Mergers and acquisitions in Cyprus and Greece are flourishing, even as the global landscape shifts towards fewer but larger deals. According to Panikos Teklos, founding partner at XPADIA, the first half of 2025 highlighted a stark contrast in the mergers and acquisitions market, with a significant dip in deal volume but a notable increase in total deal values.
Global Trends in Mergers and Acquisitions
Teklos emphasised that worldwide merger and acquisition volumes fell by nearly 9 per cent compared to 2024, while total deal value surged by approximately 15 per cent. This trend is indicative of a market increasingly focused on concentration rather than sheer volume. “This is not a story of decline but of concentration,” he stated, underscoring the shift towards fewer, more ambitious opportunities, particularly in sectors such as financial services, asset management, and technology.
Asset Management on the Rise
One of the standout sectors experiencing robust growth is asset and wealth management. By mid-2025, deal values in this area had escalated by more than 70 per cent year-on-year. “This reflects a push for scale and diversification, but also an evolution in strategy; clarity now matters more than experimentation,” Teklos explained.
Private Equity’s Selective Approach
Private equity firms, while becoming more selective, have shown increased activity in carve-outs and exits as valuation gaps begin to close. Teklos noted that the focus has shifted from volume to durability, with transactions aimed at delivering visible synergies and fostering long-term resilience.
Cyprus: A Case Study in Financial Consolidation
In Cyprus, the ongoing trend of consolidation in the financial sector serves as a vivid example. Major mergers include Eurobank’s merger with Hellenic Bank, Alpha Bank’s acquisition of AstroBank’s operations, and the integration of CNP Insurance into Hellenic (now Eurobank Cyprus). These moves have significantly reshaped the banking landscape on the island.
Family Businesses Embrace M&A for Succession
A noteworthy trend in Cyprus is the increasing engagement of family businesses in mergers and acquisitions as a strategy for managing succession. “Salamis Tours returned fully to the founder’s family, while the sale of Superhome DIY allowed shareholders to crystallise value and unlock future growth under new ownership,” Teklos remarked.
He highlighted that nearly 40 per cent of family businesses involved in deals report strong transgenerational entrepreneurship capabilities, indicating a shift in mindset. “M&A is emerging as a practical tool for sustainability and succession, and not just as a lever for growth,” he added.
Diverse Transactions Reflect Market Activity
Beyond the banking sector, Cyprus has witnessed a range of transactions that illustrate the breadth of activity. The Papantoniou supermarket chain’s integration into Greece’s Sklavenitis Group, alongside solar energy acquisitions and media group transactions involving Phileleftheros and Politis, reflect a vibrant market landscape. Notably, developments in hospitality and real estate remain central to the M&A narrative.
Real Estate and Tourism Intersect
The acquisition of a controlling stake in the Rodon Mount Hotel & Resort exemplifies the intersection of succession, legacy, and tourism in the region. In addition, the sale-and-leaseback of Labs Tower to Greek REIC Trastor highlights how real estate assets with high-quality tenants are becoming attractive havens for investors seeking stability.
Greece: Confidence Fuels Continued Activity
In Greece, the M&A landscape has regained momentum decisively. After a record-breaking €20.7 billion in transactions in 2024, the activity has remained robust into 2025. Teklos noted several significant highlights, including Crediabank’s acquisition of HSBC Malta and UniCredit’s increased stake in Alpha Bank. Various private equity groups, including Blackstone’s HIP, Apollo, Azora Capital, Cerberus, and Invel-Prodea, have also made strides in the hospitality sector.
Family Ownership and Strategic Growth
Family businesses continue to play a crucial role in the Greek market. For instance, the Olympia Group’s acquisition of 100 per cent of Domaine Costa Lazaridi shares via a squeeze-out process ensures that a leading wine producer remains on a growth trajectory. The Latsis family’s rebalancing of ownership in EuroHoldings further illustrates how M&A is being utilised not only for expansion but also for continuity and legacy preservation.
The Future of M&A in Cyprus and Greece
As the market evolves, Teklos believes the M&A pipeline in the region will increasingly be shaped by the interplay of consolidation and succession-driven sales. “For acquirers, the coming period will reward clarity, domestic or near-shore logic, synergy-rich adjacencies, and balance-sheet discipline,” he noted.
Both Cyprus and Greece are poised to remain active markets, supported by healthier banking systems, infrastructure investments, and sustained momentum in tourism and real estate. Financial services integration and selective consumer roll-ups are likely to dominate the near term, while global investors continue to seek scale in fee-based businesses and tech-enabled platforms. As Teklos concluded, “The deeper lesson is this: M&A in Greece and Cyprus is no longer defined solely by ambition. It is increasingly a story of stewardship, where growth and continuity meet, and where legacy itself becomes a strategic asset.”
