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Fusion and purchase market in Romania close to 2 billion euro in 2018


The fusion and purchase market in Romania came close to two billion euro in 2018, according to an analysis made by Deloitte Romania, based on public sources and transactions made public.

If transactions whose value was not communicated were taken into account, the overall fusion and purchase market in Romania was between 3.8 and 4.3 billion euro, a little under the level of the previous year, Deloitte says.

“We witnessed a slight drop of activity in 2018, as in 2017 there was a particular context, with a record transaction value between 100 and 500 million euro. Despite this evolution the market is still at a robust level, specific to a year of economic boost. The 2018 first was represented by two financings by which the Romanian start-up UiPath attracted investment funds, becoming the first unicorn in the IT sector in Romania,” said Ioana Filipescu, Corporate Finance partner, Deloitte Romania.

In 2018, there were 14 transactions with a communicated or estimated value of at least 100 million euro. There were 96 transactions  accounted by Deloitte in 2018. The average transactions with communicated value was 50 million euro.

The analysis mentions the purchase by Vodafone of Liberty Global shares in Germany, Czech Republic , Hungary and Romania, the purchase by Advent International of Zentiva group, inclusing Zentiva Romania, former Sicomed (value calculated at 287 million euro) and the sale of Agricost to Al Dahra group, the biggest transaction in agriculture in Romania (200 million euro).

According to the analysis, the activity of private equity funds maintained at high level in 2018, with 12 announced transactions, topped by Zentiva takeover by Advent International. The total value of fund purchases exceeded 1.1 billion euro, according to Deloitte estimates.

“The financial investors’ interest in Romania maintained when Romanian companies continued to grow and the macroeconomic foundation did not change significantly compared to the previous year,” Filipescu added.

In 2018, Deloitte Romania’s Corporate Finance assisted shareholders from Farmexim/Help Net in the sale to Phoenix, granted assistance to Oresa Ventures in selling Fabryo dye manufacturer to AkzoNobel, shareholders from Animax in the sale to TRG and IKB shareholders in the sale to BNP Paribas.

Next to Deloitte Great Britain and Reff& Associates experts, the Corporate Finance team offered consulting to Chimcomplex Borzesti in obtaining financing to take over Oltchim , a company in insolvency. Following this transaction, the largest chemical product manufacturer in Romania will result.