Ways in which a stable CEE economy creates competitive advantages amid global turmoil.
As the global landscape of strategic transactions recalibrates in the face of complex dynamics, Romania stands out as a hub of strategic opportunities for German investors seeking controlled expansion in Central and Eastern Europe.
Despite the cautious investment climate in 2024 that has challenged dealmakers worldwide, Romania's fundamentals tell a different story—one of selective growth, strategic consolidation, and untapped potential in Europe's most dynamic region.
The M&A landscape in Romania in 2024 countered regional trends with its characteristic resilience. Despite a 6% decline in total transaction value to $6.6 billion, deal volume increased by 10% to 241 deals, according to the latest EY market analysis, reported by Romania Insider. This divergence signals something crucial: while activity in the large-scale transaction segment globally has slowed, activity in the mid-market segment has remained robust—precisely the segment in which German companies excel.
The contrast with global markets is striking. Data from the Morrison Foerster study on trends in 2025 shows that global M&A recovered from $2.9 trillion in 2023 to $3.4 trillion in 2024, but this growth was mainly concentrated in large transactions.
Two landmark transactions exemplify Romania's evolving investment landscape and create reference models for German companies:
The acquisition of E.ON Energie Romania by MVM Group. The move by the Hungarian state-owned energy giant to take over E.ON's Romanian operations—expected to be completed by mid-2025, according to Reuters—demonstrates the region's appetite for cross-border consolidation in energy. For German utilities and energy technology companies, it signals both opportunity and urgency in Romania's energy transition market.
UniCredit-Alpha Bank Romania fusion. The integration of the Italian bank in the second half of 2025 with Alpha Bank Romania creates the third-largest banking group in the country, as reported by Reuters. This consolidation opens up adjacent opportunities for German fintech, payment solutions, and financial services companies seeking established distribution networks.
These transactions reveal Romania's dual appeal: mature regulatory frameworks that facilitate complex transactions, combined with fragmented markets ready for consolidation.
The German strategic advantage
Romania offers German companies several competitive advantages that align with traditional German business strengths:
Manufacturing expertise. Regions such as Timișoara, Arad, and Craiova already host a significant German presence in the automotive and industrial sectors. Existing supply chains, skilled labor, and established business relationships create the preferred operational base for German companies in the process of supply chain optimization.
Hubs of technological innovation. Cities such as Cluj-Napoca and Iași have evolved into legitimate technology centers with strong university partnerships and growing talent pools. For German technology companies, these represent cost-effective innovation centers aligned with EU regulations.
Romania's strategic geographical position as the EU's gateway to the Black Sea region is becoming increasingly valuable as companies reassess the resilience of their supply chains. The country's pan-European transport corridors offer logistical advantages for distribution in Southeast Europe.
Business vertically aligned with German competitive advantages
Energy transition. The expansion of renewable energy in Romania, supported by EU funding and ambitious climate targets, creates opportunities for German green tech companies. The country's wind and solar potential, particularly in the Dobrogea and Moldova regions, remains underpinned.
Industrial robotics. The drive to modernize Romania's manufacturing sector aligns perfectly with German Industry 4.0 expertise. Automotive suppliers, in particular, are actively seeking advanced automation solutions to maintain their competitiveness.
Fintech. Consolidation in the banking sector creates space for specialized fintech solutions. German companies with expertise in payment processing, digital banking, or compliance technologies can build on established banking relationships to get into the market quickly.
Optimizing compliance architecture
Romania's M&A framework, although comprehensive, requires a complex local approach. The regulatory environment combines EU directives with local requirements, creating complexity that favors experienced acquirers. German companies can benefit from the familiar frameworks of EU competition law while adapting to local implementation issues.
There are opportunities for tax optimization through Romania's competitive corporate tax rate and R&D incentives, which require careful structuring to maximize benefits while ensuring compliance with both Romanian and German tax obligations.
Strategic legislative recommendations for German investors
Adopting partnership models: Joint ventures with local partners can accelerate market understanding while sharing regulatory and operational risks. Romanian companies often seek German technical expertise and operational excellence, generating organic synergies for collaboration.
Focus on added value: Romanian acquisition companies reveal consistent potential for restructuring through German methodologies, quality systems, and process optimization. These synergies can justify premiums while offering sustainable competitive advantages.
ESG leadership: The ESG agenda is consolidating as a strategic differentiator in Romania's M&A landscape. German know-how in sustainability offers competitive differentiation while simultaneously paving the way for future compliance.
Investment case
Romania's M&A sector is integrated into the continental dynamic of selective capital allocation. The country's resilience during the challenging environment of 2024 demonstrates its fundamental economic strength and institutional maturity. For German companies seeking European expansion beyond traditional Western markets, Romania offers compelling risk-adjusted returns.
Upcoming energy sector deals, a surge in banking consolidation, and continued EU funding support create a favorable environment for strategic investors. Romania's position as a net beneficiary of FDI, combined with its stable democratic institutions and NATO membership, provides political and economic stability that is often lacking in other emerging markets.
Corporate outlook: 2025 – the year of major decisions on the M&A market
As global interest rates stabilize and regulatory clarity improves, 2025 is shaping up to be a potentially transformative year for Romania's M&A market. German companies with patient capital, operational expertise, and regional ambitions are well positioned to participate in this transformation. For German strategists, the question is not whether to consider Romanian opportunities, but how quickly they can develop the local relationships and market intelligence necessary to compete effectively.
Romania's story is ultimately one of successful European integration—a country that has leveraged its EU membership and recent accession to the Schengen Area to build modern institutions while maintaining competitive advantages in cost structure and market access. For German investors, this is perhaps the last major market with Western standards in Central Europe that offers real competitive advantages in creating added value.
The strategic imperative is clear—companies that move decisively in 2025 can position themselves ideally for the next phase of European economic integration, while those that are resistant to change risk remaining observers of competitors establishing dominant regional positions.
KEY MESSAGES
▪ The strategic necessity is clear: companies that act boldly in 2025 will be able to position themselves ideal for the next phase of European economic integration, while those that resist change risk remaining observers while their competitors occupy leading positions at the regional level.
▪ The strategic advantages of German companies in Romania are: excellence in production, technological innovation centers, culture, and political compatibility.
▪ Vertical fields of activity that focus on Germany's competitive advantages: energy transition, industrial automation, fintech.
▪ Romania's strategic geographical position as the EU's gateway to the Black Sea region is becoming increasingly important and offers logistical advantages for distribution in Southeast Europe. For German investors, this is perhaps the last large market with Western standards in Central Europe that offers real competitive advantages in terms of value creation.
This article was originally published in JUVE Magazine: https://www.juve.de/sponsored-content/rumaenien-2025-ma-chancen-fuer-deutsche-unternehmen/