WHERE ROMANIA TALKS BUSINESS February, 2017 / Volume 21, Issue 1
www.business-review.eu
ROMANIA TO SEE HIGHER REAL ESTATE INVESTMENTS IN 2017
8x
ORBIS GROUP THINKS BIG FOR THE LOCAL HOTEL SECTOR
9xx
ROMANIAN M&A MARKET HOPS ON MEGA-DEALS TREND
16xx
URBANIZEHUB FOUNDER: ‘ROMANIA IS NOT THERE YET’
29xx
New world order hits home
www.business-review.eu Business Review | February 2017
EDITORIAL 3 REAL ESTATE
• Editorial •
Anda Sebesi • Editor-in-Chief •
8 Romania to see higher real estate investments in 2017 despite rising global uncertainty
9 Orbis Group thinks big for local hotel market COVER STORY 10 Local economy looks to steady ship in global storm
12 2017 rings in more political instability in Europe
15 Ruling coalition set to clash with President Iohannis on sensitive bills
Making our own way
DEALS OF THE YEAR
The current international political climate is by far one of the most challenging in recent years, for the whole world. The global scene has been shaken up by the election of Donald Trump as the 45th president of the United States. The biggest unknown this year is whether Trump will remain true to his campaign promise to “get tough” on US trading partners and how that might impact global and European economies. Turning to Europe, two major events will reshape the economic and political scene on the continent this year: the elections in Germany and the progress of Brexit. Angela Merkel is hotly tipped
16 Local M&A market hops on mega-deals trend
18 Local M&A market loses its luster in 2016
20 Curated of key M&As in 2016
to secure a fourth term as chancellor following federal elections in autumn. As she admits, “This election will be difficult, like no other election since reunification.” Brexit is another unknown that European leaders will have to deal with in 2017. After a narrow majority of British voters opted to leave the EU in a referendum last June, the British prime minister, Theresa May, has set March 31 as the deadline to formally serve notice to the EU of the UK’s intention to quit the bloc. All these major events will have a long-term global impact that will start to be visible in 2017 and the years to come. As part of a global economy, Romania cannot sidestep all of these challenges. But we can do something rather than simply hope. Creating a real and coherent strategy and investing in projects of national interest could allow us to follow our own way and prepare to face the global
IT & TELECOM 29 UrbanizeHub founder: “Romania is not there yet”
30 2017 rings in the telecom changes
32 The cyberthreats of 2017
33 Technological innovations that could shape the future
storm in a stronger position.
FOUNDING EDITOR: Bill Avery, EDITOR-IN-CHIEF: Anda Sebesi, DEPUTY EDITOR-IN-CHIEF: Simona Bazavan JOURNALISTS: Georgeta Gheorghe, Otilia Haraga, Romanita Oprea, Ovidiu Posirca, Oana Vasiliu, HEAD COPY EDITOR: Debbie Stowe COPY EDITOR: Eugenia Pupeza, PHOTO EDITOR: Mihai Constantineanu, ART DIRECTOR: Raluca Piscu PUBLISHER: Bloc Notes Media, ADDRESS: No. 10 Italiana St., 2nd floor, ap. 3, Bucharest, Romania, LANDLINE: Office: 031.040.09.31 EXECUTIVE DIRECTOR: George Moise, BUSINESS DEVELOPMENT DIRECTOR: Oana Molodoi, SALES DIRECTOR: Ana-Maria Nedelcu SALES CONSULTANT: Valeria Cornean, EVENTS DIRECTOR: Oana Albu, MARKETING: Adina Cretu, Marius Andronic, Patricia Neamtu PRODUCTION: Dan Mitroi, DISTRIBUTION: Eugen Musat EMAILS: editorial@business-review.ro, sales@business-review.ro, events@business-review.ro
ISSN NO. 1453-729X
www.business-review.eu Business Review | February 2017
4 NEWS
WHO’S NEWS BR welcomes information for Who’s News. Submissions may be edited for length and clarity. Get in touch at simona.bazavan@business-review.ro
In January PM Grindeanu said that the Romanian economy will grow by 5.2 percent Bogdan Badea is the new sales director at eJobs Group. He has a professional background in sales and business development, having worked for companies such as P&G, Accace and Ernst & Young. For the past two years, he served as Smartree’s business development & strategic alliances director. Badea graduated from the Cybernetics Faculty within the Bucharest University of Economic Studies and holds a master’s degree in corporate finance and stock exchanges.
Lior Bebera is the new GM of InterContinental Bucharest. He is replacing Stefan Frank, who spent more than four years in this position. A German national, born in Israel, Bebera has lived and worked in seven countries, on three continents. An international hotelier, before coming to Bucharest, he worked at numerous InterContinental hotels such as InterContinental Berlin, David InterContinental Tel Aviv, InterContinental Kiev and the IHG Head Office in London. His most recent role was at InterContinental Malta as hotel manager. page 5
2017 draft budget based on 5.2 pct economic growth estimate By Georgeta Gheorghe Romania’s draft public budget
they should reach 32.8 percent
published by the Ministry of
for 2017 is based on a growth
of GDP, progress marked by the
Finance.
GDP projection of 5.2 percent
performance of macroeconomic
for this year, above economists’
indicators in this reference pe-
number of employees to grow
expectations. In addition, the
riod, and based on the bills that
by 4.3 percent, while the un-
budget deficit limit for this year
have been adopted up to now.
employment rate is set to fall to
has been set at 2.96 percent of
The budget expenses projected
4.3 percent at the end of 2017.
GDP.
for 2017 represent 34.2 percent
The World Bank expects
The report predicts the
The government expects a
of GDP, reaching 34.8 percent of
Romania’s economy to expand
higher tax take this year, and
GDP in 2020, marking growth of
by 3.7 percent of GDP this year.
has increased the public invest-
0.6 percentage points, based on
The financial institution put
ment budget to 4.2 percent of
investment expenditure grow-
growth at 4.7 percent last year.
GDP, from 3.9 percent last year.
ing by 2.6 percentage points in
Economists expect Romania’s
“The projected revenues to
2020 compared to 2017,” stated
growth to slow down as the
the state budget represent 31.2
the report mapping the macro-
impact of tax cuts and public
percent of GDP in 2017, 32.4
economic perspectives for 2017
sector wage hikes diminishes.
percent in 2018, while in 2020
and projections for 2018-2020,
Bitdefender to purchase French firm Profil Technology By Georgeta Gheorghe Romanian internet security
sentatives, the takeover allows
software company Bitdefender
Bitdefender to diversify its
will purchase French company
presence on the French market,
Profil Technology in its biggest
both on the enterprise and the
deal so far. The value of the deal
customer sector. As a result, a
has not been made public.
team of 50 sales, marketing and
According to company repre-
customer relations profession-
Bitdefender CEO Florin Talpes said France was a key market in the future
www.business-review.eu Business Review | February 2017
NEWS 5
President Iohannis joins thousands at rally against pardon law By Georgeta Gheorghe The Romanian president,
President Klaus Iohannis among protesters at the January 22 rally
Sylwia Piankowska has been appointed GM of GSK Consumer Healthcare Romania and Balkans. She is replacing Helen Tomlinson, who will take over as GM of GSK Consumer Healthcare Iberia. Piankowska has extensive professional experience in the FMCG industry. She joined GSK in August 2002 and over the following years held several strategic roles in brand and category management in Poland and Central and Eastern Europe.
Klaus Iohannis, joined a mass protest in Bucharest in January
voices and institutions heading
wipe clean the records of tens
that saw between 20,000 and
the country’s anti-graft fight.
or hundreds of politicians in
30,000 demonstrators rally
Alongside President Iohannis,
trouble with the law so they
against government plans to
the prosecutor general, Supreme
are able to proceed with their
decriminalize certain offenses
Court, chief anti-corruption
wrongdoings.”
and grant pardons via emer-
prosecutor Laura Codruta Kovesi
gency ordinance. The move,
and chief of the directorate
Facebook account, PSD head
protesters argue, would benefit
fighting organized crime have all
Liviu Dragnea said: “Iohannis
several high-profile politicians
spoken out against the govern-
wants to shackle the power
in the ruling Social Democratic
ment’s plans.
that has legitimacy granted by
Party (PSD) and undermine the fight against corruption.
“People have a right to be
In a reply posted on his
the popular vote. The president
outraged as a gang of politicians
acted outside the law by seek-
facing legal problems want to
ing personal political gains and
cording to the Grindeanu gov-
change the legislation and weak-
asking for constitutional non-
ernment, are intended to ease
en the rule of law,” Iohannis said
sense: the withdrawal of some
overcrowding in the country’s
at the protest. “It’s unaccept-
decrees, especially decrees that
prisons, are opposed by many
able to change legislation just to
haven’t been passed.”
The measures, which, ac-
Mitel Spataru has been appointed partner within the tax department of FiNEXPERT, starting this January, in a move to support the future development of the consultancy. He has been working for the local accounting firm for past 12 years and has coordinated numerous projects over the years. With over 15 years of experience in finance and accounting and over seven years in taxation, he took over the management of the tax department in 2011.
als will join the company. “France is a key market for us in the future. By taking over our in-house business, we will be able to be closer to our partners and clients and we aim to replicate in the enterprise sector our success on the residen-
Celebrating the Business Champions of 2016
tial consumer market, betting on the technological superiority of our products in order to
More details at awards.business-review.eu
take a leadership position,” said Bitdefender CEO Florin Talpes. Bitdefender was ranked the
by turnover in a 2016 PwC study, and is one of the few Romanian
17th largest emerging market
companies making acquisitions
software company in the world
abroad.
Cristina Togan has been promoted to partner by law firm Leroy si Asociatii. She has been part of the team for over ten years and specializes in banking, finance and real estate. A member of the Bucharest Bar Association since 2007, Togan has advised international financial institutions and credit institutions on various types of structured finance transactions, including acquisition, real estate and project finance, as well as on corporate banking matters and derivatives.
www.business-review.eu Business Review | February 2017
6 EDUCATION
Class act: AISB pushes early childhood education with new facility The American International School of Bucharest (AISB) will this spring open a new EUR 6 million facility for early childhood education, an area that is getting increasingly more attention, including on the local market, AISB head, Robert Brindley, tells BR. By Simona Bazavan
“
As a math teacher, I can always tell which kids have played with Lego and which haven’t,” says the school’s
head. The same way Lego enables a child to develop 3D awareness, early exposure to foreign languages helps with later language skills, meaning that there is no such thing as too early when it comes to education, stresses Brindley. This is also why the AISB is presently investing EUR 6 million in a building especially dedicated to its early childhood education program for two- to five-year-olds. Demand for early education is growing, partly because parents are starting to realize its importance, but also because it is the safest way to secure a place at the AISB, say its representatives. The school’s students graduate with a much sought after International Baccalaureate diploma, yet enrolling directly into the secondary school program is difficult. Not only do few new places become available each year, but the school has a strict policy when it comes to the nationality of its students. “We keep every nationality to a certain percentage, otherwise it destroys the fabric of the international feel,” explains Brindley. Despite such limitations and a hefty price tag, demand is high. The annual tuition fee for a two-year-old starts at about EUR 7,000 per year for the short 8:00 to 12:00 program and reaches EUR 10,000 for the full 8:00 to 15:00 program. Parents must later stump up as much as EUR 18,000 a year for the full kindergarten program. The facility is scheduled for completion this spring and can accommodate some 180 children, whereas at present 100 are enrolled in the AISB early childhood education program. However, Brindley stresses that it is not about the numbers but about the quality of the education provided. “Often schools have a building that they put the young kids in. Now we have a program and we design the
www.business-review.eu Business Review | February 2017
EDUCATION 7
building around the kids,” says the head, add-
do. Everything else is on Google or done by a
ing that the educational program is very much
machine,” points out Brindley.
“My job is to make sure that I attract the best teachers and create a safe environment because security is very important to
based on the Montessori Reggio approach. “It is very hands on, very kinetic touch sound
EDUCATION MEANS INVESTMENTS
parents, and then that I provide a facility
based, to develop the skills of the youngest
The money to support the EUR 6 million
which is clean, well maintained and up to
kids from the age of two. These early years are
investment in the early childhood education
date. When we need to innovate we innovate
super critical in the development of funda-
center will come from the school’s funds,
and we never stand still,” he adds. Some 820
mental core skills on which you later build
which are made up almost entirely of tuition
students attend the AISB, a number which has
your math, your science, your English and
fees, explains Brindley. With fees going from
been constant for the past four to five years.
other bits,” says the AISB head.
approximately EUR 7,000 per year for pre-
While demand is high, Brindley says there is
school classes to slightly over EUR 20,000
no aim to increase the number of students
in a world that is constantly changing and
per year for the two final high school years,
beyond this level. “If you want to remain
which is becoming more and more competi-
the AISB is netting revenues of around EUR
a community school you really have to be
tive in the professional field. Change is the
16.5 million for the 2016-2017 school year. The
between 800 and 1,000 students. Once you
only option in today’s ever more mobile world
AISB is a not-for-profit organization, meaning
start creeping beyond 1,000 it becomes very
and the earlier education starts the better, he
that “every cent that the AISB gets in revenue
difficult to retain a community type of feel.
thinks. “While 30 years ago kids may have
goes back into the school,” stresses Brindley.
For us it is about the quality of the education
been competing against native English speak-
And when it comes to expenses, the school’s
we provide, rather than getting in more kids,”
ers, nowadays they are competing against
teachers are the numbers one priority, he
he explains. In addition to the EUR 6 million
everybody – the Chinese, the Indians. So the
adds. “Teachers make everything so about 65
which will go into the early childhood educa-
market has changed for our kids, unfortu-
percent of our expenses go on staff and the
tion center, another EUR 2-3 million will be
nately. It has become far more aggressive out
majority of that is for the overseas faculty.
required to expand the secondary school, says
there and skill levels are changing rapidly.
I think we have over 90 overseas faculty so
the head. Altogether, the school has some
This is why you need to build basic competen-
that is where the money goes, essentially.
EUR 10 million earmarked for investments for
cies rather than to know historical facts like
We recruit internationally because that is my
the next two, two and half years, in addition
when the Battle of Waterloo was. Kids need
competition: the other international schools
to the EUR 500,000 – EUR 1 million which is
to be able to process stuff these days because
in the world in Beijing, Munich, London or
invested each year in maintaining and up-
that is the only thing that they will have to
Frankfurt,” comments the director.
grading facilities, according to school data.
And acquiring such core skills is essential
www.business-review.eu Business Review | February 2017
8 REAL ESTATE
Romania to see higher real estate investments in 2017 despite rising global uncertainty The local real estate market could see investments in new deals reaching EUR 1 billion in 2017, well above last year’s level, according to Colliers International representatives. By Simona Bazavan H2 next year,” he predicted. While this doesn’t mean that deals that are currently under negotiation will be affected, new deals may take a bit longer to conclude, he went on. The best case scenario for the entire Central and Eastern European (CEE) region in 2017 is that real estate investments will go up slightly, although this is a very optimistic scenario, forecasts Harrington. The worst case scenario is that they decline until there is more political certainty, he outlined. Nonetheless, the forecast for Romania, in Photos: Colliers International
particular, remains positive, Laurentiu Lazar, senior partner of investment and valuation services at Colliers International, told BR – even more positive than it looked at the end of 2015. “My expectations for 2017 are based on the transactions we are currently involved in, with total assets worth around EUR 400Damian Harrington, Colliers International
U
Laurentiu Lazar, Colliers International
500 million. These are all transactions that could be closed in the first semester of 2017, some as soon as the first quarter. So the base
ncertainty is the name of the
investments before the end of this cycle. “The
for growth is much healthier now than it
game for the European and global
length of this, however, will be shorter, mean-
was at the end of 2015,” he argued. Colliers
economy in 2017, and this will also
ing that it will probably run into 2017 for Ro-
International is also involved in a number
impact investments in real estate transac-
mania, but after that who knows? It depends
of other transactions as a valuation service
tions, Damian Harrington, head of EMEA
on what happens with the broader global
provider which he says leads him to believe
research at Colliers International, told BR.
investment cycle, not just the European
that in 2017 the local real estate market could
Exactly how that will break down will most
one,” said Harrington. Brexit will impact the
see investments in new deals reaching EUR
likely become clearer by the end of the first
European economy, but the global economy
1 billion, above 2016’s level. This year could
semester, although some trends are already
is now also being altered by the prospect of
be a tipping point for the market as new play-
shaping up.
Donald Trump as US president as of this Janu-
ers could enter while some of the existing
ary, he explained. “There is also the matter of
major investors could look into assets located
countries such as Germany, France and the
different referendums and elections coming
in regional cities, he outlined. Should this
UK posting the sharpest declines, as they are
up in other big European countries in 2017.
trend develop, it would bring about a much-
the first to approach the end of the growth
There is a lot of uncertainty. You can handle
needed liquidity increase in the market, the
cycle, he explained. Having had a later start,
one or two, maybe three things at a time, but
lack of which is currently one of prospective
second- and third-tier countries including
seven or eight as it looks like, I suspect this
investors’ main concerns about investing in
Romania are now enjoying a final wave of
could curtail investment activity until at least
Romania, he added.
Investments fell in 2016 with first-tier
www.business-review.eu Business Review | February 2017
INTERVIEW 9
Orbis Group thinks big for local hotel market Orbis Hotel Group, the largest network of hotels in Eastern Europe, is looking to expand its presence in Romania and become market leader, the group’s president and CEO, Gilles Clavie, told BR in an interview. By Ovidiu Posirca the near future in Ploiesti, Pitesti, Oradea,
people to fuel the expansion of its operations,
Craiova, Cluj-Napoca and Iasi. Those are the
but in some countries in Central and Eastern
locations where we should have a network.
Europe (CEE) there are issues.
The first cities I mentioned are more in terms
“We have difficulties hiring people, we
of subsidiaries, and all the rest through
lack people to face the demand that we have,
management or franchise. You can also add
and which in some places has exerted a kind
Brasov and Arad,” says the executive.
of pressure on payroll, pressure on costs. Budapest, Prague and Warsaw are really
ROMANIANS TAKE MORE PLEASURE IN LEISURE
facing that issue (lack of staff - e.n.), more so
Orbis is seeing an increase of demand in
trend is the same. We have been able to de-
Romania from the business and leisure seg-
velop some alternative solutions, we’ve been
ments, as the country is becoming more vis-
able to change the strategy of our topline a bit
ible abroad and the transportation network is
as well, and it helps us to protect the margin,”
improving.
explains Clavie.
“There’s no doubt that the leisure clients
than we can see here in Bucharest yet, but the
Meanwhile, the group wants more people
(base - e.n) is growing very fast. From my
in the decision-making process, and has
point of view, it’s the reason why we have
rolled out a special committee that includes
Today, we have seven hotels in total in
such an improvement in the topline activity
millennials.
our network in Romania and, as for the
for Romania,” says Clavie. The executive adds
Orbis goal – we are already the leader
that Poland and Romania were the countries
can get more opinions before making deci-
in the region and we want to be the leader of
that registered the biggest gains in terms of
sions.
each country where we are. This is the case
occupancy rates.
