The value of significant merger&acquisition (M&A) deals in Romania went up by 11% in the first quarter of 2017 compared to the same period of last year, to EUR 368 million, according to Deloitte Romania estimates based on disclosed transactions. The number of deals, 28, was 40% higher year-on-year.

However, the numbers were significantly lower than in the last quarter of 2016, when there were 31 deals with a disclosed value of EUR 854 million.

“The local M&A market is going through a favorable period and the first quarter has been in line with our expectations. We estimate that the activity will continue to maintain at the level of 2016 given the positive results registered by companies in all fields of activity as well as a big interest of the large private equities for Romania,” said Ioana Filipescu, M&A partner Deloitte Romania.

The largest transaction in the first quarter was Czech group Fortuna Entertainment Group’s acquisition of Hattrick Sports Group, including Romanian bookmaker Casa Pariurilor, a transaction whose Romanian component Deloitte estimates at EUR 51 million. Deloitte has provided transaction services support to the buyer.

The second-largest transaction was the takeover and EUR 50 million capital increase of local insurer City Insurance by German investment fund Berlin London Beteiligungs. The top three was completed by the EUR 42.5 million acquisition of the Dacia car parts warehouse in Oarja by Globalworth Real Estate from Israeli businessman Simon Roth.

The average transaction size in the first quarter was EUR 25 million, in line with past quarters although below Q4 2016. Considering the transactions with undisclosed value, Deloitte’s best estimate on the total Romanian M&A market value in the first quarter of 2017 is in the EUR 370– 500 million range.

editor@romania-insider.com