Author: sEaNERGIA Baltic Cluster

As part of its circular economy activities, the European Commission is increasing cooperation between the EU and international partner countries in the field of environmental policy. Such initiatives include, for example, the „Circular Economy Missions “[1], which engage the private sector through business partnerships facilitated by matchmaking events in third countries between European and local entrepreneurs or exchanging views with target audiences.[2]

And the potential for cooperation in circular economy is increasing. Referring solely to the European construction market it might be reported that since 2013 the signs of market recovery in most of the local European construction markets are observed.[3]

Market recovery is also reflected in the drop of insolvencies in the construction sector. In contrast, the number of mergers & acquisitions (M&A) deals in the European construction market has been relatively stable over the last years. In 2015, 129 deals were recorded compared to 128 in 2014. However, share of cross-border deals has increased to approximately 55%. This reflects the ongoing trend of European construction companies striving for international growth.[4] Further analysis of the outbound intercontinental deals shows that North America and Asia are the main target markets for European construction companies. The amount of outbound deals targeting North American construction companies proves that most multinational construction companies tend to focus on stable target markets for their international expansion.[5]

[1] (26.05.2017)

[2] Advancing the circular economy in Asia (Winter 2016/2017), the SWITCH-Asia Network Facility, p.9

[3] European Construction Monitor 2016, Deloitte Real Estate, p. 5

[4] Ibidiem, p.5

[5] Ibidiem, p. 9

Number of inbound deals per region

In 2014, 11 of the 28 intercontinental deals were reported as inbound. In 2015, the number of acquisition of European construction companies by businesses from other continents increased to 18, accounting for 50% of the total number of intercontinental deals. The figure below shows the origins of the bidders targeting the European construction market over the period 2010-2015. By far, most of the companies targeting European construction companies are based in North America. The activity of US-based businesses in Europe can be considered remarkable, as US-based construction companies are not known for their international orientation. Over the last 5 years, 11 acquisitions were made by Asian construction companies.[1]

[1] Ibidiem, p. 9-10

Number of inbound deals per region; source: Merger market, 2015
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