www.business-review.eu Business Review | May 2022
6 REAL ESTATE
First quarter of 2022 sees decline in M&A dealmaking, but strong real estate activity The Romanian mergers and acquisitions (M&A) market recorded 48 transactions in the first three months of 2022, a 17 percent increase compared to the first quarter of 2021. Despite the higher volume of dealmaking, the estimated value of local M&A activity was lower on a year-on-year basis, at USD 1.8 billion in Q1 2022 vs USD 2.1 billion in Q1 2021, according to EY Romania calculations. The level of activity reflects the global slowdown in M&A after a record year in 2021. By Aurel Constantin followed by Poland, Austria, Hungary, and Gibraltar (2 deals each). The most active sectors by inbound deal volume were technology and real estate (7 deals each), followed by diversified industrial products (5 deals), telecommunications, media & entertainment (3 deals), power & utilities, and healthcare (2 deals each).
REAL ESTATE MAINTAINS STRONG PACE The good news is that based on the activity levels of Q1, real estate investment volumes in Romania could finally exceed EUR 1 billion in 2022, according to the 2021 annual report released by Colliers. Just a few big-ticket office deals in quite advanced stages—which Colliers consultants predict with a fairly high Strategic investors continue to be the dominant players on Romania’s M&A market
T
degree of certainty will close in 2022¬—could generate deals totalling over EUR 600 million. In line with 2020, the Romanian invest-
he largest transaction of the first
for Strategies & Transactions at EY Roma-
ment market recorded transactions of almost
quarter was the acquisition of auto-
nia. Strategic investors continue to be the
EUR 900 million last year, which represents
maker Ford Romania by Ford Otosan
dominant players on Romania’s M&A market,
over 8 percent of the total EUR 11.7 billion in-
Netherlands for USD 785 million, followed by
accounting for 92 percent of closed transac-
vestment volume recorded by the six largest
the acquisition of wind farm Beta Wind by
tions. Foreign players increased their activity
countries in Eastern Europe.
Energias de Portugal, through its subsidiary
in the Romanian market, with 28 transactions
EDP Renovaveis, for USD 136 million. “The
representing a 56 percent increase compared
health challenges, it is extremely difficult to
Romanian M&A market showed continued
to Q1 2021, whereas domestic transactions
make predictions regarding global economic
resilience in the first three months of 2022.
registered a 10 percent decline (18 transac-
developments. The war in Ukraine and the
Despite the challenging geopolitical and
tions) when compared to the same period.
related sanctions, which came on top of
macroeconomic contexts, M&A activity
In terms of origins, the most active investors
the pandemic and ESG-related drivers and
remains significant and close to record-high
were from the Netherlands (5 deals), the
disruptions, are going to impact property
levels,” said Iulia Bratu, Associate Partner
United States, and Belgium (3 deals each),
markets in terms of supply, demand, and
In the current context of geopolitical and
