Looking back at 2017: Big transactions that made the headlines in Romania
Romania saw a growing number of big transactions in 2017 in all local business sectors. Banking, healthcare, industry, IT and real estate were the sectors where the most important deals took place. Banking Consolidation in the Romanian…
Romania saw a growing number of big transactions in 2017 in all local business sectors. Banking, healthcare, industry, IT and real estate were the sectors where the most important deals took place. Banking Consolidation in the Romanian banking sector continued in 2017 as Greek banks decided to withdraw from the local market. As a result, three important banks that were part of Greek groups were sold this year. The first transaction was OTP Bank’s takeover of Banca Romaneasca from National Bank of Greece (NBG), a deal whose value has been estimated at some EUR 100 million. However, the deal of the year was again signed by local Banca Transilvania, which reached an agreement to buy Bancpost and the other local subsidiaries of EFG Eurobank. The value of this transaction, which is still pending approval, hasn’t been made public, but is estimated at some EUR 230-250 million, according to mergers & acquisitions journal Mirsanu.ro. When finalized, this transaction will take Banca Transilvania very close to market leader BCR. In December, Greek group Piraeus also announced the sale of its local subsidiary to US investment fund JC Flowers, the first international player to enter the local banking sector after many years. Pharma and healthcare services The pharmaceutical and private medical services sector also saw several big deals in 2017. The deal of the year was the takeover of local pharmaceutical group A&D Pharma by Czech-Slovak investment fund Penta Investments. The deal is estimated at some EUR 350-400 million and will result in a new leader on the local pharmaceutical market. The Dr. Max pharmaceutical network, controlled by Penta Investments, also bought several pharmacies in Romania earlier this year. In the private healthcare sector, consolidation continued in 2017, as the top three players MedLife, Regina Maria and Medicover continued to buy smaller competitors. Market leader MedLife, however, made the biggest acquisition, namely the takeover of the Polisano hospital and clinics network for an undisclosed sum. At the beginning of the year, MedLife also bought the Anima clinics, founded by investors involved in the A&D Pharma business. Industry Industry also made the headlines with big transactions this year, some of which were quite surprising. One of the biggest deals of the year was
the purchase of the Ecopaper Zarnesti and Ecopack Ghimbav paper factories by British group DS Smith
from local investor Vladimir Cohn. The total value of this deal, including debt amounts to EUR 208 million. Dutch ship builder Damen also made a surprise acquisition,
The IT sector, the rising star of the Romanian economy, also had several important transactions in 2017. The biggest deal involved Bitdefender, the most valuable IT brand built in Romania.
from local fund Axxess Capital in a deal that valued the whole company at some USD 600 million. Two Romanian tech startups were also sold in 2017 for big money.
Real estate continues to be a hot sector for investors. Traditional investors such as Globalworth, NEPI, CTP, P3 and GTC were joined by new investors this year. The deal that made the most headlines was
, which bought a new investor on the local market, namely US fund Cerberus. The deal’s total value was close to EUR 170 million. Another big transaction was signed by Ducth group Atterbury,
. Logistics developers CTP, P3 and WDP continued their fast expansion by buying existing warehouses and land for new developments. On the residential segment, developers continued to buy land for new projects with local Impact being among the most active investors. The biggest failed deal in the real estate sector was
. Local DIY retailer Dedeman, owned by Romanian investors Dragos and Adrian Paval negotiated the takeover of the five office buildings from Israeli group AFI Europe but backed away from the deal in the last moment.
from Romanian-Turkish investor Omer Susli. French retailer Auchan also bought a small network of supermarkets in Bucharest while competitor Carrefour bought a home delivery app.
International deals by Romanian companies
The number of international acquisitions made by Romanian companies also increased in 2017. The biggest deal was local telecom operator
The Bucharest Stock Exchange also saw some action in 2017 as several private companies decided to draw capital from the stock market. The biggest listing was that of telecom group Digi Communications, which
