Ukraine’s M&A Market Increased Its Number of Deals but Remained Selective

In the first half of 2026, Ukraine recorded 40 merger and acquisition deals compared with 35 during the same period of 2025. The number of transactions increased by 14%, while their total disclosed value fell by 5%, from $1.029 billion to $978 million. Data from KPMG M&A Radar show that the market remains active even during the war, although investors are carefully selecting assets. Deals are progressing where buyers see clear strategic logic, sufficient business quality, and an ability to manage the risks associated with operating in Ukraine.

Time for Action analyzed what lies behind the changing figures, which deals shaped the half-year results, and where the main investment activity is coming from. The decline in disclosed deal value should not automatically be interpreted as a weakening of the market. In the first half of 2026, financial terms were disclosed for only 45% of transactions, compared with 63% a year earlier. Some information may become available later, meaning that the actual market value is likely to exceed the recorded $978 million. Half-year statistics also depend on the timing of several large deal announcements. A single transaction worth hundreds of millions of dollars can significantly change the overall result. More information about transaction values usually becomes available closer to the end of the year, so the current figures provide an interim assessment of investment activity. The market structure changed more noticeably than its overall value. The number of domestic deals remained at 25, while Ukrainian companies completed five transactions abroad, the same number as a year earlier. At the same time, the number of transactions involving foreign investment in Ukrainian assets increased from five to ten.

Therefore, all quantitative growth in Ukraine’s M&A market during the first half of the year came from transactions involving foreign capital. Their disclosed value increased from $26 million to $415 million. Domestic transactions, by contrast, fell in disclosed value from $675 million to $253 million. The value of foreign acquisitions by Ukrainian companies declined only slightly, from $329 million to $310 million. The largest transaction of the half-year was agrifood group MHP’s agreement to acquire a stake in Greek meat producer and distributor Th. Nitsiakos AVEE for $290 million. It was the only deal during the period valued at more than $250 million.

KPMG has recorded a similar pattern for several years. In the first half of 2025, the largest deal was MHP’s $300 million acquisition of Spanish company Uvesa, while in 2024, a significant share of the overall result came from IT company Creatio’s $200 million funding round. This confirms the strong dependence of half-year statistics on a small number of large transactions. Three other deals in the first half of 2026 had disclosed values exceeding $100 million. Ukrainian-founded online language learning platform Preply raised $150 million in a Series D funding round led by investment firm WestCap. Following the funding, Preply was valued at $1.2 billion and achieved “unicorn” status. Kapenata Limited, affiliated with Andriy Verevskyi’s Enselco Group, acquired 100% of Agro-Region Group. The transaction was estimated at more than $100 million. The buyer added approximately 41,000 hectares of agricultural land and grain storage facilities with a total capacity of 200,000 tonnes. Following the deal, the combined land bank controlled by Verevskyi’s companies exceeded 530,000 hectares.

Polish insurance company PZU SA signed an agreement to acquire 100% of MetLife Ukraine for approximately $100 million. MetLife Ukraine is the country’s largest life insurer and controls just under half of the market. Domestic investors maintained their leading role by number of transactions. They accounted for 25 of the 40 deals, or 63% of total deal volume. In the first half of 2025, domestic transactions represented approximately 71%. The decline in their share was caused by the increase in acquisitions of Ukrainian assets by foreign investors. The 63% decline in the disclosed value of domestic deals does not necessarily reflect a real fall in investment. Such transactions in Ukraine traditionally have lower transparency, while their values are often reported with a delay. According to KPMG, the first-half figure is broadly consistent with the usual dynamics of the Ukrainian market before 2025.

Agriculture recorded the largest number of domestic transactions, with five deals. Power and utilities, real estate and construction, and innovations and technology each recorded four deals. Consumer markets accounted for three transactions. One transaction was recorded in each of the following sectors: healthcare and pharmaceuticals, transport and infrastructure, industrial products, oil and gas, and communications and media. One of the largest domestic investments was Kyivstar’s acquisition of six solar power plants in the Lviv region. Their combined installed capacity is 105 MW. The transaction was valued at UAH 3.6 billion, or $80.8 million. Following the acquisition, the company’s total renewable energy capacity increased to 118 MW. The most noticeable changes occurred in the foreign investment segment. The number of such deals doubled, while their disclosed value increased from $26 million to $415 million. The main contributions came from Preply’s $150 million funding round and PZU SA’s agreement to acquire MetLife Ukraine for approximately $100 million.

