Deals worth above half a billion euros, put on hold due to crisis

The sale of Ambient, of Dona drugstores, of Euroclinic hospital, of Spar store network or of Turabo coffee shop chain are the most important deals that have been delayed or relinquished due to the international financial crisis, according to ZF information.

Overall, the last months of the year have wiped out around half a billion euros from the M&A market, taking into account the values requested by the owners negotiating the sale of their businesses. Investment funds have also been forced to give up some already advanced discussions. The domino effect of tightening financing was also felt on the M&A market during this period when the list of abandoned deals (not including listings) starts from over 100m euros. What could have been the deal of this yearend, the sale of Ambient Sibiu construction materials distributor for over 100m euros to EQT Swedish investment fund, is on hold at least until early summer, according to market information. In real estate, too, by far the liveliest sector in 2007, players have admitted to having abandoned or cancelled deals. Even here, the major deals signed this year were started in 2007 and finalised in the first half of the year, so that in this half the only moves of above 20m euros have been the sale of a plot of land in the French Village and of Expo Market Doraly centre. In the healthcare sector, the two deals underway in mid-2008 were also frozen. Had they been sealed, they would have marked a first time in the healthcare industry: Euroclinic, as it would have been the first private hospital domestically to be sold, and Farmaciile Dona because they would have opened takeovers in drug retail. In the same pharmaceutical industry, another deal hampered by the crisis is the takeover of Ozone. In retail, the sale of SPAR has also been put on hold. Tudor Niculescu, owner of the biggest coffee shop chain domestically, has also given up his intention to sell the business, though talks with a strategic investor were in the final phase in November. On the other hand, deals of the entrepreneurs who managed to make their exit right before the crisis, include the sale of LaDorna to Lactalis, of Romtrans to Deutsche Bahn, of Frigotehnica to BAF, of a wind farm project in Dobrogea to CEZ.