“
in most of the countries, but not for Romania
He suggests that this might also be linked
Clavie says this move is useful because he
“They have already been able to implement a few things, from the simple to the
yet. When you know that the leader has about
to geopolitical issues in many countries in
more complex. It can be from the design of
11-13 hotels, we are not so far from this,” says
Europe, Africa and the Middle East. For these
the hotel. This is the case with the Mercure
Clavie, suggesting that Orbis could become
reasons, Romanians are choosing to remain
Hotel in Cracow we opened last month (Octo-
market leader in two years.
in the country, for the weekend for example,
ber - e.n.) – they arrived and raised the issue
and other people from the region are keen to
that our design was not maybe in line with
increase in its revenues to EUR 237.2 million
travel to Romania as well, according to the
our socializing target so they totally refreshed
in the first nine months of 2016 versus the
head of Orbis Group.
the lobby and we opened with a lobby they
The group, which registered an 8.6 percent
designed,” says the executive.
same period of last year, plans to open a Mer-
Asked about the UK’s vote to leave the
cure Hotel in Brasov and an Ibis Styles unit in
European Union, Clavie says the effect on the
Arad this year. In 2019, it aims to open an Ibis
group’s operations has been insignificant so
year after Accor, Europe’s largest hotel group,
Styles Hotel in Bucharest.
far. “We can’t say that Brexit has had an im-
which is its main shareholder, set up a board
pact on our business today and the FX impact
comprising young people to contribute to the
for the hospitality industry is limited.”
group’s strategy.
Asked about the group’s development plans in Romania, Clavie mentioned several
Orbis launched the millennial board last
cities, aside from Bucharest. “The key cities where we could think about investments are Sibiu, Constanta,
LISTENING TO THE VOICE OF THE MILLENNIALS
Timisoara, and furthermore – aside from
With the group’s business growing, Poland-
financing topics – we should have hotels in
based Orbis is constantly looking for new
7
The number of hotels controlled by Orbis Group in Romania
www.business-review.eu Business Review | February 2017
10 COVER STORY
Local economy looks to steady ship in global storm
Trump administration’s limited political experience could delay radical measures
In order to ensure ongoing sustainable development, Romania needs to adapt its approach and capitalize on its main advantages in a challenging and difficult climate. International economic threats may lead to a local slippage that can be counterbalanced by a coherent and realistic development strategy.
G
iven the current political uncertainty, it is hard to believe that Romania, one of the emerging players on the global market, could be isolated from the potential major changes
that look set to shape the international scene. According to pundits, today’s complex economic and political context could lead investments and projects to be either postponed or have only a marginal impact on the Romanian economy, at least this year. Regardless of when the UK activates Article 50, starting the procedure to exit the European Union, there will be a “window” of two years of negotiations until the country’s actual departure. “The real impact for Romania will come from the way the European Union could change in order to face the challenges and crisis generated by Brexit,” says Codrut Pascu, senior partner and managing director at Roland Berger. As for Donald Trump’s tenure, pundits
By Anda Sebesi
say that his protectionist policies could lead to a commercial war;
www.business-review.eu Business Review | February 2017
however, even this is unlikely, as the Trump
COVER STORY 11 “The impact for Romania could be both a
administration’s limited political experience
reduction in investments and a fall in produc-
could delay radical measures.
tion capacity based on reduced demand from
One of the top three challenges for the EU
abroad. The latter may not happen in 2017,
economy is the potential political shifts in the
but could still be a danger further into the
key countries of Germany, France, the Neth-
future,” says Rene Schob, tax partner at KPMG,
erlands and Italy, where important votes have
and head of the German Desk. In his opinion,
recently taken place or where elections will
in order to mitigate these effects, Romania
come in 2017. Those shifts will also influence
should focus more on the development of the
the EU economy. In addition, the refugee crisis
domestic market by closing the infrastructure
continues, with adequate solutions not yet
gap with other countries, and facilitating key
in place, potentially creating further political
local industry growth stimuli by focusing on
problems. Another challenge will certainly be the European Central
domestic demand and consumption.
Bank’s monetary policy. Quantitative easing may have reached its limits and we have already seen a first move away from it by the US.
ROMANIA CAN STILL FLOURISH
The EU, one of the institutions that will play a key role in Ro-
Schob of KPMG says that Romania still has huge potential in
mania’s development in the future, will need to drastically change
various sectors and names agriculture and the related production
in the coming years. From an economic perspective, Romania is
of semi-finished or finished products, where efficiency and quality
strongly anchored in the European sphere, as the majority of its
improvements would help a lot, among them. “Also, in the tourism
foreign investors and commercial partners come from the region.
sector, there is big, still dormant, potential. Furthermore, innovative
In addition, it is likely that a potential reconfiguration of the commercial relations between the US, Europe and Asia would have a negative impact on the local economy. “All we can do is ensure that, at least internally, we take all the necessary measures to put the
approaches in healthcare and energy could fuel both growth and wellbeing for Romanians,” adds Schob. Pascu of Roland Berger shares this opinion, noting that Romania has substantial capacity to adapt to different economic situations.
local economy on a solid basis in order to keep
“This could be a significant opportunity in
it competitive in a more and more difficult in-
times of profound economic reshaping, but
ternational context. Meanwhile, Romania can
only if we manage to translate this advantage
capitalize on advantages which we shouldn’t
into valid economic models that can contrib-
neglect, such as the high level of adaptation of
ute to an increase in competitiveness. We now
the local economy, an increasing entrepreneur-
have the chance to find increased support and
ial spirit and the high skill level of Romanians
flexibility from the EU in the current context,”
with international expertise,” says Pascu.
he says.
In his opinion, the real progress that Roma-
However, Pascu warns that it is important
nia has made in the past few years has placed it
for Romania to develop its capacity internally
in a position to better face current challenges.
in order to create comprehensive economic
“The local economy is stable – with the highest
programs and develop coherent investment
growth rate in the EU – public debt is at a low
programs that address critical development
level (less than half of the EU average), the
needs, like infrastructure, education and the
country rating has improved and Romania has
healthcare system. “In addition, we have the
jumped in international rankings (it was ranked 36th in the last Do-
advantage of maintaining interest rates at a low level, which could
ing Business report compared with 73rd in 2014),” adds Pascu.
contribute to the financing of investment projects if they prove they
However, despite these major steps towards stable development, it may not be enough for Romania to ensure long-term sustainable
are able to create added value.” He adds that institutional investors, who are interested in attrac-
growth. Bureaucracy represents a significant brake on investments,
tive yields, are refocusing some of their activities towards emerging
the transportation infrastructure is still poor, the education system
markets. “Romania has the opportunity to attract funds for new
does not meet the demands of the private sector and the public sec-
development programs to which some of the Romanians who have
tor is still oversized.
built their careers or undertaken studies in Europe or North America
Based on the structure of industries in Romania, the current
in recent years can contribute. In the new context generated by the
international challenges will affect the country, since it is still highly
changes of attitude at a global level and the increased opportunities
dependent on the main European economies to perform well,
for development, coming back to Romania becomes a more attrac-
pundits say. “The biggest threat may be the end of the quantitative
tive idea. We’re speaking about well-trained professionals with a
easing cycle, since this has a direct impact on the markets in which
stronger entrepreneurial spirit who can bring an added value to our
most of the main Romanian investors operate.
economy if they are used to their real value,” says Pascu.
www.business-review.eu Business Review | February 2017
12 COVER STORY
2017 rings in more political instability in Europe With the EU in crisis-fighting mode, the big question for the European economy in 2017 seems to be how much will populist politics put pressure on an already tepid economic outlook.
I
By Simona Bazavan
nvestors are
tatives. There is
heading into
also the matter of
2017 with
Brexit shaping up
their eyes wide
as well as several
open as a string
developments out-
of elections this
side the continent
year are feared to
which could have
act as flashpoints
spillover effects
that could ignite
on European
brewing political
countries, such
discontent across
as US-Russian
the continent.
and US-Chinese
Europe’s po-
relations under the
litical landscape is
Trump administra-
changing, and not
tion.
for the better. The continent is struggling with the rise
A BUMPY RIDE AHEAD
of populism, while
France is getting
at the same time
ready for presi-
the idea of Euro-
dential elections
pean integration is
this spring while
losing its popular
Germany will hold
appeal, recent
federal elections
events suggest.
come fall. The first
All this has
to deal with will be
investors worried.
the Dutch general
“European equi-
elections in March.
ties could have a
Leading in polls at
strong year if the
the end of Decem-
anti-euro populist candidates that have gained traction over 2016
ber was controversial Dutch politician Geert Wilders who has vowed
fail to win elections, as polling suggests. But if populist candidates
that should his far-right Party for Freedom (PVV) win, he will take
triumph in coming votes, the prospect of a Eurozone breakup could
the country out of the EU. Wilders, who was found guilty in Decem-
return to markets,” wrote the Wall Street Journal.
ber of inciting discrimination at a rally where he called for “fewer
The Eurozone could hold half a dozen elections in total in 2017, according to PwC. The most important are those in Germany, France and the Netherlands, but there is also a chance for Italy and Greece
Moroccans”, has used the event to portray himself as a defender of free speech and a victim of political correctness. Moving south to France, the country’s “saving grace” – as Time
to join their ranks. All in all this means that countries that account
magazine puts it – is its two-round presidential system, which, if
for about 70 percent of the Eurozone’s GDP could experience dis-
the polls are reliable, should mean that the Front National’s Marine
ruption to their normal political cycle in 2017, warn PwC represen-
Le Pen, a candidate with an outspoken anti-immigrant and anti-
www.business-review.eu Business Review | February 2017
INTERVIEW 13
EU stance, is defeated in the second round. December polls show
are also the concerns inherited from the previous year in the form
her losing ground after Francois Fillon emerged as the Republi-
of the prospect of Brexit and a Donald Trump presidency.
can candidate against the more moderate Alain Juppe. However, “anyone who thinks that Fillon’s success clears the ground for a resounding defeat of far-right ideas in France’s 2017 presidential race should think again,” warns Natalie
The biggest unknown by far this year is whether Trump will remain true to his campaign promise to “get tough” on US trading partners and how that might impact the global and European economies. Analysts’ views on whether
Nougayrede of The Guardian. Fillon’s discourse
this was only campaign rhetoric or it will actually
focuses on “economic sacrifice, major changes
happen are divided. However, the nomination
in the French workplace and a crackdown on
of economist Peter Navarro – the author of
immigration and Islam” according to the New
books such as Death By China, The Com-
York Times. Described as a “Thatcherite”,
ing China Wars, and Crouching Tiger: What
the Republican Party’s candidate is widely
China’s Militarism Means for the Rest of the
expected to be one of the two finalists in the
World – to lead the newly-created National
general election in the spring. Back in Germany, Angela Merkel is hotly tipped to secure a fourth term as chancellor following federal elections in autumn; however, the road will be bumpy. To put it in the chancellor’s own words, “this
Trade Council may hint at troubles ahead. Economists are also split on what the impact of a more aggressive anti-China trade policy might be and which of the two countries stands to lose more in the process. “What happens if the protectionist-in-chief
election will be difficult, like no other election since reunification”.
goes ahead and does it, as I suspect he will? Claims that there would
Merkel has seen her popularity dented over the past year. Her
be huge net job losses are extremely dubious. But what would hap-
open-door policy to refugees has come under constant fire, most
pen would be a global trade war, which would disrupt the existing
recently this December following the Berlin terrorist attack. Popular
economic structure, which is built on elaborate international supply
discontent with how the
chains. In the long run,
authorities handled the
a new structure with
arrival of around a million
shorter chains would be
refugees and immigrants
built. But in the mean-
in 2015 has bolstered the
time, some industries,
popularity of right-wing,
some factories, would
anti-immigrant and Eu-
end up becoming sud-
rosceptic party Alterna-
den losers — in the US
tive for Germany, which
as well as in developing
did surprisingly well in
countries,” predicts Paul
Germany’s state and local
Krugman in his New York
elections last year.
Times column.
With such populism on
However, a protection-
the rise throughout the
ist turn that reversed the
continent and euroscep-
trade growth so far would
tics more emboldened
generate the same kind of
than ever, her reelection
“disruptive shifts in pro-
would be a welcome sign
duction that fed blue-col-
of stability. Given that in
lar anger going into this
her 11 years on the job,
election,” adds the Nobel
Merkel has put her per-
Prize-winning economist.
sonal stamp on European
“It’s like the old joke
politics and economics,
about the motorist who
and she is widely regarded
runs over a pedestrian,
as the EU’s de facto leader,
then tries to undo the
her reelection would also ensure a much needed voice advocating for a unified EU.
damage by backing up — and runs over the victim a second time. That is, I’d argue, the way to think about the coming Trump shock,” he goes on.
THE GREAT TRUMP UNKNOWN
Should Trump decide on a full blown trade war with China,
Not only does the EU have to deal with the uncertainty brought
he might just be able to rebalance the US trade balance before the
about by elections in some of its main economies in 2017, but there
World Trade Organization rules against him, speculates another
14 COVER STORY
Nobel Prize-winning economist, Joseph Stiglitz, in The Guardian. China is more dependent on exports to the US than the US is on exports to China, which gives the US an advantage, but a trade war is not a zero-sum game, warns Stiglitz. China may be in a better position to retaliate by causing the US acute political pain, he argues. “It’s anybody’s guess who can stand the pain better. Will it be the US, where ordinary citizens have already suffered for so long, or China, which, despite troubled times, has managed to generate
www.business-review.eu Business Review | February 2017
OPINION
Codrut Pascu, senior partner & managing director, Roland Berger
Political forces will shape the economic landscape in 2017
growth in excess of 6 percent?” asks Stiglitz. But as the world’s largest economy leads the way into uncharted political waters in 2017 and beyond, attempting forecasts is a difficult task, besides his obvious conclusion that “the waters will almost certainly be choppy.” Beyond Trump’s relations with trade partners such as China and Mexico, the newly installed president could also have a hand in the European economy. According to Fortune magazine, Trump “may even play a role in the Eurozone drama, as he has indicated his willingness to quickly negotiate a trade deal with Britain, making the option of leaving the EU a more enticing ones for states that continue to be members”.
Immense social pressures resulting from major discrepancies in income distribution and systemic middle-class job losses in some regions (and industries) have given way to new political currents, increasingly popular, but still in search of a functional economic ideology. 2017 will
HOW TO BREXIT
therefore bring about major challenges for the global economy, result-
Back in Europe, Brexit is the great unknown European leaders will
ing from attempts to realign the status quo established within the last
have to deal with in 2017. After a narrow majority of British voters
decades and redefine business models for organizations worldwide.
voted to leave the EU in a referendum last June, British Prime Minister Theresa May has set March 31 as the deadline to formally serve notice to the EU of the UK’s decision to quit the bloc. The two sides are then supposed to have two years to negotiate a settlement on
First of all, the extent to which the Trump administration will succeed in putting in place the entirety (hard to believe) or just part of its economic agenda will set the stage on several fronts: global trade, relocation of production capacities, capital movements by large
how to manage the breakup. However, the lack of a clear blueprint
corporations facing fiscal changes, massive infrastructure development
for the process could make the negotiations drag on, even stretch-
programs and, maybe most importantly, potential realignments of
ing into the next decade, according to Bloomberg. That would obviously spell more uncertainty in the years to come which will put additional pressure on the markets.
global value chains by geographical criteria. Secondly, China is facing problems inherent to the development stage its economy has reached, currently in search of a new model to
In January, May finally brought some clarity by announcing a
sustain growth. A pivot towards domestic consumption will probably
12 point plan, outlining the country’s Brexit negotiating strategy.
accelerate, versus its historic focus on exports, and the country’s rela-
This confirmed that Britain will leave the single market in order to
tionship with the US will go through challenging times. This will have
regain full control of immigration. Her speech and hints at turn-
repercussions for the entire Asia-Pacific region, which has become an
ing the UK into a tax haven, should the EU drive a hard bargain,
export machine, geared towards China and the US, and which, together
prompted key figures in Brussels to say that the country was on
with China, has long been the growth engine of the global economy.
track for a “hard Brexit”. All in all, negotiations are expected to be
Last but not least, Europe will see elections in its key members, Ger-
tough, with Brexit Secretary David Davis having previously de-
many and France. Following Brexit and the Italian referendum in 2016,
scribed the talks as the most “complicated negotiation of all time.”
the European structure has been further weakened and is increasingly
So far, the Brexit vote has produced little of the doom and gloom
exposed to potential pressures due to elections in the two countries.
predicted by the “remain” campaign before the vote in June. The
The Eurozone remains fragile, threatened by economic challenges in
British economy grew by 0.6 percent in the three months after the
several countries: in Italy, the banking system is on the edge of a crisis
vote, the same as the previous quarter, but stronger than analysts’
and anti-Euro sentiments are spreading. An Italian exit from the Euro-
estimates of about 0.3 percent, according to the BBC. But experts point out that this is because the country is still an EU member, and
zone would be a further shock, too strong to bear. All of these challenges demand complex solutions and strong
the rupture from EU structures has yet to take effect. And worries
leadership. It is difficult to say, for example, whether the Eurozone can
are growing over prospects for 2017. “Growth will slow markedly
continue existing without undergoing structural transformations. But
in 2017, household incomes will be squeezed by higher inflation
given the current political context, further complicated by elections in
and businesses will hold back on investment decisions because of uncertainty about Brexit,” said the majority of economists in an annual Financial Times survey.
the European landscape, 2017 could very well turn out to be another year in waiting, as we risk not seeing the strong decisions needed on the global stage.
www.business-review.eu Business Review | February 2017
COVER STORY 15
Ruling coalition set to clash with President Iohannis on sensitive bills After last year’s general elections, which brought to power a new center-left government controlled by the Social Democratic Party (PSD) and Alliance of Liberals and Democrats (ALDE), the leaders of the two parties clashed with Romania’s president, Klaus Iohannis, as early as the start of January, due to controversial amendments proposed to the Penal Code.
T
By Ovidiu Posirca
he head of state has
constantly that Grindeanu’s
already questioned the
cabinet will base its activity on
government’s plans to
the government manifesto, a
increase the minimum wage
surprise draft bill popped up
by 16 percent to RON 1,450 and
overnight, which would grant
to cut taxes, while keeping the
pardons to around 2,500 jailed
budget deficit at sustainable
criminals. The measure was
levels.
not included in the manifesto that was made public.
Economists have also cast
Shortly after the draft
doubt on the government program, as it is based on an-
bill was put up for debate in
nual average GDP growth of 5.5
mid-January, members of the
percent in the next four years,
public took to the streets to
and the economy is already
express their anger, saying the
starting to slow down. The
move would give a “get out of
World Bank estimates that Romania’s GDP rose by 4.7 percent last year, a figure that is set to fall to 3.7 percent this year and gradually decrease through to 2019.
jail card” to the corrupt politicians currently behind bars. Romania’s anti-graft institution, the DNA, had already warned that the planned changes to the legal framework would limit prosecutors’ ability to investigate crimes of abuse in office.
