Spotlight On Luxembourg

This article isan extract from the CMS European M&A Outlook 2026. To download the full report please click here

M&A activity in Luxembourg was particularly strong until early 2022, before a notable slowdown. How have the past few years shaped the market, and where does Luxembourg stand today?

Luxembourg experienced the same post pandemic boom as the rest of Europe, driven by historically low interest rates and record levels of deployable PE capital. When the slowdown came in 2022 – triggered by Russia’s full-scale invasion of Ukraine, supply shortages, strong inflation and rising interest rates – it affected both local deals and the larger volume of transactions structured through Luxembourg vehicles into other jurisdictions.