Despite the higher volume of deal making, the estimated value of the M&A only increased by 4% to $1.1 billion compared with the first half of 2020.
This was mainly due to a 12% decline in average size of deals below $100 million to $13 million.
The largest transaction in the period considered was the acquisition of NGY Properties Investment, the owner of Hermes Business Campus, by investment fund Adventum Quantum for $146 million.
The acquisition of 108 MW Crucea Wind Farm by Hidroelectrica, the first by a state-owned utility company in the private sector reaffirms the accelerating pace of green energy transition. Although the deal value was not formally disclosed, market commentators estimate it at $120-$!60 million.
Although Romania remained an attractive investment destination for foreigners, with inbound deals (31) accounting for 45% of all transactions, domestic deal-making (34 deals) increased by 31% compared with the first half of 2020 and accounted for just under half of all transactions.
The most active inbound investors were the United States (6 deals), Germany (3 deals), followed by Hungary, France, Italy and Ireland with 2 deals each.
The most active sectors by deal volume were technology (14 deals), followed by real estate (10), diversified industrial products (10), power and utilities (6) and healthcare (6).
In terms of disclosed deal value, power and utilities attracted the largest share of investment, followed by real estate, banking & capital markets, diversified industrial products, and technology.
EY expects the Romanian M&A market to remain active for the remainder of 2021, given opportunities to further accelerate growth, including those arising from the economic volatility caused by the pandemic that left some businesses financially distressed.
Despite this overall positive sentiment, the unknown factor remains how the pandemic will evolve in the latter part of the year.
(English version by Loredana Fratila-Cristescu)