POLITICAL CONFLICT REMAINS A RISK Although the business environment has welcomed the elimination of the extra fuel excise of 0.7 percent and the scrapping of the
Several NGOs warned that the approval of a pardon bill by government ordinance was incompatible with EU practice. Meanwhile, President Iohannis initiated procedures for a ref-
special construction tax, which were due to be rolled out at the start
erendum in which Romanians would be asked if they wanted the
of 2016, potential political conflict between the government and
anti-corruption campaign to continue or not. The PSD head also
President Iohannis is keeping them in risk-averse mode.
claimed that Parliament would launch two separate referendums.
Analyst Radu Magdin thinks that Romania might descend once
One would consult the public on a proposed change to the Constitu-
again into political fighting, depending on the opposition’s capacity
tion, defining marriage as the union between a man and a woman
to regroup and the government’s propensity to make mistakes.
(effectively banning same-sex marriage). The other would be on
“Secondly, the return to conflict mode all depends on the government’s ‘courage’ to enact quick change, according to its manifesto, and on the opposition it will face for the most controversial
immunity for politicians holding officials positions. Both referenda should take place this spring. As the British PM Theresa May announced that Europe should
of the proposed changes, namely the ones in the judicial field. Here
get ready for a “hard Brexit”, meaning that the UK would renegoti-
personalities come into play: one is Dragnea (Liviu Dragnea - e.n.),
ate all its ongoing relations with the European Union, and with the
the influential leader of the PSD, currently heading the Chamber
incoming US president, Donald Trump, taking a mixed approach
of Deputies; another is Grindeanu (Sorin Grindeanu - e.n.), as the
to globalization, Romania should make sure it can cope with the
official prime minister, possibly keen to show his own personality
potential risks.
and power to act; another is Iohannis,the best positioned from an
The Trump administration’s temptation to make a deal with
institutional point of view, to lead the opposition camp against the
Russia will also impact Romanian leaders’ positioning, both in the
PSD, with a view also to 2019 presidential elections and a possible
region and in Brussels: ironically, US-friendly Romania may con-
renewal of his mandate,” Magdin told BR.
sider Brussels more important than Washington, if DC ignores its
Despite the head of the Social Democrats, Dragnea, saying
strategic interests,” said Magdin.
www.business-review.eu Business Review | February 2017
16 DEALS OF THE YEAR
Local M&A market hops on mega-deals trend With the potential start of the United Kingdom’s exit from the European Union and Donald Trump assuming the presidency of the United States of America, the outlook for Romania’s mergers & acquisitions (M&A) market looks more uncertain in 2017, after climbing past EUR 3 billion in value last year. By Ovidiu Posirca In Romania, the market saw just over 100 transactions with a total value exceeding EUR 3.4 billion, an increase of 35 percent in volume and 25 percent in value, compared to the previous year, according to data from Deloitte Romania. “The current market level is even more impressive if we look back to see that between 2010 and 2013, the market was stable at around EUR 1 billion,” says Visa. He added that the sectors that saw ten or more transactions in 2016 included real estate, business & consumer services, telecom, media and technology, financial services, industrial goods and healthcare. “Another catalyst that fuelled the transactions market this year was the increased willingness of the banking community to finance acquisitions (pre-or-post deal),” Cornelia Bumbacea, partner, deals, at professional services firm PwC Romania, and Dragos AtaBogdan Vaduva, KPMG Romania
I
Florenta Birhala, EY Romania
nasiu, senior manager, deals, PwC Romania, told BR. Meanwhile, private equity funds have con-
n 2016, Romania registered a record
based Ursus and five other Eastern European
tinued to play a significant role in financing
number of deals worth over half a billion
beer brands from Anheuser-Busch InBev in a
and educating local companies in a structured
euros, according to Florin Visa, director,
EUR 7.3 billion move.
and robust corporate culture, according to
financial advisory, at professional services firm Deloitte Romania.
THE BIGGEST TRANSACTIONS LAST YEAR
Aside from the big deals, the market
Bogdan Vaduva, partner at professional ser-
recorded transactions with average values of
vices firm KPMG Romania, head of M&A and
EUR 30 - 40 million.
of energy and natural resources.
M&A consultants told BR that the Roma-
“Most of the private equity houses have or
He mentioned China Energy Company
nian M&A market has continued to expand,
are currently clearing their previous funds’
Limited’s acquisition of a 51 percent stake in
although the global figures point to a slow-
portfolio as they have exceeded their normal
KMG International Romania and Mid Europa
down in deal making.
investment timeline and return yields. But
Partners’ purchase of retail chain Profi from
According to preliminary data by Thomson
they are also raising additional funds with a
Enterprise Investors for EUR 533 million. The
Reuters, the global M&A volume fell by 17
clear focus on Romania, encouraged by the
Deloitte director included in the mega-deals
percent to USD 3.6 trillion in 2016 vs 2015’s
positive economic outlook and the fact that
category Asahi’s decision to buy Romanian-
record.
companies are getting the right investment
www.business-review.eu Business Review | February 2017
DEALS OF THE YEAR 17 of a commercial war with China, will likely discourage M&A activity all over the world. Furthermore, an anti-EU result in the upcoming French elections might raise a question over the future of the EU and discourage investments in Romania and the countries in the east of the EU,” he added.
SECTORS DRIVING ROMANIA’S DEAL MAKING THIS YEAR The M&A consultants agree that there are still target companies with high potential in Romania and the country’s good economic prospects will convince more investors to make a move. Cornelia Bumbacea, PwC Romania
Florin Visa, Deloitte Romania
The sectors that will generate deals this year are IT, consumer goods, financial services, real estate, manufacturing and medical
scale,” Vaduva told BR.
sold its 7.75 percent holding in the healthcare
services, because these industries have con-
firm.
firmed good returns and still offer potential
Visa of Deloitte Romania added that the
for further consolidation and expansion,
M&A MARKET SET TO REMAIN IN GROWTH MODE
local M&A market’s growth trend is more
More companies founded by Romanians could
resistant to domestic shocks, citing the coun-
be part of transactions this year, contributing
try’s macro-economic stability and the fact
and industry as popular sectors for transac-
to the overall growth of the M&A market, sug-
that Romania’s GDP has grown by more than 3
tions in 2017.
gested the consultants working on deals.
percent in the last four years.
suggested Birhala of EY Romania. Vaduva of KPMG Romania also sees energy
“The total M&A market value on the other
“The domestic risks are rather that con-
hand will be influenced by how many mega-
increasing interest, particularly among locally
sumption will be over-stimulated in the next
transactions we’ll see, but I would not be sur-
based companies, in the next year (2017 e.n.),
two years and an economic bubble will inflate
prised to see double-digit growth again,” said
as a result of the significant number of local
and burst sometime in 2018 or beyond,” said
Visa of Deloitte Romania, who also mentioned
players wishing to explore the value that has
the director.
telecom, media and technology, and construc-
“We would not be surprised to observe an
tion as additional sectors with potential this
been built up over the years, by selling their
year.
companies. Additionally, we believe the en-
THE BREXIT AND TRUMP EFFECTS
hanced medium-term stability brought by De-
With Romania becoming even more integrat-
cember’s elections, coupled with Romania’s
ed in the global economic system, major po-
CMS Cameron McKenna, medium and large
steps towards developing major infrastructure
litical shifts that impact corporate behemoths
companies will most likely be more inclined
projects, which have been insufficiently ex-
ultimately have an effect locally in terms of
to be involved in M&A operations this year.
ploited until now, will constitute strong con-
appetite for transactions.
tributing factors in raising investors’ interest
In the case of Brexit, Vaduva of KPMG
in the Romanian market,” commented Vaduva
Romania says the impact on the local M&A
of KPMG Romania.
market has been rather limited so far, and
This year we should also expect to see
there are still British firms looking to invest in
more private and state-owned companies
Romania. He said that stakeholders will have a
listed on the stock exchange, according to
clearer view once the British authorities pres-
Florenta Birhala, M&A manager, transaction
ent the terms of withdrawal from the EU.
advisory services, at professional services firm EY Romania. At the end of last year, private health-
Meanwhile, Visa of Deloitte Romania
USD
3.6
trillion
the value of the global M&A market in 2016, according to preliminary data from Thomson Reuters
says that the world seems to have come to terms with Brexit and Donald Trump as US
care services firm MedLife was listed on the
president, but further election surprises and
Bucharest Stock Exchange. The company
populist anti-globalization measures might
raised EUR 50.8 million from the sale of a 44
occur in 2017.
percent stake that marked the exit of private
According to representatives of law firm
“Events in the UK are not expected to in-
equity fund V4C from MedLife. The fund sold
fluence Romania significantly, but the actions
its 36.25 percent stake, while the IFC partially
of the United States, including the ignition
EUR
3.4
billion
the value of the Romanian M&A market in 2016, according to Deloitte Romania estimates
www.business-review.eu Business Review | February 2017
18 INTERVIEW
Local M&A market loses its luster in 2016 Silviu Stoica, partner at Popovici Nitu Stoica & Asociatii, outlines the current state of the local M&A market to Business Review, describes its main trends and features and shares his projections for 2017. By Anda Sebesi How did the Romanian M&A market evolve in 2016?
sector in South Eastern Europe (SEE) and
The first nine months of 2016 saw M&A activ-
Romania was ranked fifth in the first half of
ity in Romania fall against the same period
2016, with a total of 56 M&A deals.
of 2015. This slowdown basically mirrors the
ABOUT Silviu Stoica, partner at Popovici Nitu Stoica & Asociatii Silviu Stoica focuses on a range of contentious and non-contentious competition matters, with an emphasis on cartel investigations and sector inquiries, abuses of dominant position and antitrust disputes. He holds a degree in Law from the University of Bucharest and is member of the Bucharest Bar and Romanian Bar Association.
one of the most active M&A markets in 2015,
Therefore, M&A activity in Romania
real issue at European level. So, the label for CEE in 2016 was prudence
prevailing trend in the regional M&A market
during 2016 was less intense than expected.
mixed with uncertainty, yet to a lower degree
for the same period. M&A specialists’ projec-
Although the local M&A sector experienced
than in previous years. Although lots of M&A
tions at the end of 2015 and beginning of 2016
a slight slowdown in the past 12 months,
deals made it to the negotiating table, many
for the overall Central and Eastern European
mostly strategic but also financial investors
transactions stalled on the way and failed
(CEE) M&A market were quite optimistic,
are keeping a close eye on Romania as it of-
to reach completion, as buyers and sellers
perhaps fueled by 2015, a record-breaking
fers quality projects and attractive opportu-
were more reluctant to accept compromises.
year in the M&A sector.
nities.
The money is there, but expectations for substantially “good” projects are also high.
But the enthusiasm boost about the M&A sector gradually began to lose its “aura” after the first half of 2016, as the number and
What were the main features of the local M&A market last year?
value of deals failed to meet expectations.
The best words to describe the general
Numbers indicate that the Romanian market
feeling around doing M&A in CEE would be
Compared to 2015, the Romanian M&A sector posted an undeniable drop in 2016. In 2016, many expected the implementation of major initial public offerings (IPOs)
decreased by almost 50
prudence and uncertainty. Players
for several strategic state-owned compa-
percent from ap-
took quite a prudent approach
nies, such as the biggest Romanian airport
proximately USD
when it came to selling and also
(Otopeni Airport) and the most important Ro-
2.1 billion in H1
buying. And Romania was no
manian port (Constanta), announced by the
2015 to some
exception to this rule.
government since 2015. Perhaps this type of
USD 1.1 billion in H1 2016, as reported in the E&Y M&A Barometer. From a leadership role in the M&A
Political and economic events at both global and regional levels shape M&A activity as they influence the appetite of investors and
deal will take place, or at least be initiated, in 2017, as this would refuel the engines of the M&A sector and resume the growth tendency of the local M&A market.
sellers. 2016 brought quite shocking events: worth mentioning are happened against all odds, and the
What were the main sectors that attracted the most M&A transactions in Romania?
continuous tensions between Rus-
As predicted by M&A specialists in 2015, the
the highly unlikely Brexit vote that
sia and Western countries, including the unrest in
leading economic sector in the local M&A market 2016 seems to have been manufactur-
Ukraine. And, of
ing. Financial services and IT&C, retail and
course, there is
real estate follow closely. Glancing at transac-
also the ongoing
tions by economic sector, the Romanian
debate around
M&A market also saw deals in various other
“migrants” that
areas, such as banking and agribusiness. This
turned into a
local picture mirrors the sectors’ allocation
www.business-review.eu Business Review | February 2017
INTERVIEW 19
Looking at the investor profiles, the ma-
should be more active this year as Roma-
number of deals, manufacturing registered
jority of deals in Romania can be attributed
nia still has a lot to offer in terms of great
343 transactions while IT&C was second with
to strategic investors, as financial investors
investment opportunities and “must-have”
a total of 298 deals.
were not that active. An investor population
businesses in various sectors.
at regional level in 2015, when, in terms of
snapshot at regional level confirms the local
Many negotiations and due diligence
past 12 months mainly due to the new 20
picture: more than 75% of the M&A deals in
processes initiated last year are ongoing
percent VAT rate, and the upward trend will
Central and Southeast Europe were closed by
and expected to be finished in the first
most likely be maintained in 2017. This will
strategic investors.
half of 2017. The players on the local M&A
The retail market in Romania grew in the
positively influence the transactional area as
Private equity players became more active
market will probably be busier than in the
we cannot exclude some movements for the
and interested as potential buyers. They are
past two years, as Romania still offers a lot
hypermarkets with big players scrutinizing
mainly looking for good opportunities to
of “too-good-to-refuse” investment op-
potential opportunities.
invest in both new and “familiar” industries.
portunities. Potential investors should also
The most talked about deal in 2016 was
Their appetite for placing their money in
consider important factors that contribute
probably the acquisition of the hypermarket
businesses that are new to their existing
to making Romania a welcoming business
chain Profi by Mid Europa Partners invest-
portfolios comes second. Private equity in-
environment: the investment-friendly tax
ment fund. Another big deal closed before
vestors’ first and basically natural approach
regime, regulatory and legal framework,
the end of 2016 was the acquisition of the
is to try to consolidate the businesses they
good macroeconomic indices, and economic
top Romanian dairy producer Albalact by
are already accustomed to and know better
development.
Lactalis, a French group active at global level
how to develop.
in the same industry. Another notable deal
As in previous years, various private
at local level was the sale of McDonald’s
equity funds with investments across the
How did the CEE M&A market evolve last year?
operations in Romania. The sum paid for the
region have their hands full with exits from
A still fragmented regional M&A market
McDonald’s franchise in Romania amounted
already mature investments. Business own-
managed to bring here mostly strategic but
to more than USD 65 million.
ers and entrepreneurs acting as sellers tend
also financial investors. Private equity inves-
to have a more reasonable attitude
What types of deals took place last year on the Romanian market?
tors maintained a quite enthu-
when negotiating. They have
siastic interest in the CEE
changed their approach
M&A landscape, searching
and expectations in
for opportunities to put
terms of valua-
their money to work.
tion indices for
However, contrary to
In 2016, inves-
their businesses,
specialists’ expecta-
tors and busi-
allowing them to
tions, the overall M&A
be present on the
rhythm slowed down in
ness owners met at the negotiating
market and be seen
table but the atti-
by investors as a realistic
tude was more reserved than in 2015 as they became
2016 in the region, both in terms of value and number
partner for discussions. Investors can confirm that the banking
of deals. As in recent years, investors gener-
cautious, so negotiations lasted longer than
sector in Romania supports M&A activity
ally continued to “redirect” their money
initially predicted. This also influenced to a
with banks and financial institutions that
towards CEE, still looking at Russia’s M&A
certain extent the overall “closing rate” of
show an uncontested will to become busi-
offer rather reluctantly. CEE economies are
M&A deals.
ness partners, particularly for investors.
still in the recovery phase and have become
And, at the same time, the steady recovery of
more and more appealing to the investor
as it offers a full spectrum of deals in so
the overall banking sector continues, which
population in general, as they promise quite
many economic sectors. And the businesses
proves again that Romania has the prereq-
interesting businesses at tempting prices
put on the table meet the essential criteria of
uisites for being seen as a healthy business
with prospects of high returns to investors’
the investors, the most important one being
environment.
satisfaction. that amongst the preferred industries for
potential targets is the quality of the busi-
How do you expect the local M&A market to perform in 2017?
ness. And businesses in Romania display this
Prospects are encouraging for the Romanian
services, and IT. These sectors stand out in
“must-have” as Romanian entrepreneurs
M&A market in the 12 months ahead. After
terms of the number of deals, but the overall
have understood this necessity and are aim-
a quite calm 2016 in terms of transactions,
value of M&A deals in the region was below
ing to improve their businesses at all levels.
with no megadeals, vendors and investors
the 2015 results.
Romania has a very dynamic M&A market
Investors’ behavior in 2016 showed
the potential for healthy, sustainable growth. Another quality investors seek in their
investing their money were manufacturing,
www.business-review.eu Business Review | February 2017
20 DEALS OF THE YEAR
consolidated its business profile in Central European markets.
Lactalis acquires Albalact Value of transaction: EUR 75 million
Legal team buyer: Leroy & Asociatii, EY Romania Legal team seller: Schoenherr Description: French group Lactalis took over Romanian dairy producer Albalact, which is listed on the Bucharest Stock Exchange. Albalact is the largest company in Romania’s dairy industry, with an annual turnover of
Chance (legal), PwC (commercial), EY (finan-
more than EUR 100 million. The company has
cial and tax)
Asahi/AB acquires InBev
a market capitalization of EUR 50 million.
Description: The transaction required a
Legal team buyer: RTPR Allen & Overy
Lactalis buys Covalact
completion, including intergroup restructur-
Value of transaction: N/A
ing, repayment and refinancing. According
Hogan Lovells, EY Romania (financial)
Legal team buyer: Leroy & Asociatii, EY Roma-
to Mergermarket, the sale of Smyk was the
Description: RTPR Allen & Overy advised
nia (financial)
largest private equity transaction in the first
Japanese group Asahi Group Holdings, Ltd. on
Legal team seller: Schoenherr
quarter of 2016 in CEE (excluding Russia).
the acquisition of Ursus Brewery, one of the
Description: Investment fund SigmaBleyzer
largest beer producers in Romania, in a trans-
sold dairy producer Covalact to French group
action in which Asahi acquired five former
Lactalis, one of the largest dairy producers
SABMiller businesses in Central and Eastern
in the world. Covalact has annual sales of
Europe. This was the largest M&A transaction
around EUR 45 million. The company oper-
Legal team buyer: RTPR Allen & Overy for 3TS
in CEE in 2016.
ates two dairy processing plants in Romania
Catalyst Romania
FOOD & BEVERAGES
number of specific carve-out actions prior to
Value of transaction: EUR 7.3 billion Legal team seller: Suciu Popa, Freshfields,
3TS Catalyst and Gecad Group buy stakes in SmartBill Value of transaction: EUR 1 million
with over 350 employees, and has a local
Legal team seller: DLA Piper Romania
Premier Capital buys McDonald’s Romania
market share of approximately 5 percent.
