The mergers and acquisitions (M&A) market in Romania saw significant growth in 2024, reaching pre-pandemic levels, according to a recent analysis by PwC Romania presented at the Annual M&A Conference.

A total of 239 transactions were announced last year, with an estimated total value of EUR 5.9 billion. This represents a 12% increase compared to 2023, with the most dynamic sectors being real estate, financial services, and energy.

"The Romanian M&A market has been in continuous growth since the pandemic. Although last year there was no megadeal (over EUR 1 billion) and not many exits from investment funds, both the volume and the value of the M&A market increased, reaching the pre-pandemic level of 2019," said Cornelia Bumbăcea, Transactions Partner at PwC Romania.

Looking ahead to 2025, the PwC expert anticipates that at least one megadeal will contribute to a substantial increase in the total market value.

Out of the 239 transactions announced in 2024, 175 were completed, valued at EUR 3.7 billion, which is 3% higher than in 2023. 

The analysis highlights that many deals are signed in one year but close the following year or later. The average transaction completion time in 2024 was 125 days. The longest completion times were seen in the financial services sector (283 days), consumer goods (191 days), and IT&C (197 days), mainly due to necessary regulatory approvals and conditions outlined in sale contracts.

Despite investor caution due to uncertain macroeconomic and geopolitical conditions, PwC Transactions Partner George Ureche estimates that the M&A market in Romania could reach EUR 7 billion in 2025. His forecast is based on ongoing developments in the market, including a potential megadeal and significant transactions in industries such as logistics and retail. 

In 2024, 85% of the transactions were valued under EUR 40 million, while 10% were between EUR 40 million and EUR 100 million, and only 5% exceeded EUR 100 million. Although megadeals drive market growth, they represent a relatively small portion of the Romanian M&A market compared to the global market, where they accounted for 60% of the total value between 2020-2023.

Strategic investors led 77% of the transactions in Romania, accounting for 84% of the market value. This indicates that strategic investors are making more high-value transactions. 

Investment funds in Romania have become increasingly active, raising new funds, and are expected to play a larger role in the M&A market in the coming years.

irina.marica@romania-insider.com

(Photo source: Dreamstime.com)