Latest developments in Emerging Europe: IT, Energy, Pet Food, Retail, M&A

The FRD Center has been monitoring the latest developments in Emerging Europe: IT, Energy, Pet Food, Retail, M&A. Here are some examples.

Here is where you can consult the FRD Center Business Blog posting: https://market-entry-romania.blogspot.com/2024/09/latest-developments-in-emerging-europe.html

Why expand to Emerging Europe? It is a gateway to both the EU and Eastern European markets. What are the countries in Emerging Europe? What are the?Emerging Europe Opportunities?

Romania is a shining example of a top emerging market in the EU region, offering many advantages for investors looking to capitalize on this thriving economy. Characterised by rapid development, advanced IT infrastructure, and best value operating cost, Romania is a strong NATO member for over 20 years.

ROMANIA

Romania is an enticing European emerging market offering interesting investment opportunities to the foreign players looking to expand to Europe.

Alchemy, the developer platform that empowers companies to build scalable and reliable decentralized applications without the hassle of managing blockchain infrastructure in-house, has acquired Bware Labs, a Romanian provider of blockchain infrastructure and API services.?

According to Alchemy, acquiring Romania-based Bware Labs provides a path towards Alchemy’s expansion into Europe. The company’s presence in Europe, which leads in the overall regulation of crypto via its MiCA rules, also offers the pathway to expand into other markets. Nikil Viswanathan Joseph Lau

How to reach out to the Decision Makers in the Romanian software and IT sector and discuss a strategic partnership??

More details in the Business Blog article by FRD Center at the link?https://market-entry-romania.blogspot.com/2022/06/how-to-reach-out-to-decision-makers-in.html?

Are you looking to acquire a relevant local player operating in the software solutions development field in Romania or Eastern Europe? Perhaps the FRD Center team can be of assistance to you. Contact us at email [email protected]

The IT and software development sector in Romania is world renowned as a strong, resourceful and dynamic one. The IT and communications industry in Romania reached a turnover of EUR 20 billion in 2022, and the number of employees in the sector increased continuously, with a peak in 2022. The total impact of the IT sector in the Romanian GDP was 14.2% in 2021.

FRD Center Market Entry Services (Emerging Markets in Europe: Romania, Poland, Hungary etc.) is happy to report that the attractiveness of Romania as an investment destination for foreign companies increased in 2024 compared to other locations in Central and Eastern Europe, a trend confirmed by the increase in the volume of foreign direct investments compared to the first part of 2023, but also by the sentiment of foreign investors, in the international geopolitical context, of the reconfiguration of supply chains, respectively of a stable local environment, according to the conclusions of the MIRSANU INVESTORS SUMMIT event Adrian Mirsanu

CZECHIA

The Czech Republic is one of the most successful transition economies in terms of attracting foreign direct investment. More details at the link?https://www.czechinvest.org/en/For-Investors/Reasons-to-invest

Foreign players which decide to invest in Czechia will benefit from central geographic location, economic and political stability, high level of industrialisation, advanced digitalisation, reasonable costs and educated workforce.?

At the same time, there are numerous Czech companies which are expanding overseas, many through M&A. Here is an example:

Czech company Vafo, specialized in premium food for dogs and cats, has acquired a majority stake in PetCo Group, a company founded ten years ago by Katharina and Stefan Miklauz in Vienna, Austria. Minh Dung Pham Pavel Bouska Jan Brejcha

Last year, Vafo Group strengthened its presence on the Swedish market through the acquisition of the majority in the company Lupus Foder, which had an annual turnover of around 130 million Swedish crowns and it was a producer of fodder under the Four Friends brand.

As it results from the FRD Center analysis, pet food in Emerging Europe is a sector of considerable interest for crossborder M&A.

POLAND

Poland is one of the preferred locations in Europe for foreign investments. The country has?a stable economy, with a well-established macroeconomic position. These unique conditions for starting and running a business are further supported by repeatedly proven resistance to economic crises.

Poland has a large internal market of over 38 million consumers and easy access to the European Union market, which has 500 million consumers, as well as the other countries of Eastern Europe - all this creates a favourable environment which thousands of investors have taken advantage of.

In August, the Swiss smart data capture firm Scandit acquired Polish image recognition and AI software company MarketLab to boost its retail shelf intelligence capabilities.

AI is the key technology of the 21st century. It is a huge opportunity and has enormous potential, for example in education, research and business. Samuel Mueller Scandit

Innova Capital, the independent private equity firm established in 1994 in Poland and covering CE Europe, has acquired a controlling stake in the Polish educational on-line platform, Tutore.?

This investment aims to enhance Tutore's growth and expand its market presence. The platform, which offers a range of educational services, will benefit from Innova Capital’s resources and expertise to further develop its offerings and reach. Steven Buckley Robert Conn ?ukasz Cyran Innova Capital

Are you looking for customised strategic business introductions to Decision Makers in the Polish market and other markets in the Emerging Europe region? Contact the FRD Center team by email at [email protected] with your specific demand for B2B connections, for tailored market intelligence and sector analysis.

BULGARIA

Did you know that Bulgaria has the highest share of ICT professionals in the European Union – 29.1%?

According to Intelligence Online, the discreet Greek businessman Dimitrios Dotsios, a former member of Barton's Family Capital, has teamed up with the American consulting giant McKinsey in his bid to buy the Lukoil Neftohim - the largest petrochemical plant in Southeastern Europe.

Solar production has increased by 141% in Bulgaria in 2023. A German investor has shown interest in investing one billion euro into a floating photovoltaic power plant.?

