CMS: Romania’s M&A market to halve in 2020 unless something happens in H2

The local M&A market will halve in 2020 to only EUR 2 billion, if it is not saved by the signing of a big deal in the second half, such as the sale of CEZ's assets, according to Horea Popescu, partner of the law firm CMS Romania and coordinator of the Corporate M&A practice in Central and Eastern Europe, quoted by Ziarul Financiar.

The M&A market in the region shrank by about one third in the first half, and Romania has not escaped this trend.

The number of deals involving Romanian companies or regional companies focused on Romania was only 20.

In 2019, 150 deals with a cumulative value of EUR 4 bln were reported.

Although many executives say that the market will not reach the pre-pandemic level before 2023, there are still deals to be signed, as there are investors who see opportunities in the current crisis.

"Despite a promising start of the year, the M&A market in the region has been significantly affected by the pandemic. The appetite for transactions was almost frozen due to the shock generated in the economy by the global lockdown and the short and medium-term concern about the pandemic's evolution. As a reaction, a series of deals were either frozen or postponed," says Horea Popescu.

CMS prepares annually, together with the Mergermarket platform, a report on the European M&A market.

(Photo: Mr Phonwalat Chaicheevinlikit/ Dreamstime)