Description: Private equity and venture capital
SigmaBleyzer, the investment fund exiting
fund 3TS Catalyst Romania took over a 25
Value of transaction: EUR 65 million
Covalact, manages assets worth some EUR 1
percent stake in SmartBill, a local provider of
Legal team buyer: Musat si Asociatii, Potter
billion, located mostly in Eastern European
invoicing software. Gecad Group, founded by
Anderson & Corroon LLP, Tuca, Zbarcea &
countries such as Romania and Ukraine.
Radu Georgescu, took over a 7 percent stake for EUR 229,771. The founders of the company
Asociatii, Deloitte (financial) Legal team seller: Tuca, Zbarcea & Asociatii Legal advice to creditor: Clifford Chance Badea Description: Maltese Premier Capital took over
Food Union takes over Alpin 57 Lux Value of transaction: EUR 20 million
the local operations of American restaurant
Legal team buyer: KPMG Advisory (financial)
chain McDonald’s. The deal included 67 res-
Legal team seller: N/A
taurants, 19 coffee shops and the company’s
Description: Romanian entrepreneur Ioan
whole franchise in Romania.
Istrate, the founder of Alpin 57 Lux, signed a
will use the additional funds to support the development of the company, which has more than 33,000 users.
MedLife sells 44 percent stake in IPO on BVB Value of transaction: EUR 50.8 million
joint-venture association with Food Union of
Legal team: Schoenherr (MedLife), NNDKP
Orkla takes over Hame
Latvia, whose portfolio includes dairy and ice
(V4C Eastern Europe Holding V Limited),
Value of transaction: N/A
cream products. In 2015, the manufacturer
Leroy & Asociatii (International Finance Cor-
Legal team buyer: DLA Piper Romania, Novalia
had a EUR 20 million turnover while in 2014 it
poration), RTPR Allen & Overy (managers)
(Czech Republic), Randa Havel Legal (Czech
posted a profit of RON 5.5 million.
Description: Romanian private healthcare services provider MedLife was listed on the
Republic) Legal team seller: CMS Cameron McKenna Romania
PRIVATE EQUITY
Bucharest Stock Exchange (BVB) after the company was able to sell a 44 percent stake to
Empik Media & Fashion sells Smyk Group to Bridgepoint
retail and institutional investors in an initial
Value of transaction: EUR 247 million
exit of private equity fund V4C from MedLife.
Slovakia, with a strong position in Romania,
Legal team buyer: Weil, PwC (financial)
The fund sold its 36.25 percent stake, while
Hungary and Russia. Following the deal, Orkla
Legal team seller: JP Morgan (M&A), Clifford
the IFC partially sold its 7.75 percent holding
Description: Orkla, a top international FMCG player, took over Hame, a leading branded food company in the Czech Republic and
public offering (IPO). The offering marked the
www.business-review.eu Business Review | February 2017
DEALS OF THE YEAR 21 Description: Enterprise Investors sold Profi
retailer in Romania, from the Constantinescu
supermarket chain to Mid Europa Partners, in
family and Balkan Accession Fund, a private
Wirecard AG takes over Provus Group from Innova Capital
the largest deal ever completed by a private
equity fund advised by Axxess Capital.
Value of transaction: EUR 32 million
in the retail sector in the country’s history.
Legal team buyer: N/A
This was also one of the largest M&A transac-
Legal team seller: Clifford Chance Badea
tions in Romania in 2016.
in MedLife.
equity fund in Romania and the largest deal
Description: Innova Capital sold Provus, a
Catalysts Romania invests in Marketizator Friends Value of transaction: N/A
Legal team buyer: RTPR Allen & Overy
Global Finance sells Total Soft
Legal team seller: Ionescu & Sava
Value of transaction: N/A
Description: RTPR Allen & Overy advised
AG. Clifford Chance advised Innova Capital
Legal team buyer: Eversheds Lina & Guia and
Catalyst Romania, the private equity fund
on the 2011 acquisition of Provus, which
Kolcuoglu Demirkan Kocakli
advised by 3TS Capital Partners, in relation to
entailed the acquisition of Romcard and
Legal team seller: RTPR Allen & Overy
an investment in Marketizator Friends (which
Supercard Solutions & Services, two Roma-
Description: Global Finance, the South
provides online businesses with conversion
nian subsidiaries. Provus operates Romania’s
Eastern European Fund, sold Total Soft, the
rate optimization services, surveys, traffic
largest processing center and is among the
biggest ERP producer in Central Europe,
segmentation and web personalisation).
leading providers of outsourcing solutions in
to Turkish company Logo Yazilim, which
Eastern Europe.
is owned by the Mediterra Capital Partners
leading Romanian payment processing and technological service provider, to Wirecard
private equity fund.
Oresa Ventures takes over La Fantana from Innova Capital
Value of transaction: N/A
Catalyst Romania invests in SmartDreamers
Technology in Central and Eastern Europe to buy out Internet Corp Value of transaction: N/A
Legal team buyer: RTPR Allen & Overy
Value of transaction: N/A
Legal team seller: N/A
ciatii (for Cristian Amza) and David & Baias
Legal team buyer: RTPR Allen & Overy
Description: Technology in Central and East-
(for Oresa Ventures)
Legal team seller: Eversheds Lina & Guia
ern Europe, the private equity fund advised by
Legal team seller: Clifford Chance Badea
Description: Catalyst Romania, the private
3TS Capital Partners, bought out two share-
Description: Innova Capital sold La Fantana,
equity fund managed by 3TS Capital Partners,
holders of Internet Corp (currently one of the
the leading provider of water coolers and
made investments in SmartDreamers, a well-
biggest players on the online publishing mar-
coffee machines, back to its previous owners
known online recruitment platform.
ket, which owns several well-known websites
Legal team buyer: Popovici Nitu Stoica & Aso-
such as wall-street.ro, 9am.ro, start-up.ro).
– private equity fund Oresa Ventures. La Fantana is a provider of spring water for offices in Romania and Serbia, and coffee machines in Romania.
Axxess Capital buys share package in Elefant Online Value of transaction: EUR 5.5 million (according to media sources)
Enterprise Investors sells Smartree Romania Value of transaction: N/A
Abris Capital Partners takes over Green Group
Legal team buyer: Tuca Zbarcea & Asociatii
Legal team buyer: N/A
and sole practitioner Gabriela Assoum Pre-
Legal team seller: RTPR Allen & Overy
Value of transaction: N/A
descu
Description: Enterprise Investors sold Smartree
Legal team buyer: Clifford Chance Badea
Legal team seller: RTPR Allen & Overy
Romania, a notable player on the market of
Legal team seller: N/A
Description: RTPR Allen & Overy advised Ele-
outsourcing payroll and personnel administra-
Description: The private equity fund Abris
fant Online and its shareholders, Millennium
tion process services.
Capital Partners bought the Romanian
Gold Resources and the Catalyst Romania
waste-management business Green Group,
private equity fund, on an investment in
the fund’s fourth major investment in the
Elefant Online by the Emerging Europe Ac-
country.
cession Fund, advised by Axxess Capital, and
The acquisition expands Abris’s local port-
a supplementary investment from minority
folio, which also includes Urgent Cargus and
shareholder Catalyst Romania.
PehartTec – the leading tissue paper producer
REAL ESTATE
NEPI merges with Rockcastle Value of transaction: N/A
Legal team for NEPI: Clifford Chance Badea Legal team for Rockcastle: Dentons
Enterprise Investors buys Noriel
Description: The South African investment
Value of transaction: EUR 24 million
(NEPI), the largest real estate investor in
Enterprise Investors sells Profi
Legal team buyer: RTPR Allen & Overy
Romania by assets, announced a framework
Value of transaction: EUR 533 million
Legal team seller: Reff & Associates
agreement to merge its business with South
Legal team buyer: Bondoc & Asociatii
Description: Enterprise Investors acquired
African fund Rockcastle, of similar size and
Legal team seller: RTPR Allen & Overy
the Noriel group, the largest toys and games
activity in Poland.
in Romania and the largest independent business of its type in the CEE region.
fund New Europe Property Investments
www.business-review.eu Business Review | February 2017
22 DEALS OF THE YEAR
Description: RI Property SPV 1 sold Scoala
Piper and Reckitt Benckiser.
Herastrau Business Center, an office building in Bucharest, to Romanian investment company Egrom Invest Fund. The building comprises a total leasable area of 3,500 sqm
NEPI buys plot of land from Belrom
Value of transaction: EUR 10 million (market
on the ground and five upper levels arranged
estimate)
on regular, rectangular shaped floor plates of
Legal team buyer: Reff & Associates
approximately 700 sqm.
Legal team seller: Voicu & Filipescu Description: South Africa-based New Europe
GIC buys P3 from TPG Real Estate and Ivanhoe Cambridge
Property Investments (NEPI) took over 12
Value of transaction: EUR 2.4 billion
cording to media reports, NEPI could build a
Legal team buyer: Dentons
new retail park in the area.
The resulting new entity will be the largest
Legal team seller: N/A
CEE retail real estate company, and one of the
Description: GIC, Singapore’s sovereign wealth
top such entities in continental Europe.
fund, completed the purchase of P3, one of the main pan-European owners, developers
hectares in Ramnicu Valcea from Belrom. Ac-
NEPI buys Sibiu Shopping Center from Argo Group Value of transaction: EUR 100 million
Smartown Investments buys insolvent Swan Office Park
and managers of logistics properties, from
Legal team buyer: Reff & Associates, EY Roma-
TPG Real Estate and Ivanhoe Cambridge. In
nia (financial)
Value of transaction: EUR 30.3 million
Romania, P3 owns logistics park P3 Bucha-
Legal team seller: PeliFilip
Legal team buyer: Wolf Theiss Rechtsanwälte
rest, which was taken over from Immobilien
Description: NEPI bought Sibiu Shopping Cen-
GmbH & Co KG
Anlagen AG in early 2015. The park, which is
ter from investment company Argo Group.
Legal team seller: CITR
the biggest in Romania, has 11 buildings and
Shopping City Sibiu has a leasable area of
Description: The insolvent office project Swan
covers 305,000 sqm. All in all, P3’s asset base
79,000 sqm. The center was opened in 2006
Office & Technology Park was sold by Casa
comprises 163 warehouses with an average
and was later expanded.
de Insolventa Transilvania, the insolvency
age of 8.4 years, totaling 3.3 million sqm
administrator for the real estate project. The
across nine countries
final sale price was around 50 percent above the price approved by creditor.
Growthpoint Properties buys 26.8 percent stake in Globalworth Real Estate Investments
Global Finance sells Automatica/former Ford factories
Samsic buys controlling stakes in three Real Estate Service Group companies Value of transaction: EUR 5 million (market
Value of transaction: N/A
sources)
Legal team buyer: Popovici Nitu Stoica &
Legal team buyer: Schoenherr and in-house
Asociatii
Samsic France
Value of transaction: EUR 186.4 million
Legal team seller: Bondoc si Asociatii
Legal team seller: Reff & Associates
Legal team buyer: Wolf Theiss Rechtsanwälte
Description: Global Finance, through its real
Description: French player Samsic took over
GmbH & Co KG (local counsel)
estate division, sold the land of Automatica/
80 percent of three companies belonging
Simmons & Simmons (UK counsel)
former Ford factories in Calea Floreasca (Bu-
to the Real Estate Service Group (RESG).
Legal team seller: N/A
charest) to Auchan, One United (a company
The group is controlled by Dutchman Ben
Description: Globalworth Real Estate Invest-
specialized in luxury residential projects) and
Martens. The three companies provide land-
ments issued shares in a bid to raise EUR 200
a company specialized in office buildings.
scaping, cleaning and building management
million. The investment will support Glo-
The three investors intend to develop a mixed
services.
balworth’s development projects and could
project on the former platform.
fuel new acquisitions in Romania and across the broader Central and South East Europe regions. The transaction will also allow Growthpoint to grow its investment position
PPF Real Estate buys Metropolis Center Office
GTC Group buys two office buildings in Bucharest Value of transaction: N/A
Value of transaction: EUR 48 million
Legal team buyer: PeliFilip, EY Romania
Legal team buyer: KPMG Advisory (financial)
(financial)
Legal team seller: N/A
Legal team seller: Schoenherr
Business center sold to Egrom Invest Fund
Description: Czech investment fund PF Real
Description: Immigon portfolioabbau ag (for-
Estate, controlled by the richest man in the
merly Österreichische Volksbanken-Aktienge-
Value of transaction: N/A
Czech Republic, Petr Kellner, bought the
sellschaft) sold two modern A-class buildings
Legal team buyer: N/A
Metropolis Center office project in Bucharest.
in Bucharest to the local subsidiary of the
Legal team seller: Wolf Theiss Rechtsanwälte
Metropolis Center comprises office and retail
GTC Group. The transaction involved the sale
GmbH & Co KG SCA
spaces and its tenants include EBRD, DLA
of the buildings Premium Plaza and Premium
in the region.
www.business-review.eu Business Review | February 2017
DEALS OF THE YEAR 23
Point, in central Bucharest. The buildings
pean energy group, carried out a crossborder
ment rental and leasing company, to TVH, a
have a total leasable area of 15,000 sqm, and
restructuring of its operations, which included
Belgium company engaged in manufacturing
are considered to be among the top five office
the transfer of the Romanian business to a
forklift trucks, aerial platforms and industrial
buildings of their size in the city.
third party buyer.
in-plant vehicles.
NEPI buys 30 percent stake in Mega Mall from Real4You
PPG acquires DEUTEK from Axxess Capital
Legal team buyer: N/A
Legal team buyer: N/A
Legal team seller: N/A
Legal team seller: N/A
Description: South African investment fund
Description: American PPG reached an agree-
New Europe Property Investments (NEPI) took
ment with Emerging Europe Accession Fund
over a 30 percent stake in Mega Mall from Aus-
(EEAF) to acquire DEUTEK, a leading Roma-
trian development group Real4You. Following
nian paint and architectural coatings manu-
the deal, NEPI became the sole shareholder of
facturer. EEAF is owned by Axxess Capital.
the shopping center in Bucharest, which has a
DEUTEK recorded sales of EUR 30 million in
gross leasable area of 75,500 sqm.
2015.
Value of transaction: N/A
ENERGY
Allianz Capital Partners buys E.ON Distributie Romania
Value of transaction: EUR 270 million (accord-
Value of transaction: N/A
CONSTRUCTION MATERIALS
QuadraCir makes its exit from Alas Romania
Saint Gobain buys Pietta Glass Working Value of transaction: N/A
Legal team buyer: Zamfirescu Racoti & Partners, EY Romania (financial) Legal team seller: Popovici Nitu Stoica &
Legal team buyer: RTPR Allen & Overy
Value of transaction: N/A Legal team buyer: Bulboaca & Asociatii
Legal team seller: Botezatu & Asociatii
Legal team seller: RTPR Allen & Overy
Description: French Group Saint-Gobain
Description: Allianz Capital Partners acquired
Description: QuadraCir, a holding company for
bought 100 percent of the shares of Pietta
30 percent of E.ON Distributie Romania, the
a variety of construction and related busi-
Glass Working from Valenii de Munte, a com-
largest electricity and gas distribution network
nesses, made its exit from Alas Romania, a
pany with annual turnover of EUR 20 million.
operator in northern Romania. This is the
Romanian company specialized in aggregates,
Pietta Glass Working was founded in 2000
biggest transaction in Romania in the energy
concrete, recycling and processing hard stones
by the Pietta family, which has owned a glass
sector in recent years.
and other derivatives.
processing business for over 40 years. At pres-
ing to media sources)
Asociatii
ent, the company sells its products mainly on
Repower AG sells Repower Romania
BraasMonier buys Elpreco factory
Legal team buyer: N/A
Legal team buyer: Schoenherr, Deloitte (finan-
Legal team seller: KPMG Advisory (seller’s
cial)
financial representative)
Legal team seller: D&B David si Baias
Description: Repower AG sold Repower Roma-
Description: Luxembourg-based pitched roof
nia, the local subsidiary engaged in electricity
products manufacturer Braas Monier bought
supplying, to MET Group, a Switzerland-based
the Romanian concrete tile factory Elpreco.
holding company with an interest in regional
Braas Monier Building Group has operations in
electricity distributors. Through the transac-
36 countries and 118 production facilities and
tion, MET aimed to consolidate its position on
employed around 7,700 people last year.
Value of transaction: N/A
European markets.
Value of transaction: EUR 8 million
the Romanian market and increase its market share to 5 percent.
Andelta transfers Romanian firm to third party
Axxess Capital exits from Industrial Access Value of transaction: EUR 20-25 million Legal team buyer: NNDKP
Value of transaction: N/A
Legal team seller: KPMG (financial) and Gabri-
Legal team buyer: Wolf Theiss
ela Assoum Predescu (legal team)
Legal team seller: N/A
Description: Axxess Capital sold Industrial
Description: Andelta, a leading Central Euro-
Access, a Romanian construction equip-
BANKING
Forte Partners secures EUR 50 mln from UniCredit Bank for The
www.business-review.eu Business Review | February 2017
24 DEALS OF THE YEAR Bridge project
enterprises.
sector taking place between two lenders.
APS Holding buys NPL portfolio from Intesa Sanpaolo Romania
FITNESS
Value of transaction: EUR 50 million Legal team buyer: Reff & Associates, acting for Forte Partners Legal team seller: Tuca Zbarcea & Asociatii,
Value of transaction: EUR 261 million (portfolio
World Class Romania buys Club Sport Fitness Center
acting for UniCredit Bank
size)
Description: Real estate investor consortium
Legal team buyer: Savin si Asociatii, Dinulescu
Forte Partners announced the construction
si Maxim, Cunescu Balaciu si Asociatii
Legal team buyer: Stratulat Albulescu, EY
start for The Bridge office project near the
Legal team seller: Reff & Associates, Deloitte
Romania (financial)
Basarab overpass, with the investment for the
(financial)
Legal team seller: Ijdelea
first phase reaching EUR 50 million. The busi-
Description: APS Holding, one of the most
Description: Fitness chain operator World
ness park will be erected in two phases on 15,
active managers of performing and non-per-
Class Romania, controlled by private equity
Orhideelor Street, on the site of the former
forming loans in Romania, took over an NPL
fund Resource Partners, took over Club Sport
bread factory, Spicul.
portfolio worth EUR 261 million from Intesa
Fitness Center, which operates a network of
Sanpaolo Romania.
19 fitness centers across Romania. World Class
APS Holding acquires NPL portfolio in Romania Value of transaction: EUR 1.07 billion (the nominal value of the NPL portfolio)
Value of transaction: N/A
Romania has 31 fitness centers, out of which
Kruk buys NPL portfolio from Piraeus Bank
20 are in Bucharest and the rest in the main cities around the country.
