According to KPMG’s M&A Radar: Ukraine, the market recorded 45 deals with a total disclosed value of USD 806 million, marking a 22% increase in deal count and an 8% rise in value compared to the same period in 2024 (37 deals worth USD 746 million).

While transparency remains limited — only 53% of transactions disclosed their value — KPMG analysts note that the real market volume is likely higher, as many deals remain undisclosed. The trend reflects a steady recovery in local investment activity amid constrained foreign participation.

Key Transactions

Two major deals exceeding USD 100 million each accounted for 56% of total disclosed deal value:

• MHP, a leading Ukrainian agro-industrial holding, acquired 92% of Spanish poultry producer Grupo Uvesa in a deal valued at around EUR 270 million (USD 300 million).
• Kyivstar, Ukraine’s largest telecom operator, acquired ride-hailing and delivery platform Uklon for USD 155 million — the largest domestic tech transaction of the year.

Other notable deals included:

• City Capital Group acquiring the Leonardo Business Center and Univermag Ukraina mall (USD 70 million),
• Kyivstar purchasing Tabletki.ua (USD 30 million),
• Prato Golf Investments (led by Igor Mazepa) acquiring Beiken Energetika Ukraine (USD 25 million).

Local Investors Dominate

Ukrainian investors remained the backbone of the domestic M&A market, contributing USD 442 million in disclosed value — nearly double the figure of 2024 — and 73% of all transactions.

Most activity concentrated in technology and innovation (5 deals), real estate and construction (12 deals), and agriculture (6 deals), which together accounted for 85% of total deal value.

The Kyivstar–Uklon transaction underscored growing investor interest in Ukrainian tech, bolstered by a rebound in IT exports to USD 4.3 billion and record participation at the IT Arena 2025 startup event, which featured a USD 15 million investment fund.

Agriculture and Privatization Drive Activity

The agricultural sector continued to attract investment despite war and weather-related challenges. Ukraine’s 2025 grain harvest is projected at 51–56 million tons, on par with 2024 levels, while the sector benefits from EU import quota expansions and World Bank support.

Notable transactions included Vi.An Holding (owned by OKKO founder Vitaliy Antonov) acquiring two agribusinesses in Lviv region — Borshchivska Agro and Kairos Holding.

Privatization has also gained momentum: three auctions worth USD 29 million were announced in Q3, including the sale of Vinnytsiapobutkhim (a formerly sanctioned asset) for USD 15 million to Afina Group, owners of retail chains EVA and Varus. In October, Ukrbud was sold to Techno-Online for USD 19.5 million. Upcoming privatization targets include Odesa Port Plant and Motor-Detal Konotop.

Ukrainian Firms Expand Abroad

Outbound acquisitions by Ukrainian companies accounted for 40% of total market value (USD 329 million), spread across five transactions.
Highlights include:

• MHP’s acquisition of Grupo Uvesa (USD 300 million),
• Sigma Software Group buying US-based A Society Group (USD 10 million),
• Ciklum acquiring Poland’s GoSolve Group (USD 5 million),
• TechMagic acquiring Polish consultancy Hitteps (undisclosed).

This confirms that Ukrainian corporates are pursuing regional expansion despite domestic uncertainty.

Foreign Investors Remain Cautious

Foreign M&A activity in Ukraine slowed sharply — only 7 deals worth USD 35 million, down from USD 448 million in 2024. Most involved technology, transport, and logistics.

Among key deals was Medlog SA’s purchase of 50% in N’UNIT, an intermodal logistics operator, and 25% in the Mostyska rail terminal for USD 15 million.

Defense technology emerged as a new growth segment:

• Swarmer, a Ukrainian drone manufacturer, raised USD 15 million in a Series A round led by Broadband Capital Investments;
• Trypillian, a UK-Ukrainian defense tech firm, secured USD 5 million from a UK investor.

Analysts note growing investor interest in the defense sector thanks to initiatives like Defense Tech Valley and regulatory reforms on dual-use exports, though broader FDI remains constrained by war risk.

Macro and Outlook

Ukraine maintained macro-financial stability through USD 30.6 billion in international assistance during the first nine months of 2025, with another USD 8.7 billion pledged by year-end. Inflation eased to 11.9% in September, and the National Bank of Ukraine expects it to fall below 10% by year-end.

GDP growth is projected at 2.1% in 2025 (EBRD: 2.5%), supported by steady consumer demand, reconstruction programs, and improved business confidence — the NBU’s Business Expectations Index rose to 50.4 points in September.

KPMG analysts note that the Ukrainian M&A market in 2025 demonstrates resilience and structural adaptation: local investors remain active, outbound expansion accelerates, and selective foreign capital cautiously re-enters the market.

If current trends persist, Ukraine’s full-year M&A performance in 2025 will likely match or slightly exceed 2024 levels, reflecting the business community’s ability to operate — and grow — even amid wartime conditions.