Transaction value on Romanian M&A market increased to USD 3.65 bn in 2015

The estimated transaction value in Romania last year increased to USD 3.65 billion, up with 22 percent from the previous year, EY Mergers & Acquisitions (M&A) Barometer shows. Transaction value was disclosed for 48 deals, resulting in a disclosure rate of 39 percent.

The Romanian transaction market was, in 2015, dominated by inbound transactions with 60 percent of total number of deals, a slight increase in number when compared to 2014, while both domestic transactions and outbound transactions decreased compared to the same period of the last year.

Deals closed by strategic investors in 2015 represented 83 percent of total disclosed deals, up by 36 percent compared to the previous year, a trend that was reflected also in the whole CSE region. The financial investors represent 17 percent out of the total transactions, decreasing from its spike of 53 percent in 2014.

“Given the macroeconomic forecasts and developments thus far of certain sectors or investment portfolios, we expect cross-border transactions to increase amid strategic solutions chosen by some players in the sectors active in M&A, to keep up with competitors who have already solidified their position through acquisitions,” Florin Vasilica, Head of the Transactions Assistance department wih EY Romania stated.

In 2015, out of a total of 73 inbound transactions, the largest number came from the United States with 7 transactions representing 10 percent followed by Ireland and the UK with 8 percent each, while in 2014 the most active inbound investors came from Austria and Germany (8 percent).

The IT and Energy & Mining sectors were the most active target industries (by number of transactions), accounting for 13 deals each in 2015. They were followed by Real Estate (12 deals) and Services and Healthcare industries (11 deals each). As for transactions for which the value was undisclosed, in healthcare there was the acquisition of the Regina Maria network by Mid-Europa Partners, estimated at USD 148 million.

In terms of value, the largest transactions occurred in the Banking and Financial services sector – Italian UniCredit group bought the 45 percent shares Ion Tiriac held in UniCredit Tiriac Bank for USD 771 million; followed by the Manufacturing sector – the takeover of Lafarge and Holcim Romania by Irish producer CRH for USD 7.1, of which USD 439 million for the Romanian assets.

In 2015, the overwhelming majority of investors were strategic (83 percent), the number of transactions they carried out increased by 18 percent compared with 2014.