Eyes on Romania: Investors Grew the M&A Market above USD 7 Billion
Romania remains on investors’ radars despite the rising cost of money and inflation. In value, the M&A market exceeded 7 billion dollars in 2023 but was massively supported by two mega transactions. This year is still under the sign of growth, Romania News reports.
The takeover of Profi by Ahold Delhaize, the owner of Mega Image, for $1.4 billion and the sale of Enel Romania to the Greeks from PPC for $1.3 billion are the essential local transactions and the two mega transactions (worth over 1 billion dollars) from last year. Also, in 2023, there were three other agreements of 200-300 million dollars each, with medium-sized transactions vital for the health of the M&A market.
The steps in a merger and acquisition are complex, but with the help of specialized lawyers, investors overcome any legal challenges.
In 2023, 241 transactions were initiated in Romania, with a total value estimated at almost 7.1 billion dollars, according to an analysis by the audit and consulting company EY. It is about the total value of the market, i.e. both transactions with communicated and uncommunicated value, but estimated by EY, are taken into account.
In terms of volume, the market decreased slightly compared to the maximum reached in 2022 – when 257 agreements were signed, 16 more than last year – but in terms of value, it is the best year (plus 6%).
The data show that Romania remains on the radar of investors in the M&A market despite the rising cost of money and still high inflation, factors that have led to a cautious approach, especially among buyers. However, in value, the market exceeded 7 billion dollars because two mega transactions supported it.
The takeover of Profi by Ahold Delhaize, the owner of Mega Image, for $1.4 billion and the sale of Enel Romania to the Greeks from PPC for $1.3 billion are the most critical local transactions and the two mega transactions (worth over 1 billion dollars) from last year.
The corporate and M&A market is also expected to grow in Romania this year. The country is attractive to investors, and the economic outlook for 2024 is somewhat optimistic, favouring the decision to invest.
- Published in News
EIT Innoenergy Becomes Minor Shareholder at Prime Batteries Technology: An Eur 1 Billion Investment
The European conglomerate EIT InnoEnergy, which includes banks and corporations from all across Europe, including ING, Volkswagen, and Siemens, co-founded in 2008 with the European Union, makes a sizeable investment in the Romanian energy storage solution supplier Prime Batteries Technology. The company has declared an investment of more than one billion euros to enhance the manufacture of batteries and storage systems.
As ValahiaNews tells us, EIT InnoEnergy formally announced its purchase of shares from Prime Batteries Technology in Ilfov on Thursday in Brussels. The event was attended by Florin Spataru, the Economy Minister, Adina Vâlean, the European Commissioner for Transport, and several MEPs from Romania.
„Central and Eastern Europe is becoming an important player in the energy transition and battery production and we are glad to see a Romanian company developing”
Adina Vâlean, European Commissioner for Transport
The existing Prime Batteries Technology factory in Cernica will receive an investment of about 200 million euros to increase the yearly output of the present level of 2GWh. According to business leaders’ predictions, the group wants to grow this capacity to 8 GWh, which will boost the investment to more than 1 billion euros by 2026.
„A 30–35% component of the funding will come from investment funds focused only on renewable energy causes, with the remaining amount funded by loans. Additionally, we sent a memo to the Ministry of Energy, and we are eagerly awaiting a response […..]”.
Adrian Polec, Stakeholder at Prime Batteries Technology
EIT InnoEnergy encourages innovation in several different areas. These fields include energy storage, transportation and mobility, renewable sources, and sustainable buildings and communities, all of which are supported by the company’s trustworthy network of more than 1200 partners and 29 shareholders. The portfolio, which has over 180 businesses, will have made 72.8 billion euros in revenue and avoided 1.1 gigatons of carbon dioxide from entering the environment by 2030.
- Published in News
