“The fact that the Romanian M&A market did not ‘come-back’ during 2011 still reflects the significant gap between value expectations of sellers and buyers, as well as the financial tensions in the euro-zone,” E&Y said in its Romanian M&A 2011 Barometer.
It said the appetite for takeovers in 2011 was not as strong as envisaged due to the limited economic growth and low consumer spending.
E&Y said 120 deals were closed in Romania last year, up 5% from 114 deals in 2010. However, the transaction value was disclosed for only 45% of the deals made in 2011, compared with 55% of total a year earlier.
Most active sectors were production, telecommunication and media, real estate, the energy and mining industry, while strategic investors continued to dominate the transactions market, the report noted.
“We look forward to a 2012 much more active than 2011, at least considering the capital transactions and privatizations planned by the Romanian state,” said Cornelia Bumbacea, Partner and Director of Transaction Advisory Services department of E&Y.
The largest transactions expected to be completed in 2012 are the takeover of Romanian agriculture fertilizer producer Azomures and of its subsidiary Chimpex by Ameropa, and the privatization of copper mining company Cupru Min Abrud, which is slated for completion in spring 2012 via open auction.
In 2011, the biggest deal concluded on the local market was the takeover of Auto Italia Showroom by Israeli Mediterranean Car Agency in exchange for $28.56 million.