Labour crunch fuels M&A deals

Prized asset: Workers seen here at a poultry processing plant in Hungary. Companies are willing to pay premiums for well-trained labourers. — Reuters

EASTERN Europe’s chronic labour shortage is feeding into corporate takeover activity, with some companies making acquisitions to snap up skilled workers or obtain expertise needed to expand their businesses.

While the practice represents just a small part of the region’s mergers and acquisitions market, it underlines concerns about the deepening labour crunch at a time of buoyant economic activity, advisors and executives said.