Romania's M&A market value falls to $1.8 bln in Q1 - Ernst&Young

Romania's mergers and acquisitions (M&A) market recorded an estimated value of $1.8 billion (1.66 billion euro) in the first three months of 2022, compared to $2.1 billion a year ago, global consultancy Ernst&Young (EY) said on Tuesday.

Despite the drop in the estimated value, there was a 17% annual increase in volume, as the Romanian M&A market recorded 48 transactions in January-March period of 2022, EY said in a press release.

The level of activity reflects the global slowdown in M&A after a record year in 2021, the company added.

"The Romanian M&A market showed continued resilience in the first three months of 2022. Despite the challenging geopolitical and macroeconomic contexts, M&A activity remains significant and close to record-high levels," EY Romania associated partner for strategies and transactions Iulia Bratu said.

The largest transaction of this quarter was the acquisition of automaker Ford Romania by Ford Otosan Netherlands for $785 million, followed by the acquisition of wind farm Beta Wind by
Energias de Portugal, through its subsidiary EDP Renovaveis for $136 million.

Strategic investors continue to be the dominant players in Romania’s M&A market, accounting for 92% of consumed transactions. Foreign players increased their activity in the Romanian market, counting 28 transactions and representing a 56% increase compared to the first quarter of 2021, whereas domestic transactions registered a 10% decline when compared to the same period.

In terms of origins, the most active investors were the Netherlands, the United States, Belgium, Poland, Austria, Hungary, and Gibraltar. The most active sectors by inbound deal volume were technology and real estate, followed by diversified industrial products, telecommunications, media and entertainment, power and utilities, and healthcare.

While excluded from its market value calculation, Ernst & Young notes two other transactions in the first three months of 2022. In March, MBC Group, the United Arab Emirates-based media company acquired 30% of Antenna Group, the Greece-based television broadcasting and production firm, including its Romanian operations. In the same month, Econergy International Ltd. acquired two photovoltaic projects in Romania and USA from PNE AG. Both transactions are for an undisclosed consideration.

EY’s M&A database for Romania excludes transactions with stakes acquired of less than 15% and includes an estimate of the value of transactions where no data was formerly disclosed by the parties. Also, multi-country transactions which include companies or operations in Romania are included in the number of
transactions but excluded from the value of the total market where the allocation of transaction value is not available.

Romania's mergers and acquisitions market jumped by 32% in terms of value to an estimated $6.2 billion in 2021, according to EY data released in January.

($=0.9266 euro)

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