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Poland's Economy Rises: Acquiring German Firms Now
12 Feb
Summary
- Polish firms announced record 22 acquisitions in Western Europe last year.
- Poland's economy has grown into a $1 trillion regional powerhouse.
- German GDP per capita is now about double Poland's, but the gap narrows.
Poland's economy has transformed into a $1 trillion regional powerhouse, now actively acquiring established Western European brands, particularly in Germany. This shift, once unimaginable, was highlighted by Wirtualna Polska Holding SA's €240 million acquisition of Invia Group. In the past year, Polish companies announced a record 22 acquisitions in Western Europe.
Germany's per-capita GDP, while still double that of Poland, is experiencing sluggish growth. This dynamic, coupled with Poland's economic growth of 3.6% last year compared to Germany's 0.2%, has created acquisition opportunities for Polish firms. Companies like Spyrosoft SA and Pesa Bydgoszcz SA are following this trend, acquiring German businesses.
This expansion reflects a strategic shift for Polish entrepreneurs, moving from building businesses from scratch to acquiring established market players. Challenges like rising wages and automation in Poland are also influencing this strategy. The trend signifies Poland's transition from a recipient of foreign investment to a significant international investor.
