Mergers and acquisitions (M&A) in Romania - statistics & facts
The number of merger and acquisition deals in Central and Eastern Europe decreased in recent years. In April 2023, only 615 M&A deals have been closed in the CEE region, compared to 3,686 in 2013. At the same time, the total value of M&A deals in the CEE region was the second lowest recorded in the last five years. The largest M&A deal in Central and Eastern Europe in 2023 was the acquisition of the Slovakian business of U.S. Steel by a Japanese buyer - Nippon Steel Corp, for 2.75 billion euros. The numbers registered in 2022 made dealmakers and investors cautiously optimistic concerning the M&A market in the CEE region since many deals have been postponed and not canceled and since private equity transactions in the CEE countries peaked in 2022 at 289 deals.
Among listed companies, BRD - Groupe Société Générale S.A. emerged as the safest investment option, showcasing resilience amid market fluctuations. Regarding exit routes, trade buyer acquisitions or Private Equity (PE) fund sales were preferred in the Romanian market. However, the first half of 2022 saw subdued fund exits totaling only 15.47 million euros, suggesting cautious maneuvering within the M&A landscape.
Energy investments led the M&A market
The total value of merger and acquisition deals in Romania peaked in 2018 at 5.65 billion euros and dropped to 5.54 billion euros by 2023. The most valuable M&A deal closed in 2023 amounted to 1.9 billion euros and represented the acquisition of Enel's operations in Romania, a company with its core business in the energy sector, by a Greek buyer - Public Power Corporation. Other valuable transactions were the complete acquisition of Profi Rom Food and 90.1 percent of Alpha Bank. At the same time, the beginning of the war in Ukraine put pressure on and increased the performance of the energy & utilities industry. It is no surprise that the majority of M&A deal value in 2023 was completed in that sector.The stock market fell in 2022
The Bucharest Stock Exchange (BVB) plays a pivotal role in Romania's M&A market, with its flagship index, the Bucharest Exchange Trading (BET) index, serving as a key barometer. Over 16 years, the BET index has shown a strong correlation coefficient of 0.9 with total market capitalization, indicating its significance in assessing market performance. By December 2022, the BET index decreased to 11,664 points, marking a significant 10.7 percent drop from the previous year, reflecting broader economic trends impacting M&A activities.Among listed companies, BRD - Groupe Société Générale S.A. emerged as the safest investment option, showcasing resilience amid market fluctuations. Regarding exit routes, trade buyer acquisitions or Private Equity (PE) fund sales were preferred in the Romanian market. However, the first half of 2022 saw subdued fund exits totaling only 15.47 million euros, suggesting cautious maneuvering within the M&A landscape.
