M&A market in Kazakhstan remained strong in 2019, as it was
in 2018. Activity was largely driven by ongoing consolidation of
Kazakh banks because of the increased capitalisation requirements
of the financial regulator, consolidation in the telecommunications
sector and acquisitions in the IT sector.
Banking Sector
In Kazakhstan, there is currently a trend for consolidation of
banks which has resulted in increasing numbers of M&As in the
banking sector. This trend is explained by various factors,
including inability of Kazakh banks and their controlling
shareholders to meet prudential requirements and expected
competition from the foreign banks due to the acceding of
Kazakhstan to the WTO.
