BR 01 2017

Page 1

WHERE ROMANIA TALKS BUSINESS February, 2017 / Volume 21, Issue 1

www.business-review.eu

ROMANIA TO SEE HIGHER REAL ESTATE INVESTMENTS IN 2017

8x

ORBIS GROUP THINKS BIG FOR THE LOCAL HOTEL SECTOR

9xx

ROMANIAN M&A MARKET HOPS ON MEGA-DEALS TREND

16xx

URBANIZEHUB FOUNDER: ‘ROMANIA IS NOT THERE YET’

29xx

New world order hits home



www.business-review.eu Business Review | February 2017

EDITORIAL 3 REAL ESTATE

• Editorial •

Anda Sebesi • Editor-in-Chief •

8 Romania to see higher real estate investments in 2017 despite rising global uncertainty

9 Orbis Group thinks big for local hotel market COVER STORY 10 Local economy looks to steady ship in global storm

12 2017 rings in more political instability in Europe

15 Ruling coalition set to clash with President Iohannis on sensitive bills

Making our own way

DEALS OF THE YEAR

The current international political climate is by far one of the most challenging in recent years, for the whole world. The global scene has been shaken up by the election of Donald Trump as the 45th president of the United States. The biggest unknown this year is whether Trump will remain true to his campaign promise to “get tough” on US trading partners and how that might impact global and European economies. Turning to Europe, two major events will reshape the economic and political scene on the continent this year: the elections in Germany and the progress of Brexit. Angela Merkel is hotly tipped

16 Local M&A market hops on mega-deals trend

18 Local M&A market loses its luster in 2016

20 Curated of key M&As in 2016

to secure a fourth term as chancellor following federal elections in autumn. As she admits, “This election will be difficult, like no other election since reunification.” Brexit is another unknown that European leaders will have to deal with in 2017. After a narrow majority of British voters opted to leave the EU in a referendum last June, the British prime minister, Theresa May, has set March 31 as the deadline to formally serve notice to the EU of the UK’s intention to quit the bloc. All these major events will have a long-term global impact that will start to be visible in 2017 and the years to come. As part of a global economy, Romania cannot sidestep all of these challenges. But we can do something rather than simply hope. Creating a real and coherent strategy and investing in projects of national interest could allow us to follow our own way and prepare to face the global

IT & TELECOM 29 UrbanizeHub founder: “Romania is not there yet”

30 2017 rings in the telecom changes

32 The cyberthreats of 2017

33 Technological innovations that could shape the future

storm in a stronger position.

FOUNDING EDITOR: Bill Avery, EDITOR-IN-CHIEF: Anda Sebesi, DEPUTY EDITOR-IN-CHIEF: Simona Bazavan JOURNALISTS: Georgeta Gheorghe, Otilia Haraga, Romanita Oprea, Ovidiu Posirca, Oana Vasiliu, HEAD COPY EDITOR: Debbie Stowe COPY EDITOR: Eugenia Pupeza, PHOTO EDITOR: Mihai Constantineanu, ART DIRECTOR: Raluca Piscu PUBLISHER: Bloc Notes Media, ADDRESS: No. 10 Italiana St., 2nd floor, ap. 3, Bucharest, Romania­­­­, LANDLINE: Office: 031.040.09.31 EXECUTIVE DIRECTOR: George Moise, BUSINESS DEVELOPMENT DIRECTOR: Oana Molodoi, SALES DIRECTOR: Ana-Maria Nedelcu SALES CONSULTANT: Valeria Cornean, EVENTS DIRECTOR: Oana Albu, MARKETING: Adina Cretu, Marius Andronic, Patricia Neamtu PRODUCTION: Dan Mitroi, DISTRI­­BUTION: Eugen Musat EMAILS: editorial@business-review.ro, sales@business-review.ro, events@business-review.ro­

ISSN NO. 1453-729X


www.business-review.eu Business Review | February 2017

4 NEWS

WHO’S NEWS BR welcomes information for Who’s News. Submissions may be edited fo­­­r length and clarity. Get in touch at simona.bazavan@business-review.ro

In January PM Grindeanu said that the Romanian economy will grow by 5.2 percent Bogdan Badea is the new sales director at eJobs Group. He has a professional background in sales and business development, having worked for companies such as P&G, Accace and Ernst & Young. For the past two years, he served as Smartree’s business development & strategic alliances director. Badea graduated from the Cybernetics Faculty within the Bucharest University of Economic Studies and holds a master’s degree in corporate finance and stock exchanges.

