The survey shows that transactions are affected, among others, by a lack of predictability in terms of taxation and regulations.
Bogdan Campianu, executive director of EY Romania’s corporate finance department, said in a statement that 2013 witnessed several large transactions in the financial services sector, while the energy sector, and particularly the renewable energy sector, was the most affected by instability in terms of regulations.
He also said the M&A market is expected to resume growth in 2014, on the backdrop of lending revival and Romania’s regaining the investment grade status.
According to data previously released by EY Romania, the value of the local M&A market doubled on the year in 2012 to $788 million, despite a decrease in the number of transactions compared to 2011.
The evolution of the Romanian M&A market is in line with the evolution of the market on a global level, which, despite expectations of sustained growth at the beginning of the year, brought an unprecedented decline in 2013, for the third consecutive year.
The EY survey reveals that the global M&A market saw a 6.2% decline compared to 2012, with 37,257 transactions worth $2,300 billion announced throughout 2013. The decline was felt in most economic sectors and only the energy, utilities and real estate sectors saw an increase in the volume of transactions. The biggest declines of 27% and 21% were registered in the metallurgy and mining sectors and the oil and gas sector, respectively.