Deloitte analysis: the mergers and acquisitions market remains dynamic

The Romanian merger and acquisition (M&A) market recorded 54 transactions in the first half of the year, compared to 42 in the same period in 2020. Deloitte estimates the total market value of both disclosed and undisclosed transactions to be around 1.2-1.4 Billion. The transaction value was EUR 485 million. In comparison, the total market value of transactions in the first half of 2020 was around EUR 1-1.2 billion, of which EUR 572 million were disclosed transactions.

“We find that investors are focusing on companies that have excelled during the pandemic, are either in technology or have adapted and developed new technology to maintain or improve performance. Aside from tech companies, the industries we expect investors to continue to be very active in are renewable energy, real estate, and healthcare. More and more investors are considering the ESG (environmental, social, governance) impacts of the target companies, and therefore M&A activities in this regard can experience surprising developments, also due to the diverse perspectives from which investors view these companies. 2021 looks promising from an M&A perspective, also given the surge of excitement about the local business environment, ”said Radu Dumitrescu, responsible financial advisory partner, Deloitte Romania.

Four transactions with a disclosed or estimated value of at least EUR 100 million were announced in the first half of 2021. Their numbers were similar in the first half of 2020.

“Although the COVID-19 pandemic has had unprecedented humanitarian impact, there is surprising optimism in the M&A market right now. The flooding of the money markets and the pressure on strategic capital decisions favor a dynamic M&A situation. We expect a positive future development with increasing certainty, ”said Iulia Bratu, Corporate Finance Director, Deloitte Romania.

The biggest deals in the first half of 2021 were:

  1. Acquisition of the London-based Novalpina Capital MaxBet Romania for an estimated value of EUR 250 million;
  2. Glovo’s takeover of Delivery hero Operations in the Balkans region with a disclosed value of EUR 170 million;
  3. the Hungarian private equity fund Adventum bought Hermes Business Campus from Atenor, a transaction valued at 150 million euros;
  4. Takeover of by Hidroelectrica Wind cross Farm and Energy flag for EUR 130 million (disclosure value).

The most active sectors by transaction volume were real estate (including construction), technology and the financial sector. Together they generated 24 transactions. From a deal value perspective, the real estate sector was the most active sector, followed by energy and financial services.

The Romanian M&A market in the first half of 2021

  • Market value (open transactions): EUR 485 million;
  • estimated market value (including undisclosed transactions): EUR 1.2-1.4 billion;
  • Number of transactions with disclosed value: 15;
  • Average transaction value (calculated for disclosed transactions): EUR 32.4 million.

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