An IMGlobalWealth.com News Report
Central and Eastern Europe is increasingly emerging as one of the continent’s most compelling investment frontiers. In 2025, mergers and acquisitions (M&A) across the region reached a record €42.5 billion, reflecting a surge of investor interest despite geopolitical tensions and economic uncertainty elsewhere in Europe.
The headline figure marks a 36 percent increase in deal value compared with the previous year, even though the total number of transactions declined by about 9 percent to roughly 1,300.
“The region may no longer be the periphery—it is fast becoming Europe’s next investment core”
The shift suggests a market increasingly dominated by larger, more strategic deals rather than a proliferation of smaller transactions. One standout example was the €4.1 billion acquisition of Czech pharmaceutical group Zentiva by the US investment fund GTCR, one of the largest foreign investments in the region in recent years.
A gateway economyForeign capital continues to play a decisive role in the region’s investment landscape. External investors accounted for 43 percent of deals and 54 percent of their total value, highlighting the region’s appeal to global buyers. By comparison, foreign investors represent less than one-fifth of transactions in North America’s M&A market.
Much of the investment originates from the United States, the United Kingdom, Germany and France. Yet regional capital is also beginning to play a greater role, signalling a maturing market with deeper local financial ecosystems.
Several structural factors underpin this momentum. Central and Eastern Europe offers lower operating costs, a highly skilled workforce and access to the European Union’s vast consumer market of around 500 million people.
Combined with improving infrastructure and growing digitalisation, these advantages make the region an attractive base for manufacturing, technology and financial services.
Where the money is going
Technology attracted the largest number of deals in 2025, particularly in software, fintech and digital infrastructure.
However, in terms of value, financial services dominated, reaching €11.7 billion in transactions. The largest single deal was Erste Group’s €6.8 billion acquisition of a 49 per cent stake in Santander Bank Polska. Certain countries stand out as investment magnets.
Poland, now boasting a combined GDP exceeding $1 trillion, has emerged as the region’s economic heavyweight. Meanwhile, Romania’s rapid growth, Lithuania’s thriving fintech sector, and Austria’s role as a bridge between Western and Eastern Europe continue to draw international interest.
A cautiously optimistic outlook
Despite the ongoing war in Ukraine and a slowing German economy, the outlook remains moderately positive.
Analysts point to robust public spending, continued EU funding and an improving economic climate as reasons for sustained investor confidence.
For global capital seeking growth within Europe, Central and Eastern Europe increasingly offers something rare in mature markets: scale, proximity to major consumers and the promise of expansion. The region may no longer be the periphery, it is fast becoming Europe’s next investment core.
