Healthcare boosts Romanian M&A in 2025

Romania’s M&A market had a slow start in 2025 after a successful year in 2024, where deals worth USD 6.8 billion were recorded. However, the sale of the Regina Maria healthcare chain in early Q2 helped propel the market forward. Although uncertainties around tariffs could potentially impact cross-border transactions, the market is expected to benefit from a clearer domestic political situation.

Iulia Bratu, Head of Lead Advisory at EY Romania, pointed out that the full impact of tariffs will depend on the agreed trade measures. Given Romania’s lower contribution to overall EU trade, it is likely to be less affected compared to other European countries. Additionally, Bratu highlighted that the planned government change brings more certainty for Romania’s economic outlook and is expected to sustain foreign investment in the country.

In Q1 of 2025, the local M&A market in Romania saw an increase, with a total of 51 deals amounting to approximately EUR 1 billion. The real estate, hospitality & construction sector led the volume of deals, followed by the health, technology, and advanced manufacturing sectors. Sectors like consumer products & retail and power & utilities also saw significant transaction activity. However, retail and financial services experienced a decline in deal volume, but experts anticipate a rebound in the coming months due to changing consumption patterns and technological advancements in the financial sector.

One of the standout transactions in Q1 was the acquisition of P3 Group’s logistics portfolio by CTP for USD 280 million. Another significant deal was Solida Capital’s acquisition of the Victoria Center Office Building for USD 31.7 million. Strategic investors continued to dominate the Romanian M&A market during this period, representing 80% of transactions, while financial sponsors accounted for 16% of deal volume, mainly driven by foreign private equity funds investing across various sectors.

Romania maintained a stable share of inbound deals in Q1, with the US leading the pack with four deals, followed by the UK with three. Germany and Poland also had two deals each. Romanian dealmakers engaged in five outbound transactions, indicating domestic investors’ confidence in international targets. Overall, the M&A market in Romania is expected to surpass last year’s levels in terms of value, according to industry analysis.

Looking at the broader European landscape, the M&A market saw a slight decline in Q1 2025, with both deal volumes and sizes decreasing compared to the previous quarter. However, transaction values witnessed a modest increase year-over-year. The EU-US trade negotiations remain a point of interest, with potential tariffs on the horizon that could impact cross-border transactions between the two regions. The EU has proposed a trade deal to reduce the trade deficit, while the US has hinted at imposing tariffs on EU goods.

Overall, while uncertainties remain in the market, the M&A landscape in Romania is showing resilience and potential for growth, driven by strategic investments, foreign interest, and a clearer economic and political outlook within the country.