Overview of the latest economic events in the Czech Republic

Banks and building societies granted mortgages in September for 37,6 miliardy Kč, a month-on-month increase of 14 % compared to August. Of these, new loans - excluding refinancing - amounted to 29,6 miliardy Kč. The average interest rate on new loans remained at 4.52 %. These figures are confirmed by Hypomonitor of the Czech Banking Association. At the same time, real estate transaction activity continues in the Czech Republic - in the first quarter of 2025, investments in commercial real estate in the Czech Republic were around 1,46 miliardy EUR (approximately CZK 37 billion), representing almost 79 % of last year's full-year volume. The real estate market saw growth, with some individual transactions reaching hundreds of millions of euros, particularly in Prague and Brno.

In terms of M&A, however, the trend is mixed - while the total volume of transactions in the Czech Republic is growing, the number of disclosed deals with a disclosed value is declining. Domestically, the group's performance in the first half of the year was significantly boosted by Thein by acquiring a development company CubeTeam, expanding its digital division (value not publicly disclosed). Czech arms company attracts international attention Colt CZ Groupwhich announced the acquisition Synthesia Nitrocellulose za zhruba 22 miliard Kč (≈ USD 1.05 billion) to integrate the supply chain and secure strategic raw materials.

As part of this transaction Colt Acquires 51 % shares to start with a mixture of cash and stock, and purchases the energy division Synthesie valued at CZK 1.4 billion in exchange for new shares. In the automotive sales sector, the merger was approved CB Auto a Auto Future with the terms and conditions of the of the Antimonopoly Office. In the heavy industry, the acquisition of IROMET SICAV on selected assets Liberty Ostrava - comprising a pipe mill, rolling mills and a coking plant - approved in the first phase by the Czech Office for the Protection of Competition. The move of Czech capital towards foreign countries is also interesting: the investment group EMMA Capital announced the acquisition of a 65 % stake in a Montengrin-based medical supplies distributor Urion, which had an annual turnover of EUR 13.1 million and a profit of EUR 2.8 million.

Foreign investment

Czech capital is also demonstrably going abroad, as evidenced by the above acquisition EMMA Capital in the Balkans. Furthermore, the Czech company EP Global Commerce (conspicuously linked to billionaire Daniel Křetínský) is about to take over a German company Metro AG za přibližně 2,10 mld. USD through a tender offer for the remaining shares, which would Metro taken out of the public market ("go private"). In the banking sector, the Belgian KBC Group from J&T Finance Group 365.bank za cca 761 milionů EUR, thus consolidating its position in the Slovak and regional banking environment. Czech company Colt CZ in addition, in June 2025, it bought the American company Valley Steel Stamp (VSS) - akvizice stála 59,5 milionu USD (přibližně 1,3 mld. Kč) - and targets the integration of U.S. weapons components.

In the regional energy sector, the Group announced EPH (Czech Republic) acquisition of a majority stake in a Slovak energy utility Slovenske Elektrarne (acquisition of 50 % shares from Enel, agreement approved by the EU Commission). Note also the strategic foreign investments outside Central Europe: Czech investor Křetínský took control of a British company in the previous months International Distribution Services (owner of Royal Mail) by taking over for about 5 mld. liber, which has been approved by shareholders and the European Commission.

Significant events outside the Czech Republic with global impact

International Monetary Fund has revised its outlook for the Czech economy upwards: GDP is expected to grow by 2.3 % in 2025 and 2.0 % in 2026, compared to earlier forecasts of 1.6 % and 1.8 %. This positive revision reflects improved expectations for domestic demand and investment activity. In the global context, the biggest global transactions this year include the takeover of Metro AG českým subjektem (2,10 mld. USD) - a significant case of Czech capital on the global scene.

Globally, the M&A recovery trend continues: according to surveys by global advisors such as Deloitte a Bain numbers and volumes are growing M&A transactions, particularly in the technology, healthcare and energy sectors. In the energy sector, the planned investment by a Japanese car company is also of great importance Toyota v ČR - 680 milionů EUR (792 milionů USD) into expanding its Cologne plant for the production of electric vehicles - a move that has both regional and global implications.

gnews.cz - GH

[currency_and_metal_rates]

tradingeconomics.com