Deep dive into the Uzbekistan M&A market: a comprehensive report on the latest cases and investment trends

I. Executive Summary
II. Overview of the Investment Environment in Uzbekistan: Background to M&A Activity
1. 1. Solid macroeconomic growth and foreign capital inflows
2. 2. Green Economy Transition and Investment Opportunities
III. Legal and Institutional Framework to Facilitate M&A
1. 1. Major amendments to the Investment and Investment Activities Law and benefits for investors
2. 2. The role of legal and advisory services in M&A and market maturity
IV. Detailed analysis of major M&A cases and their strategic significance
V. Trends and Outlook of the Uzbekistan M&A Market
1. 1. Sectoral Analysis
2. 2. Market trends and challenges
VI. Conclusions and Strategic Recommendations
1. Related Links

I. Executive Summary

Uzbekistan's M&A market has undergone rapid change in recent years, driven by the government's proactive economic reforms and investment promotion policies. This report provides a comprehensive analysis of the current state of M&A activity in Uzbekistan, major examples, and future prospects.

On the macroeconomic front, robust GDP growth and an inflow of foreign investment are supporting market vitality. In particular, the increase in gross fixed capital formation suggests that M&A activity goes beyond simple transfers of corporate ownership and contributes to the structural growth of the domestic economy.1 ^Furthermore , the government's amendments to the Law on Investment and Investment Activities have strengthened legal and institutional guarantees for foreign investors ^and significantly lowered the barriers to market entry.2

Notably, the quality and quantity of M&A deals is changing. While previously dominated by state-owned enterprises, the M&A market is increasingly driven by private sector-led sectors such as fintech, retail and the digital economy. This report provides an in-depth analysis of several landmark M&A cases, including retail giant Korzinka, payments company Click and online platform OLX Uzbekistan ^. These deals are being executed with highly strategic objectives: building regional ecosystems, combining global capital and expertise, and gaining early access to emerging market growth curves.3

In conclusion, Uzbekistan has emerged as a major M&A hub in Central Asia, and its potential is expected to continue to grow. However, it is essential that potential investors thoroughly understand the market's characteristics and conduct careful due diligence while working with local legal and financial experts as well as international partners.

II. Overview of the Investment Environment in Uzbekistan: Background to M&A Activity

1. Solid macroeconomic growth and foreign capital inflows

Uzbekistan is undergoing transformation in all aspects of its economy, providing a strong backdrop for M&A activity. According to the Presidential Statistics Agency, real GDP growth in 2024 is projected to be a solid 6.5% year-on- ^year.1 This growth is being driven in particular by investment demand, with gross fixed capital formation increasing by 27.6%, marking the second consecutive year of high growth.1 This high level of investment activity is a direct driver ^of market entry and business consolidation through M&A, as well as the establishment of new companies and the expansion of existing ones.

Foreign investment has also increased significantly, with outward investment reportedly increasing by more than 60% in ^2024.5 From the perspective of the balance of payments, while the trade deficit persists, remittances and investment inflows from abroad have contributed significantly to the overall improvement.6 In particular, net inflows of direct investment reached $ ^2.8 billion, up 30.5% from the same period last year, and securities investment also reached a record high of $ ^3.1 billion.6 This rapid increase in securities investment indicates the government and state-owned enterprises' increasing ability to raise funds from international capital markets, suggesting that the market's financial infrastructure is becoming more sophisticated.

These economic data confirm that the government's proactive investment-friendly policies (e.g., simplified registration processes, tax incentives, and protection of intellectual property rights) are producing tangible results in making ^Uzbekistan an attractive destination for international businesses.7

2. Green Economy Transition and Investment Opportunities

Uzbekistan faces a structural challenge: energy demand to support economic growth is outpacing domestic natural gas supplies. The country relies on natural gas for approximately 80% of its energy supply, but in recent years production has ^not kept up with domestic demand, resulting in a serious gas shortage.8

This energy security concern is a strong motivation for the government to accelerate its transition to a green economy. According to an analysis by the United Nations Development Programme (UNDP), Uzbekistan's transition to a green economy requires massive investments of up to $6 billion per year, which cannot be covered by public funds alone.8 Therefore, financing from the private sector, ^both domestic and ^{international} , is essential.8

This situation is creating significant opportunities for M&A and joint ventures in the renewable energy sector. In fact, the continued active presence of Middle Eastern companies in Uzbekistan's energy sector is proof that global investors recognize the potential of this market.1 This is not simply a promotion of environmental policies, but a realistic strategy for resolving the urgent issue of energy shortages and building new pillars of economic growth. From this perspective, M ^& A activity is likely to function as an important means of importing the latest technologies and expertise needed for the energy transition from abroad.