Lior Bebera is the new GM of InterContinental Bucharest. He is replacing Stefan Frank, who spent more than four years in this position. A German national, born in Israel, Bebera has lived and worked in seven countries, on three continents. An international hotelier, before coming to Bucharest, he worked at numerous InterContinental hotels such as InterContinental Berlin, David InterContinental Tel Aviv, InterContinental Kiev and the IHG Head Office in London. His most recent role was at InterContinental Malta as hotel manager. page 5

2017 draft budget based on 5.2 pct economic growth estimate By Georgeta Gheorghe Romania’s draft public budget

they should reach 32.8 percent

published by the Ministry of

for 2017 is based on a growth

of GDP, progress marked by the

Finance.

GDP projection of 5.2 percent

performance of macroeconomic

for this year, above economists’

indicators in this reference pe-

number of employees to grow

expectations. In addition, the

riod, and based on the bills that

by 4.3 percent, while the un-

budget deficit limit for this year

have been adopted up to now.

employment rate is set to fall to

has been set at 2.96 percent of

The budget expenses projected

4.3 percent at the end of 2017.

GDP.

for 2017 represent 34.2 percent

The World Bank expects

The report predicts the

The government expects a

of GDP, reaching 34.8 percent of

Romania’s economy to expand

higher tax take this year, and

GDP in 2020, marking growth of

by 3.7 percent of GDP this year.

has increased the public invest-

0.6 percentage points, based on

The financial institution put

ment budget to 4.2 percent of

investment expenditure grow-

growth at 4.7 percent last year.

GDP, from 3.9 percent last year.

ing by 2.6 percentage points in

Economists expect Romania’s

“The projected revenues to

2020 compared to 2017,” stated

growth to slow down as the

the state budget represent 31.2

the report mapping the macro-

impact of tax cuts and public

percent of GDP in 2017, 32.4

economic perspectives for 2017

sector wage hikes diminishes.

percent in 2018, while in 2020

and projections for 2018-2020,

Bitdefender to purchase French firm Profil Technology By Georgeta Gheorghe Romanian internet security

sentatives, the takeover allows

software company Bitdefender

Bitdefender to diversify its

will purchase French company

presence on the French market,

Profil Technology in its biggest

both on the enterprise and the

deal so far. The value of the deal

customer sector. As a result, a

has not been made public.

team of 50 sales, marketing and

According to company repre-

customer relations profession-

Bitdefender CEO Florin Talpes said France was a key market in the future


www.business-review.eu Business Review | February 2017

NEWS 5

President Iohannis joins thousands at rally against pardon law By Georgeta Gheorghe The Romanian president,

President Klaus Iohannis among protesters at the January 22 rally

Sylwia Piankowska has been appointed GM of GSK Consumer Healthcare Romania and Balkans. She is replacing Helen Tomlinson, who will take over as GM of GSK Consumer Healthcare Iberia. Piankowska has extensive professional experience in the FMCG industry. She joined GSK in August 2002 and over the following years held several strategic roles in brand and category management in Poland and Central and Eastern Europe.

Klaus Iohannis, joined a mass protest in Bucharest in January

voices and institutions heading

wipe clean the records of tens

that saw between 20,000 and

the country’s anti-graft fight.

or hundreds of politicians in

30,000 demonstrators rally

Alongside President Iohannis,

trouble with the law so they

against government plans to

the prosecutor general, Supreme

are able to proceed with their

decriminalize certain offenses

Court, chief anti-corruption

wrongdoings.”

and grant pardons via emer-

prosecutor Laura Codruta Kovesi

gency ordinance. The move,

and chief of the directorate

Facebook account, PSD head

protesters argue, would benefit

fighting organized crime have all

Liviu Dragnea said: “Iohannis

several high-profile politicians

spoken out against the govern-

wants to shackle the power

in the ruling Social Democratic

ment’s plans.

that has legitimacy granted by

Party (PSD) and undermine the fight against corruption.