Value of transaction: EUR 161 million (portfolio
Legal team buyer: Tuca Zbarcea & Asociatii
size)
Legal team seller: Schoenherr
Legal team buyer: N/A
Description: APS Holding has acquired a port-
Legal team seller: Reff & Associates
folio of non-performing loans (NPLs), which
Description: Kruk acquired an NPL portfolio of
includes secured and unsecured corporate
EUR 161 million from Piraeus Bank. The lend-
and SME loans, with the secured positions
er registered a gross profit of EUR 3.8 million
held against mostly residential, commercial
in the first nine months of 2016, compared to
and industrial property. The investors are
a loss in the same period of 2015.
the International Finance Corporation (IFC), a member of the World Bank Group, APS, a distressed debt investment and recovery company, and other global institutional investors. The transaction is the largest ever of its type in South Eastern Europe.
Banca Transilvania buys performing loans portfolio from Bank of Cyprus Value of transaction: N/A
Legal team buyer: Reff & Associates Legal team seller: PeliFilip
TELECOMMUNICATION & BPO
IFC and Kruk acquire retail NPLs from Bancpost
Description: Banca Transilvania took over the
Value of transaction: EUR 597 million
of Cyprus. Banca Transilvania, the third big-
Legal team buyer: Tuca Zbârcea & Asociatii,
gest lender by assets in Romania, registered a
acting as legal advisor for International
net profit of RON 657 million in the first nine
Value of transaction: EUR 30-35 million Legal team buyer: PwC Romania and Tuca
Finance Corporation (IFC) and Polish debt
months of 2016, almost double the amount in
Zbarcea & Asociatii
collection company Kruk
the previous year.
Legal team seller: KPMG Romania and Leaua
retail performing loans portfolio from Bank
Legal team seller: CMS Cameron McKenna
Direct One takes over Netcity Telecom
si Asociatii
Nextebank (Patria Bank) acquires 54.7 percent of Banca Carpatica
Description: Romanian firm Direct One,
Value of transaction: EUR 50 million
underground telecom infrastructure Netcity
Eurobank Group in Romania. The move was
Legal team buyer: Tuca Zbarcea & Asociatii,
from UTI Group for an undisclosed sum. The
aimed to help speed up the resolution of
acting as legal advisor to Nextebank
acquisition allows Direct One to expand on
NPLs and increase the liquidity of the bank-
Legal team seller: N/A
the local telecom infrastructure market and
ing sector in Romania and the region. The
Description: Nextebank’s acquisition of over
will further contribute to the development
transaction is part of the IFC’s Debt and Asset
half of Banca Carpatica further strengthens
of the network, which currently consists of
Recovery Program (DARP), which focuses
Nextebank’s (currently Patria Bank) position
around 1,000 km of fiber optic.
on the acquisition and resolution of NPLs
on the Romanian financial services market
and the restructuring of small and medium
and marks one of the few deals in the banking
Description: The IFC and Polish debt collection company Kruk have agreed to purchase a EUR 597 million portfolio of NPLs from Bancpost and other subsidiaries of Greece’s
which is specialized in the management of fiber optic networks, took over the Bucharest
Visma Romania Holding sells all
www.business-review.eu Business Review | February 2017
DEALS OF THE YEAR 25
its shares in Visma Services
Poland and Romania. It has 300 employees in
nia. Following this deal, Fairfax will become
Value of transaction: N/A
the CEE region and works for 550 companies
the main strategic multinational network
Legal team buyer: White & Case
in 26 countries.
partner serving AIG’s global clients in these countries.
Legal team seller: Wolf Theiss Rechtsanwälte GmbH & Co KG Description: Visma Romania Holding sold all the shares held in Visma Services Romania, as part of the carve-out and sale of Visma BPO (Business Process Outsourcing) to HgCapital. The BPO business was sold in a competitive
INSURANCE & FINANCIAL SERVICES
Vienna Insurance Group buys AXA Life Insurance Romania
Fairfax buys insurance subsidiaries in Romania from Eurobank Group Value of transaction: EUR 316 million
Value of transaction: N/A Legal team buyer: Schoenherr, Deloitte (financial)
Legal team buyer: N/A
Legal team seller: CMS Cameron McKenna
insurance subsidiaries in Romania (Eurolife
Description: Vienna Insurance Group (VIG)
ERB Insurance Group Holdings) to Fairfax
TMF Group buys UCMS
bought AXA Life Insurance in Romania. AXA
Financial Holdings Limited, part of the wider
Value of transaction: N/A
entered into an agreement with VIG to sell its
disposal of the group’s global insurance busi-
Legal team buyer: Hogan Lovells – lead counsel
local life and savings insurance operations,
ness. Fairfax acquired 80 percent of Eurolife
(Polish and Hungarian counsel). Wolf Theiss
marking its exit from Romania. BCR Asigurari
from Eurobank for EUR 316 million, while
Rechtsanwälte GmbH & Co KG assisted with
de Viata and Omniasig were the buyers.
Eurobank will retain a 20 percent stake.
Fairfax buys AIG business in Romania and other CEE countries
RP Explorer sells minority stake in Access Financial Services
outsourcing services, has announced the
Legal team buyer: Dentons
Legal team buyer: N/A
takeover of the local subsidiary of UCMS
Legal team seller: N/A
Legal team seller: Zamfirescu Racoti & Partners
Group, for an undisclosed sum. The buyer said
Description: Canada-based Fairfax Financial
Description: RP Explorer (Netherlands) sold
the deal was made it a bid to consolidate its
Holdings Limited acquired insurance opera-
a minority stake of the shares held in Access
market position in the local outsourcing sec-
tions from American International Group
Financial Services IFN, a Romanian nonbank-
tor. UCMS Group has operations in Hungary,
(AIG) in various jurisdictions including Roma-
ing financial institution acting in the field of
sales process, following Visma’s strategic decision to focus increasingly on its Software as a Service (“SaaS”) offerings.
Legal team seller: CMS, Shearman & Sterling Description: Eurobank Group sold two
the preparation of the Romanian jurisdiction related transaction documents. Legal team seller: N/A Description: TMF Group, which provides
Value of transaction: USD 240 million
Value of transaction: N/A
www.business-review.eu Business Review | February 2017
26 DEALS OF THE YEAR
SME financing.
agement of Imobiliare.ro.
provider of facilities solutions to the oil & gas production and processing industry, sold
IT&C
Vector Watch gets sold to Fitbit Value of transaction: N/A Legal team buyer: N/A Legal team seller: Matt Sachse, Pagemill Part-
eMAG takes over PC Garage
its Romanian business to Expert Petroleum.
Value of transaction: EUR 20 million (market
Petrofac’s exit from the 15-year produc-
estimate)
tion enhancement contract for nine mature
Legal team buyer: N/A
oilfields was concluded with OMV Petrom, the
Legal team seller: N/A
Austrian oil and gas group.
ners; Charles Welch, Menalto Advisors; Ted
Description: Online retailer eMAG took over PC
Cominos and Cristina Audran-Proca, Faegre
Garage, the online IT and electronics retailer,
Baker Daniels Llp; Marc Van Campen and
which was owned by Romanian entrepreneur
Leonie Kraakman of Van Campen Liem law
Marius Ghenea. eMAG, which is controlled by
firm; Dragos Radu, Radu Ionescu and Nicoleta
internet and media giant Naspers, will help PC
Legal team buyer: Deloitte (financial)
Gheorghe of EY Law | Radu si Asociatii; Ionut
Garage expand regionally.
Legal team seller: N/A
Simion and Andreea Mitirita of PwC Romania. Description: Vector Watch, the smartwatch startup founded by Romanian Andrei Pitis, has been sold to Nasdaq-based Fitbit, the provider of health and fitness devices, for an
Value of transaction: N/A
Description: Hague-based Mazarine Energy, a
OIL & GAS
KazMunay Gas sells 51 percent of KMGI to CEFC
vestors in Vector Watch was Gecad Ventures,
Value of transaction: N/A Legal team buyer: Dentons Romania, KPMG Advisory (financial)
which is controlled by Radu Georgescu.
Legal team seller: Freshfields (international
undisclosed sum. One of the early stage in-
Mazarine Energy buys 19 onshore fields from OMV Petrom
counsel), NNDKP with Tuca Zbarcea & Asoci-
Logo Yazilim purchases TotalSoft
atii (for Romanian matters)
private oil and gas exploration and production company, will take over 19 onshore oil fields and three workover rigs, alongside 200 employees in Romania from Austrian oil major OMV Petrom.
Synergy Energy Holdings buys CDI Oilfield Services Value of transaction: N/A
Description: In October 2016, KazMunay Gas
Legal team buyer: DLA Piper Romania and Hall
Value of transaction: EUR 30.2 million
sold a 51 percent stake in KazMunayGas Inter-
Estil (US)
Legal team buyer: Eversheds, Kolcuoglu
national N.V. (KMGI) to CEFC (China Energy
Legal team seller: Winston & Strawn (US) and
Legal team seller: Clearwater, Allen & Overy
Company Limited). The strategic partnership
Eversheds Lina & Guia (Romania)
Description: Turkish Logo Yazilim, an inde-
will deliver benefits for KMG, CEFC and KMG
Description: Synergy Energy Holdings LLC, a
pendent software company, took over Roma-
International and will establish the neces-
US company active in the oil & gas sector, took
nian software firm TotalSoft from Ferabosco
sary framework for future joint projects and
over CDI Oilfield Services, the Romanian sub-
Investments Limited and South Eastern
contribute to the economic and social growth
sidiary of John Crane and Smiths Group. The
Europe Fund (SEEF), both owned by Greek
of the areas where those projects are imple-
acquisition of the local company was part of a
investment fund Global Finance. TotalSoft
mented, including Romania.
bigger transaction including the acquisition of the artificial lift business of John Crane Group,
was founded in 1994 by Romanian entrepreneur Liviu Dragan and currently has over 400 employees.
Kraftanlagen Munchen buys IPIP and Petroconsult
LTD in US (a subsidiary of Smiths Group).
Value of transaction: N/A
ONLINE
Ringier acquires Imobiliare.ro
Legal team buyer: EY Romania (financial) Legal team seller: N/A Description: Kraftanlagen bought the Design
Value of transaction: EUR 30 million (accord-
Institute for Petroleum Installations and
ing to media sources)
Petroconsult, in a bid to expand its service
Legal team buyer: Tuca Zbarcea & Asociatii,
offering as a general contractor for the chemi-
KPMG Advisory (financial)
cal and petrochemical industry, as well as to
Legal team seller: Schoenherr
reinforce its market position in engineering.
Description: Ringier, one of the leading inter-
The buyer is part of Swiss Alpiq Kraftanlagen
national media groups operating in Roma-
Gruppe.
nia, acquired a majority stake in Imobiliare. ro, the country’s largest real-estate portal. Ringier’s acquisition of the Imobiliare.ro portal includes the purchase of 87 percent of
Petrofac sells Romanian business to Expert Petroleum Value of transaction: N/A
RETAIL
Carrefour Romania buys Billa Romania
Value of transaction: EUR 70-90 million (ac-
the shares in Realmedia Network from their
Legal team buyer: Leroy & Asociatii
cording to media sources)
former owners – Broadhurst Investments
Legal team seller: Suciu Popa
Legal team buyer: Tuca Zbarcea & Asociatii
Limited, Kurt Götz and the executive man-
Description: Petrofac Ltd., an international
Legal team seller: Schoenherr
www.business-review.eu Business Review | February 2017
DEALS OF THE YEAR 27
Description: Carrefour Romania acquired the
Gotshal & Manges
supermarket chain owned by Billa Romania
Description: Affidea Group, the leading
from its German competitor Rewe. Through
healthcare investor and provider of diagnostic
this acquisition, Carrefour becomes the
imaging and cancer treatment services in Eu-
leading supermarket operator in Romania,
rope, acquired from SouthEast Europe Equity
strengthening its multiformat offer to better
Fund II (managed by US-based Bedminster
serve its clients.
Capital Management) and Harkstede Holding, the Brasov-based Hiperdia network, a leading
Carrefour sells two supermarkets in Braila
provider of diagnostic imaging services in Romania.
Value of transaction: N/A
Legal team seller: Tuca Zbarcea & Asociatii
Value of transaction: N/A Legal team buyer: Tuca Zbarcea & Asociatii
Fresenius buys Premium Medical
Description: Romanian retailer Zanfir Super-
Legal team seller: Wolf Theiss
Legal team buyer: CMS Cameron McKenna
market took over two Carrefour stores in
Description: Interbrands Marketing and Distri-
Legal team seller: Reff & Associates
Braila. When Carrefour took over the Billa
bution acquired full ownership of Europharm
Description: German Fresenius, a provider of
retail chain, it made a commitment to the
Distribution from British company GlaxoS-
dialysis services, took over Premium Medical,
Competition Council that it would give up
mithKline (GSK). Europharm Distributie is a
a dialysis and nephrology clinic, founded by
three stores to other supermarket operators in
major local medicine distributor with a 20-
Romanian businessman Virgiliu Grigorescu.
Braila: two Carrefour Market and one Billa.
year background on the local market. Inter-
Fresenius has a network of 35 dialysis centers
brands is part of Sarkis Group International,
in Romania.
Legal team buyer: N/A
First Property Group buys nine stores from Lidl Value of transaction: EUR 10.5 million Legal team buyer: Reff & Associates Legal team seller: Oana Albota Law Office
Value of transaction: N/A
the largest Romanian FMCG company.
Regina Maria takes over Dr. Grigoras
Medlife buys Dent Estet Value of transaction: N/A
Legal team buyer: Popovici Nitu Stoica &
Value of transaction: N/A
Asociatii
Description: British investment fund First
Legal team buyer: Bondoc & Asociatii
Legal team seller: BPV Grigorescu Stefanica
Property Group bought nine local supermar-
Legal team seller: Tuca Zbarcea & Asociatii
Description: Medlife took over the majority
kets from German retailer Lidl. Out of the total
Description: Private healthcare clinic opera-
stake of Dent Estet shares, a business founded
acquisition price, EUR 4 million was covered
tor Regina Maria made its third acquisition in
by Oana Taban. Dent Estet is the largest op-
by the fund and its investors, while the rest
May 2016 by purchasing the three Dr. Grigoras
erator of dental services in Romania, posting
was attracted from other sources.
medical centers in Timisoara and Lugoj. With
EUR 5.5 million in turnover in 2015 and hav-
this acquisition, Regina Maria aims to become
ing seven clinics in Bucharest and other cities.
Goodmills Romania sells retail business to Lantmannen Unibake
a leader in the western market.
Legal team buyer: N/A
Value of transaction: N/A
Regina Maria buys Ponderas Hospital
Diaverum buys International Healthcare Systems, operating network of 15 dialysis centers
Legal team seller: Reff & Associates
Legal team buyer: RTPR Allen & Overy
Legal team buyer: DLA Piper Romania
Description: Goodmills Romania sold the
Legal team seller: D&B David și Baias
Legal team seller: Peli Filip
group’s retail activity, comprising 46 food
Description: The private healthcare services
Description: Diaverum, a leading international
stores, to a local investor, involving the
provider Regina Maria and Mid Europa Part-
healthcare services provider in the nephrol-
transfer of employees, equipment, good will,
ners bought the Ponderas Hospital, the only
ogy field, took over International Healthcare
stocks, receivables and trademarks. Two more
Centre of Excellence in Bariatric and Metabol-
Systems, one of the biggest local dialysis
stores were sold in a separate deal to Bake
ic Surgery with a double accreditation from
services providers, operating a network of 15
Expert.
Eastern Europe – European and American.
dialysis centers.
MEDICAL SERVICES & PHARMA
Affidea buys Hiperdia from Bedminster Capital
Stevanato Group buys Balda Medical
Legal team buyer: Rizoiu & Asociatii, Clifford
Legal team buyer: Wolf Theiss Rechtsanwälte
Chance, Skadden, Arps, Slate, Meagher &
GmbH & Co KG (local counsel), Gleiss Lutz
Flom, Deloitte (financial)
(lead lawyers)
Legal team seller: Bondoc & Asociatii, Weil,
Legal team seller: N/A
Value of transaction: N/A
Interbrands Marketing and Distribution acquires full ownership of Europharm Distribution
Value of transaction: N/A
Value of transaction: N/A
Value of transaction: EUR 95 million
www.business-review.eu Business Review | February 2017
28 DEALS OF THE YEAR Sage Automotive Interior takes over Apollo, with stake in Romanian company
ane Arad, Meva SA and Romvag Caracal).
ing the deal, the buyer also became the sole
Legal team buyer: Gianni, Origoni, Grippo,
Value of transaction: N/A
shareholder of Romania-based Balda Medical
Cappelli & Partners (lead counsel), Wolf Theiss
Legal team buyer: La Torre Morgese Cesaro
Systems.
Rechtsanwälte GmbH & Co KG
Rio (Italy), Noerr (Romania), EY Romania
Legal team seller: Boscolo & Partners
(financial)
Sensiblu buys 78 pharmacies from Polisano
Description: Sage Automotive Interiors ac-
Legal team seller: Tuca, Zbarcea & Asociatii
quired Apollo, a leading Italian textile group
Description: Japanese Nidec has taken over a
Value of transaction: N/A
active in the supply of products for automo-
94.8 percent stake in ANA IMEP, which is con-
Legal team buyer: PeliFilip
tive interiors, which also holds a majority
trolled by the family of Romanian business-
Legal team seller: N/A
share participation in the Romanian company
man George Copos. The company manufac-
Description: Sensiblu and some of its affili-
European Interior. Sage Automotive Interiors
tures washing machine and drying machine
ates purchased 78 pharmacies from Polisano
has its HQ in the US and has operations across
motors. Its subsidiary, ANA MEP SDV, makes
belonging to Sibpharmamed, part of the
the globe.
molds for automobile components and plastic
Description: Italian Stevanato Group, specialized in the production of materials for the pharma sector, took over the operating business of Balda in medical technology. Follow-
Value of transaction: N/A
Nidec buys ANA IMEP from Copos family
cases. Nidec wants to develop locally an engi-
Polisano group. The move hiked the number
Harsha Engineers buys plant in Romania
neering and shared-service center to support
AGRIBUSINESS & FORESTRY
Legal team buyer: CMS Cameron McKenna
Bekaert Textiles takes over DesleeClama, with production plant in Romania
of units owned by the Romanian brand by 20 percent.
its growth strategy in emerging EU markets.
Value of transaction: N/A
Legal team seller: NNDKP Description: Harsha Engineers, an India-based
Ameropa buys agristorages
global producer of brass, steel and polyamide
Value of transaction: N/A
cages and other automotive components,
Legal team buyer: DLA Piper Romania
Legal team buyer: Popovici Nitu Stoica &
entered on the Romanian market through the
Legal team seller: Allen & Overy
Asociatii
acquisition of a production facility in Brasov.
