“The M&A activity maintains a good level in Romania, with transactions totalling nearly EUR4 billion in 2019. The star sectors were manufacturing, with 28 transactions, the retail sector with 22 transactions and the real estate sector with 21 transactions, triggering and a total 143 transactions, 13 more than a year before”, said Rodica Manea, Partner, Corporate M&A CMS Romania.
The emerging Europe region, which includes Romania, saw a 6.5% decline in the number of transactions in 2019, and their combined value reached EUR72.34 billion, down 10.1% on the year.
“Nevertheless, analysing the average of the last five years, the region remains relatively stable, with a strong dynamic on several market segments”, the CMS report reads.
2019 saw a significant increase in M&A cross-border transactions, which currently account for nearly 60%. Thus, depending on the number of transactions, the US was leader in international investments, registering 122 transactions (+37% versus 2018). Also, there was an increase in investments carried out by companies in the UK (+9%) and by Western European countries, including Germany (+17%), France (+19%) and Spain (+133%).
Investments of private equity funds kept growing in 2019, reaching a record 318 transactions. This sector accounted for 16.2% of total M&A transactions, seeing a 3.6% increase against 2018, reaching EUR22.66 billion.
Due to the growth of the e-commerce, which led to an increase in demand for warehouses and distribution centers, the real estate and constructions remained the most active sector in emerging Europa in 2019, with 378 transactions worth EUR16.6 billion.
The IT and telecom sector was the second largest, in terms of both value and volume, with EUR12 billion for 300 transactions, overshooting, for the first time, the processing industry – a clear image regarding the growing importance of digitalization and digital communications in the region.