M&A Landscape in Romania

Romania’s mergers and acquisitions (M&A) landscape has evolved significantly over the past decade, shaped by regulatory reforms, strategic sectoral shifts, and geopolitical dynamics. In 2024, the country recorded 265 transactions with an estimated value of USD 6.6 billion, marking a 10% increase in deal count compared to 2023, despite a slight decline in total value due to the absence of mega-deals.

Romania’s mergers and acquisitions (M&A) landscape has demonstrated remarkable resilience and dynamism over the past decade. Despite global economic headwinds and domestic political upheavals, the country has solidified its position as one of the leading M&A destination in Central and Eastern Europe (CEE). This article delves into the evolution of Romania’s M&A activities, regulatory nuances, key drivers, and the interplay between political developments and economic performance.

Regulatory Landscape: Romania vs. Other Jurisdictions

Romania’s M&A regulatory framework is closely aligned with European Union directives, ensuring transparency and competitiveness. The Romanian Competition Council oversees antitrust matters, while the Financial Supervisory Authority regulates capital markets. However, a notable distinction lies in the disclosure practices; approximately 75% of M&A transactions in 2024 lacked publicly disclosed financial details, surpassing the historical average of 65% since 2018. This level of opacity is among the highest in the CEE region, potentially impacting investor confidence and market transparency.

M&A Activity: Frequency and Underlying Drivers

The Romanian M&A market has demonstrated resilience, with a steady increase in transaction volume. Key drivers include:

• Strategic Investments: In 2024, strategic investors accounted for over 91% of transaction volume, indicating a preference for long-term value creation.
• Volume and Value: In 2024, Romania recorded 265 M&A transactions, a 10% increase from 2023. However, the total deal value decreased by 5.9% to USD 6.6 billion, attributed to the absence of mega-deals that characterized the previous year.
• Investor Profile: Strategic investors dominated the market, accounting for over 91% of transaction volume in 2024, marking their largest share in six years.
• Sectoral Focus: The most active sectors included real estate, hospitality & construction (18.5% of transactions), energy & utilities (16.6%), advanced manufacturing & mobility (15.5%), technology, media & telecommunications (15.1%), and consumer products & retail (14.7%).
• Geopolitical Positioning: Romania’s strategic location and EU membership make it an attractive hub for regional expansion.

Historical M&A Activity: A Retrospective

Over the past decade, Romania has witnessed several landmark M&A transactions that have shaped its economic landscape:

1. Erste Group’s Acquisition of Banca Comercială Română (BCR) (2005) – Erste Group acquired 61.88% of BCR, Romania’s largest bank, for EUR 3.751 billion, marking a significant foreign direct investment by an Austrian enterprise.
2. OMV’s Acquisition of Petrom (2004) – Austrian oil company OMV acquired a majority stake in Petrom, Romania’s largest oil and gas company, in a landmark privatization deal.
3. Romgaz’s Acquisition of ExxonMobil’s Stake in Neptun Deep (2022) – State-owned Romgaz acquired ExxonMobil’s 50% stake in the offshore Neptun Deep gas project for USD 1.06 billion, enhancing Romania’s energy independence.
4. Ford Otosan’s Acquisition of Ford Romania (2022) – Ford Otosan Netherlands acquired Ford Romania for USD 785 million, strengthening its manufacturing footprint in Europe.
5. Ahold Delhaize’s Acquisition of Profi Rom Food (2023) – Dutch retailer Ahold Delhaize acquired Profi Rom Food from Mid Europa Partners for USD 1.4 billion, expanding its presence in the Romanian retail market.
6. Public Power Corporation’s Acquisition of Enel Romania (2023) – Greek energy group Public Power Corporation acquired Enel Romania for USD 1.3 billion, marking a significant investment in Romania’s energy sector.
7. UniCredit’s Acquisition of Alpha Bank Romania (2023) – Italian bank UniCredit acquired 90% of Alpha Bank Romania for EUR 255 million, aiming to merge it with its Romanian unit by 2025.
8. Mitiska REIM’s Sale of Retail Parks to M Core Property HQ (2023) – Mitiska REIM sold 25 retail parks to M Core Property HQ for USD 236 million, one of the largest transactions in Romania’s commercial real estate sector.
9. Grupo Bimbo’s Acquisition of Vel Pitar (2023) – Mexican food company Grupo Bimbo acquired Romanian bakery Vel Pitar for USD 210 million, marking its entry into the Eastern European market.
10. CA Immo’s Sale of Office Portfolio to Paval Holding (2022) – CA Immo sold its office portfolio in Romania to Paval Holding for USD 389 million, reflecting significant activity in the real estate sector.
11. OMV Petrom’s Acquisition of Photovoltaic Projects from Jantzen Renewables (2023) – OMV Petrom acquired 710 MW photovoltaic park projects from Jantzen Renewables, reflecting the continued strength of the green energy market in Romania.
12. Carrefour’s Acquisition of Cora’s Romanian Operations (2023) – French retailer Carrefour took over Cora’s Romanian operations, marking the exit of Belgium-based Louis Delhaize from the local market.
13. BitDefender’s Acquisition of Horangi Cyber Security (2023) – Romanian cybersecurity leader BitDefender acquired Singapore-based Horangi Cyber Security, reflecting the increasing trend of Romanian outbound investments.
14. Investcorp’s Acquisition of Majority Stake in NetRom Software (2023) – Bahrain-based fund Investcorp acquired a majority stake in NetRom Software, a leading software developer, for an estimated USD 110 million.
15. GlobalLogic’s Acquisition of Fortech (2022) – GlobalLogic, a company of the Hitachi group, acquired Fortech, one of Romania’s significant independent digital engineering firms, in a deal estimated at USD 255 million.
16. APS Holdings’ Acquisition of Bank of Cyprus’ NPL Portfolio in Romania (2022) – APS Holdings Corporation acquired the non-performing loan (NPL) portfolio of the Bank of Cyprus in Romania for USD 158 million.

