The Romanian market registered mergers and acquisition transactions worth around 1.2 billion Euros in 2014, similar to the deal value registered in 2013, according to a PwC Romania analysis.
The overall M&A value in Romania was the 3rd largest in Central and Eastern Europe, after those of Poland and the Czech Republic, countries that traditionally have larger M&A markets. Both global and European M&A markets increased in 2014 up to levels close to the one in 2007, the biggest M&A year on record.
„In Romania, although we felt in 2014 a renewed enthusiasm for the M&A activity, we are not yet at the transaction levels reached before the global financial crisis”, explained Radu Stoicoviciu, Advisory Leader, PwC Romania.
IT&C, Financial Services and Retail were the most dynamic sectors in 2014 in terms of completed deals. Also, the average deal value is below 20 million Euros, most deals being small or medium sized.
“In Romania the deal process is quite long, unlike the mature M&A markets (such as the US), where the M&A is a form of “market clean-up” and transactions are closed quite fast”, stated Anda Rojanschi, Partner, D&B David şi Baias, head of the M&A practice.
“We expect a steady increase in M&A activity in Romania in 2015, driven by improved growth perspectives and renewed investor confidence, considering also the recently announced BCE quantitative easing programme that, we hope, will lead to an increase of foreign investments in Romania”, added Anda Rojanschi.
In terms of most dynamic sectors to watch this year, PwC Romania analysis highlighted the M&A potential in the IT&C, Healthcare and Services sectors, with Financial Services also expected to continue the consolidation process.
PwC is the leading M&A consultancy in Romania, with completed deals worth over 1.2 billion Euro between 2007 and 2014, assisting in 2014 landmark deals such as the sale of Millenium Bank Romania to OTP Bank, the sale of the radio stations portfolio of CME to RCS&RDS, and the acquisition of United Shipping Agency by Chinese group Nidera.
About D&B David şi Baias:
D&B David si Baias is the correspondent law firm of PwC Romania, being integrated in the PwC network of correspondent law firms that has more than 2000 lawyers in 75 jurisdictions.
D&B David şi Baias is a business law firm. The D&B David şi Baias team provides integrated, innovative and pragmatic solutions, by providing assistance, representation and legal advice in the following areas: companies and groups of companies, mergers, acquisitions and restructuring, real estate, employment and human resources, financial services and capital markets, competition and state aid, intellectual property, consumer and personal data protection, tax and commercial litigation.
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