This growth was driven by a stronger January, while February and March deal volumes remained broadly in line with the prior year.
The first quarter delivered the highest Q1 level on record in terms of disclosed value, reaching a total of $2.2 billion, up from $157 million in Q1 2025. This surge was largely driven by the quarter's two largest disclosed transactions, which alone accounted for approximately $1.7 billion of the total aggregate value. The estimated value of local M&A activity reached $2.9 billion in the first quarter, up from $765 million in Q1 2025.
The largest transaction of Q1 2026 was the announced acquisition of Carrefour's Romanian operations by local financial investor Pavăl Holding, the investment group linked to Dedeman. The consideration was $977 million, making it the second largest retail deal on record, surpassed only by the sale of Profi Rom for $1.4 billion in 2024. The sale of Garanti BBVA to Raiffeisen Bank International for $681 million, announced at the end of the quarter, reflects continued consolidation in the financial services sector.
Strategic investors dominated Romanian M&A during Q1 2026, accounting for 87% of transaction count, while financial investors represented 13% of deal volume. The increase in overall deal activity was driven entirely by inbound transactions, with volumes rising by 76% year-on-year to 37 deals, highlighting sustained interest from foreign investors. Real Estate, Hospitality & Construction remained the most active sector by deal volume with 19 transactions, marking a two-fold increase compared to Q1 2025.
Q1 2026 also saw changes to the legal framework for foreign direct investment screening in Romania, raising the notification threshold from €2 million to €5 million and extending screening to certain asset acquisitions in sensitive sectors including critical technologies, infrastructure, pharma, defence and agri-food. "While the changes bring greater clarity, they may increase scrutiny of asset-based transactions, with potential implications for deal timing and execution," according to the report.
