Slovenia is witnessing high levels of deal activity, particularly in M&A and corporate finance, according to Schoenherr Partner Vid Kobe, with banking sector consolidation leading the charge.
"It’s been a very busy half-year for transactions in Slovenia," Kobe begins. "As a transaction lawyer, I’ve observed high levels of deal activity in M&A and corporate finance. Many colleagues across Central and Eastern Europe have noted similar trends, particularly over the summer."
On one hand, Kobe continues to say that "banks are reporting strong results, and there’s considerable investor interest in technology and renewables. In addition to construction sector transactions, we’ve also seen notable deals in agriculture and private healthcare, sectors that are attracting growing attention." On the other hand, he reports that "certain large industrials, particularly those linked to automotive and certain consumer-facing businesses, are showing signs of struggle."
Focusing on a few standout transactions in the financial sector, Kobe says that "there’s been continuous activity in Slovenia and the broader region, driven by strong business performance and healthy balance sheets. Against the backdrop of what is still a somewhat fragmented banking sector in Slovenia, we’re again seeing some consolidation. For instance, NLB recently launched an effort to acquire Adiko, an Austria-headquartered bank with a presence across former Yugoslavia." While this attempt was not successful, Kobe feels that it reflects a broader trend of appetite for banking sector consolidation in the region. "Strategic buyers have been the driving force behind many transactions, particularly in the financial sector. They’re fueling most of the activity, and their influence will likely persist into the next quarter."
Moreover, Kobe adds that there have been "other notable developments in the market, with two sizeable banks merging following their acquisition by OTP, creating one of the largest players in the market. There also appears to be some consolidation activity in respect of smaller lenders." Additionally, he shares that there have been some notable transactions in the fintech sector — including the "acquisition of the Slovenian-established Bitstamp by Robinhood, a US financial services giant, and a significant growth investment by BlackPeak, a CEE private equity fund, into Leanpay which focuses on “buy now, pay later” services."
Furthermore, Kobe says agriculture is increasingly perceived as an attractive asset class, driven by concerns over food security and self-sufficiency.
Finally, looking ahead, Kobe says he expects a "busy fourth quarter, particularly in financial technology and renewables. However, there’s also some concern about impending restructurings, especially as certain companies linked to the automotive sector have already declared insolvencies." Beyond transactions, Kobe adds that the financial sector is also dealing with ongoing Swiss franc consumer litigations and Euribor-floor-linked collective action proceedings. "New collective actions were launched last year, accusing banks of overcharging consumers on interest calculations. Court hearings are scheduled for this autumn, and these cases will be closely watched," he concludes.
