KPMG M&A Radar 2025: Ukraine
Building on improving deal momentum in the years since the full-scale invasion, Ukraine’s M&A market in 2025 has begun to regain a measure of momentum; with year-on-year disclosed deal value and deal volume increasing by more than 15% and 20%, respectively.
Against the backdrop of a global rebound in announced M&A value (up 40%+ year-on-year), the profile for people making localised investment in Ukraine evolved over the course of 2025.
Domestic investors took a greater share in more active deployment of capital in Ukraine, pursuing identified opportunities in a familiar context. International investors, meanwhile, predominantly remain in a more cautious holding pattern, looking towards 2026 for any developments that could indicate greater local stability before making bigger investment decisions.
Ukraine’s M&A market, and the economy as a whole, also continued to enjoy robust support from the international community. The importance of this financial assistance from individual countries, multinational institutions like the EU, and international financial institutions in maintaining a positive macroeconomic outlook should not be underestimated, with committed funding for 2026 expected to play a key role in maintaining ongoing macroeconomic stability.
“In 2025, Ukraine’s M&A landscape moved forward with a level of determination and focus we haven’t seen since the early days of the full‑scale invasion. This momentum didn’t emerge because conditions suddenly improved, but because investors and businesses chose to push ahead and seize the openings they saw. Ukrainian dealmakers, in particular, have shown exceptional agility, initiating and closing transactions by preparing earlier, planning more rigorously, and building stronger pipelines even when the outlook wasn’t clear. Those who approach the market with conviction are already influencing how the next phase of investment in Ukraine will take shape.
We also see that investors who are ready to work through the complexities of this environment can unlock opportunities through practical cooperation, flexible structuring, and a shared commitment to building long‑term value. Ultimately, this year has proved that with the right preparation and partners, well‑considered deals in Ukraine are not only feasible, they are increasingly within reach”, — said Svitlana Shcherbatyuk, Partner, Head of Transaction Services, Deal Advisory, KPMG in Ukraine
2025 M&A dynamics: a market defined by domestic investors
KPMG’s M&A Radar methodology measures deals with a value exceeding USD5 million. Using this criterion, Ukraine experienced an acceleration in dealmaking in 2025, resulting in the announcement of 63 deals of this value or greater (+26% on 50 in 2024). Total disclosed value in 2025 also increased to USD1.2 billion (up 17%), while average deal size held steady (at USD34 million vs USD33 million in 2024).
Notably, deal transparency moderately declined to 57%, down from 64% in 2024. This pattern is consistent with the greater share of domestic transactions in the overall composition of deals (which generally tend to be less transparent), with eight of the top-10 deals in 2025 involving Ukrainian investors. Regardless of any diminished transparency, however, the disclosed value of all domestic deals announced last year surged by 65%, up to USD661 million, or the highest level since the start of the full-scale war by a substantial margin.
Dealmaking in 2025 was anchored by three flagship transactions:
- Ukrainian MHP’s deal to acquire a 92% stake in foreign food company Uvesa (USD 300 million, outbound).
- Telecom giant’s Kyivstar’s purchase of ride-hailing service platform Uklon (USD155 million, domestic).
- Agricultural concern Bunge picking up the remaining shares in oilseed processor ViOil (USD138 million, inbound).
Bunge’s acquisition of ViOil stood as the sole large-scale inbound deal completed in 2025. Outside of this deal, foreign investor activity remained more selective. While inbound deal volume remained unchanged year-on-year at 13 transactions, disclosed inbound deal value declined to USD232 million, marking a 59% decrease compared to 2024.
Outbound dealmaking comprised 10 transactions with a combined disclosed value of USD329 million, with the aforementioned MHP-Uvesa transaction accounting for the lion’s share of outbound value.
Key sectors: strategic local consolidation and practical diversification
The distribution of deals and specific investor involvement in various sectors of the economy provides a reflection of the broader structure of Ukrainian economics over the past year. The key sectors of dealmaking remained consistent with 2024: agriculture, innovation and technology, real estate and construction, and power and utilities collectively accounted for more than 85% of total disclosed deal value (up from 65% in 2024), while their combined share of deal volume increased from 66% to 71%.