These transactions reflect strategic decisions aimed at market consolidation, expansion into high-growth sectors, and alignment with EU sustainability goals.

Recent M&A Developments

In 2024 we saw 63 M&A transactions, with notable deals including:

• CTP’s Industrial Park Acquisition (2024): CTP purchased five light-industrial parks from Globalworth Real Estate Investments for approximately USD 184 million, enhancing its logistics portfolio.
• Hidroelectrica’s Strategic Move (2024): Romania’s largest power producer, Hidroelectrica, acquired selected business lines of UCM Resita, strengthening its position in the energy sector.
• OX2 Wind Project Sale (2024): Sweden-based OX2 sold a 99 MW onshore wind project to Nala Renewables for approximately USD 234 million, reflecting the increasing interest in Romania’s renewable energy sector.
• Evryo Group’s Renewable Portfolio Sale (2024): Public Power Corporation acquired a 629 MW renewable energy portfolio from Evryo Group (formerly CEZ Romania) for USD 768 million, highlighting the growing emphasis on sustainable energy investments.
• Banca Transilvania’s Expansion (2024): The acquisition of OTP Bank’s Romanian operations for USD 375 million expanded Banca Transilvania’s market share.
• Digi Communications’ Acquisition of Nowo Communications in Portugal (2024): Digi Communications, a leading Romanian telecom provider, acquired Nowo Communications, Portugal’s fourth-largest telecommunications operator, for USD 163 million.
• CRH’s Acquisition of TehnoWorld (2024): Ireland-based CRH, one of the largest building material players globally, acquired TehnoWorld, Romania’s leading pipe manufacturer, marking a significant expansion into the water pipe segment.
• Premier Energy’s Acquisition of Mihai Viteazu Wind Farm (2024): Premier Energy acquired the 80 MW Mihai Viteazu wind farm from Spain-based Iberdrola for an estimated USD 94 million, marking Iberdrola’s withdrawal from the Romanian market.
• Enspire Enerji’s Acquisition of Solar Power Project from Econergy (2024): Turkey-based Enspire Enerji acquired a 214 MW solar power project from Israeli developer Econergy Renewable Energy for USD 35 million, emphasizing the growing interest in Romania’s renewable energy sector.

Political Climate and Economic Implications

The 2024 presidential election introduced significant political volatility. The initial results were annulled due to alleged irregularities and Russian interference, leading to a rerun in May 2025. Nicușor Dan, a centrist and former Bucharest mayor, won the presidency, bringing a tentative end to the crisis.

Dan’s victory eased market concerns, with improvements seen in Romanian bonds and currency. However, he faces the critical challenge of tackling Romania’s severe fiscal deficit, which reached 9.3% in 2024—the highest in the EU. Although ruling out tax increases, he aims to reduce the deficit by increasing EU fund absorption and cutting public sector waste.

The political instability heightened economic risks, with employers expressing concerns over potential recession and market instability. Analysts project slower economic growth at 1.9% for 2025, below government estimates.

Conclusion

Romania’s M&A landscape reflects a dynamic interplay of strategic investments, sectoral opportunities, and political developments. While challenges persist, particularly regarding transparency and political stability, the country’s alignment with EU standards and strategic positioning offer a favorable outlook for sustained M&A activity.