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Local M&A market down 66 pc in Q3

The value of merger and acquisition (M&A) deals carried out in Romania in the third quarter of 2008 dropped 66.5 percent compared to Q3 2007, down to $1.22 billion (0.94 bln euros), according to the 'Emerging Market M&A Deal Activity' report by ISI DealWatch cited by daily Business Standard on Friday.

However, for the first nine months of the year, the market registered sound growth, amounting to $9.2 billion (7.1 billion euros), higher than total deals made in 2007, according to the survey.

'Although valuations fell and the emerging markets are full of acquisition opportunities, investors applied a ‘wait-and-see' approach, which should remain in place until the credibility of the financial market is completely restored,' daily Business Standard quotes Jakub Siekierzynski, Head of DW M&A research as saying.

Most deals closed in the third quarter were controlling interest acquisitions (50 deals), almost similar to Q3 2007. Only one privatization was made during July-September, compared to seven privatizations year-on-year. Of the total 67 deals carried out in Q3, 22 were in the Real estate sector and 13 in the production sector. The finance and insurance, transportation, and construction sectors registered one deal each. 'In terms of deal value, real estate keeps the top spot, though it shows a significant 61.5% drop to $414.42 million (321.8 million euros), with just two deals above $100 million. For comparison, in Q3 2007 there were five deals worth more than $100 million and the total went up to $1.076 billion,' the survey shows.

 

Sursa: http://www.rompress.ro

Tags: deals market

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