Ernst&Young expects the Romanian M&A market will further increase this year supported by privatizations, as well as by the financial and renewable energy sectors.
In 2012, the local M&A market rose 106% on the year, while the number of transactions fell slightly to 114 from 120.
Despite the country’s macroeconomic situation and political instability last year, the M&A market had a good year, supported by a few key transactions in the agri-business, e-commerce, renewable energy and real estate sectors, said Florin Vasilica, partner and manager of E&Y Romania’s transaction consultancy department.
Investors came from the United States (eight transactions), France (five transactions), Cyprus and the UK (four transactions each), Germany and Canada (three transactions each).
Romanian investors have been involved in no outbound transaction, which shows they focus mainly on consolidating their local businesses.
While in 2011 the Romanian M&A market was equally shared between local and foreign investors, in 2012 the latter held 54% of the market.
The most significant 2012 transactions include: the takeover of chemical fertilizer maker Azomures by Ameropa Holding (Switzerland) for EUR250-300 million, the acquisition of 70% in eMag, the largest online retailer in Romania, by media group Naspers for $83 million (about EUR63 million) and the sale of shopping center Liberty Center for EUR60 million.