Czech Tycoons Drive Surge in European M&A, Boosting Outward Investment
Czech billionaires, led by Michal Strnad’s recent purchase of Pirelli shares, are increasingly shaping Europe’s merger market and expanding the country’s foreign investment portfolio.
When Michal Strnad bought a share of Italy’s Pirelli & C. SpA, it highlighted the expanding influence of Czech capital in European mergers and acquisitions. The country’s outward equity stakes have more than quadrupled since 2014, reaching roughly $74 billion, a gain second only to Luxembourg and Romania in the EU. This surge is reshaping the Czech economy, which historically relied on foreign firms for exports and saw profit repatriation erode its trade surplus.
Central bank Vice Governor Eva Zamrazilova says dividend inflows from abroad are now rising, offering a potential boost to the external balance. Alongside Strnad, industrialists like Daniel Kretinsky and MTX Group’s Petr Otava are pursuing acquisitions in energy, retail, media and renewable projects such as Spain’s Mimosa wind farm, seeking geographic stability beyond the Czech market.
Why it matters
Czech investors’ growing overseas stakes could strengthen the nation’s economy and alter the balance of power in European corporate deals.
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