The number of closed deals on the Romanian mergers and acquisitions market increased by 5 percent, from 114 in 2010 to 120 in 2011. On the other hand, 2011 wasn’t a great year for the extrapolated sum of deal values, down by 28 percent compared with a 46 percent increase based on disclosed deal values, according to Ernst & Young's M&A Romanian Barometer, which analyses mergers and acquisitions on the Romanian market, the most active industries and the profile and country of origin of buyers.

"The fact that the Romanian M&A market did not 'come-back' during 2011 still reflects the significant gap between value expectations of sellers and buyers, as well as the financial tensions in the eurozone. Continuing the trend from 2010, insolvent and distressed companies led the way in transactions during 2011. The appetite for takeovers was not as strong as envisaged due to the limited economic growth and a low consumer spending in 2011,” reads the Ernst & Young report.

"The largest transaction that is expected to be completed during 2012 would probably be the takeover of the Romanian agriculture fertilizer producer Azomures and of its subsidiary Chimpex by Ameropa, as well as the privatization of Cupru Min Abrud (copper mining industry) that is expected to conclude in spring 2012 via open auction,” predicts Ernst & Young's report.

As for the investors on the M&A market the share of financial investors increased from 28 percent in 2010 to 35 percent in 2011. Origins of inbound investments included Germany, Austria and the USA , each with six deals, followed by the UK with four deals, and Luxembourg with three deals.

The most targeted sectors for deals in 2011 were the manufacturing sector with 20 deals, Telecom & Media with 14 deals and real estate with 13 deals. As for next year Ernst & Young expects an upward  trend but only if economic recovery materializes in Romania.

Alex Camburu, alex.camburu@romania-insider.com

(photo source: Photoxpress.com)