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December 8, 2021

Mergers and acquisitions market up by 250 pc in H1

The Romanian mergers and acquisitions market has registered the most dynamic evolution among the 11 countries in Central and Southeast Europe (CSE), registering 250 per cent growth in the total estimated value of transactions, from USD 600 M in H1 of 2014 to USD 2.1 bln in H1 this year.
At the same time, the number of transactions grew from 68 to 81 in H1 this year. In what concerns the value of the transactions, the most attractive sectors in Romania were the energy and mining sectors according to EY’s M&A Barometer report. Moreover, Romania registered the biggest transaction in the CSE region this year – the takeover of UniCredit Tiriac Bank for USD 770 M, the EY report shows.
In the first half of the year most of the transactions, namely 80 per cent of the total transactions in Romania, were made by strategic investors.
The Romanian market was once again dominated by inbound transactions, foreign companies taking over local companies in 62 per cent of the transactions. Romanian investors took over foreign companies in only 8 per cent of the publicly known transactions – one of the lowest percentages in CSE. The 30 per cent difference consisted of internal mergers and acquisitions in which both the buyer and the target had residence in Romania.
Most inbound transactions were made by investors from the United States (6), Netherlands (6), Cyprus (4), United Kingdom (4), Italy (3) and Czech Republic (3).
“Romania confirms its status of very active regional market both through macroeconomic performances and geostrategic position. In the future we expect the energy sector to attract important investors given the potential of the new energy sources. Likewise, we expect a marked consolidation of the financial sector and medical services sector, which are part of the second investment wave,” Florin Vasilica, head of EY Romania’s Transaction Assistance Department, stated.

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