This evolution aligns with both regional and global trends, as European M&A deal values rose by around 30% during the same period, while global deal values increased by 16%. Such positive dynamics at both local and global levels point to a new phase of M&A activity in 2024, with renewed dealmaking appetite, following a challenging environment for Global and European deal-making in recent years. This renewed appetite comes on the back of lower interest rates and falling inflation, driven by lower goods and energy prices.

The largest deal observed during 9M 2024 was the acquisition of a 629 MW renewable energy portfolio from Evryo Group (previously CEZ Romania), by Public Power Corporation (PPC), the main electric power company in Greece, for a consideration of $768m. This transaction followed PPC's multi-country acquisition earlier this year of 90 solar projects in Romania (516 MW), Italy (503 MW), Bulgaria (500 MW), and Croatia (445 MW) from Mytilineos for over $2.1bn, as well as last year's $1.4bn mega-deal, when PPC acquired the Romanian operations of Italy-based Enel.

The second-largest deal in Q3 2024 (ranking third in 9M 2024) involved the sale of a 99 MW onshore wind project by Sweden-based OX2 for approximately $234m to Nala Renewables, a joint venture between Australia-based IFM Investors and Trafigura, one of the world's largest commodity suppliers. The agreement includes the construction of the park, which will become operational in the first half of 2026, and has attached a 12-year PPA contract with a multinational corporation. EY's multidisciplinary, cross-border team supported OX2 in its debut transaction in Romania by offering full sell-side M&A advisory.

During this period, EY also provided full sell-side M&A advisory services, overseeing the structuring and coordination of the transaction process for the acquisition of TehnoWorld, Romania's leading pipe manufacturer, by Ireland-based CRH, one of the largest building material players in the world. The expansion of a traditional concrete player into the water pipe segment marks a landmark transaction for the local M&A market.

Another notable transaction in Q3 involved the outbound acquisition of Nowo Communications, Portugal's fourth-largest telecommunications operator, by Digi Communications, the leading provider of television and internet services in Romania, from Cabonitel for $163m.

As for investor dynamics, strategic players remained the dominant deal-makers for Romanian M&A, accounting for 92% of deal volume during 9M 2024 and marking their largest share of the market for this the first nine-months since 2018. From a cross-border perspective, inbound transactions rose by 39.2% during 9M 2024 when compared to the same period in 2023, totaling 103 transactions, while domestic players decreased their activity on the local market by 13.8%, recording 81 transactions. In terms of transactions with disclosed values surpassing $100m, the third quarter of this year saw four such deals, in contrast to Q3 2023, which recorded none.

In this context, Romanian M&A activity continues to benefit from positive drivers such as strong GDP growth, higher real disposable incomes stimulating private consumption, declining inflation and substantial EU-funded investments in public infrastructure.

The top five most active sectors by volume for the first nine months of the year were Real Estate, Hospitality & Construction (35 deals), traditionally a leading sector, Power & Utilities (32 deals), Consumer Products & Retail (28 deals), Technology (19 deals), followed by Health with 16 deals. Notably, the Power & Utilities sector recorded the largest number of deals for this period since 2018, more than doubling (+113%) compared to the same period last year. This further emphasizes Romania's strong standing as an attractive destination for renewable energy investment.

In terms of country of origin, the most active investors were from the United States (15 deals), which has historically retained its position as a leading investor, followed by Austria (10 deals), Germany (9 deals), France (7 deals), followed by Poland and the Netherlands (6 deals each).