Deloitte estimates the local M&A market, including transactions whose values were not disclosed, stood at EUR3.7 – 4.3 billion in 2020, compared with EUR4 – 4.4 billion in 2019.
Transactions with disclosed values amounted to EUR1.5 billion in 2020, compared with EUR1.7 billion in 2019.
“2020 marked a drop in number of transactions compared with the previous year, which had been a record year after the financial crisis, but the results were still positive considering the pandemic context. A quarterly view shows the second quarter was the most affected but activity recovered notably afterwards. 2020 brought the biggest transaction of the past decade: the takeover of CEZ assets in Romania,” said Radu Dumitrescu, Financial Advisory Managing Partner at Deloitte Romania.
There were nine transactions with a declared or estimated value of at least EUR100 million in 2020, similar to 2019.
The biggest M&A transactions of 2020 in Romania were the acquisition by Macquarie Infrastructure and Real Assets (MIRA) of CEZ Romania assets (undisclosed value); CPI Property Group’s acquisition of a minority stake in Globalworth in a series of transactions the largest of which amounted to EUR280 million; Orange Romania’s acquisition of 54% in Telekom Romania Communications for EUR268 million; a $225 million financing round obtained by UiPath; OMV Petrom’s sale of 100% of its stake in Kom-Munai LLP (KOM) and Tasbulat Oil Corporation LLP (TOC) in Kazakhstan to Magnetic Oil Limited (undisclosed value).
By number of transactions, the most active sectors were real estate (including constructions), energy, and the financial sector, which accounted for 50 deals.
By transaction value, the real estate sector was also in the lead, followed by technology and energy.
“Our M&A outlook for this year is cautiously optimistic. There are signals indicating that appetite for transactions will continue in 2021 but we remain cautious considering economic uncertainties,” said Dumitrescu.