Romania’s M&A market up by 17 percent in first quarter: EY

The Romanian mergers and acquisitions (M&A) market recorded 48 transactions in the first three months of 2022, a 17 percent increase compared with the first quarter of 2021. Despite the higher volume of deal making, the estimated value of local M&A activity was lower on a year-on-year basis, at USD 1.8 billion in Q1 2022 vs USD 2.1 billion in Q1 2021. The level of activity reflects the global slowdown in M&A after a record year in 2021.

Iulia Bratu, Associated Partener, Strategies & Transactions, EY Romania: ”The Romanian M&A market showed continued resilience in the first three months of 2022. Despite the challenging geopolitical and macroeconomic contexts, M&A activity remains significant and close to record-high levels.”

The largest transaction of this quarter was the acquisition of automaker Ford Romania by Ford Otosan Netherlands for USD 785 million, followed by the acquisition of wind farm Beta Wind by Energias de Portugal, through its subsidiary EDP Renovaveis for USD 136m.

Strategic investors continue to be the dominant players in Romania’s M&A market, accounting for 92 percent of consumed transactions. Foreign players increased their activity in the Romanian market, counting 28 transactions and representing a 56 percent increase compared to Q1 2021, whereas domestic transactions registered a 10 percent decline (18 transactions) when compared to the same period. In terms of origins, the most active investors were the Netherlands (5 deals), the United States, and Belgium (3 deals each), followed by Poland, Austria, Hungary, and Gibraltar (2 deals each).

The most active sectors by inbound deal volume were technology and real estate (7 deals each), followed by diversified industrial products (5 deals), telecommunications, media & entertainment (3 deals), power & utilities, and healthcare (2 deals each).