Description: Belgian company Bekaert Textiles took over DesleeClama, which has a produc-
Legal team seller: N/A Description: Swiss company Ameropa Grains, one of the largest local traders of raw agri-
Value of transaction: N/A
TRANSPORTATION
tion unit in Miercurea Sibiului. The new group will be known as BekaertDeslee Textiles and
TTS buys Plimsoll Kft
will become the world’s leading mattress
Value of transaction: N/A
fabric supplier, with 19 production sites and
facility, equipment, contracts and person-
Legal team buyer: Zamfirescu Racoti & Part-
around 2,600 employees worldwide.
nel) operating in Carpinis, Timis county from
ners, Deloitte (financial)
InterCereal SA. InterCereal is part of the
Legal team seller: N/A
InterAgro group. Ameropa Grains also made
Description: Transport Trade Services SRL
a multi-million acquisition of three indepen-
(TTS) bought 51 percent of the share capital
dent agri-storage and distribution businesses
of the Hungarian company Plimsoll Kft. The
Legal team buyer: N/A
in Teleorman, Calarasi and Tulcea.
acquisition of the share capital quota was per-
Legal team seller: Suciu Popa, KPMG Romania
formed by means of a share capital increase
(financial)
operation.
Description: Vrancart, a listed Ukraine-based
cultural material, bought an agri-storage and distribution business (storage and distribution
IKEA arm buys forests in Romania Value of transaction: N/A
Legal team buyer: Wolf Theiss Rechtsanwälte
Vrancart buys majority stake in Rom Paper Value of transaction: EUR 5 million
company specialized in manufacturing cor-
INDUSTRY
rugated paper for corrugated cardboard and hygiene papers, bought Rom Paper, a Roma-
Greenbrier takes over Astra Rail Management
nian manufacturer of tissue paper. Through
Value of transaction: EUR 60 million
date its position on the Romanian market and
Swedish IKEA Group, acquired 12,795 hectares
Legal team buyer: KPMG Advisory (financial)
increase its market share by 30 percent.
of forest in Iasi and Neamt counties, from
Legal team seller: N/A
Prokon Hit Timber SRL, a company engaged
Description: Greenbrier, a giant controlled by
NOTE: The transactions listed in this article
in forest operations.
BlackRock, RBC and Merrill Lynch among oth-
represent a compiled based on information
ers, took over the majority stake in Astra Rail
provided by local law firms and consultancies.
Management, a company that operates three
The article is not a comprehensive report on the
production facilities in Romania (Astra Vago-
Romanian M&A market.
GmbH & Co KG Legal team seller: Dentons Description: IRI Forest Assets, part of the
AUTOMOTIVE
the transaction, Vrancart aimed to consoli-
www.business-review.eu Business Review | February 2017
INTERVIEW 29
UrbanizeHub founder: ‘Romania is not there yet’ Renewable energy, technology and smart cities are already shaping other European cities, while in Romania, with a few notable exceptions, the discussion is still at a basic level, according to Gratian Mihailescu, founder of UrbanizeHub. By Otilia Haraga First of all, please explain to BR readers how UrbanizeHub works.
currently be the most impactful for Romania.
cant amounts of funding, and have had open-
Many cities have suffered during the transi-
minded administrators who were willing to
UrbanizeHub is a global startup whose
tion years and they need such regeneration
create partnerships with universities and the
long-term objective is to create a global com-
of their public spaces. I also think that proj-
private sector. This type of thing can happen
munity of people who are passionate about
ects that stimulate participation in communi-
in all of Romania, if there is transparency,
sustainable urban development. The plat-
ties are very important. Civil society needs
openness and willingness, as well as a proac-
form will function as an aggregator of news,
to become more active and involved in the
tive attitude from the authorities. Unfortu-
solutions, ideas, opinions, projects and poli-
problems of different communities. These
nately, Romania is not there yet, except for
cies concerning urban development. We have
two examples are for small and mid-sized
some isolated cases.
an integrated approach that is distinct from
cities. For Romania’s large cities, smarter
other platforms of this kind, including topics
solutions are needed for transportation and
related to the environment, transportation,
innovation.
urban regeneration, inclusion, technology and innovation. We have contributors from
What are UrbanizeHub’s current or future projects in Romania? In Romania, we would like to organize conferences related to the future of cities.
all continents who bring their own expertise
You have a global/regional vision. What are the trends in other countries?
from various sectors and new perspectives
The trends in developed cities are related to
alternatives and proposals to open-minded
to the discussion also adds great value to our
technology, renewable energy and smart cit-
mayors and administrators who want to
platform.
ies. The most important aspects are creating
transform their cities through smart projects.
Another innovative element of the platform is the fact that it is open to
a better quality of life and cities that are friendly to their inhabitants.
The longer-term intention is to come up with
We will provide solutions through expertise and specific proposals. This is something
everyone who wants to become a
This means more cultural events,
we want to do at a European level, not just
contributor. They can log in using
modern and efficient public
in Romania. Our first objective, however, is
their Facebook accounts and write
transport, better leisure facilities,
to become known as a startup and get more
an article, and if their article fits the
bike-sharing programs.
people to join us, to gather more expertise
website’s topics and categories, the administrators will publish it. People can get involved in shaping their cities, and this is reflected by the UrbanizeHub slogan: ‘Let’s shape the future of cities together’.
and attract more readers; in other words, to
Can you give me some examples of projects implemented in Romania so far? Take the examples of projects in
I think urban regeneration projects would
and a lot of work.
What happens when someone comes up with a project, how do they get help implementing it?
cities like Cluj,
We want to create a database of experts in
Alba Iulia and
various sectors: urban designers, environ-
Oradea. These are cities
What type of projects would best suit Romania?
create a strong brand – this takes a lot of time
which have
mental activists, renewable energy and waste management specialists, technology, innovation and transportation experts. Ide-
had a great
ally they will bring their own ideas, which we
evolution,
would publish and promote on the website.
they have
City administrators should then want to col-
managed
laborate with us, as we provide an integrated
to access signifi-
approach and propose smart and sustainable solutions.
www.business-review.eu Business Review | February 2017
30 TELECOM
2017 rings in the telecom changes This year begins with a new face at the helm of the Ministry of Communications and Information Society, as well as a much higher budget for the institution. The effect of some of the measures taken by the new government is starting to be felt by market players. BR outlines the major developments to expect on the communications front in 2017. By Otilia Haraga online, any form that an economic entity submits must be submitted online and all public institutions’ informatics systems become inter-operable so people no longer have to come with documents and information, and run from one institution to the other. All these could automatically be obtained via informatics systems by public institutions,” said Jianu, quoted by Agerpres newswire. He added that citizens should trust the digital services they are offered. “That’s why we will also pay attention to the cybernetic security component, and of course, to the infrastructure, because it is obviously necessary to develop internet access in the remaining white areas in Romania,” he added. Romania is second to last in the EU as far as digital skills are concerned, according Augustin Jianu, minister of communications and information society
T
to the Digital Economy and Society Index (DESI). The high number of IT specialists in the
he budget for the Ministry of Com-
Jianu, 30, formerly general manager of the
economy is one of the reasons why Romania
munications for this year is set to
National Center for Response to Cybernetic
is not last for digital skills. When it comes
increase 22-fold, to approximately
Security Incidents (CERT-RO), was confirmed
to integrating technology in businesses,
as the new minister of communications and
Romania does come bottom, according to the
information society. He said his term priori-
survey.
RON 610.3 million. The highest sum will go on projects using European funds and capital expenses, ac-
ties center on the National Interoperability
cording to the draft budget published on the
Framework.
website of the Ministry of Public Finance.
The Ministry of Communications has
One major move by the Sorin Grindeanu government has the potential to destabilize or pose challenges to the IT industry. The
The pool for financing projects from external
developed the framework with a view to the
measure to remove the limit of five average
non-reimbursable funds is around RON 321.5
implementation of the National Strategy for
salaries on which pension and healthcare
million, which is 50 times more than in 2016.
the Digital Agenda 2020. This framework is
taxes are payable, effective February 1, was
Capital expenses will go up to RON 275.3 mil-
meant to ensure the electronic transfer of
adopted without any public consultation. By
lion, representing a 55-fold increase on the
information, both between authorities and
eliminating this ceiling, the prime minister
previous year.
public institutions and between these bodies
wants to bring the state budget approximately
and citizens and companies. This should
RON 1.4 billion. The measure is already being
8.2 million, up by about 20 percent on the
decrease the time that people and businesses
contested by the IT industry, which is one of
previous year. Spending goods and services
spend on obtaining various public services.
the most dynamic industries in Romania and
will rise by only around 7 percent to RON 3
“December 1, 2018 is a very ambitious
one of the main ones to be affected, because
Staff costs are set to be around RON
million. At the beginning of January, Augustin
timeframe by which all taxes and payments made by a company should be carried out
of its well above-average salaries. “Companies that work in R&D employ
www.business-review.eu Business Review | February 2017
TELECOM 31
highly qualified senior specialists who are
It will also set up a unique point of informa-
instruments to help them decide what they
paid accordingly, above the industry average.
tion regarding the setting, route, type and
are interested in as far as the services they
Given that the largest costs for IT companies
current use of infrastructure. The telecom
receive are concerned, whether we are talking
are those of human capital, the impact on the
watchdog will also set the maximum tariffs
about voice or internet,” said Marinescu.
company budget is significant,” said Valerica
for the right to access public property and will
Dragomir, executive director of the Associa-
evaluate the costs of the physical infrastruc-
agenda within the next year is to decrease red
tion of Software and Services Industry.
tures to set some benchmark access tariffs.
tape and lower the costs of building networks
And it will develop the technological norms
for operators.
Another measure that the new minister is considering is to transfer the National
regarding the design and make-up of the
Institute for Research and Development in In-
electronic communication networks.
formatics under the umbrella of the Ministry of Research. “We must carefully analyze the institute’s
One of the planned measures is to develop
Another important topic on the ANCOM
Authorizations should no longer be released with a delay by city halls, and the costs of using the public domain or the poles of
a mobile application to allow users to mark on
energy providers should become less prohibi-
a digital map the experience they’ve had with
tive. The telecom watchdog also plans to
activity. As far as I know, it is not in a very
the voice and data services of a certain opera-
good financial situation,” said Jianu, in rela-
tor, as well as publish data regarding the qual-
organize a public consultation regarding the
tion to the move.
ity of the communication services offered by
allocation of radio spectrum for broadband
these operators. The reason for doing so is
communication in 450 MHz, 700 MHz, 800
dog, ANCOM, also has a yearly plan that it
the consumer. Catalin Marinescu, head of the
MHz, 1500 MHz, 2600 MHz and 3.4–3.8 GHz.
intends to see through, for the development
institution, said market research has shown
This spectrum should be able to support the
of the communications sector.
that there has been a shift in the mindset of
efficient development of the networks, given the progress of mobile internet consumption.
Meanwhile, the Romanian telecom watch-
Topping the list are measures regarding
Romanian users, who no longer consider the
the effective application of the stipulations of
price to be most important, but the quality of
the new infrastructure law 159/2016, with the
services they are getting.
Additionally to this new tender allocating national, regional and local multiplexes
“We will also expand the Netograf
of digital terrestrial television, in 2017 the
platform (ed. note: which tests the speed
authority will check whether the coverage
and quality of the internet) by launching an
obligations imposed by previously awarded
national inventory of public communication
application that can be installed on a mobile.
licenses for national and regional multiplexes
networks and related infrastructure elements.
We must place at the disposal of the user
have been met.
aim to reduce the costs of the installation of broadband networks in Romania. ANCOM will continue this year to make a
www.business-review.eu Business Review | February 2017
32 IT
The cyberthreats of 2017 With a very prolific year in cybercrime behind us, experts now warn that the higher specificity of attacks will set the tone in cyber-security for year ahead. Here are the main threats that online users and companies will have to face in cyberspace in 2017, according to security pundits. By Otilia Haraga criminals do not start to withdraw money
GUIDELINES FOR ONLINE SECURITY Don’t click on unknown links, even from friends or from social media websites or email Don’t fill in info about your card on unknown or suspect websites, especially if these websites have incredibly good offers Always check that the webpage is real before introducing any personal or confidential data. Fake websites may look the same as authentic ones Install a security solution on your device, containing technologies created to prevent the financial fraud (Source: Kaspersky Lab)
C
from the stolen cards right away. Often, they wait for weeks or even months before accessing the money they have procured,” said Oleg Kupreev, security expert at Kaspersky Lab. The user has reason to be very careful and alarmed. Even banks and payment organizations find it hard to keep financial fraud under control, given the inter-connected and technologically complex environment, according to a survey carried out by Kaspersky Lab. Over one third, 38 percent of organizations, say it is more and more difficult to decide whether a transaction is fraudulent or authentic. 2016 was a year which abounded in ran-
yber-attacks via smartphone will
as intelligent devices. Moreover, users are
somware attacks. According to Bitdefender
multiply in 2017, which will cause a
rarely preoccupied with the security of smart
experts, ransomware is one of the most
bottleneck in the activity of frequent-
devices.
lucrative cyber-crimes, with returns of invest-
ly-used online services, such as news sites, social networks and online stores.
Producers of these gadgets are not so preoccupied with security, either, as insuffi-
ments of up to 1,500 percent. The secret to the profitability of these at-
cient resources and memory on these devices
tacks is the fact that users need their personal
geted attacks against companies. While in the
do not allow complex or constant software
data and information, but they do not make
past we detected only persistent advanced
updates. The fact that personal gadgets are
backups and do not constantly update their
threats, now we are witnessing a comeback
being used in the corporate environment
cyber-security software, according to Bitde-
for more rudimentary tactics, such as simple
will complicate data security even more, say
fender experts.
viruses that try to access companies’ internal
Bitdefender experts.
“We have noticed a simplification in tar-
networks,” said Catalin Cosoi, chief security
The intensity and number of cyber-attacks
This year too, developers of ransomware are expected to allocate supplementary re-
also depends on the time of the year, becom-
sources to improve the system that automati-
ing more aggressive during the holidays,
cally targets victims. This feature will help
and the rebirth of the dark internet dedicated
when consumers are prone to spend more.
them tell the difference between regular users
to the illegal traffic of goods and services
For instance, in the last quarter of last year,
and companies, and try to blackmail compa-
represent the main trends for 2017, according
the number of users who were confronted
nies for large sums of money.
to Bitdefender experts.
with malware programs that were capable of
strategist at Bitdefender. Ransomware activities, aggressive ads
According to the 2016 Cisco Connect
stealing money or important financial infor-
Survey, security will be the greatest challenge
nies’ websites will be amplified because it is
mation reached 319,000, 22.5 percent more
for companies’ IT departments over the next
easy to control poorly secured smart devices.
than during the same period of 2015. The
three years.
This type of attack will continue to develop
number of attacks peaked on Black Friday,
on the wave of the explosion in the number
Cyber Monday and at Christmas, according to
and risk management top IT agendas, fol-
of smart devices connected to the internet,
Kaspersky Lab data.
lowed by the rapid growth in traffic, for 40
Such attacks that block access to compa-
they add.
“As an after-the-fact measure, we recom-
For 66 percent of respondents, security
percent of respondents, and digitalization and
mend those who used their card to buy gifts
cloud computing, each cited by 34 percent.
opportunity for crossed attacks, since 60
and goods over the last three months to care-
One third of the respondents indicated that
percent of users keep their personal data
fully monitor the records of their financial
cost reduction was also one of the main fac-
in computers that are in the same network
transactions over the next period. Typically,
tors that will affect IT departments.
Gadgets with vulnerabilities create the
www.business-review.eu Business Review | February 2017
TECH 33
Technological innovations that could shape the future Technology buffs have just got a glimpse of gadgets and apps that might define the future, during the 50th edition of the Consumer Electronics Show (CES) in Las Vegas. Robots and “smart everything” ruled the CES this year. BR presents a selection of innovations to watch for.
Honoring remarkable innovations in technology of 2016 More details at awards.business-review.eu
By Otilia Haraga smart home concept. The robot does home
you when you brush your hair, and an accel-
cleaning, air purification and home security.
erometer and gyroscope that can count how
It comprises a range of infra-red distance
hard or how many times you do so, which
sensors, door and window sensors, water
then send the information to an app on your
sensors, air quality sensors, a vacuum capable
phone.
of cleaning many types of surfaces and an air
THE BLIND NAVIGATOR. The Aira visual
filtration system to purify the air.
interpreter for the blind is a solution that
THE FRIDGE PAPARAZZI. A camera that takes
helps the visually impaired explore their sur-
photos of the food that you have left inside
roundings. The platform works on wearable
your fridge and lets you know when you
devices such as Google Glass and Vuzix that
need to restock things? Why not, if you’re a
can be paired with your smartphone. A cam-
technology buff? The FridgeCam comprises
era can be installed on the wearable device,
a camera designed to withstand “freezing
which provides instant feedback, and a team
temperatures,” equipped with recognition
of trained agents can assist those with sight
software that identifies what you have in
problems to explore their environment.
your fridge. It even suggests recipes to you
THE SMART RING. The Motiv ring is, simply
and updates the list of the groceries you have
put, a piece of jewelry that is at the same time
ore than 3,800 exhibiting compa-
inside by taking pictures every time you open
an activity and sleep tracker, recording the
nies in addition to 600 startups
the fridge.
wearer’s active minutes, active heart rate,
made CES 2017 a record-breaker,
THE FLEXIBLE WASHING MACHINE. Here’s a
calories burned, distance, activity types,
gathering more than 175,000 industry profes-
washing machine with two washers and two
sleep duration, resting heart rate and number
sionals, of whom 55,000 were from outside
dryers in the same system, which allows you
of steps. The fitness ring, which can be worn
the US. For a few days every year, CES is the
to wash smaller and bulkier loads separately,
day and night, comes in a variety of colors
hub of the technology world – here are some
with different settings. The FlexWash™ +
and sizes and is compatible with iOS 9 or a
M
of the trends that emerged this year.
FlexDry™ laundry system developed by
later OS. It has a typical battery life of three to
THE 5G ULTIMATE ENABLER. While we still
Samsung also allows the user to wash more
five days.
haven’t explored or experienced everything
clothes and even control the machine using
THE RESPIRATION WATCH. This smart watch
that 4G has to offer, the 5G revolution may
the Samsung Smart Home app, compatible
designed to combat sleep apnea, called
already be upon us. 5G is expected to spawn
with Android OS 4.0 or later or iOS 7 or later.
