PwC expects Romania's M&A market to recover after slow Q1

After 15 deals summing up to only EUR 170 million in Q1, Romania's mergers and acquisitions (M&A) market sees robust recovery in the short run with 55 deals in the pipeline, according to PwC Romania. The 55 deals, 13% fewer compared to Q2 last year, still sum up to as much as EUR 1.7 billion, according to the report.

Three major deals pinpoint the M&A's growth short-run outlook, namely the sale of OTP Bank Romania (to Banca Transilvania, in a deal exceeding EUR 340 million), a second significant investment of Mexican Bimbo baker (some EUR 100 million), and Globalworth selling part of its logistic portfolio to CTP (for some EUR 700 million).

Separately, several small businesses worth typically under EUR 10 million are subject to takeover by mainly strategic investors rather than investment funds that keep a small share of around 10% – in line with their share last year in the total value of the M&A deals on the Romanian market.

Against the background of expectations of a decrease in inflation in the coming quarters, but also in 2025, as well as in the context of the stability of the monetary policy interest, it is anticipated that the level of confidence of investors in the economic recovery will increase, with a direct positive impact in the mergers and acquisitions market, PwC Romania argues.

Investors' positive sentiment is also supported by encouraging macroeconomic data, the excess liquidity in the region's financial markets, and the ambitions to develop the business environment, including through digitalization and modernization of enterprises, to remain relevant in the future.

Last year, the M&A market in Romania registered 189 completed transactions, with a value of EUR 4.3 billion, down about 20% from EUR 5.2 billion in 2022. Last year's result was largely supported by the transaction through which the Greek group PPC bought Enel Romania, a transaction worth EUR 1.3 billion.

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