Ernst&Young: Romania M&A Market At EUR270M In 1Q

05.11.2011 By Florentina Dragu

Romanian mergers and acquisitions market reached EUR270 million in the first quarter, while total transactions stood at 46, according to Ernst&Young data.

Another nine international deals involving Romanian subsidiaries totaled EUR206 million in the first quarter, E&Y said.

E&Y didn't provide comparison figures for the first quarter of 2010. According to data from investment boutique Capital Partners, Romanian M&A market stood at EUR178 million in January to March last year, while total deals were at 25.

"Romanian M&A market is starting to recover (…). Expectations for the second half of the year are positive," said Cornelia Bumbacea, partner at E&Y Romania.

Bumbacea said investors are interested in several sectors in Romania, including agriculture, IT&C, banking and renewable energy.

She estimated the local market will be dominated by small, but numerous transactions in 2011.

"We could see bigger deals from possible privatizations (…). Another big transaction is RCS&RDS's takeover of UPC, which could reach EUR200 million," Bumbacea said.

The largest transaction in Romania this year was made by the European Bank of Reconstruction and Development, which sold 5% in lender BRD for EUR107 million.

Romanian M&A market fell 20% on the year to $3 billion in 2010. Total deals stood at 106, down 5% on the year.