Deloitte analysis: record value and number of transactions in 2022, despite the slowdown in the second part of the year, which will continue in the first part of 2023

Romania’s mergers and acquisitions (M&A) market reached a record in 2022 in terms of value and number of deals, according to an analysis conducted by Deloitte Romania. The estimated total market value for both disclosed and undisclosed transactions reached around EUR 6.5-7.5 billion, while the value of disclosed transactions amounted to EUR 4.1 billion. The number of transactions of over EUR 5 million analyzed by Deloitte Romania was of 157. In comparison, transaction market value in the previous couple of years varied between was EUR 3.5 and 4 billion per year, while the largest number of deals was 137, in 2021.

In 2022, there were ten transactions with a disclosed or estimated value of minimum EUR 100 million, compared to 12, in 2021.

“After a very good period for the M&A market in 2020 and 2021, the beginning of 2022 indicated the fact that it was going to be a year of new records. Transactions of over EUR 4 billion were announced in the first half of 2022 alone. But in the second half, especially in the last quarter, we saw a slowdown in both the value and the number of transactions, in line with the global evolution. Nevertheless, 2022 remains a peak year for the M&A market, in the context of the record foreign direct investments. In 2022, the interest of the local businesses in getting listed on the stock market through initial public offerings and in attracting financing via the stock exchange was lower compared to the previous year, but it is worth mentioning that the number of transactions with values over EUR 5 million in which private equity firm were involved sell-side or buy-side maintained the same level: 25 in 2022, compared to 24 in 2021. Considering the market evolution in the second part of 2022, the evolution of the regional and global market and the geo-political situation, I expect the first part of 2023 to be characterized by lower values. I think Romania remains an attractive destination for investors, as it is a market which has constantly grown over the past years and which is able to attract bot strategic and financial/institutional investors,” stated Radu Dumitrescu, Financial Advisory Partner-in-charge, Deloitte Romania.

The largest deals of 2022

1. Romanian majority state-owned Romgaz has reached an agreement to acquire a 50% stake in Neptun Deep, the offshore gas field project in the Black Sea, from US-based ExxonMobil for a disclosed value of EUR 1.008 billion;
2. US-based Ford Otosan acquired Ford factory in Craiova for a disclosed value of EUR 715 million;
3. Faurecia, based in France, took over Hella, including its Romanian operations, for an estimated value of the Romanian operations of EUR 473 million;
4. The Romanian private equity fund Pavăl Holding bought CA Immo Romania in a transaction with a disclosed value of EUR 377 million;
5. Mondelez International took over Chipita Global, including its Romanian operations, for an estimated value of the Romanian operations of EUR 327 million.

The Romanian M&A market in 2022

• market value (disclosed transactions): EUR 4.1 billion;

• estimated market value (including undisclosed transactions): EUR 6.5-7.5 billion;

• number of transactions with disclosed value: 59;

• average deal value (calculated for disclosed transactions with values between EUR 5 and 500 million, to exclude mega-transactions): EUR 41 million.

Note: This graph takes into consideration transactions with disclosed values larger than EUR 5 million, excluding the mega-transactions, with values over EUR 500 million. 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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