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Deloitte: Romania's M & A market up 15 percent in Q3, Y-o-Y


Romania's mergers and acquisitions market, including deals without a publicly revealed value, ranged between 1.4 and 1.6 billion euro in Q3, by 15 percent higher than in the similar period of the previous year, according to an analysis carried out by consultancy company Deloitte.

July to September 2018, transactions worth 809 million euro were conducted, more than double than Q2's 391 million euro amount.

"We are witnessing a boom on the deal market, both locally and internationally, with an impact on the subsidiaries in Romania. The deals concluded in Q3 are particularly those started in the first months of 2018 based on the figures in 2017 which have been good in all the domains," Ioana Filipescu, Corporate Finance partner, Deloitte Romania, as quoted in the company's release.

As many as 27 deals were monitored in the third quarter, of which a third amounted to the official figure or which can be calculated based on public data. This year's trend thus continues of not announcing the value of the deals. A total of 28 deals were announced in 2017.

The largest transactions announced in Q3 2018 was the acquisition by Advent International of Zentiva group, including Zentiva SA Romania, former Sicomed (calculated value of 287 million euro, by applying the EBITDA multiple of the deal to the results of Zentiva SA from 2017); the sales of Agricost by Al Dahra group, the biggest transaction in Romania's agriculture (value: 200 million euro); the acquisition of a 7.5 percent package from UiPath by an investors' consortium led by Sequoia Capital, at a 2.6 billion euro estimate (value: 194 million euro).

The acquisition by Paval brothers of the office project The Bridge de la Forte Partners (unrevealed value) also stood out, as well as the sales by the Abris investment fund of the carrier company Urgent Cargus to the Mid Europa investment fund, the largest transaction in this domain so far (unrevealed value).

"The activity on the M&A market remains intense. We are noticing increasing interest both on behalf of the strategic investors and of the financial ones that wish to invest sums over 100 million euro per deal. With 12 deals worth more than 100 million euro in the first nine months, there are chances that by the end of the year we beat the record of large deals registered last year," Ioana Filipescu specified.

The sectors with the greatest number of deals, beside the real estate one, are consumer goods, health care and pharmaceuticals, surging due to the increase in purchasing power but also to the information technology, gaining ground in Romania, the Deloitte experts showed.