In a global market hitting $1.7 trillion in the first half of 2014, the highest value in the post-crisis period, Romania’s M&A market generates increasing interest reflected in some important deals closed since the beginning of the year. Yet, further major developments are little likely to happen in the coming months, especially since 2014 is an election year. Although there is no direct influence on the business environment, a state of waiting is perceived in the market, investors being prudent when it comes to M&A transactions. ...more »

After three consecutive years of financial loss, the Romanian banking system returned to profit in 2013 leaving room for some optimism with respect to its profitability in 2014. Lower provision costs amid the slower growth rate of non-performing loans (NPLs), corroborated by a drop in operating expenses subject to staff adjustments and territorial network resizing had a positive effect on the domestic banking sector. Thus, the net aggregate profit of the 40 banks and financial institutions in Romania amounted to lei 48.6 million, following a major loss of lei 2.3 billion in the previous year, shows the annual report released by the National Bank of Romania....more »

Developments in Romania’s energy industry generally accounted for developments in the green energy sector in recent years, a business sector that was like a mirage in a desert that has not got over the nightmare of the economic crisis. But since every good thing comes to an end, the El Dorado the green energy turned into proved to have been only gold plated and rust started to emerge starting last summer. Romania had one of the most generous and profitable support-schemes for renewable energy generation, acting as a magnet for investors seeking easy earnings, who saw in Romania an opportunity for rapid gain....more »

Last years’ Cinderella, the real estate sector, changed the shabby clothes in 2013 and promises to turn into a princess courted by investors. It will not be as charming and attractive as in the period of economic boom when it was rather a chimera, but instead, it will be real and thus, speculative investment will no longer arise.   The unexpected GDP growth last year has favorably influenced a sector which was strongly troubled by the recession, and reawakened investors’ appetite for the Romanian market which has been left aside in the post-crisis period....more »

While the watchdog of democracy seems to have lost its defining qualities over the years, its equivalent in the economy sector, the Competition Council, confirms its status through consistent work meant to ensure compliance with competition regulations so as to maintain the proper functioning of the economic environment. "Indeed, Romania’s watchdog has a positive and active track record in ensuring a normal competitive environment. The authority is acknowledged by the business environment, as well as other governmental institutions as making an important contribution to the efficiency of the national competitive environment”, says Raluca Vasilache, Partner of Tuca Zbarcea & Asociatii. ...more »

While the economic recession has shadowed the development of several sectors of the domestic economy and, consequently, has affected the activity of law firms in terms of consultancy, disputes, which have flourished in those troubled times, have continued blooming in recent years.  Probably the sole practice area that lawyers cannot complain about, litigation, has seen great effervescence over the past years, having a major contribution to the increase of the revenues posted by law firms. This trend will be maintained, at least in 2014, hence confirming that “in general, dispute resolution is a safe haven for law firms in times of economic distress”, as Robert Rosu, Partner of Tuca Zbarcea & Asociatii, says. ...more »

Aversa Manufacturing has won the lawsuit filed by the State Assets Management Authority in September last year which disputed the tendering procedures of the takeover bid for Aversa. In April 2014 the Bucharest Court rejected the SAAA’s appeal and on September 23, the Court of Appeal also rejected the final appeal confirming that the centrifugal pumps manufacturer complied with all legal requirements of the tender offer in accordance with the related specifications. Biris Goran acted as representative of the company member of the Benevo group, offering ongoing assistance in this litigation. The law firm also advised Aversa in the acquisition transaction, as well as in insolvency and real estate matters....more »

The company in charge with the management of the State’s interest in the energy sector (SAPE) has been admitted the request for arbitration in the Enel case, by the International Court of Arbitration from Paris (ICA), reads a news release from the Department for Energy. SAPE requested Enel to pay nearly 522 million euro, claiming the “Put” option as provided by the Government Ordinance no. 1163/2012....more »

BCR has concluded a financing agreement of 32 million with AFI Europe, funds which will be directed to AFI Park 2 and 3 office buildings. Part of the loan, 17 million euro, is destined to investment in AFI Park 2, while the remaining amount of 15 million euro will be used for the development of AFI Park 3, reads a press release of the company. “Getting this loan will allow AFI Europe to recover the entire capital invested in AFI Park 2, whose development was supported through own funds and complete AFI Park 3, whose inauguration is scheduled to take place by the end of this year”, commented David Hay, CEO AFI Europe Romania. ...more »

Romanian independent outfit Tuca Zbarcea & Asociatii landed a key role advising UniCredit Tiriac Bank on acquiring the corporate business of RBS Romania (the Romania branch of The Royal Bank of Scotland plc, Edinburgh). The deal follows a previous agreement between the same financial institutions signed in April 2013. At the time, UniCredit Tiriac Bank announced it had acquired the Retail and Royal Preferred Banking business from RBS Romania, representing approximately 315 million euro in assets and 230 million euro in liabilities....more »