“People have a right to be

In a reply posted on his

the popular vote. The president

outraged as a gang of politicians

acted outside the law by seek-

facing legal problems want to

ing personal political gains and

cording to the Grindeanu gov-

change the legislation and weak-

asking for constitutional non-

ernment, are intended to ease

en the rule of law,” Iohannis said

sense: the withdrawal of some

overcrowding in the country’s

at the protest. “It’s unaccept-

decrees, especially decrees that

prisons, are opposed by many

able to change legislation just to

haven’t been passed.”

The measures, which, ac-

Mitel Spataru has been appointed partner within the tax department of FiNEXPERT, starting this January, in a move to support the future development of the consultancy. He has been working for the local accounting firm for past 12 years and has coordinated numerous projects over the years. With over 15 years of experience in finance and accounting and over seven years in taxation, he took over the management of the tax department in 2011.

als will join the company. “France is a key market for us in the future. By taking over our in-house business, we will be able to be closer to our partners and clients and we aim to replicate in the enterprise sector our success on the residen-

Celebrating the Business Champions of 2016

tial consumer market, betting on the technological superiority of our products in order to

More details at awards.business-review.eu

take a leadership position,” said Bitdefender CEO Florin Talpes. Bitdefender was ranked the

by turnover in a 2016 PwC study, and is one of the few Romanian

17th largest emerging market

companies making acquisitions

software company in the world

abroad.

Cristina Togan has been promoted to partner by law firm Leroy si Asociatii. She has been part of the team for over ten years and specializes in banking, finance and real estate. A member of the Bucharest Bar Association since 2007, Togan has advised international financial institutions and credit institutions on various types of structured finance transactions, including acquisition, real estate and project finance, as well as on corporate banking matters and derivatives.


www.business-review.eu Business Review | February 2017

6 EDUCATION

Class act: AISB pushes early childhood education with new facility The American International School of Bucharest (AISB) will this spring open a new EUR 6 million facility for early childhood education, an area that is getting increasingly more attention, including on the local market, AISB head, Robert Brindley, tells BR. By Simona Bazavan

As a math teacher, I can always tell which kids have played with Lego and which haven’t,” says the school’s

head. The same way Lego enables a child to develop 3D awareness, early exposure to foreign languages helps with later language skills, meaning that there is no such thing as too early when it comes to education, stresses Brindley. This is also why the AISB is presently investing EUR 6 million in a building especially dedicated to its early childhood education program for two- to five-year-olds. Demand for early education is growing, partly because parents are starting to realize its importance, but also because it is the safest way to secure a place at the AISB, say its representatives. The school’s students graduate with a much sought after International Baccalaureate diploma, yet enrolling directly into the secondary school program is difficult. Not only do few new places become available each year, but the school has a strict policy when it comes to the nationality of its students. “We keep every nationality to a certain percentage, otherwise it destroys the fabric of the international feel,” explains Brindley. Despite such limitations and a hefty price tag, demand is high. The annual tuition fee for a two-year-old starts at about EUR 7,000 per year for the short 8:00 to 12:00 program and reaches EUR 10,000 for the full 8:00 to 15:00 program. Parents must later stump up as much as EUR 18,000 a year for the full kindergarten program. The facility is scheduled for completion this spring and can accommodate some 180 children, whereas at present 100 are enrolled in the AISB early childhood education program. However, Brindley stresses that it is not about the numbers but about the quality of the education provided. “Often schools have a building that they put the young kids in. Now we have a program and we design the


www.business-review.eu Business Review | February 2017

EDUCATION 7

building around the kids,” says the head, add-

do. Everything else is on Google or done by a

ing that the educational program is very much

machine,” points out Brindley.