MOTIO HW and invented by Neogia, could be
a technological uproar that will enable the
life-changing and even life-saving for some
existence of whole ecosystems of smart cars,
THE HAIRBRUSH THAT MAKES BAD HAIR DAYS HISTORY. When it comes to hair, it’s
smart cities and smart homes; it is expected
amazing that humanity has lasted so long
prevents, diagnoses and monitors sleep ap-
to create approximately 20 million jobs and
without the Kerastase Hair Coach Powered
nea, a potentially dangerous and sometimes
will probably be rolled out by 2020. Nokia,
by Withings, a smart brush that knows it all:
even fatal condition, where sufferers experi-
Intel, Ericsson and Qualcomm are just a few
if your hair is dehydrated or has split ends,
ence shallow breathing, or even stop breath-
of the technology giants involved in making
if you brush it too much or too often, if it is
ing for a few moments during their sleep. The
people. It is a wearable medical device that
this happen.
unruly and what you should do to improve
Neogia smart watch collects biometric data
THE ALL-IN-ONE ROBOT. Unibot developed
its condition. In other words, if you had a bad
which is sent to an application that can be
by ECOVACS Robotics is the first multifunc-
hair day and you didn’t know why before, at
used on smartphones, tablets and computers.
tional home management robot which per-
least now you will know the reason, thanks to
The data is processed by an algorithm that
forms various household tasks as part of the
a built-in microphone that actually listens to
helps prevent and monitor the condition.
www.business-review.eu Business Review | February 2017
34 ADVERTISING
Timisoara’s advertising market takes off One of the most Westernized cities in Romania, known for its scenery as well as for many “firsts” in the Romanian market, Timisoara is little by little becoming another town to watch in the local advertising industry, following Bucharest and Cluj-Napoca. By Romanita Oprea cies registered offering marketing & advertising services , many of them present in several categories, Foursquare’s “radar” picks up only nine advertising agencies (Man Cave, ROV Images, Ornella Print, Optima Business Park, Rainfall, Star Marketing Consulting, Business Hive, Live Media, Genuine Advertising). This could suggest that, for the moment, local agencies may not be that interested in promoting their business – digitally, that is. According to BR research, more than 80 advertising agencies are currently operating in Timisoara. However, in 2014, The Advertising Agencies’ Night, organized by The Institute every
T
year, gathered three agencies in Timisoara: Celmaimare Studios, Adwiser and Synopsis,
he year ended on a high for Timiso-
headline “Shine your light – Light up your
the same number as in 2015: Celmaimare
ara, which edged out three other
city!” wanted to reflect the journey from the
Studios and Electric Resistance with Kape
strong local contenders (Baia Mare,
individual to European aware and involved
Illustration (the last two together).
Bucharest, Cluj-Napoca) to claim the title of
citizen that has very well routed the values of
European Capital of Culture in 2021. It was
community and the passion. Therefore, the
service market; therefore it reflects the city’s
not an easy battle and marks another first in
headline represented an invitation to a double
economic situation. Right now, we are in the
the city’s history. As winner of the prestigious
motivation: on one hand inviting the citizens
middle of a really big transition that started
mantle, Timisoara will also receive a special
to dear and show their values and attitudes,
27 years ago, when Timisoara became the first
prize of UR 1.5 million. The city’s candidacy
metaphorically described as an interior light,
communism-free city. Since then, the road to
ran under the concept and slogan “Shine your
and on the other hand, to use this light in
capitalism has been anything but easy for the
light – Light up your city!”. The projected op-
order to dismiss the dark and the passivity
country as well as for the region. However,
erating budget is EUR 48.5 million, of which
around them, through a civil process powered
the geographical position of this city made
EUR 33.9 million will be allocated to the pro-
by culture.
it possible for investors across Europe (and
gram’s expenditure. Timisoara hosts between
Tibor Navracsics, commissioner for educa-
“The advertising market in Timisoara is a
beyond) to implement their business models
3,500 and 4,000 cultural events each year
tion, culture, youth & sport, said he hopes
here, therefore creating jobs, a need for all
and close to 90 percent of the local cultural
that the title will bring cultural, economic and
kinds of services the Western world was
budget goes on supporting public institu-
social benefits for Timisoara, replicating the
already accustomed to and a general sense
tions, while the rest is allotted to NGOs.
successful development of other cities that
of growth in economic terms,” said Eugen
were cultural capitals.
Neacsu, co-founder of Electronic Resistance.
Timisoara’s campaign concept for this contest revolved around “program-stations/
Besides a higher touristic profile, the city
Moreover, according to him, the local
projects” and paths alongside the Bega canal,
is set to earn more business investments and
advertising market in Timisoara naturally
linking ideas, people and places. The cam-
receive greater attention from the cultural
follows this growth path, currently being in
paign was also backed by a website, created
and business sector, both locally and inter-
the “early twenties” phase, characterized by
by local agency EBIG, and communication by
nationally. This effect will also reflect on the
recklessness, uninterrupted enthusiasm and
PR agency PR Beta.
marcomm industry.
creative youthfulness.
an important role in Timisoara’s history, the
YOUNG MARKET DRAWS IN TALENT
cies here are not as old and mature as their
program was centered around the light. The
While the website timisoreni.ro has 31 agen-
Western peers. However, this does not mean
“Even the oldest advertising studios/agen-
Starting from the fact that the light played
www.business-review.eu Business Review | February 2017
ADVERTISING 35 project is important, Cinca mentioned the on-
in experience is compensated for by the raw
line platform Industrialin and the two annual
creative talent that the city still manages to at-
trade fairs, Automotive Expo and Industry
tract. We believe that, as the city continues to
Expo, among the firm’s major achievements.
grow, the need and opportunity for advertis-
“These tools and events help our custom-
ing agencies will also grow,” added Neacsu.
ers benefit from access to the latest industry
Founded in 2004 as a design studio, four years
information, the chance of developing col-
ago Electric Resistance became a mix between
laborations with targeted business partners,
a graphic design studio, an animation and
promotion, improvement and strengthening
video production house, a rock’n’roll band, a
their image on the market,” added Cinca. The
projection mapping collective and an adver-
agency offers marketing & advertising, graph-
tising agency. Its services include the creation of advertising campaigns, video commercials, multimedia presentations and affiliate marketing projects. The firm will be launching cinematography projects soon. Representatives of the agency Green Roua,
Photo: Cristian Vaduva
we are naive or unprepared. The lack of years
ic & web design, event organization, consultancy, training and workshop, team building and procurement outsourcing services. Moreover, with a profitable 2016, expecEugen Neacsu, Electronic Resistance
tations also run high for 2017. “2016 was a good year. Turnover increased by 60 percent
who say they are proud not to have been
compared to last year and we predict similar
affected by the economic crisis, have also
growth for 2017. We have both regional and
witnessed the development and growth of
international clients in our portfolio. We
the market in recent years. More than that,
are optimistic about attracting more foreign
according to Alexandra Cinca, marketing spe-
customers, as a result of the trust and im-
cialist at Green Roua, since the crisis, profes-
age boost brought by the European Capital
sionals have realized that, by following their
win. The advertising market in Timisoara is
first instinct and cutting marketing budgets,
a growing market, both in terms of revenue
they only worsen the losses. “The market has
and opportunities. Clients are realizing the
developed during the last few years, across
increasing importance of marketing, as their
all marketing functions, from strategic plan-
competition is also intensifying,” concluded
ning to the choice of creative path and media
Cinca. Elsewhere, representatives of Electronic
channels. Online advertising is evolving at a
Resistance said that, after repositioning in
fast pace, while traditional advertising may be used additionally, with effective results. The
Alexandra Cinca, Green Roua
2013, every year has been better than the previous one in terms of productivity, clients
advertising market in Timisoara is a growing market, both in terms of revenue and oppor-
that can refresh a business, green being a
and projects. “2016 was great for us, more
tunities. Clients are realizing the importance
symbol of creativity and freshness. “At the
precisely because one of our clients won a
of marketing [and acting on it], as their com-
same time, we can make new companies
very important and strategic prize and we
petition is also intensifying,” added Cinca.
bloom, offering a touch like the morning dew
helped them create the winning presentation.
(Roua). Saying that we are innovative would
Another recent event held in town by Agentia
CLIENTS AND CREATIVITY
be a cliché and boasting about our profes-
de Dezvoltare Regionala Vest put us before an
When it comes to how open clients are to cre-
sionalism is redundant, because if we had
audience comprised of automotive corporate
ative and innovative ideas, Eugen Neacsu tells
not possessed these strengths, we wouldn’t
executives, large business owners and tech in-
BR that it depends on the type of person you
have managed [to succeed] in this field. Green
novators. It was an important opportunity to
are working with. “I have been surprised to be
Roua tries to be a real friend to businesses,
tell them what we do and what it looks like.”
welcomed with great confidence and trust in
helping them grow and improve, while having
said Neacsu. Apart from its clients, the agency
my choices by people from public institutions
fun. We also want to transmit the connection
has its own projects and started a cultural
and I have also felt disappointed to be treated
we have with our clients, so it can be further
association dedicated to video art. As for the
like an amateur by people working in adjacent
conveyed to their customers, rendering the
changes brought by Timisoara’s newly-gained
or the same fields as us. Generally, we tend to
same purchase experience,” said Alexandra
title, the agency’s previous international col-
propose doable-and-not-so-fancy solutions
Cinca.
laborations (Europe & USA) will continue in
to our clients and they appreciate this during
The agency has a wide range of clients
the future. “We haven’t invested in market-
our collaborations. If you listen well to your
from different industries, multinational com-
ing in those countries yet, but as we evolve
clients’ needs, your creativity will do the rest
panies, law firms, medical offices and so on,
as a company, we will keep an eye on other
of the job,” said Neacsu.
such as Profi, Continental, Decathlon, Takita,
market opportunities as well,” concluded the
Kemper and Flaro. Though she says every
Electronic Resistance representative.
Green Roua was conceived as a company
www.business-review.eu Business Review | February 2017
Photo: Noam Chen. All photos courtesy of Israeli Ministry of Tourism
36 TOURISM
Israel prays in Jerusalem and parties in Tel Aviv The Holy Land’s two main cities – Jerusalem and Tel Aviv – make for a contrasting holiday destination for history buffs, party goers and sun lovers alike, BR discovered. By Simona Bazavan
T
hink about Israel and the first thing
which leads into Jerusalem’s emblematic and
ruins, some dating back almost 3,000 years.
that comes to mind is most likely
history-packed Old City. Best to make a head
At night the citadel’s walls serve as the stage
Jerusalem, whose old city district
start in order to avoid the crowds, especially
for the “Night Spectacular”, an open-air sight
covers less than one square kilometer but
if you visit the city during the peak summer
and sound show that depicts the city’s rich
whose name nonetheless resonates in the
months. First on the to see list should be the
history.
hearts of Christians, Jews and Muslims alike.
Tower of David Museum, also known as the
Then head along the Via Dolorosa, the
Yet a trip to the Holy Land and Jerusalem for
Jerusalem Citadel, a fortification dating back
route marked by the 14 Stations of the Cross,
that matter is not only for the religious. As BR
to King David’s time that has been destroyed
where Jesus stopped on the way from where
found, Jerusalem makes for a great city break
and rebuilt repeatedly over the centuries. Its
he was tried to his crucifixion and burial,
or longer holiday destination, and should
courtyard boasts important archaeological
according to Christian tradition. Navigating
you combine it with the capital you will get Photo: Noam Chen
a feeling of why the locals say they pray in Jerusalem and party in Tel Aviv.
PRAY IN JERUSALEM There is so much to see and do in Jerusalem that doing your homework and putting together a travel plan before arrival is highly recommended in order to help you make the most of your time. Although the number of sights can be baffling, the good news is that most of the tourist attractions which make the city famous are packed within its Old City district and can be visited within a day. Whether you’re religious or not, a walk down Via Dolorosa, and a visit to the Church of the Holy Sepulcher, the Wailing Wall and the Dome of the Rock are a must for any first-time visitor. The starting point to all that is through the 16th century Jaffa Gate,
Jewish Quarter in the old city
www.business-review.eu Business Review | February 2017
TOURISM 37
through the vibrant Muslim Quarter, where,
and history buffs in particular will enjoy
of earthly pleasures to enjoy. The Arab souk
the city’s numerous museums and whole
is a warren of alleys packed with street stalls
caboodle of churches and historical sites, but
selling everything from chintzy souvenirs to
don’t overlook the town’s more modern side.
lovely sticky sweets, spices, freshly squeezed pomegranate juice and fragrant street food. At the end of it all is the massive Church of the Holy Sepulcher, a maze of chapels and altars belonging to various Christian Photo: Dana Friedlander
denominations with the Holy Sepulcher at its center. If you’re considering visiting some of the other religious sites in JeFloating orange tree in downtown Jaffa
rusalem such as the Wailing Wall or the
the twisty route can prove challenging at
Temple Mount, keep
times and some of the stations – marked by
in mind that these
medallions indicating each station in Roman
involve security
numerals – can be easy to miss without a
checks and access
guide.
can be restricted
The route takes the modern pilgrim
There is plenty more to see in Jerusalem,
leaving aside the religious, there are plenty
during holidays.
www.business-review.eu Business Review | February 2017
38 TOURISM
Visitors can shop in the upscale Mamilla Mall
in itself, with vending stalls and small eateries
or enjoy dinner in one of the numerous
that showcase perhaps the best of Jerusalem’s
restaurants scattered across the city. For a
diversity and rich heritage.
better taste of local produce and cuisine head to the Mahane Yehuda market. Referred to
TEL AVIV PARTIES
simply as “The Shuk”, Mahane Yehuda is the
Capital Tel Aviv is only 72 kilometers away
city’s largest market and an iconic landmark
from Jerusalem, but the two towns couldn’t
GETTING THERE The best way to get to either Jerusalem or Tel Aviv is via Ben Gurion airport. Should you fly with Israeli airline El Al, consider arriving at Otopeni airport a bit earlier than for a regular flight to allow time for the extensive security check. Once in Israel, the accommodation is very varied, ranging from low-cost hostels to five-star hotels.
Photo: Dana Friedlander
Several local travel agencies also offer packages to Israel. For example, a EUR 669 per person package from Cocktail Holidays includes a Tarom flight, airport fees, transfers, five nights’ accommodation in three- and four-star hotels at half-board, as well as entry to several sights and tours. In addition to Jerusalem and Tel Aviv, holidaymakers get to visit other attractions in Israel, such as Nazareth, Bethlehem, the Dead Sea and Mount Tabor. A similar five-night package costs EUR 404 per person, not including airport fees, with Agetur. Starting prices for another religious-oriented tour with Paralela 45 are EUR 470 per person, with booking required six months in advance.
Night life in Tel Aviv
be more different. Israel’s second largest city and business center may be small – with some 420,000 inhabitants – but it manages to pack in an array of attractive tourist options. Cosmopolitan and vibrant, Tel Aviv brandishes an effortlessly cool and trendy atmosphere. Those looking for sun bathing, shopping and clubbing will certainly find the city to their liking, while it also boasts a rich cultural scene. The best way to explore is definitely on foot. Must-sees include the Rothschild Boulevard, the city’s main artery, and the
Photo: Noam Chen
beautifully restored yuppie neighborhood of Neve Tzedek. Scattered all around the city center are more than 4,000 Bauhaus buildings which have earned Tel Aviv the UNESCO Pedestrian mall in downtown Jerusalem
World Cultural Heritage site title as well as the nickname of “White City”. Even the weather is different in Tel Aviv. The city is on the Mediterranean coast, making its average temperature milder than that of hilly Jerusalem. So mild in fact, that sunbathing and swimming are possible as late as November on sunny afternoons. There are eight major beaches to choose from, lined
Photo: Dana Friedlander
with hotels, bars, restaurants and sports courses. Walking along the beachfront promenade one reaches the nearby Jaffa, a restored ancient seaport, nowadays part of Tel Aviv. It The promenade alongside the beaches of Tel Aviv
is a maze of picturesque alleys with bohemian art galleries, boutiques, restaurants and bars,
www.business-review.eu Business Review | February 2017
TOURISM 39
Photo: Itamar Grinberg
Photo: Noam Chen
Typical Israeli brunch
colony established by German Templars in 1871,
Aviv. Nearby is the Manshia Train Station,
but it has been transformed into a complex cen-
an Ottoman-era structure built back in 1892
tered around the market. Outdoors are pictur-
which has been turned into a leisure com-
esque houses, restaurants and boutiques along
plex packed with more galleries, boutiques,
green alleys, lily ponds and relaxation areas,
restaurants and cafés.
where visitors can enjoy a laidback atmosphere
When it comes to dining options there is
nestled by the surrounding high-rises. Indoors
plenty to choose from, both in Tel Aviv and in
is the market itself, which boasts dozens of
Jaffa. The cuisine is generally Mediterranean,
specialist food shops selling local produce such
but with a distinctive combination of flavors
as vegetables, pastries, wines, olive oil, cheese
typical of the more modern and adventurous
and dried fruit. In addition there is also an
Israeli fare. Locals have a laidback attitude to
impressive international range to choose from
eating, enjoying long, rich meals, so expect
as well as small restaurants.
plenty of tapas-style dishes in numerous
At nighttime Tel Aviv transforms. Start the
eateries. Don’t miss out on household names
evening in one of the numerous seaside bars,
such as the creamy local hummus and ke-
pubs or downtown wine bars and even “gallery
babs or falafels with tahini and fire-roasted
bars”. Past midnight the clubs slowly start to
vegetables, but do venture to try the many
fill up, yet choosing one can prove quite a chal-
local dishes that reflect so well the city’s rich
lenge given Tel Aviv’s notable clubbing scene.
cultural heritage.
The safest bet for first-time visitors is to go back
Just like in Jerusalem, be sure to check out
Photo: Dana Friedlander
that also offers a stunning overview of Tel
The Arab souk in the old city of Jeursalem
to the southern end of the Rothschild Boule-
the city’s markets. The bustling and colorful
vard, the city’s main artery, where some of the
Carmel market is Tel Aviv’s most famous, but
best bars and clubs can be found. Parties go on
don’t miss the trendy Sarona compound as
until dawn, confirming that Tel Aviv is indeed a
well. This area of Tel Aviv was an agricultural
city that never sleeps.
Neve Tzedek neighbourhood in Tel Aviv
www.business-review.eu Business Review | February 2017
40 CULTURAL MANAGEMENT
Shine your light, Timisoara: international expert Chris Torch illuminates winning bid Since its European Cultural Capital 2021 win, Timisoara’s next moves have included nominating Chris Torch artistic director of Timisoara 2021. An expert for the European Commission on intercultural policy issues and studies, Torch is also on the Board of Culture Action Europe, the foremost advocacy platform for culture in Europe. Will Timisoara live up to its promises? Business Review talked to Torch to find out the next steps. By Oana Vasiliu
How did you get involved in Timisoara 2021? I had previously worked on the artistic teams for the successful bids of Matera 2019 (Italy) and Rijkea 2020 (Croatia). I was planning to remain with the Rijeka initiative, as program director. However, during the European Culture Forum in 2016, I was contacted by TM2021 executive director, Simona Neumann. She engaged me to help in the final months of the bid for 2021. She convinced me that Timisoara was committed to realizing a sustainable structure with long-term visions and I couldn’t resist.
