Market Activity Driven by M&A
The Tashkent Stock Exchange (TSE) in Uzbekistan has seen significant market activity with trading volume reaching 1.86 trillion soum (approximately $145 million) in the past week. The main reason for this surge was a series of merger and acquisition (M&A) transactions. In particular, the Biznesni Rivojlantirish Banki (BRBN) was prominent with a transaction volume of 1.6 trillion soum, and mergers and acquisitions played a role in boosting liquidity in the overall market.
International Capital Inflows and Market Turning Points
In Uzbekistan, international capital has begun to flow into the country in earnest against the backdrop of economic reforms and market opening policies. For example, a Chinese company has announced plans to invest $50 million in mining development, and a number of foreign companies have entered the market. International financing is also expanding, as evidenced by the International Finance Corporation (IFC) listing 250 billion soum (approximately $20 million) of government bonds on the London Stock Exchange. These developments suggest that the Uzbek market is passing a “critical mass.
Benefits of M&A for Business Entry
Entering the market through the acquisition of a local company (M&A) offers the following advantages
- Faster entry: Immediate access to existing sales channels, licenses, and human resources.
- Reduced risk: less uncertainty compared to starting from scratch.
- Access to growth sectors: Rapid entry into sectors with high concentrations of international capital, such as financial services, consumer goods, and information technology.
Market Challenges and Prospects
On the other hand, the securities market in Uzbekistan is still developing. For example:
- Barriers to foreign investors: the connection to international clearing houses (Euroclear/Clearstream) is not yet developed.
- Dependence on retail investors: 88.6% of transactions are conducted by retail investors, with limited participation of institutional investors.
However, the market is growing rapidly, with a rapid 17-fold year-on-year increase in trading volume in the first half of 2025, and is expected to develop over the medium to long term as the government continues to improve the market infrastructure.
Recommendations for Business Owners
In Uzbekistan, the market is undergoing significant change as a result of mergers and acquisitions. In addition to abundant natural resources anda youthful population bonus, international capital inflows are now in full swing, and early entry into the market with little competition is the key to building a competitive advantage. It is worth considering business expansion through M&A after understanding the local legal system and culture.
In summary, Uzbekistan’s M&A market is growing rapidly on the back of international capital inflows. The expansion of volume on the Tashkent Stock Exchange is proof of this, and the market has reached a stage where it is attracting attention as an opportunity to enter the business world.
コメント