These sectors in particular saw several transformational and high-impact transactions that played a market-defining role in 2025. Innovation and technology activity was significantly shaped by Kyivstar’s continued expansion beyond its core telecommunications services through the acquisitions of both Uklon and an increased stake in the medical platform Helsi, alongside the announced acquisition of Tabletki.ua. Such moves reflect important steps in Kyivstar’s deliberate long-term strategy to build a broader digital ecosystem.
M&A activity in the agriculture sector was largely driven by two landmark transactions. Reportedly valued at over EUR270 million (approximately USD300 million), MHP’s outbound acquisition of a 92% stake in Spanish poultry and pork producer Uvesa represented the largest transaction of 2025. Bunge’s acquisition of the remaining 85% stake in ViOil for an estimated USD138 million, meanwhile, stood as the year’s largest inbound transaction.
In real estate and construction, deal activity was driven by a combination of capital appreciation strategies, expectations of post-war redevelopment, and supply-chain integration considerations. Transactions ranged from acquisitions of prime commercial assets such as the Leonardo Business Centre, Ukraina Department Store, and Sky Park shopping centre, to investments in residential development platforms including Ukrbud and Dim. EVA’s acquisition of the SC Omega-1 Logistic complex further highlighted the strategic importance of logistics infrastructure within large consumer-facing businesses.
At the same time, Ukraine’s wartime economy continues to reshape the investment landscape. The defence sector has naturally assumed structural importance, with investment volumes in Ukrainian defence technology startups exceeding USD100 million in 2025 (up from USD40 million in 2024). Notably, 2025 marked the first year in which two defence-tech transactions were recorded above the USD5 million threshold, signalling the gradual institutionalisation of this segment.
Continued attacks on critical energy infrastructure have also reinforced the strategic relevance of Ukraine’s power and utilities sector. Although overall M&A volumes in the sector remained moderate, investment patterns indicate that the market is laying the foundations for broader capital inflows in the future. Energy assets continue to attract interest from established operators such as DTEK, as well as firms from other sectors seeking greater energy autonomy, cost efficiency, and operational resilience in an environment characterised by persistent electricity shortages and grid disruptions.
Macroeconomic environment and foreign support: the ballast beneath the dealmaking
Even in the face of ongoing wartime pressures, 2025 saw Ukraine maintain an even keel in terms of macroeconomics, with the economy delivering an estimated GDP growth of approximately 1.8%. Annual inflation, meanwhile, slowed from 12.0% in December 2024 down to 8.0% by December 2025.
Any improvements in Ukraine’s economic performance would obviously not have been possible without an unprecedented level of international financial support. Total external financial assistance in 2025 exceeded USD52.4 billion (equivalent to about 24% of GDP), including USD37.9 billion provided under the G7 Extraordinary Revenue Acceleration (ERA) initiative, a relatively novel funding programme backed by proceeds from immobilised Russian assets.
This financial buffer has enabled the Ukrainian government and the NBU to cautiously ease foreign exchange controls over the course of the year, including limited dividend repatriation for non-residents and allowances for funding foreign branches. These measures incrementally improved cross-border operability for Ukrainian companies, as well as for foreign companies with a pre-existing presence in the country.
Looking ahead, macroeconomic stability is expected to be further underpinned by the EU’s recently approved EUR90 billion package for 2026–2027 and the IMF’s 48-month USD8.1billion Extended Fund Facility. Together, these commitments help to manage investor expectations about extended time horizons for any investments, supporting both the potential for up-front transaction activity and for longer-term reconstruction investments in the future.
Outlook
2025 marked a structural shift in the composition of Ukraine’s M&A market. Domestic capital emerged as the primary anchor of deal activity, while foreign investors chose to engage more selectively through smaller-scale strategic transactions (with the exception of Bunge’s ViOil deal).
Further scaling of the market for future transactions will therefore depend on three critical levers: alleviating labour-market constraints, effectively turning reconstruction into a catalyst for infrastructure modernisation, and expanding the availability of effective war-risk insurance solutions.
As progress on these conditions evolves, the range of investment opportunities in Ukraine should be expected to broaden. Early investors positioned to take advantage of deals in agriculture, technology, energy, and construction materials can expect to be best placed to share the benefits of Ukrainian recovery.
For more insights into Ukraine’s M&A market in 2025 and the outlook for 2026, visit the following link: KPMG M&A Radar 2025: Ukraine.
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