In a report on Monday, Fitch said the prospects for sustained economic growth would remain too uncertain for Central and Eastern Europe (CEE) and Middle East and Africa (MEA) corporates to consider significant acquisitive product and market diversification.

However, it said, factors such as the uncertain operating outlook, the need for maintenance and organic capital expenditure, shareholder expectations of cash dividends and a desire to strengthen liquidity and to moderate leverage are limiting the appetite and capacity of many Fitch-rated corporate issuers to be more active in M&A.

"The limited availability of finance also continues to constrain any pick up in M&A activity," the report added.

Reflecting the industry's relative stability and more limited prospects in developed markets, Fitch added, telecommunications continues to be one of the main sectors of M&A activity across the EMEA region, and Fitch believes this will continue to be the case, especially in Africa where further deals are anticipated.

Fitch foresees continued state privatizations such as the Zambian government's sale of a 75 percent stake in Zambia Telecom to Libya's Lap Green Investments. In Russia, steps to conclude a consolidation of the Syvazinvest regional operating companies under the Rostelecom umbrella are continuing. The combination of Svyazinvest assets is aimed at establishing a nationally integrated Russian telecommunications operator.

In addition to consolidation driven by the need to improve vertical integration, industrial corporate M&A across the Commonwealth of Independent States (CIS) region is to a meaningful degree being facilitated by vendors who are looking to sell stakes in their companies to service or repay debt.

Fitch expects that the Russian oil and gas industry will experience acquisition activity, as Russian producers are keen to acquire assets in CEE to improve their vertical integration.

For example, it said, AFK Sistema's (rated 'BB-'/Stable) has moved to acquire 49 percent of Russneft following its decision to take control of the Bashkir Oil and Energy Group in 2009. If successful, Fitch added, such a move could improve AFK Sistema's vertical integration by boosting upstream production to levels in line with its downstream refining capacity.