Deloitte analysis: the mergers and acquisitions market remains dynamic

Romania’s mergers and acquisitions (M&A) market recorded 54 transactions in the first half of the year, compared to 42 for the same period in 2020. Deloitte estimates total market value for both disclosed and undisclosed transactions at around EUR 1.2-1.4 billion, while disclosed transactions’ value amounted to EUR 485 million. In comparison, total transaction market value in H1 2020 was approximately EUR 1-1.2 billion, out of which EUR 572 million were disclosed transactions.

“We note the investors’ focus on companies that have exceled during the pandemic, either active in the technology field or those that have adapted and developed new technologies to maintain or increase performance. Besides the technology companies, the industries in which we expect investors to continue to be very active are renewables, real estate and healthcare. An increasing number of investors are factoring in the ESG (environmental, social, governance) impact of target companies and therefore M&A activity may see surprising developments in this regard, also resulting from the multiple angles from which the investors will look at those companies. 2021 looks promising from an M&A perspective, given also the wave of enthusiasm surrounding the local business environment,” stated Radu Dumitrescu, Financial Advisory Partner-in-charge, Deloitte Romania.

Four transactions with a disclosed or estimated value of minimum EUR 100 million were announced in the first half of 2021. In H1 2020, their number was similar.

“Although the COVID-19 pandemic has had an unprecedented humanitarian impact, a surprising level of optimism is currently governing the M&A market. The flooding of money markets coupled with the pressure on strategic capital decisions favour a dynamic M&A situation. We expect a positive future evolution amid increasing certainty,” said Iulia Bratu, Corporate Finance Director, Deloitte Romania.

The largest deals of H1 2021 were:

1. London-based Novalpina Capital acquired MaxBet Romania for an estimated value of EUR 250 million;
2. Glovo’s acquisition of Delivery Hero operations in the Balkan region for a disclosed value of EUR 170 million;
3. the Hungarian private equity fund Adventum bought Hermes Business Campus from Atenor, a deal estimated at EUR 150 million;
4. Hidroelectrica’s takeover of Crucea Wind Farm and Steag Energie for EUR 130 million (disclosed value).

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

The Romanian M&A market in H1 2021

- market value (disclosed transactions): EUR 485 million;

- estimated market value (including undisclosed transactions): EUR 1.2-1.4 billion;

- number of transactions with disclosed value: 15;

- average deal value (calculated for disclosed transactions): EUR 32.4 million.

* Note: Only transactions with a disclosed value of over EUR 5 million have been taken into consideration for the graph, while mega transactions (greater than EUR 500 million) have been excluded. Information is collected from public sources and updated with transaction values resulting from the latest available pieces of information.

Deloitte Romania coordinates an integrated multidisciplinary M&A practice, with a holistic approach that ranges across multiple service lines, including M&A Advisory, Transaction Services, Fiscal Advisory and Legal Advisory. Deloitte teams of skilled professionals can thus cover all relevant aspects of a transaction.

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