EY estimates M&A activity in Romania up 22% y/y in Jan-Sep

Romanian mergers and acquisitions (M&A) market recorded 198 transactions during the first nine months (9M) of 2024, marking an 8.2% increase compared to the same period last year (183 deals), EY said in a quarterly report.

The estimated value of Romanian M&A activity rose by 22.3% y/y, reaching EUR 5.2 bln versus EUR 4.2 bln in 9M 2023, and was primarily driven by robust activity in the Power & Utilities sector.

The value of disclosed transactions during 9M 2024 remained relatively unchanged at EUR 2.5 bln (-0.1% y/y).

The largest deal observed during 9M 2024 was the acquisition of a 629 MW renewable energy portfolio from Evryo Group (previously CEZ Romania) by Public Power Corporation (PPC), the main electric power company in Greece, for a consideration of EUR 768 mln.

The second-largest deal in Q3 2024 (ranking third in 9M 2024) involved the sale of a 99 MW onshore wind project by Sweden-based OX2 for approximately EUR 234 mln to Nala Renewables.

Another notable transaction in Q3 involved the outbound acquisition of Nowo Communications, Portugal's fourth-largest telecommunications operator, by Digi Communications, the leading provider of television and internet services in Romania, from Cabonitel for EUR 163 mln.

This evolution aligns with both regional and global trends, as European M&A deal values rose by around 30% during the same period, while global deal values increased by 16%, EY said.

Such positive dynamics at both local and global levels point to a new phase of M&A activity in 2024, with renewed dealmaking appetite, following a challenging environment for global and European dealmaking in recent years. This renewed appetite comes on the back of lower interest rates and falling inflation, driven by lower goods and energy prices.

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