The total size of M&A deals closed in Romania in first quarter 2009 plunged sharply from prior-year period: DealWatch, an M&A research company sees an 82% decline while investment bank Raiffeisen Bank takes a more gloomy tone about M&A opportunities that may arise in the future (90% downdraft).
M&A activity, dented by financial crisis
M&A market in Romania recorded 46 deals in first three months this year, totaling 631.55 mln euros, down 82% from prior-year period, DealWatch informs.
The number of mergers and acquisitions in the local landscape sank 22% from first quarter 2008, DealWatch research found.
“We counted fewer transactions. We think that certain transactions in 2008 that were announced in early 2009, and it is possible the rumored transactions to be included in the counting. Anyway, the number of rumored transactions is not the essential difference compared to our research, but their size”, Ioana Filipescu (photo), managing director of Raiffeisen Investment Romania, told Wall-Street.
For the moment, there are no deals involving distressed companies and impaired assets, as vendors need to take time to get used to this type of deals. “Either way, the lion’s share of the deals reported in first quarter 2009 were initiated in 2008, most likely before September 15, the day Lehman Brothers collapsed”, said Filipescu.
Raiffeisen Investment research found that the first quarter of 2009 had seen a roughly 90% contraction of the market value, corresponding to a 20% decline in number of deals, versus prior-year period. “M&A activity continues to be highly influenced by the financial-economic crisis, apart from few sectors with high growth potential”, Ioana Filipescu added.
She refers especially to health services, technology, food industry, and other sectors that are expected to remain stable - such as telecommunication, phar