Sweden Ranks Third in Global Construction Sector Acquisitions Despite Market Challenges
Sweden's construction sector sees a surge in acquisitions while grappling with production declines.
Key Points
- • Sweden ranks third globally in construction sector acquisitions in 2024.
- • A total of 87 acquisitions were recorded, with 76% involving foreign companies.
- • The sector experienced a production decline of over 4.6% in 2024.
- • A recovery is anticipated in 2025, with projected growth driven by improved economic conditions.
In 2024, Sweden achieved a notable milestone by ranking third in the world for acquisitions in the construction sector, recording a total of 87 such transactions. This aligns Sweden closely behind the United States and the United Kingdom in global activity, as highlighted in a report from BDO. Remarkably, 76% of these acquisitions involved foreign entities, reflecting a strong interest among Swedish firms in expanding beyond their national borders and enhancing their international presence.
However, the construction sector faced significant hurdles in 2024, with production declining by over 4.6%. During this time, there were also 30 company sales recorded, indicating a challenging environment despite the high acquisition activity. Claes Nordebäck, head of BDO Deal Advisory Sweden, noted that Swedish companies exhibit growing appetites for both domestic and international deals, although market uncertainties persist.
Looking forward, the outlook for the construction sector appears cautiously optimistic. Analysts anticipate a recovery in 2025, with projected growth of around 5%, driven by favorable macroeconomic conditions such as declining interest rates and stabilized inflation. Nonetheless, many stakeholders in the industry remain prudent regarding new investments, highlighting the necessity for a balanced approach amid a recovering market.