The emergence of CEE as a global investor

Money from CEE is flowing into western Europe in the shape of investment and key acquisitions. But it’s not all welcome.

It’s the oldest brand name in travel, founded in 1841 and a pioneer of what would later become known as the ‘package’ holiday—a trip where all arrangements for transport, accommodation and food are made by a tour operator. 

Thomas Cook & Sons, operating out of an office on Fleet Street, in London, did more than merely organise tours, however. It sold guidebooks, luggage, and even ‘suitable’ footwear. Various iterations of the storied firm have survived the many changes seen by the travel industry over the past nearly 200 years, as well as insolvency in 2019. 

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Now, however, an institution perceived as being as English as pie and mash (although it had been acquired by a Chinese firm in 2019) is Polish.

Earlier this month, eSky, one of Central and Eastern Europe’s largest online travel platforms, bought Thomas Book, which generated revenues of around 150 million UK pounds in 2023, from China’s Fosun Tourism Group. 

The deal will provide Thomas Cook with access to eSky’s superior flight inventory and will support its continued growth. This will in turn allow eSky, launched in 2004 and whose own revenues reached 800 million euros in 2023, to enter one of the most developed markets in Western Europe. 

“The synergy of Thomas Cook’s brand heritage with our technology will drive Thomas Cook’s growth and allow us to strengthen eSky’s position in Western Europe,” said Łukasz Habaj, CEO of eSky Group. 

“This acquisition is part of our strategy to diversify from just selling flights to offering package holidays across our existing markets in Europe and Latin America, as well as expand further into Western Europe.” 

Prestigious acquisitions 

The eSky purchase of Thomas Cook is the latest in a series of acquisitions of prestigious UK brands by major players from the emerging Europe region. 

Earlier this year, the UK’s Royal Mail has accepted a 3.57 billion UK pounds takeover bid from Czech billionaire Daniel Křetínský, paving the way for the sale of one of Britain’s oldest and most iconic institutions to a foreign owner for the first time. 

Royal Mail is older even than Thomas Cook: it has been operating a postal service in England since the reign of Henry VIII in the 16th century. 

Křetínský also owns a 27 per cent stake in West Ham United Football Club, making the Czech the club’s second-biggest shareholder. A Serb, meanwhile, Dragan Šolak, who made his fortune in broadband, mobile and TV services, is the lead investor in another English Premier League Club, Southampton. 

Also this year, Polish company Emtech, a manufacturer of semi-trailers and low-loaders, bought British producer Andover Trailers, while Poundland, a discount store found on many British highstreets, is now owned by Poland’s Pepco, whose largest shareholder is the South African investment group Steinhoff, but whose shares are listed on the Warsaw Stock Exchange, CEE’s largest. 

Even firms from the smaller countries of emerging Europe are joining the trend of buying western European assets. In March, Lithuanian unicorn Vinted, a marketplace for second-hand clothes, acquired the Danish marketplace Trendsales. 

“We are witnessing the emergence of CEE as a global investor, instead of relying upon inward investment from Western Europe,” says Andrew Taylor, who coordinates the Buckingham University executive MBA in Cluj, Romania, for Transilvania Executive Education, and is managing director of the consulting firm Connect CEE.

“With western European economies stagnant, CEE is emerging as the continent’s engine of growth,” he adds.

Spain says no to Hungary

Not all the money now flowing from east to west is welcome, however. Last month, Hungarian consortium Ganz-Mavag withdrew its tender offer for all shares in Spanish train manufacturer Talgo after the Madrid government blocked the takeover bid. 

Ganz-Mavag, which comprises Hungary’s state fund Corvinus and other local investors, did not rule out attempting to take over Talgo again in the future and said it planned to appeal the government’s action. 

On September 12, the Financial Times reported that Spain blocked the Hungarian takeover of the Madrid-based trainmaker on the grounds that Viktor Orbán’s Russia-friendly government should not acquire technology that could be useful to Ukraine, according to people familiar with the matter. 

A senior Spanish government official said Madrid vetoed the 619 millions euros bid in part because the company could aid Ukraine’s reconstruction by helping it strengthen its rail links with the EU. 

“One of Ukraine’s biggest interests is the rail connection,” the official told the Financial Times, stressing that Talgo could help Ukraine overcome one big impediment: the fact its rail tracks are a different width. 

Spain has classified the documents explaining its decision—which it made on “public security and order” grounds. 

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