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Deloitte study: M&A market in Romania reaches EUR 898 mln in Q3


The M&A market in Romania has reached EUR 898 million in the third quarter of the year, according to public sources and disclosed transactions, according to an analysis performed by Deloitte Romania quoted by business-review.eu.

Twenty-eight deals were announced in Q3, including those with undisclosed value, representing two deals a week on the average. Compared to the similar period last year, the value of the transactions has tripled in Q3 while their number grew by 20 percent.

“During the first nine months of the year, the M&A market has already reached EUR 2 billion and the total value of the market was not reached due to any mega-deals, but due to six deals between EUR 100 – 500 million. Historically, the last quarter is the most important of the year and given the transactions which are still under negotiations, we expect yet another EUR 1 billion to be put on the market,” said Ioana Filipescu, Deloitte Romania M&A’s partner.

The average value of a disclosed transaction was EUR 56 million, reaffirming the tendency of an increasing value of the M&A transactions. As several transactions have undisclosed values, Deloitte has assigned an estimated value in order to determine the total size of the local M&A market value. Thus, Deloitte Romania has estimated that the value of the M&A market was between EUR 1.1- 1.2 billion in Q3.

The fact that five deals over 100 million EUR each have been announced in Q3 and four of them were successful is a performance which has not been achieved for the past two years.

Revetas Capital’s acquisition of the Radisson Hotel and its hospitality complex in a competitive process for a price of EUR 177.5 million was the largest deal in Q3.

“The price for the landmark Bucharest hotel will be a reference in the 5-star hotels segment where we expect further deals in the next period,” Filipescu added.

Electrica’s acquisition of the minority stake held by Fondul Proprietatea in its subsidiaries, a deal worth EUR 165 million, the second largest of the quarter, is the long awaited conclusion of a transaction under discussion for several years.

OTP’s acquisition of Banca Romaneasca with an equity value mentioned to be around EUR 100 million is the largest bank transaction in the last two years.

The study includes transactions announced in the relevant period with a value announced or estimated between EUR 5 and 500 million. Transactions below this limit are not considered relevant for the Romanian M&A market and transactions above this limit are mega-transactions that have a one-off impact that can alter the quarterly analysis, according to Deloitte.