In our Looking In series, we talk to Partners from outside CEE who are keeping an eye on the region (and often pop up in our deal ticker) to learn how they perceive CEE markets and their evolution. For this issue, we sat down with Amsterdam-based Dentons Europe Corporate group Co-Chair Kuif Klein Wassink
CEELM: What was your first interaction with the CEE region?
Klein Wassink: My first dealings with CEE were many years ago when I was still at Baker McKenzie. I worked on various deals, especially in Turkiye.
Actually, Dentons’ strong practice in Central Europe was one of the things that attracted me to join the firm – I was excited by the opportunity to work on inbound and outbound deals in CEE using the Netherlands as a gateway. CEE companies frequently use Dutch BVs for holding companies for their international investments and joint ventures, so there is a natural connection between our markets.
CEELM: As for the current pipeline of CEE-focused work, what has been keeping you busy in the last 12 months?
Klein Wassink: One highlight for me this year was the acquisition by Yanmar – a Japanese industrial company – of Czech-based TEDOM from the Jet Investment fund. The deal was led out of Prague and included lawyers from Slovakia, Poland, Germany, the UK, and the Netherlands. The client was very happy with the team on this deal, and I anticipate other similar opportunities in the future. I also worked with colleagues in the UK and Poland on eSky’s acquisition of Thomas Cook Tourism (UK) Company Limited from Fosun Tourism Group. My team and I are currently advising on the restructuring of shareholder arrangements involving two different Dutch holding companies for investments in Southeastern Europe. There are more deals to come which we will announce once they are signed – so stay tuned!
CEELM: Which sectors or industries in CEE do you think are poised for the most growth in the upcoming future?
Klein Wassink: Since the onset of the Ukraine war, there has been a lot of M&A and financing activity in the energy sector, and there are no signs of this slowing down. The technology sector has come of age in recent years, with acquisitions in CEE by global players such as Microsoft, Cisco, Intel, and others, as well as investments by various private equity players. The explosive growth of generative AI is accelerating M&A in the technology sector – we’re advising sell-side in three auction processes where the target has a strong AI focus. We anticipate that the technology sector will continue to grow. While food and other retail have received a fair amount of investment in Poland and the Czech Republic, there are significant growth opportunities in other CEE countries through modern and innovative formats, including online shopping platforms. Healthcare will continue to attract private investment, as populations come to expect better services with less waiting time than some of the national healthcare systems are able to provide. When peace finally returns to Ukraine, we anticipate significant investment in Ukrainian infrastructure, accelerated by IFC’s USD 2 billion Economic Resilience Action Program for the country.
CEELM: As for the specific markets, which countries in the CEE region do you find more promising or challenging?
Klein Wassink: Each of the markets presents its own unique opportunities and challenges. For example, Poland is the largest market with the greatest opportunities to make significant infrastructure investments or to scale a domestic business, yet the competition for investments there is pretty fierce. Czech Republic has dozens of family offices and other financial groups that invest outbound in CEE and around the world, as well as entrepreneurs who have built businesses that compete on a global scale. Even Ukraine has proven to be very resilient in the face of obvious challenges, with our Kyiv office having been active on a few telecoms and energy M&A transactions in the last two years.
CEELM: What is your perspective on internationals in CEE – how will their presence evolve?
Klein Wassink: Sometimes it seems that for every international law firm that retrenches (such as W&C) or pulls out of the region (such as Weil, Hogan Lovells, or Noerr), another pops into its place (Clyde & Co, Osborne Clarke, DWF) or invests in growth (Dentons, Kinstellar, Wolf Theiss). But it’s clear that to thrive, an international law firm must be aligned around a strong internal strategy. For Dentons, this strategy involves being aligned around key clients and priority sectors that benefit from collaboration regionally and with Dentons teams in Western Europe and throughout the world.
This article was originally published in Issue 11.11 of the CEE Legal Matters Magazine. If you would like to receive a hard copy of the magazine, you can subscribe here.
