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Slow start for the deal making activity in Romania – EUR 258 M in Q1, Deloitte shows

Romania’s merger and acquisitions (M&A) market has reached EUR 258 million in the first quarter of 2018, a significantly lower amount compared to the same period last year, according to public sources and disclosed transactions, an analysis performed by Deloitte Romania has revealed.

However, if the transactions with undisclosed amounts are considered, the total value of the M&A market looks similar to the same period last year reaching between EUR 500 million and EUR 600 million.

“After a record 2017, the deal making activity in Q1 2018 has slowed down, but we remain confident about the full year. We have witnessed a single transaction with an official value of over EUR 100 million during this period of time, compared to five in the last quarter of 2017,” said Ioana Filipescu, M&A Partner, Deloitte Romania.

In Q1 this year, a total of 19 transactions have been announced, including those with undisclosed value compared to 30 in the same period last year.

“The Series B capital raising of UiPath involving three of the world’s largest technology investment funds created the first Romanian unicorn thus placing Romania on the map for technology investors. UiPath, a company with a stunning growth, confirms the rise of the local IT sector, the star of the Romanian economy in recent years. We expect to see other transactions in this field in the future, considering the increasing number of start-ups,” Ioana Filipescu added.

Deloitte’s analysis does not include the transactions with a value below EUR 5 million, the release points out. A significant number of transactions below this threshold have been announced in Q1 this year.

Unilever’s acquisition of Romanian ice cream manufacturer Betty Ice is another big transaction  recorded in Q1, as well as the acquisition by GreenGold Asset Management AB/KB of Cascade Empire and forest management division Ocol Silvic Cascade Empire from Schweighofer Group.

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