Romania’s M&A market shrinks by 6% year-on-year in 2024 as mega-deal fails to materialize
The mergers and acquisitions (M&A) market in Romania experienced a slight contraction in 2024, with a total value of EUR 6.3 billion (USD 6.6 billion), a 6% decrease from the previous year’s estimated value. Despite the decline in overall value, the number of transactions increased by 10% to 241 deals, indicating a higher level of activity in the market.
Interestingly, the exclusion of mega-deals, which were absent in 2024 compared to two in 2023, revealed a different perspective on the market. The M&A market actually expanded by about 50% year on year to EUR 3.6 billion, mainly driven by increased activity in the real estate and energy sectors. This surge in market activity points to a healthy and robust M&A landscape in Romania.
In terms of deal size, the average transaction returned to 2021 levels at USD 42 million, indicating strong market fundamentals and investor confidence. The disclosed transaction value also saw a significant increase of 40.7% year on year, reaching USD 2.9 billion in 2024. Notable transactions like the acquisitions of Enel Romania and Profi Rom Food significantly contributed to this growth.
The data also revealed interesting trends in investor activity by country of origin. The United States emerged as the most active investor, accounting for 13.6% of inbound transactions, followed closely by Poland at 8.3%. This diversification of investment sources indicates a broad interest in the Romanian market from various international players.
One striking observation was the level of transparency in deal disclosures. Almost three-quarters (74.7%) of all deals announced in 2024 did not disclose the deal value, which is significantly higher than the historical average. This lack of transparency poses a challenge for market analysis but also underscores the complexity of the M&A landscape in Central and Eastern Europe.
Strategic investors continued to dominate the M&A market in Romania, representing over 90% of total transaction volume in 2024. This trend has been consistent over the past six years, highlighting the strategic importance of acquisitions and investments in the local market.
The sectoral breakdown of M&A activity revealed that real estate, hospitality, and construction were the most active sectors in terms of transaction volume. Energy and utilities also experienced significant growth, driven by renewable energy investments. Advanced manufacturing, technology, media, and telecommunications sectors also saw notable activity, reflecting a diverse and dynamic market landscape.
Overall, the M&A market in Romania displayed resilience and growth in 2024, supported by strong investor interest and active trading environments. While short-term volatility may impact deal appetite, the underlying fundamentals of the market remain attractive, suggesting continued growth and opportunities in the long term.
