OREANDA-NEWS. January 13, 2015. In spite of geopolitical tensions rooted in current Russia-Ukraine events, several dealmakers are optimistic about the overall outlook for the Baltic mergers & acquisitions (M&A) market in 2015, reports leading M&A intelligence tool Mergermarket in its recently published “Baltic Trendspotter” analysis.

With expected GDP growth between 2—3.1%, the Lithuanian, Latvian and Estonian economies may be among the fastest growing in the EU in 2015 compared to expected EU-wide GDP growth of 1.5% based on the European Commission’s autumn forecast.

Imposed in August, Russian sanctions, which seem to threaten the Baltic economies most, may paradoxically result in a growing number of M&A transactions, as companies may increasingly look at exit, capital raising or consolidation. In this regard, Mergermarket refers to Eva Berlaus, managing partner of SORAINEN Latvia, according to whom the dairy sector might see further consolidation.

An example in 2014 was the acquisition of the ice cream business of Estonian PRFoods by Latvian dairy group Food Union. According to Mergermarket, most of the dealflow in 2015 is expected to come from the communications, financial and energy sectors. Furthermore, “It is easier for bigger consolidated companies to enter new markets, such as China” reports Mergermarket, citing Toomas Prangli, managing partner of SORAINEN Estonia.