Mergers and acquisitions in Romania stood at $5.2 billion in 2006, down from $5.8 billion in 2005, according to a study of the audit and consultancy company PricewaterhouseCoopers (PWC), ACT Media news agency reports.
With 136 transactions in 2006, Romania ranked 5th in terms of acquisitions and mergers in South-East Europe, that is one step down from the 4th position in the 2005 rankings, according to the annual study of PWC, which analyses acquisitions and mergers in 11 countries in Central and South-East Europe. According to the study, the average value of the deals in Romania stood at $44.2 million in 2006, with the number of big deals having doubled as against the year before, going up from 6 in 2005 to 12 big deals in 2006.
The PWC study shows that the 2006 level of the relevant market was due to an increased interest in the Romanian market displayed by US and European investors. Deals concluded by British investors doubled in 2006, up to 15 deals from 7 in 2005.The most attractive sector in 2006 was the pharmaceutical industry, according to the PWC analysts, followed by the processing industry, the financial and media sectors.In 2005, telecommunications made up 62 percent of the Romanian market of mergers and acquisitions overall, following the take-over of Mobifon by Vodafone.
The value of the deal amounted to $2.4 billion and pushed Romania up to the 2nd position among the biggest deals in the region. Although the total value of the transactions and mergers decreased in 2006 from 2005, the PWC study forecasts that Romania is to witness an upward trend in terms of big deals in the years ahead, especially in the private sector, mainly due to Romania's new status as a full EU member state.