The M&A team at WALLESS in Delfi Ärileht: confidence in Estonia is restoring
What happened on the Estonian transaction market in 2025?
The M&A team at WALLESS spoke to Delfi Ärileht about the current state of the Baltic transaction market: https://tinyurl.com/4ph4b47n
Four key observations:
- Clear defence posture reassured investors.
Geopolitical tensions are receding, and Estonia is increasingly seen as a reliable and predictable investment environment, not only in the context of defense industry development.
- Large transactions send a strong signal.
The sale of the Rimi chain of stores to Salling Group for approximately €1.3 billion shows that capital will only flow into the Baltics if there is confidence in the long-term stability of the market. Interest from international private equity funds is also recovering in the technology and software sector, as evidenced by Bregal Milestone’s investment in Ridango.
- The energy sector is growing but needs stability.
In the energy sector, interest in new electricity generation and storage projects is growing, leading to more financing and sales transactions. Frequent changes in legislation and ongoing confusion surrounding wind energy support measures are causing uncertainty.
- Tax and regulatory uncertainty may slow down momentum
Investor confidence is affected by uncertainty surrounding the application of tax rules. For example, it is not always clear when transactions are considered to be aimed at obtaining tax benefits. A stricter approach to solutions that were previously considered tax-neutral has reduced the predictability of the tax environment.
There has been a positive turnaround in the Estonian transaction market, but a clear and predictable legal and tax environment is key to maintaining long-term investment activity.