The Romanian market registered mergers and acquisition (M&A) transactions worth around EUR 1.2 billion in 2014, similar to the deal value registered in 2013, according to a PwC Romania analysis.
The overall M&A value in Romania was the 3rd largest in Central and Eastern Europe (CEE), after those of Poland and the Czech Republic, countries that traditionally have larger M&A markets. Both global and European M&A markets increased in 2014 up to levels close to the one in 2007, the biggest M&A year on record.
„In Romania, although we felt in 2014 a renewed enthusiasm for the M&A activity, we are not yet at the transaction levels reached before the global financial crisis”, explained Radu Stoicoviciu, Advisory Leader, PwC Romania, in a press release.
IT&C, Financial Services and Retail were the most dynamic sectors in 2014 in terms of completed deals. Also, the average deal value is below EUR 20 million, most deals being small or medium sized.
“In Romania the deal process is quite long, unlike the mature M&A markets (such as the US), where the M&A is a form of “market clean-up” and transactions are closed quite fast”, stated Anda Rojanschi, Partner, D&B David and Baias, head of the M&A practice. “We expect a steady increase in M&A activity in Romania in 2015, driven by improved growth perspectives and renewed investor confidence, considering also the recently announced ECB quantitative easing programme that, we hope, will lead to an increase of foreign investments in Romania”, added Anda Rojanschi.
In terms of most dynamic sectors to watch this year, PwC Romania analysis highlighted the M&A potential in the IT&C, Healthcare and Services sectors, with Financial Services also expected to continue the consolidation process.