III. Legal and Institutional Framework to Facilitate M&A

1. Major amendments to the Investment and Investment Activities Law and benefits for investors

Uzbekistan's investment environment has been strategically elevated to a new level with the approval of the new Law on Investment and Investment Activities in January ^2025.2 This legal reform aims to address the legal risks and uncertainties ^that foreign investors faced in the past, and is being carried out in line with international investment norms.2

The most important amendments are as follows:

Introduction of National Treatment: In accordance with World Trade Organization (WTO) requirements, "national treatment" has been introduced for foreign investors, ensuring that foreign companies enjoy the same benefits and preferential treatment as domestic companies, thereby ensuring ^a level playing field.2
Lower foreign ownership requirements: The ownership requirement for a foreign investor to qualify as a "foreign company" has been ^reduced from 15% to 10%. This will allow for more flexibility in establishing joint ventures and reduce barriers to market entry.
Extended Land Concession Term: The maximum term of land concessions for foreign investors ^has been extended from 25 to 49 years. This provides important legal certainty for investors planning long-term infrastructure investments and large-scale projects.

These legal reforms reflect the government's strong will to not simply relax regulations but to systematically eliminate the risk factors that investors are most concerned ^about.2 This has reduced the legal risks involved in M&A transactions and created an environment in which it is easier to carry out more complex and larger-scale transactions.

2. The role of legal and advisory services in M&A and market maturity

The maturity of the M&A market in Uzbekistan is also evident in the development of specialized legal and advisory services. Local law firms like Kosta Legal offer comprehensive services across the entire M&A transaction process, including due diligence, currency controls, obtaining merger approvals, and negotiating and drafting share purchase agreements. ¹⁰ Their expertise is essential to help foreign companies comply with local laws (e.g., anti-terrorist financing and anti-corruption regulations) and facilitate successful transactions.

The presence of Uzbek law firms such as CENTIL, Dentons and GRATA International in the rankings of international rating agencies such as Chambers & Partners is proof that the country's legal market meets ^{international} standards.11 These firms handle complex transactions such as cross-border investments and joint ventures with state-owned enterprises, clearly indicating that Uzbekistan's M&A market has moved beyond its past reputation of being "underdeveloped for traditional transactions" and into a more sophisticated ^stage.12

IV. Detailed analysis of major M&A cases and their strategic significance

Below we analyze some of the major M&A and investment cases in Uzbekistan in recent years, which highlight key market trends and the strategic intent of investors.

Table 1: List of major M&A cases in Uzbekistan

Trade Name	Acquired/Invested Company	Acquiring/Investing Companies	Transaction Amount (USD)	Trading period	Sector	Strategic Significance
Investing in Korzinka	Korzinka	Abu Dhabi Uzbek Investment, UzOman	$110 million	April 2025	retail	Modernizing retail infrastructure and diversifying growth
Click and Tengebank share exchange	Tengebank	Click shareholders	$60.76 million	July 2025	Fintech	Building a unified cross-border digital ecosystem
Click and Tengebank share exchange	Click	Halyk Bank	$176.4 million	July 2025	Fintech	Building a unified cross-border digital ecosystem
OLX Uzbekistan acquisition	OLX Uzbekistan	TBC Bank Group, Titan Investments	private	August 2025	Fintech	Expanding the user base of the digital ecosystem
Acquisition of BILLZ	BILLZ	TBC Bank Group	private	June 2025	Fintech	Service diversification and strengthening of market power
Acquired UPay	UPay	Humans	private	2022	Fintech	Market integration and business expansion
Paybox Acquisition	Paybox	Freedom Holding Corp.	private	private	Fintech	Entering the B2B service field

Case 1: Large investment in the retail sector: Korzinka

Korzinka, Uzbekistan's largest grocery retail chain, attracted a $110 million direct investment from Abu Dhabi Uzbek Investment and UzOman financial institutions in April 2025. The deal is considered ^one of the largest ever investments in Uzbekistan's private sector.

The European Bank for Reconstruction and Development (EBRD) played a key role in this investment. Since acquiring a minority stake in Korzinka in 2020, the EBRD has supported the company in bringing its corporate governance and financial reporting standards up to international standards. ¹³ This support played a key role in creating a comfortable investment environment for larger institutional investors, such as the sovereign wealth funds of Abu Dhabi and Oman. This case demonstrates a model in which multilateral development banks can act as catalysts for de-risking, reducing investment risks in emerging markets and subsequently facilitating large-scale private capital inflows.

Korzinka plans to use the investment to expand its store network (from the current 150 stores to over 1,000 in the medium term), strengthen its e-commerce platform "Korzinka Go," and build a new ^49,000 square meter distribution center.3 This strategy is not simply a fundraising exercise, but can be seen as an injection of growth capital aimed at strategically building and modernizing the country's retail infrastructure.

