PwC: M&A worth recorded 1.2 billion Euro in 2014

The market in Romania recorded mergers and acquisitions worth some 1.2 billion Euros in 2014, a level similar to that in 2013, according to a PwC Romania study.

2015-01-28 11:44:01

The total value of Romania′s mergers and acquisitions market was the third-largest one in the region of Central and Eastern Europe, after that of the markets in Poland and the Czech Republic, countries that traditionally have bigger mergers and acquisitions markets, according to the PwC Romania analysis.

Both the value of the global mergers and acquisitions market, as well as that of the European one, increased in 2014, having reached levels close to that recorded in 2007, the highest ever for the mergers and acquisitions market.

The most dynamic sectors in terms of number of transactions made in 2014 were IT&C, financial sector and retail one, and the average value of a transaction stood at 20 million Euro, with most transactions being small and average ones.

"In Romania, negotiation process is quite lengthy, unlike mature markets (such as the U.S. one) where mergers and acquisitions represent a form to clean the market, and transactions end fast enough. We expect a solid growth of the activity of mergers and acquisitions in Romania in 2015, boosted by improved prospects for economic growth and the return of investors′ confidence, and also taking into account the recent decision of the European Central Bank to inject additional liquidity on the financial market, which we hope to lead to an increase in foreign investments in Romania," said Anda Rojanschi, a partner with the law firm correspondent to PwC Romania.

As to the most dynamic sectors in terms of activity of mergers and acquisitions, the PwC Romania analysis points out the potential of transactions in the IT&C area, in healthcare services and services in general, whereas the financial sector may its consolidation process.