Market analysts are predicting a number of mergers could hit the Polish construction sector later this year. The private equity fund Innova Capital, for example, has already announced it is looking for new investment opportunities in the region and is considering taking over some of the smaller builders currently suffering from the crisis.
“After winter ends, I expect the next wave of bankruptcies in the sector. This year, the payment backlogs are too large for some of the companies, who are already facing some serious difficulties,” Andrzej Bartos of Innova Capital told the daily Puls Biznesu. “The bankruptcies could hit all sectors of the Polish building market: the suppliers, general contractors and developers.”
Krzysztof Pado of BDM predicts there will be more mergers on the Polish construction market in 2013. The buyers, he said, will be companies with the stable cash flow, such as Budimex or Energopol Południe. Pado added that low valuations could also attract foreign investors.
