The mergers and acquisitions (M&A) market in Romania amounted to EUR 6.3 billion (USD 6.6 billion) in 2024, down 6% compared to the estimated value for 2023 (USD 7.1 billion), with the number of transactions being 10% higher (241), according to an E&Y analysis.

Mega-deals excluded (there were two in 2023 and none in 2024), the market, in fact, expanded by some 50% y/y to EUR 3.6 billion, driven by more activity in the real estate and energy sectors.

In 2024, the average deal size returned to 2021 levels at USD 42 million (USD 40 million in 2023), reflecting solid market fundamentals.

The most active investors by country of origin came from the United States (13.6% of inbound transactions), followed by Poland (8.3%, second for the first time) and France, Austria, and Germany (7.6% each).

The value of disclosed transactions increased by 40.7% y/y (to USD 2.9 billion in 2024, compared to USD 2.1 billion in 2023), excluding last year's mega-transactions, namely the acquisitions of Enel Romania (USD 1.3 billion) and Profi Rom Food (USD 1.4 billion).

The US and Poland ranked in the top two places in terms of country of origin of capital.

The deal value was not disclosed for almost three quarters (74.7%) of all deals announced in 2024 (198 deals), well above the historical average of around 65% in 2018 – this is one of the lowest levels of transparency seen in CEE markets.

Strategic investors maintained their dominance in the local M&A market in 2024, representing 91.3% of transaction volume and marking the highest market share in the last six years.

Domestic deals fell marginally to 113, from 120 in 2023, while foreign deals increased by 26.9% y/y to 132, highlighting Romania as a top destination for M&A in the Central and Eastern Europe region. Despite the lower share of total activity, foreign deals increased by 54.5%, to 17 deals, the highest number since 2018, demonstrating the resilience of Romanian investors in cross-border transactions, say EY Romania specialists.

"In 2024, Romania maintained its growth trajectory in mergers and acquisitions (M&A) activity, supported by strong investor interest and an active trading environment. Inbound M&A levels increased significantly, accounting for half of total volumes in 2024, highlighting the gradual recovery of the global M&A market. While short-term volatility may affect deal appetite, the Romanian market continues to be supported by attractive fundamentals for investors, which will stimulate M&A activity in the long term," Iulia Bratu, Partner, Head of Lead Advisory, EY Romania, said.

Most transactions were in real estate, construction, and energy

The most active sectors by transaction volume were real estate, hospitality and construction (18.5% of the number of transactions), followed by energy and utilities (16.6%), advanced manufacturing and mobility (15.5%), technology, media, and telecommunications (15.1%) and consumer products and retail (14.7%).

Real estate, hospitality, and construction, a traditional top M&A sector, saw growth of 19.5% in 2024, with deal volume increasing to 49. In line with global patterns, the energy and utilities sector saw growth of 51.7% y/y, fueled by a doubling of deal volume to 38 deals (up from 19 in 2023) in the renewable energy sub-sector.

This growth highlights Romania's emergence as a leading destination for renewable energy investments, supported by rich natural resources and alignment with EU policy commitments. Advanced manufacturing and mobility maintained its position in third place, with 41 deals, with the logistics sub-sector registering a 20% increase in deal volumes, reaching 12 deals.

Technology, media, and telecommunications came in fourth place, holding steady at 40 deals, fueled by a 55.6% increase in the media sub-sector. Supported by  resilient private consumption,  consumer products and retail ranked fifth, growing by a modest 5.4%, with the beverages sub-sector recording an impressive 267% growth in 2024.

The largest transactions of 2024:

• Sale of a 629 MW renewable energy portfolio by Evryo Group (formerly CEZ Romania) to Public Power Corporation (PPC), the leading   electricity company in Greece, for USD 768 million.

• Acquisition of the Romanian operations of OTP Bank, headquartered in Hungary, by Banca Transilvania, the largest bank in the country, for an amount of USD 375 million.

• Sale of a 99 MW onshore wind project by Sweden-based OX2 for approximately USD 234 million to Nala Renewables, a joint venture between Australia's IFM Investors and Trafigura, one of the world's largest commodities providers.

(Photo: Designer491 / Dreamstime)

iulian@romania-insider.com