Romania's M&A market shrinks by 26% YoY to USD 4 bln despite more deals in Jan-Sep

The value of the M&A market in Romania shrank by some 26% YoY to USD 4 bln in January-September, despite a larger number of deals taking place (169 deals, +18% YoY), according to the latest report of EY Romania.

In Q3 alone, both the value of the market and the number of deals rose by 3.6% YoY and 5.3% YoY, respectively - however, no large deal (of over USD 100 mln) was reported in the quarter.

The largest transaction in Q3 was Mass Group's acquisition of Mintia Thermal Power Plant for a reported USD 90.7 mln, followed by Enery Power Holding GMbH's acquisition of renewable energy assets in Romania from Jade Power Trust (USD 71 mln). Another notable deal was the sale of a 20% stake in Aqua Carpatica to Pepsi Co. for an undisclosed sum.

"In terms of transaction volume, Romania continues to be a dominant market in Central and Eastern Europe and one of the few growing markets (versus 2021)," said Iulia Bratu, Partner, Head of Lead Advisory, Strategy and Transactions, EY Romania, Economedia.ro reported. The market is shaped by long-term investors, she added.

Strategic investors continue to be the dominant players in the Romanian M&A market, accounting for 88% of transactions.

Domestic transactions saw a 27% YoY advance in the first nine months of 2022, counting 84 deals, while foreign players increased their activity by only 6% YoY (74 transactions) compared to the same period. In terms of country of origin, the most active investors were the USA (8 transactions), followed by Belgium (6 transactions), Poland and Germany (5 transactions).

The most active sectors in the first nine months of 2022 were: Technology (36 trades), Real Estate (29 trades), Healthcare (21 trades), Diversified Industrials (15 trades) and Energy & Utilities (13 trades).

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