Romanian M&A activity remains stable year-on-year in H1, with the energy sector likely to remain in focus

Although the number of mergers and acquisitions in Romania decreased slightly in the first half of this year (-6%-8%) compared to the same period in 2023, the total value of deals, most of which were not fully disclosed but only estimated, remained stable (according to EY Romania) or even increased (+24% according to PwC Romania) after filtering out the impact of the large transaction involving Enel assets in 2023.

Both consultancies said that at a structural level, the market remained dynamic in the energy, real estate and industrial sectors.

According to PwC Romania’s estimates, the energy sector will remain in the spotlight both in terms of the number of deals and their value, as many renewable energy projects go through the permitting and implementation process.

The consultancy firm believes that the private healthcare and consumer goods sectors will also witness significant deals, with the prospect of generating a new mega deal. The industry and IT&C sector will remain strong, with strategic investors remaining dominant at the expense of private equity funds.

The discrepancy between the M&A market value estimated by the two consulting firms, $2.3 billion (€2.2 billion) by EY and €2.6 billion by PwC Romania, is due to the large share of deals (79% compared to EY’s historical average of 65%) in which the terms of the deal were not disclosed. Furthermore, while EY counted 124 deals, PwC considered only 115.

The largest deals include the sale of OTP Bank Romania to Banca Transilvania ($375 million, not yet finalized by the end of June), the acquisition of five industrial parks by CTP ($184 million) and the sale of the 80 MW Mihai Viteazu wind farm by Spanish renewable energy company Iberdrola to Premier Energy ($94 million), according to E&Y.

According to PwC, Digi Romania and the Clever Media group are in the process of acquiring Telekom Romania. The transaction is subject to several aspects, including obtaining the necessary approvals from the Competition Council.

Other notable deals closed in the first half of the year included Intesa Sanpaolo’s takeover of First Bank, Mexican group Bimbo’s acquisition of Trei Brutar bakery and the sale of the Expo Market Doraly shopping complex to WDP, Romanian firm PwC said.

According to PwC Romania, three sectors: energy, real estate and industry generated 47% of the total number of transactions announced since the beginning of the year. In the energy and utilities sector, the volume of transactions almost doubled, according to EY.

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