What distinguished Timisoara from its rival cities? Timisoara is ready to bloom. It has a sustainable size, a dynamic economy and several high-level educational institutions. The bid focused on revitalizing the passion and the energy that has always marked the city, not least that which sparked the revolution of 1989. This is an
www.business-review.eu Business Review | February 2017 energy that Europe urgently needs.
What’s the first phase for Timisoara 2021? We call this initial phase StartUp, and it is planned to last into early 2019. First and most important is to cultivate a skilled team of creative producers, communicators, capacity-builders and competent cultural managers. One popular definition that defines a startup is an “organization formed to search for a repeatable and scalable business model.” This inspires a combination of reckless courage and paralyzing fear for us, knowing the immensity of the responsibility that has been given to us by the citizens of Timisoara and the European Commission.
In one sentence, what is your vision for 2021 for Timisoara? A green city that continues to mature, with citizens who are open to both psychological and physical borders, re-generating the courage of 1989, transforming it into a platform for a renewed European Project and rooted in cultural encounters and curiosity.
What is Timisoara’s biggest challenge this year? For the European Capital of Culture project: recruiting and cultivating a qualified team of people ready to root themselves in Timisoara and realize this project with us! As a city, generating citizen engagement and empowering them with creative energy and critical thinking.
How does Timisoara plan to use this opportunity to promote stronger ties with Europe? The title “European Capital of Culture” says it all. It is a trans-national project, rooted in a local and national context. It is an amazing opportunity to network, learn, co-produce and evolve with cities at other edges of Europe. A key challenge, in Timisoara as across Romania, is cultivating skilled professionals to fuel an expanding economy. We will open opportunities for creative producers and active citizens to improve organizational skills, intercultural competence and networking capacity throughout Europe: internships, seminars, conferences and practical experience during the StartUp, into 2019. Europe 2020 has been the guiding EU strategy in the last few years, focusing almost completely on economic development. Timisoara 2021 comes at the right historical moment, igniting a shift towards a cultural/social focus.
When is Timisoara’s tipping point? I don’t believe much in tipping points. As a creative producer and cultural policy activist, I see change happening all the time. A city, as a unit, doesn’t shift suddenly into another stage or identity. Instead, many small encounters create a critical mass, a trend. Timisoara has been gathering experiences for hundreds of years. Certainly, the city’s intellectual position during the Austro-Hungarian Empire and the civil courage shown in 1989 are examples of significant shifts. But, if we must identify a tipping point, why not 2021? When citizens are empowered, when they’ve generated ways to express themselves, when they’ve opened themselves up to unknown impulses, who knows what might happen?
CULTURAL MANAGEMENT 41
www.business-review.eu Business Review | February 2017
42 CINEMA
Lights, camera, 2017: Romanian movies on the silver screen Many film fans believe that Romania’s strongest cinematic era began in the early 2000s, and, unlike previous new waves, there seem to be no signs of this one letting up: the 2016 Cannes Film Festival featured the latest works from Cristi Puiu and Cristian Mungiu in the main competition, with previous Palme d’Or winner Mungiu ultimately sharing the best director prize. By Oana Vasiliu
T
his could come as a surprise, as
upside-down, say festival officials. The movie
Romania is known as a country that
stars Teodor Corban, Laurentiu Banescu,
has traditionally shown little support
Maria Obretin and Simona Arsu. Vivi Dragan
for its film culture, both in funding and in
Vasile is director of photography, and Catalin
attracting local audiences. However, there
Cristutiu film editor.
are high hopes that this will change following the new cinema law approved by the recently
Next in line is Adrian Sitaru’s Fixeur, which
replaced technocratic government. BR takes a look at what local highlights will appear on the silver screen this year. Last week, Nae Caranfil’s 6.9 on the Richter scale hit cinemas. It was previously aired in Ovidiu Schumacher, Razvan Enciu, Susanne Bormann, Ana Ularu and Lutz Blochberger are part of the cast. Ana, mon amour is Calin Peter Netzer’s latest
will be in cinemas from January 27. Having premiered at the Toronto International Film Festival at the end of 2016, it has already won two awards – for Best Actor (Tudor Istodor) and a Jury’s Special Mention at Les Arcs European Film Festival. Fixeur centers on a summer, at the Transylvania International
young journalist who goes to Transylvania
Film Festival, and is a “partly realistic, partly
with a French TV crew, led by a top reporter,
unrealistic” comedy, according to writer-di-
to cover the case of a prostitute repatriated
rector Nae Caranfil. The movie tells the story
from France. The cast includes Tudor Aaron
of a young theater actor having a hard time
Istodor, Mehdi Nebbou, Nicolas Wanczycki,
and most eagerly awaited movie, starring
balancing his complicated part in a musical
Diana Spatarescu, Andreea Vasile, Adrian
Mircea Postelnicu, Diana Cavallioti and Car-
comedy, a jealous wife bordering on depres-
Titieni and Cristian Ilinca.
men Tanase, among others. It tells the story
sion and the obsession with a devastating
of Toma and Ana, who meet as students at
earthquake, announced as imminent by
February 3 will see the release of Ana Miruna
Literature College and quickly fall in love. But
experts. However, the true “earthquake” for
Lazarescu’s feature film debut, That Trip
Ana’s mental illness imperils their relation-
him turns out to be the unexpected reappear-
We Took with Dad. The story is set in 1968,
ship. The film premieres on March 3.
ance of his father after decades of absence.
when a Romanian-German family from the
Manipulative and amoral, he takes over his
city of Arad starts a journey to the German
More Romanian movies will be listed at
son’s world, turning his whole existence
Democratic Republic. Alexandru Margineanu,
www.business-review.eu
www.business-review.eu Business Review | February 2017
Jackie FILM REVIEW
By Debbie Stowe
CITY 43
out by a sniper. That plot and Lee Harvey Oswald’s subsequent killing are side notes, included only for the light they shed on Jackie’s response and her relationships with the people around her. Chief among those is the one with her brother-in-law Bobby Kennedy (our knowledge that he was to suffer the same fate as his
DIRECTOR: Pablo Larraín STARRING: Natalie Portman, Peter Sarsgaard, Greta Gerwig, Billy Crudup, John Hurt ON AT: Glendale Studio, Movieplex Cinema Plaza, Grand Cinema & More, Happy Cinema, Cine Globe Titan, Hollywood Multiplex, Cinema City Cotroceni, Cinema City Sun Plaza, Cinema City Mega Mall, Cinema City ParkLake
A
s the world’s media pore over another fashion-conscious woman in the White House, Pablo Larraín’s drama,
sibling within five years adds another somber note to the movie), played by Peter Sarsgaard. Their clashes, her differing views on appropriate funeral and burial arrangements from members of the administration and the Kennedy clan and her feelings of usurpation by the suddenly promoted vice-president Lyndon B. Johnson (John Carroll Lynch) and his wife Lady Bird (Beth Grant, seen sizing up fabric samples for new curtains by the grieving widow as she departs the White House) leave Jackie an isolated figure. Her sole source of unconditional support is her social secretary and long-term friend
focusing on John F. Kennedy’s widow during
Nancy Tuckerman (Greta Gerwig), whom we
the period of his assassination, feels timely.
first see encouraging a nervous First Lady
The eponymous First Lady is played by
to relax and smile as she shows the cameras
Natalie Portman, and she is as central to the
around her new home. The tour scenes reveal
film as the title suggests. We feel the ghost of
significantly that Jackie was apprehensive
JFK throughout, but in the flesh he appears
and brittle even before the devastating events
only fleetingly: it’s Jackie whom our business
of November 1963, rather than the poised
is with, and a captivating Portman is barely
style icon of legend.
off the screen. Her masterful and mature performance is
Portman’s FLOTUS is a deep and complex character, broken by her grief and loss – the
intensified by UK composer Mica Levi’s un-
scenes of her cleaning blood off her face using
settling score, which reflects the new widow’s
the same mirror in which she’d touched up
overwhelmed state of mind.
her make-up prior to the departure of the
A British soundtrack, a Chilean director
Dallas cavalcade, and peeling off gore-stained
and largely French locations – it’s not the
tights are among the film’s most affecting –
all-American treatment one would expect for
but also resolute in her wish to give her hus-
a US icon like Mrs. Kennedy. But this helps
band a suitably grand send-off and shape how
avoid any star-spangled reverence for the
they are remembered. Fragile Jackie in her
famous family and the Camelot mythology
pillbox hats and widow chic holds her own
that surrounds them, allowing the movie to
against the hulking suits surrounding her.
approach the subject fresh. The film jumps around in time, between a
But despite her candid conversations (in the days following her husband’s death, we
stilted 1962 televised tour of the White House,
see her opening up both to a priest, John
the infamous Dallas assassination and its im-
Hurt, and a journalist, Billy Crudup), we still
mediate aftermath, the run-up to the funeral,
don’t learn a lot about Jackie the woman – it’s
and an interview a week after JFK’s death that
only Jackie the widow who emerges. The
Jackie gave with Life magazine, in a bid to
movie is a striking depiction of grief; a prob-
shape the couple’s truncated legacy.
ing of the psychology behind the images so
It’s a fractured and disorienting narrative
familiar to us of the grassy knoll and blood-
– a suitable vehicle to depict the psychol-
spattered pink Chanel suit; and an intriguing
ogy of a woman who’s just cradled her dying
imagining of intimate unseen scenes of Mrs.
husband’s head in her lap, his brains blown
Kennedy and the Camelot coterie.
www.business-review.eu Business Review | February 2017
44 EXPAT EYE
From bashful to bold: Bucharest’s people power In the first of this year’s monthly columns considering events in Bucharest and Romania from an outsider’s viewpoint, BR’s resident expat reflects on government attempts to pardon convicted criminals and the public’s impressively indignant response.
politicians – who seem to be significantly more prone to criminality than the population in general. With the smoking ban, tenacious DNA measures to bring justice to rich and powerful crooks, the defeat of the PSD’s bid to steal
By Debbie Stowe
W
wedlock) and on immunity for Romania’s
the 2014 election by preventing the diaspora
hen I’m asked how Bucharest
a hardy group steeled themselves against
from voting, and the technocratic Dacian Cio-
has changed in my nearly 15
temperatures of around -7 degrees in January
los government, Romania had really seemed
years of living here, my first
to join a solidarity Women’s March against
to be on the right track in recent years,
Donald Trump on Strada Washington.
shaping a cleaner, better society (of things
response is usually: better restaurants. But turning my thoughts away from the carnal,
The Romanians I talked to often seemed
done properly, to borrow another phrase). A
another major difference is in the strength
– still do in some cases – to suffer from a
society that stands a greater chance of hold-
of civil society. In my early years here, many
totally unwarranted sense of embarrassment
ing onto its bright, ambitious young people,
Romanians appeared to have a deferential,
and insecurity because of their nationality.
rather than losing them to Western Europe.
fatalistic attitude to authority.
It’s heartening to see this aspect changing,
Now, if these proposed votes go the way
This was hardly surprising given decades of authoritarian rule and the fact that mass street protests had proved fatal for demonstrators within recent memory (the Roma-
and witness the people standing up for their
of the regressive, uneducated part of the
beliefs so visibly and vocally.
electorate – which seems to have become a
1
trend in the Western world lately – taking
A PRESIDENTIAL PROTESTOR
the law backwards on gay rights and giving
nian Revolution, the Mineriad). Many people
The biggest demos of recent weeks have been
grubby, thieving politicians immunity for
behaved as though little could be done to
against the newly elected PSD government’s
their crimes, much of this good work would
challenge the powerful.
shameless attempt to bring in an amnesty
be undone.
(This fatalism is also reinforced by the
law – ostensibly to relieve pressure on over-
Let’s hope Romanians can do better than
local folklore, which I still struggle to fathom.
crowded prisons, but actually, say critics, so
some so-called “more advanced” societies,
Don’t just plan your funeral after you find out
they can let their criminal cronies back on
and vote to take their country forward, not
the other shepherds want to kill you! You’ve
the streets and thwart the excellent efforts
back.
got a talking sheep, for goodness’ sake – lay a
of the National Anticorruption Directorate
trap for the plotters or at least just run away!
(DNA) to “drain the swamp”, to borrow a
And bricking up your wife behind a wall
phrase. Sad!
because she happened to be the first one to
How encouraging to see the president,
come along with your lunch is monstrous,
Klaus Iohannis, join protestors at the rally.
not the action of a prudent builder! If the
Okay, it may be a while before the country’s
monastery kept collapsing, try checking your
top politician leads a Pride march, Justin
architectural plans and construction materi-
Trudeau style, but it’s still a great leap for-
als before femicide!)
ward.
Today, it’s different. The Bucharest citizenry seem to take to the streets regularly,
2
REFERENDA RELOADED
whether in relation to government corrup-
Iohannis has initiated procedures for a refer-
tion, electoral scheming, Rosia Montana,
endum on the PSD’s devious new proposal.
diversity, women’s rights or the Colectiv
As a Brit, this rings alarm bells – referenda
tragedy.
don’t always yield a good result. In return,
And as if they didn’t have enough on their
1
the government now wants similar bal-
protesting plates with political misdeeds at
lots on plans to amend the Constitution to
home, Romanians are now taking it upon
define marriage as the union between a man
themselves to rally against foreign threats:
and a woman (therefore banning same-sex
2
www.business-review.eu Business Review | February 2017
RESTAURANT REVIEW 45
Surprise, surprise >>> Caju Brasserie, Str Nicolae Colescu 16, tel 0751 144 545 <<<
O
kay, I nominate Caju as the best
margins in this industry – and given the qual-
result was a culinary sensation. Clever (but
NEW chophouse this year. Natu-
ity of the menu, together with the overheads
greedy) girl.
rally you will point out that the
involved in running a restaurant in this area,
She then chose a ‘crispy baby squid with
year has just begun, but nonetheless I am
I am amazed at the financial wizardry neces-
saffron risotto’ at RON 38. Fresh saffron is
confident it will reign for a long time before
sary to give you such bargain prices. Harry
the world’s most expensive commodity,
a new, young contender takes its crown.
Potter, eat your heart out.
weight/weight. Costing more than gold or
It lives in the former premises of the
To its eternal credit the House is confident
certain class A drugs, it
much missed Byblos chophouse behind
enough to proudly publish the menu on the
is a world class luxury. And the House
the Atheneum. Those of you old enough
net, so Google it yourself and save me some
gave us pure saffron risotto for a mere RON
to remember Byblos will be amazed at the
valuable time in listing all the options that
38. Thank you House, and it was excellent.
physical makeover of the premises which
Blondie and I missed out on.
Away I dived into a perfect ‘salmon fettuccini pasta in a Vermouth
is nicely contemporary,
white sauce,’ Hey, many
although I hated the
would be confused
inclusion of plas-
by the differ-
tic ivy plants.
ence between
The new
fettuccini and
clientele is
tagliatelli,
a delight. Every-
with both
body cool,
being flat
young,
pasta. Well,
attractive
so what! It
and profes-
was Housemade pasta,
sional. Not
a task which
one shaven-
all restaurants
headed, gold chain lout in sight; House becomes more famous it will soon attract this nouveaux riche trash, so go there now whilst you can still dine in social comfort. I make a point of never reviewing a
should emulate as it
Let
although sadly, as the
only takes 120 seconds to
me concentrate
cook your pasta and serve you,
on what we ate, which was quite superb. I had a starter of ‘burrata’, a huge potato-
rather than the un-skilled Bucharest norm of making you wait for 20 minutes whilst
sized bulb of mozzarella and cream with
the lesser restaurants boil up shop-bought
truffles and tomato cubes. I asked our waiter
dried pasta. I closed with a ‘coconut samui shrimp’
brand new restaurant, as I want to give the
if it was real truffle or truffle oil. (FYI, truffle
House a chance to make its initial mistakes
oil contains no truffle whatsoever and is
in a sauce containing the unlikely combina-
and thereafter to correct them. But I do not
made from a vile petroleum chemical, ‘di-
tion of oyster sauce and red curry paste at
extend this period of grace to Caju, as the
thiapentane’). Run from a restaurant which
RON 52. It was pleasant enough, but the red
management has over 20 years of experi-
tries to fool you with ‘truffle oil’. But Caju
curry was nowhere near strong enough and
ence in running top restaurants, so I will
gave me pureed fresh truffle and I marveled
I had to add Tabasco to give it a kick.
take no prisoners! They can hit the ground
at how they could do this at a bargain price
running, and I write this one month after
of RON 36.
the opening. The menu has clearly taken months
Blondie chose a simple but superb tomato cream soup, but being the cunning rodent
to perfect. Almost every dish is priced at
she was, she mooched half my burrata and
less than RON 50. I know the small profit
truffle only to slap it into her soup. Her
Apart from the good food, another attraction is the excellent, fair prices. Caju will take off and I hope they do not increase those prices as a result. Michael Barclay Mab.media@dnt.ro
www.business-review.eu Business Review | February 2017
46 CITY
Cultural calendar
By Oana Vasiliu
The Anatomy of Restoration Until April 2 Romanian National Museum of Art Visiting hours Wed-Sun 10.00-18.00
Eighty works of art have been
magazine. Tickets cost from RON
Well-known director Andrei
orchestra, choir and ballet of
selected to represent the com-
95 to RON 265.
Serban returns to the Bucha-
Bucharest’s National Opera come
rest National Opera stage, this
together under the conducting
time presenting one of the
wand of Marcello Mottadelli. The
most acclaimed operas in the
scenography is by Octavian Ne-
world, Gaetano Donizetti’s
culai, while the costumes are the
to a painting or textile’s original
Lucia di Lammermoor, recently
work of Lia Mantoc. Prices vary
aspect is made possible by sci-
relaunched by the director at
from RON 15 to RON 120.
entific investigations, in-depth
the Opera Bastille in Paris. The
plexity of conservation procedures carried out by expert staff in all of the museum’s specialist laboratories. The journey back
Smurfs Live February 12, 19.00 Sala Palatului
knowledge of materials and techniques and their history, as well as by the conservator’s artistic training and sensitivity, say experts. All these are guided by internationally-endorsed
Most of us remember the blue
general principles and a code of
manikins living in the mushroom
ethics.
houses. Yes, the Smurfs are coming to Romania for the first time.
Tarja Turunen concert February 2, Timisoara; February 3, Sala Palatului, Bucharest
Eight favorite Smurf characters including Papa Smurf, Clumsy Smurf, Brainy Smurf and Smurfette will be on stage to transform the current wintry breeze
The Shadow Self, Tarja Tu-
in town into a colorful spring.
runen’s latest album, will be
The evil wizard Gargamel and
presented to Romanian fans
three puppeteers will accompany
in live concerts in Timisoara
the tiny blue creatures in this
and then Bucharest. “Since
‘Smurftastic’ journey. Tickets
going solo a decade ago, Tarja
cost from RON 53 TO RON 245.
Turunen has often struggled to find a balance between classical and metal overtures, but on The Shadow Self, she has got it brilliantly right,” notes Team Rock
Premiere: Lucia di Lammermoor February 25, 18.30 Bucharest National Opera