansion into the EU, for example, offers a measure of security against moves on the part of the trading bloc to limit Ukrainian imports, signalling a strategic move by the Ukrainian agro-industrial holding to reposition itself as a key player in the European food market while maintaining its Ukrainian roots.

Inbound M&A: Pause or Reset?

Inbound M&A softened significantly in H1 2025, with only four deals recorded (down from six). Europe accounted for 50% of this inbound volume, while MEA and North America each saw one transaction.

Total inbound deal value also declined to USD20 million, lacking large-scale investments such as Creatio’s USD200 million funding round and NJJ Capital’s USD120 million Datagroup-Volia acquisition seen in H1 2024. That being said, M&A market activity is also subject to natural local fluctuations and tends to increase as the calendar year progresses. As such, KPMG’s next M&A Radar 2025 will be able to present more comprehensive overall understanding of the deal landscape once the full-year results are known.

In the meantime, deals in transportation, infrastructure, and banking may suggest renewed foreign interest in these strategic sectors, positioning them as ones to watch in H2 2025 and beyond. 

Sector Spotlight: Tech, Agri, and Real Estate Drive the Narrative

Tech accounted for 27% of all Ukrainian M&A activity by volume, despite a dip in total value to USD221 million (down from USD325 million in H1 2024). Kyivstar’s three major acquisitions defined this sector’s trajectory in H1 2025, focusing on digital integration and ecosystem building.

Ukraine’s agricultural sector remained a cornerstone of the market, representing nearly 50% of the total deal value and 21% of deal volume in the first half of 2025. On top of the aforementioned Uvesa deal, MHP also finalised its USD14.3 million acquisition of Croatia’s Toni d.o.o, reinforcing regional grain infrastructure.

The real estate and construction sector also saw an increase to seven deals worth USD95 million (from five deals and USD40 million in H1 2024), including City Capital Group’s high-profile acquisitions in central Kyiv and KSE’s USD18 million purchase of the Obolon Golf Club.

Beyond M&A: Green Energy, Glass, and Agricultural Infrastructure

Non-M&A investments have played a notable role in the overall investment landscape, particularly in power, utilities, and construction where reconstruction and hardening infrastructure against military threats has become a key concern. South Korea’s Posco committed USD106 million to a waste-fueled power plant in Odesa, while NovaSklo focused on building the country’s largest sheet glass plant with EUR240 million in funding and support from investment promotion office UkraineInvest.

Revised Growth Estimates Set Realistic Recovery Expectations

Ukraine’s macroeconomic outlook appears to be stabilising with the National Bank of Ukraine anticipating inflation slowing down close to 9% by year-end, approaching its 5% target in 2026 as a result of a tighter monetary policy (with the key rate recently raised to 15.5%) and the gradual easing of foreign exchange controls stimulating capital inflows. While GDP growth forecasts have been revised downward (down to between 2–3 % according to the IMF),  a positive Business Activity Expectations Index of 50.8 indicates a rebound in business sentiment and signals cautious optimism across key sectors.

International financial support, meanwhile, remains pivotal. The EU has already disbursed over EUR20 billion through the Ukraine Facility, with the UK and US also contributing significant capital through the Extraordinary Revenue Acceleration programme and the newly established and much-discussed joint Reconstruction Investment Fund (otherwise known as the US-Ukraine “minerals deal”). Closer to home, initiatives like the EU’s Ukraine European Investment Framework, the recently announced European Flagship Fund, and Ukraine’s own advances in practically implementing war risk insurance initiatives all continue to lay the financial groundwork for investment continuity and long-term recovery.

“Despite a challenging environment, the year-on-year growth seen in Ukraine’s M&A market is very welcome. The first half of this year has seen full implementation of initiatives from 2024 begin to bear fruit, with domestic companies seeking strategic acquisitions and a growing appetite for war risk insurance. As we explore the new developments from the Ukraine Recovery Conference in Rome, international support and foreign investment continue to help Ukraine maintain its course,” notes Svitlana Shcherbatyuk.

Source: https://inventure.com.ua/