Case 2: Fintech Market Consolidation and Growth: Click and Tengebank

Click, a leading digital payment service, and Tengebank, a subsidiary of Kazakhstan's Halyk Bank, have agreed to a mutual share swap transaction worth a total of $237 million in ^July 2025.3 Under the transaction, Halyk Bank will acquire a 49% stake in Click for $176.4 million, and Click shareholders will acquire a 49% stake in Tengebank for $ ^60.76 million.3

This mutual share exchange demonstrates that Uzbekistan's M&A market has matured enough to allow for more complex, strategic cross-border transactions beyond simple acquisitions. The primary objective of this partnership is to build a unified digital ecosystem across Uzbekistan and Kazakhstan. The transaction is part of an ambitious effort to rebuild financial and digital infrastructure across the region, rather than simply acquiring specific companies and integrating their services. ^Additionally , the fact that Click was valued at $360 million in the transaction, compared with $124 million for Tengebank, highlights the growing value of fintech platforms over traditional banking services in the Uzbek market.

Case 3: Expanding the digital ecosystem: TBC Bank Group's acquisition of OLX Uzbekistan

Georgia's TBC Bank Group has agreed to acquire a majority stake in online classifieds platform OLX Uzbekistan in August 2025. The transaction was executed through a joint venture ( ^JV ) ^{that TBC} established with Middle Eastern investment firm Titan Investments.

TBC's strategy is to bring OLX's extensive user base of 5.4 million monthly active users and over ²⁰ % of the country's internet users into its digital banking ecosystem.4 The acquisition is part of a platform strategy common to modern digital companies that aims not just to expand their business but to capture users' "attention" and "life needs" and to integrate financial products within their classified advertising platform. The transaction has been called "one of the most significant M&A transactions in the past ³⁰ years" and is positioned as a milestone in Uzbekistan's digital economy.4

TBC previously acquired a stake in retail management software company BILLZ, and the acquisition of ^OLX demonstrates the company's consistent strategy of building a comprehensive ecosystem in Uzbekistan that integrates various digital services.4 This is an attempt to increase customer touchpoints and establish a dominant position in the market by seamlessly integrating multiple services.

V. Trends and Outlook of the Uzbekistan M&A Market

1. Sectoral Analysis

The M&A market in Uzbekistan is particularly active in certain sectors.

Fintech and the Digital Economy: With a large young population and government initiatives to promote digitalization, the fintech sector is at the forefront of M&A. We have seen a flurry of small acquisitions and large capital alliances in the payments, e-commerce and B2B services sectors, a trend that is expected to continue ^.
Retail and consumer goods: With a population of 35 million, two-thirds of which are under the age of ³⁰ , the modern retail market remains a huge untapped potential.14 As the Korzinka example shows, the sector has the capacity to attract large-scale ^{international} investment, and investment aimed at efficiency and diversification is expected to flourish.3
Energy Infrastructure: Facing the structural challenge of natural gas shortages, Uzbekistan urgently needs investment in renewable energy, power grids, and related infrastructure. ⁸ Private domestic and international capital is essential in this area, and strategic M&A and joint venture opportunities are expected to increase. ¹

2. Market trends and challenges

Historically, Uzbekistan’s M&A market has been characterized by limited traditional transactions due to the dominant involvement of state-owned enterprises. ¹² However, in recent years, the government’s aggressive privatization policy and the growth of private-sector-led sectors such as fintech and retail have made private M&A the primary driver of the market, a clear sign of Uzbekistan’s transition to a more mature capitalist economy.

Looking ahead, deregulation, an expanding consumer market driven by a younger population, and the rise of the digital economy are expected to provide a strong boost to M&A activity.

VI. Conclusions and Strategic Recommendations

Uzbekistan is emerging as a leading M&A hub in Central Asia, driven by robust economic growth, investor-friendly legal reforms, and a rapidly growing private sector. M&A transactions demonstrate the market's evolution from simple ownership transfers to the creation of a more complex, strategic ecosystem.

Potential investors can take the following strategic approach to capitalize on this market opportunity:

Conduct thorough due diligence: It is essential to work with trusted local legal and financial experts (such as Kosta Legal ^, CENTIL or Dentons) to thoroughly assess the legal and financial risks of the transaction.10
Leverage international partnerships: Collaborating with multilateral development banks like the EBRD or investment funds with specialized expertise like Titan Investments can be an extremely effective way to mitigate risk and complement local market knowledge ^.
Make the most of the new legal framework: Understanding and taking advantage of the benefits offered by the 2025 amendments to the Law on Investment and Investment Activities, such as national treatment, tax incentives and extended land use rights, will help your business succeed in the long term ^.

In conclusion, entering Uzbekistan through M&A is not just an investment activity, but a valuable strategic tool for early access to the growth curve of a rapidly changing emerging market, which will continue to attract global capital and interest.