PwC counts 83 M&A deals worth EUR 1.8 bln in Romania during H1

Consultancy firm PwC counts 83 mergers and acquisitions (M&A) deals in Romania during the first half of the year, worth an aggregated EUR 1.8 bln.

The consultancy firm apparently uses a broader definition of the M&A market that goes even beyond the traditional limits that defines it as “the consolidation of companies or assets”.

On a more conservative note, Deloitte already reported only 54 M&A deals worth a total of EUR 1.2-1.4 bln, furthermore noting that the largest part of the market was formed by non-transparent deals with no declared price - therefore, the market approximation is based on estimates.

Even so, Deloitte concluded that “the year 2021 looks promising in terms of M&A activity, given the enthusiasm in the local business environment.”

On a much more optimistic note, PwC stopped short of including the IPOs carried out on the alternative market AeRO at Bucharest Stock Exchange (BVB) to the overall M&A market - although neither the 9% IPO at One United real estate developer nor even the 50% private placement at transport operator TTS (the two biggest AeRO listings) were close to change the majority owner of the two companies.

But indeed, BVB’s alternative market, “an alternative to the standard M&A deals” in PwC’s words, turned particularly active recently. As regards the standard M&A market, PwC outlines the sector of real estate as the main contributor.

Both Deloitte and PwC outline the sale of Hermes Business Campus to investment fund Adventum as a done deal - although at different prices: EUR 120 mln estimated by PwC (the biggest deal in the real estate segment) versus EUR 150 mln estimated by Deloitte.

On July 5, the daily Ziarul Financiar reported the deal involving Hermes Business Campus as possible, adding that none of the two parties involved commented. On August 3, the daily reported the deal as done and indicated a EUR 120 mln value.

Regarding the biggest M&A deal overall, PwC avoids outlining one, but Deloitte points to the change of the indirect owner of gambling and sports betting company MaxBET.

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