Daily summary of the Czech economy: CSOB, PRIM, MPM Quality, Zentiva, Avast and Nyotron (10 June 2025)

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Overview of the latest economic events in the Czech Republic

The growth of property prices in the Czech Republic continues to gain momentum. According to the current CSOB housing index, in the first quarter of 2025, the prices of flats increased by 10 % year-on-year, family houses became more expensive by 6.3 % and land by 5.5 %. The pace of appreciation is higher than in the fourth quarter of last year and signals rising demand, especially in urban agglomerations where property prices are becoming an important indicator of consumer confidence and investment activity.

In the area of corporate transactions, the long-standing dispute over the Prim brand was significantly resolved. The company MPM Quality from Frýdek-Místek, owned by entrepreneur Petr Hanko, bought the company Elton Watchmakers from Nové Město nad Metují from Michal Strnad's CSG group. Both companies produced watches under the Prim brand and were involved in legal disputes over it. Now the brand is being united under a single owner, opening up new business opportunities and export potential for the Czech watch industry. The acquisition price was not disclosed, but the transaction is seen as a key consolidation in this specific segment.

Other significant market moves include the decision by pharmaceutical company Zentiva to announce the acquisition of a smaller German biotech firm focused on researching innovative antibiotics. This acquisition will strengthen Zentiva's scientific base and facilitate its entry into Western European markets. In the technology sector, Czech Avast has entered into a strategic partnership with Israeli firm Nyotron. Together they will develop a new generation of cybersecurity solutions for cloud data environments and corporate networks, which will significantly expand Avast's technology portfolio.

A major announcement also came from Czech industrial giant Škoda Auto, which publicly unveiled the Enyaq RS Race concept car. The project is not only a technological experiment with unconventional materials, but also a step towards future production innovations. The development of the car took place in the context of Skoda's expanded investment in electric mobility research, which can be seen as an internal capital shift aimed at future mass production.

Foreign investment

In terms of cross-border capital movements, the focus is on the expanding activity of Tesla. The US firm has announced the conclusion of several contracts to purchase rare earth metals inventories from sources in Brazil and Canada in response to the growing risk of supply chain disruptions. At the same time, Daimler announced that it is investing in the development of advanced recycling technologies for rare magnetic materials. It plans to use these technologies in collaboration with Stena Recycling, a Scandinavian company that focuses on the recovery and reuse of critical elements.

PPF Group has also been active on the Czech market, acquiring a minority stake in French fintech firm MonetaQ through its subsidiary investment platform. The aim is to expand the range of digital payment solutions in the Central European region and enter the mobile lending market.

Significant events outside the Czech Republic with global impact

German industry is facing a deep structural crisis. According to a new EY analysis, this key sector has lost more than 100,000 jobs in the last 12 months. The automotive industry has been the worst hit, losing over 45,000 jobs. Reduced demand, pressure for greening and high energy costs are threatening the continuity of production. The effects are spilling over into the Czech Republic, where German companies are key customers and investors.

Tensions in the global commodities market have increased after China announced new quotas and restrictions on rare earth metals exports. These materials are essential for the production of batteries, motors and electronics. Companies such as BMW, General Motors and Tesla have expressed concerns about disruption to the global supply chain and are looking for alternative sources of raw materials.

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