The mergers and acquisitions (M&A) market in Romania slightly decreased in volume in 2023 compared to the previous year but remained one of the most active in Central and Eastern Europe (CEE), according to an analysis conducted by Deloitte Romania.  

The number of transactions with values over EUR 5 million analyzed by Deloitte Romania dropped from a record of 157 in 2022 to 130 in 2023. The estimated total value of the market ranged between EUR 6.5 and 7.2 billion, of which EUR 4.9 billion were transactions with publicly communicated values. For comparison, the market value in 2022 was EUR 6.5-7.5 billion.

According to Mergermarket data analyzed by Deloitte, this level of activity places Romania second among the most active markets in Central and Eastern Europe.

Romania’s share in the total number of transactions recorded in the region increased from 13% in 2019, when it was surpassed by Poland (37%) and the Czech Republic (21%), to 15% in 2023, when it was beaten only by Poland (44%) and was followed by the Czech Republic (13%) and Hungary (8%). 

Radu Dumitrescu, Financial Advisory Partner-in-Charge, Deloitte Romania, commented: “When analyzing the most active M&A markets in Central and Eastern Europe over the last years, we notice that they evolve in similar directions and paces. However, it is noteworthy that, despite the fact that last year was marked by a contraction in activity both globally and regionally, as well as locally, Romania recorded the smallest decline in the region in the number of transactions, 17%, according to an analysis conducted by Deloitte based on Mergermarket data. By comparison, the average decline in Central and Eastern Europe was 20%, with the Czech Republic experiencing the most significant decrease in the number of transactions, 22%.”

“It is also noteworthy that, despite seeing this volume decrease, the market value in Romania remained almost constant, thanks to the two major transactions in 2023 - the acquisition of Enel by Public Power Corporation and of Profi Rom Food by Ahold Delhaize,” he added.

Excluding mega-deals exceeding EUR 500 million, the average value of a transaction was EUR 25 million in 2023, Deloitte Romania also said.

By sectors, the highest number of transactions were registered in real estate (28%), energy (15%), and consumer products and technology (11% each) in 2023. However, in terms of value, the energy sector contributed 35% to the total market, followed by retail and distribution (21%), real estate (14%), and financial services and consumer products (8% each).

According to the same analysis, among the types of investors active in the Romanian M&A market in 2023, strategic investors continued to dominate, accounting for 87% of the total number of transactions. 

Strategic investors from Romania were involved in 29% of the total number of transactions recorded in the local market last year. Among foreign strategic investors, those from Greece invested the most significant amounts (35% of the market value), followed by the Dutch (25%) and Italians (7%). In terms of the number of transactions in which they were involved, investors from Poland also stand out (8% of the local market volume in 2023), as well as those from the US (7%) and Austria (6%).

The analysis takes into consideration transactions with disclosed values of over EUR 5 million. Information is collected from public sources and updated with transaction values resulting from the latest available information.

irina.marica@romania-insider.com

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