By number of transactions involving foreign investors, innovations and technology led with four deals. Another two took place in banking and insurance. One transaction was recorded in each of the following sectors: metals and mining, industrial products, consumer markets, and transport and infrastructure. Non-resident investment remains dependent on external conditions. Companies that have already operated in Ukraine have more opportunities to assess local risks and an asset’s ability to continue operating. At the same time, the doubling of deal volume and sharp increase in disclosed value may be an early sign of recovering foreign investor interest. Whether this trend is sustainable can be determined after full-year 2026 data become available.

Ukrainian companies’ foreign activity remained stable. During the first half of the year, they completed five deals outside the country. Their total disclosed value amounted to $310 million, compared with $329 million a year earlier. More than 90% of this figure came from MHP’s agreement to acquire a stake in Th. Nitsiakos AVEE for $290 million. In the first half of 2025, MHP also accounted for more than 90% of the disclosed value of Ukrainian companies’ foreign transactions. Three acquisitions were connected with Europe. Grammarly acquired Portuguese data analytics startup Rows.com, although the financial terms were not disclosed. MHP signed its agreement with Greek company Th. Nitsiakos AVEE, while W Group acquired a significant stake in Dutch luxury sports car manufacturer Spyker. The value of the latter transaction was also not disclosed. In North America, Ukrainian mobile entertainment company Holywater acquired artificial intelligence studio Jeynix. The deal value was not disclosed. The acquisition is intended to strengthen Holywater’s visual content production capabilities. In the Asia-Pacific region, IT company Jiji acquired Bangladeshi classifieds platform Bikroy for $20 million. The deal continued the company’s geographic expansion into high-growth markets. Innovations and technology remained the largest sector by total number of transactions. During the first half of 2026, it recorded 11 deals compared with ten a year earlier. Agriculture ranked second with six transactions, although it had recorded seven in 2025.

Power and utilities posted the fastest growth, rising from one deal to four. The number of consumer market transactions increased from two to four. Real estate and construction activity, meanwhile, declined from seven deals to four. KPMG links this redistribution to investor interest in businesses capable of maintaining stable operations, strengthening energy security, and demonstrating clear revenue models. Buyers remain more cautious in sectors that are more dependent on physical assets and reconstruction timelines.

Defense technology emerged as a separate area of growth. In the first half of 2025, KPMG recorded one defense investment that met the study’s threshold: UK-Ukrainian startup Trypillian raised $5 million. The company develops autonomous combat systems and long-range drones based on their operational experience. In the first half of 2026, the number of defense technology transactions valued at more than $5 million increased to four. The largest disclosed deal involved Ukrainian company Buntar Aerospace, which raised $10.4 million from US-based Axon Enterprise. Buntar Aerospace develops reconnaissance drones and mission-control software. The funding is intended to expand production and enhance aerial intelligence capabilities. Ukrainian defense company FarsightVision raised $8.55 million in seed funding. Its investors included Axon Enterprise, SmartCap Defence Fund, and several European defense funds. Under KPMG’s current methodology, defense companies are not classified as a separate sector. Software developers are included under innovations and technology, while equipment manufacturers are classified as industrial products. For this reason, the acquisition of Asterion Systems by Luxembourg-based Collective Defence was attributed to industrial products because Asterion manufactures drone hardware.

Due to the growing number of such transactions, KPMG plans to consider introducing defense as a separate category in future editions of M&A Radar. This would provide a more accurate picture of investment in military technologies, which is currently distributed across several sectors. Ukrainian defense companies are also gaining access to international capital beyond private transactions. In March 2026, Ukrainian-founded company Swarmer, which develops artificial intelligence software for coordinating groups of drones, completed an initial public offering on Nasdaq. During the IPO, Swarmer raised approximately $15 million and became the first Ukrainian defense technology company to go public.

Another notable case was Uforce, Ukraine’s first defense startup to achieve “unicorn” status. Following a $50 million funding round, the company was valued at more than $1 billion. Uforce brings together autonomous systems for aerial, maritime, and strike operations, some of which have been tested in combat conditions. The first-half results show a selective revival in Ukraine’s M&A market. Domestic investors maintain the largest share by transaction volume, but all growth came from foreign deals. Ukrainian companies’ acquisitions abroad remained stable and, by disclosed value, were almost entirely dependent on one large MHP transaction. Investor interest is concentrated in technology, agriculture, energy, and defense developments. A final assessment of investment activity will be possible after the end of the year, when the values of more transactions become known and it becomes clear whether the increase in foreign investment has developed into a sustainable trend.