Romanian M&A market in 2024: Real estate, hospitality & construction remained the most active sector by deal count for a second consecutive year

The Romanian mergers and acquisitions (M&A) market saw robust activity in 2024, recording 265 transactions with an estimated value of 6.6 billion USD. This indicates a 10.0 percent rise in deal count on a yearly basis (241 deals in 2023), and a 5.9 percent decrease in estimated value (7.1 billion USD in 2023), according to an analysis by EY Romania.

Disclosed transactions value rose by 40.7 percent (2.9 billion USD in 2024 vs. 2.1 billion USD in 2023) excluding last year’s mega-deals, namely the acquisitions of Enel Romania (1.3 billion USD) and Profi Rom Food (1.4 billion USD). Remarkably no deal-value was disclosed for almost three-quarters (74.7 percent) of all transactions announced in 2024 (198 deals), greatly surpassing the historical average of c. 65 percent since 2018 – this is one of the lowest levels of transparency seen across CEE markets.

Despite not reaching the anticipated level due to a slower start to the year, global M&A rebounded in 2024, recording a 12 percent year-on-year increase in the value of deal-making, while the value of European M&A increased by 13 percent. Deal-makers had to balance the negatives of a slower than expected recovery of the global economy, continued geopolitical tensions and regulatory constraints, with the positives of reduced macroeconomic uncertainty, falling inflation, a lower interest rate regime and narrowing valuation gaps during 2024. Romania continued to be a top performer during 2024, with a 10 percent increase in deal volumes compared to 5 percent in Europe. With renewed confidence and deal-making appetite on the rise, activity is expected to accelerate in 2025.

Strategic investors retained their dominant hold on the local M&A market in 2024, accounting for 91.3 percent of transactions volume and marking their largest share of the market in six years. Domestic transactions fell marginally to 113 from 120 in 2023, while inbound foreign deals increased 26.9 percent year-on-year to 132, highlighting Romania as a leading M&A destination in the Central and Eastern Europe region. Despite the smaller share of overall activity, outbound transactions rose by 54.5 percent to 17 deals, the highest number since 2018 and showcasing Romanian investors’ resilience in cross-border deals.

“In 2024, Romania maintained its growth trajectory for M&A activity, fueled by strong investor interest and an active deal-making environment. Inbound M&A levels increased significantly to half of total volumes in 2024, showcasing the gradual recovery of global M&A. While some potential short-term volatility can affect dealmaking appetite, the Romanian market continues to be underpinned by attractive market fundamentals that will drive M&A activity over the long-term”, said Iulia Bratu, Partner, Head of Lead Advisory at EY Romania.

The most active sector by deal volume was real estate, hospitality & construction (18.5 percent of the number of transactions), followed by energy & utilities (16.6 percent), advanced manufacturing & mobility (15.5 percent), technology, media and telecommunications (15.1 percent) and consumer products & retail (14.7 percent).

Real estate, hospitality & construction, traditionally a leading sector in M&A, recorded a 19.5 percent increase in 2024, with deal volume rising to 49. In line with global patterns, the energy & utilities sector saw a 51.7 percent year-on-year growth, driven by a twofold increase in deal volume to 38 deals (vs. 19 in 2023) within the renewable energy sub-sector. This growth showcases Romania’s emergence as a prime destination for renewable energy investment, supported by its rich natural resources and alignment with EU policy commitments. Advanced manufacturing & mobility maintained its position in third place with 41 deals, with the logistics sub-sector showing a 20 percent increase in transaction volumes, reaching 12 deals. Technology, media and telecommunications secured the fourth place holding steady at 40 deals, driven by a 55.6 percent increase in the media sub-sector. Boosted by resilient private consumption, consumer products & retail ranked fifth increasing by a modest 5.4 percent, with the beverage sub-sector achieving a striking 267 percent growth in 2024.

The largest transactions of the year 

• The sale of a 629 MW renewable energy portfolio by Evryo Group (previously CEZ Romania) to Public Power Corporation (PPC), the main electric power company in Greece for US$ 768m.
• The acquisition of Hungary-based OTP Bank’s operations in Romania by Banca Transilvania, the country’s largest bank, for a consideration of US$ 375m.
• The sale of a 99 MW onshore wind project by Sweden-based OX2 for approximately US$ 234m to Nala Renewables, a joint venture between Australia-based IFM Investors and Trafigura, one of the world’s largest commodity suppliers. EY’s multidisciplinary, cross-border team supported OX2 in its debut transaction in Romania by offering full sell-side M&A advisory.

In 2024, the average transaction size returned to 2021 levels at 42 million USD, reflecting solid market fundamentals. Lastly, the most active investors by country of origin came from the United States (13.6 percent of inbound deals), followed by Poland (8.3 percent, for the first time coming to the second place) and France, Austria and Germany (7.6 percent each).