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Romania's M&A market value falls 6% in 2020 - PwC

Romania's M&A market value falls 6% in 2020 - PwC PwC Romania partner and advisory Dinu Bumbacea Source:PwC

BUCHAREST (Romania), March 18 (SeeNews) - Romania's mergers and acquisitions (M&A) market contracted by 6% year-on-year to 4.9 billion euro ($5.83 billion) in 2020 due to Covid-19 related uncertainties, global consultancy PricewaterhouseCoopers (PwC) said on Thursday.

The number of transactions recorded in Romania in 2020 increased 18% on the year to 254, PwC said in a press release. The caculations are based on public information about transactions in 2020. Where no public data was available, PwC used industry-based estimates and projections.

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As has been the case in recent years, more than half of the market value was achieved through transactions exceeding 100 million euro.

The number and average value of transactions below 5 million euro too increased in 2020 fuelled by the number of relevant targets, the increasing availability of investors and their interest in the respective segment.

"In the last quarter of last year, we saw very intense activity on the M&A market, aligned with Romania’s surprisingly good economic growth, which was the highest in the EU. However, those last quarter transactions couldn’t compensate for the reduction in the spring and summer, so the total transactions value for 2020 saw a decrease from 2019," PwC Romania partner and advisory leader Dinu Bumbacea said.

"The signals from the economy are positive, however, and the return to activity seen at the end of 2020 is expected to continue in 2021, as there is money in the market. Both strategic and financial investors have substantial capital resources, financing is cheap due to still very low interest rates and the time is right for companies that want to expand, consolidate or diversify and transform their business by acquiring resources and new technologies," he added.

According to Bumbacea, the most dynamic sectors in 2020, which will remain on investors' agenda, were IT&C, industrial products, energy, real estate, health and pharma.

The three most important transactions of over 100 million euro completed in 2020 were: the acquisition of assets owned by group CEZ in Romania by Macquarie Infrastructure and Real Assets, the acquisition of a 5.3% stake in power supplier and distributor Electrica by Allianz SE and the acquisition of the 108 MW Crucea wind farm owned by German energy group STEAG by hydro power producer Hidroelectrica.

London-headquartered PwC is a multinational professional services network which has been present in Romania since 1991.

($ = 0.8397 euro)

Hidroelectrica SA is among the biggest companies in SEE, for more reference take a look at Top 100 companies