Three companies have been awarded contracts to build the 229 MW St. George solar park in Silistra, northeastern Bulgaria. The contracts were awarded to Eastern Europe-focused renewable energy EPC contractor Solarpro Holding , Bulgaria's Green Solar Energy, and clean energy solutions firm CMC Europe, a subsidiary of China National Machinery Import & Export Corporation (CMC). Krasen Mateev

Bulgaria received 1.2 billion Euro from the EU Just Transition Fund and is set to receive a total of 5.7 billion Euros in grants out of the EU’s Recovery and Resilience Facility.

How to identify targets for acquisition in Bulgaria and approach their Owners / Decision Makers? For over 23 years, FRD Center consultants assist the Foreign Buyers with Target Origination and Investment Project Sourcing in Emerging Europe. Upon demand we search & select the appropriate local players and contact their Decision Makers on behalf of our Clients, the Foreign Buyers.

For more details email us at [email protected]

HUNGARY

As a member of the European Union, Hungary offers access to a market of 250 million people within a 1000km radius, while the EU common market more than 500 million people.

Hungary is situated in the heart of Europe, which makes the country optimal for manufacturing, services and logistics. Hungary is the ideal base for investors who are planning business developments, including those coming from distant countries and wishing to seize European markets. Key reasons to invest in Hungary

• Ideal geographical position in the centre of Europe for manufacturing, services and logistics
• Excellent infrastructure, ready-made industrial sites, offices and science parks
• Good balance of labour costs and quality
• Governmental incentives (cash subsidy, tax allowance)
• Investment friendly economic policy
• Competitive tax system

Here is one recent example of a successful Hungarian company that FRD Center has identified:

Gloster is an investor focused IT-specialist listed on the Budapest Stock Exchange. Over its more than 20-year history, the company has evolved from a hardware-focused garage startup to a software-centric international mid-sized enterprise. Its founder, one of its owners, and the chairman of the board of directors is Viktor Szekeres, MBA Gloster Infokommunikációs Nyrt. Zoltan Megyesi Gloster Networks Kft.

The increasing reliance on AI technologies is expected to drive demand for Gloster’s software solutions, providing a significant growth opportunity across various sectors. Gloster’s international growth strategy focuses on the United Kingdom, Germany, Austria, Switzerland and the Nordics.? Gloster aims to acquire further stakes in its subsidiaries, increasing its holdings in Minero to 70% and in P92 to 94%.?

How about green energy developments in Hungary?

The BMW's solar plant under construction in Eastern Hungary will be the largest in Hungary as well as the largest owned by the automotive group. When finalised, thanks to this facility, Hungary would gain a “global leading position” in the green economy. The solar park constructed by BMW Manufacturing Hungary, is a photovoltaic system to occupy an area equalling 71 football fields.

Are you looking to acquire a relevant local company in Hungary or Eastern Europe? Perhaps the FRD Center Market Entry Services (Emerging Markets in Europe: Romania, Poland, Hungary etc.) team can be of assistance to you. Contact us at email [email protected]

REGIONAL

What are the multi-country market expansion activities in Emerging Europe??

Headquartered in Athens and boasting a successful history of over 70 years, Fourlis Group is a dynamic force in the retail sector in Southeast Europe. By 2025, the group will acquire Foot Locker’s three stores and e-commerce operations in Greece, as well as its three stores in Romania. Additionally, Fourlis is entering into licensing agreements with Foot Locker to open stores in the South Eastern European region, namely in Bulgaria, Cyprus, Slovenia, Croatia, Bosnia and Herzegovina, and Montenegro.?

Fourlis Group specialize in Retail Home Furnishings, through their franchise of IKEA stores, Retail Sporting Goods, as an exclusive licensee of INTERSPORT trademark, and most recently Retail Health & Wellness, through our franchise of HOLLAND & BARRETT stores. Tessy Latsou Dimitris Valachis FOURLIS Group of Companies

Are you looking to acquire a relevant local company in South Eastern Europe? Perhaps the FRD Center team can be of assistance to you. Contact us at email [email protected]

For over 23 years, FRD Center consultants assist the Foreign Buyers with Target Origination and Deal Sourcing, upon demand, in Romania and the region, regardless of the sector or industry.

How about the Energy Sector in Emerging Europe?

As reported by Energynomics, the National Romanian Electric Energy Transport Company Transelectrica and transmission system operators (OTS) Georgian State Electroystems (Georgia), AzerEnerji (Azerbaijan) and MVM Electrical Works (Hungary) signed the shareholders’ agreement of the project company (of Joint Venture type) “Green Energy Corridor Power Company”, based in Romania.?

This company will aim to implement the Green Energy Corridor project, namely a direct current high voltage submarine cable, which will connect, through the Black Sea, Romania and Georgia, the connection being extended in Hungary and Azerbaijan. The Green Energy Corridor is an essential project through which Romania will become a pillar of energy stability and security in the region. Bogdan Tudorache Gabriel Avacaritei Energynomics

Why expand to Emerging Europe? It is a gateway to both the EU and Eastern European markets.

Are you looking to expand on the Romanian and other Emerging European markets through strategic business partnerships? Here are the latest opportunities from FRD Center:?https://market-entry-romania.blogspot.com/

Upon demand, FRD Center Market Entry Services (Emerging Markets in Europe: Romania, Poland, Hungary etc.) identifies and selects the local players according to the Client’s criteria and provides

• strategic introductions at Decision Maker level
• off-market Deal Sourcing
• company Search & Selection
• In-Depth Analysis and Background Checks
• Target Origination services

For over 23 years, FRD Center Market Entry Services (Emerging Markets in Europe: Romania, Poland, Hungary etc.) facilitates commercial relations between foreign manufacturers, investors, exporters with local key decision makers and provides B2B matchmaking at Decision Maker level, Market Research and Sector Studies.

Email: [email protected] with your specific demand for local support