“My job is to make sure that I attract the best teachers and create a safe environment because security is very important to

based on the Montessori Reggio approach. “It is very hands on, very kinetic touch sound

EDUCATION MEANS INVESTMENTS

parents, and then that I provide a facility

based, to develop the skills of the youngest

The money to support the EUR 6 million

which is clean, well maintained and up to

kids from the age of two. These early years are

investment in the early childhood education

date. When we need to innovate we innovate

super critical in the development of funda-

center will come from the school’s funds,

and we never stand still,” he adds. Some 820

mental core skills on which you later build

which are made up almost entirely of tuition

students attend the AISB, a number which has

your math, your science, your English and

fees, explains Brindley. With fees going from

been constant for the past four to five years.

other bits,” says the AISB head.

approximately EUR 7,000 per year for pre-

While demand is high, Brindley says there is

school classes to slightly over EUR 20,000

no aim to increase the number of students

in a world that is constantly changing and

per year for the two final high school years,

beyond this level. “If you want to remain

which is becoming more and more competi-

the AISB is netting revenues of around EUR

a community school you really have to be

tive in the professional field. Change is the

16.5 million for the 2016-2017 school year. The

between 800 and 1,000 students. Once you

only option in today’s ever more mobile world

AISB is a not-for-profit organization, meaning

start creeping beyond 1,000 it becomes very

and the earlier education starts the better, he

that “every cent that the AISB gets in revenue

difficult to retain a community type of feel.

thinks. “While 30 years ago kids may have

goes back into the school,” stresses Brindley.

For us it is about the quality of the education

been competing against native English speak-

And when it comes to expenses, the school’s

we provide, rather than getting in more kids,”

ers, nowadays they are competing against

teachers are the numbers one priority, he

he explains. In addition to the EUR 6 million

everybody – the Chinese, the Indians. So the

adds. “Teachers make everything so about 65

which will go into the early childhood educa-

market has changed for our kids, unfortu-

percent of our expenses go on staff and the

tion center, another EUR 2-3 million will be

nately. It has become far more aggressive out

majority of that is for the overseas faculty.

required to expand the secondary school, says

there and skill levels are changing rapidly.

I think we have over 90 overseas faculty so

the head. Altogether, the school has some

This is why you need to build basic competen-

that is where the money goes, essentially.

EUR 10 million earmarked for investments for

cies rather than to know historical facts like

We recruit internationally because that is my

the next two, two and half years, in addition

when the Battle of Waterloo was. Kids need

competition: the other international schools

to the EUR 500,000 – EUR 1 million which is

to be able to process stuff these days because

in the world in Beijing, Munich, London or

invested each year in maintaining and up-

that is the only thing that they will have to

Frankfurt,” comments the director.

grading facilities, according to school data.

And acquiring such core skills is essential


www.business-review.eu Business Review | February 2017

8 REAL ESTATE

Romania to see higher real estate investments in 2017 despite rising global uncertainty The local real estate market could see investments in new deals reaching EUR 1 billion in 2017, well above last year’s level, according to Colliers International representatives. By Simona Bazavan H2 next year,” he predicted. While this doesn’t mean that deals that are currently under negotiation will be affected, new deals may take a bit longer to conclude, he went on. The best case scenario for the entire Central and Eastern European (CEE) region in 2017 is that real estate investments will go up slightly, although this is a very optimistic scenario, forecasts Harrington. The worst case scenario is that they decline until there is more political certainty, he outlined. Nonetheless, the forecast for Romania, in Photos: Colliers International

particular, remains positive, Laurentiu Lazar, senior partner of investment and valuation services at Colliers International, told BR – even more positive than it looked at the end of 2015. “My expectations for 2017 are based on the transactions we are currently involved in, with total assets worth around EUR 400Damian Harrington, Colliers International

U

Laurentiu Lazar, Colliers International

500 million. These are all transactions that could be closed in the first semester of 2017, some as soon as the first quarter. So the base

ncertainty is the name of the

investments before the end of this cycle. “The

for growth is much healthier now than it

game for the European and global

length of this, however, will be shorter, mean-

was at the end of 2015,” he argued. Colliers

economy in 2017, and this will also

ing that it will probably run into 2017 for Ro-

International is also involved in a number

impact investments in real estate transac-

mania, but after that who knows? It depends

of other transactions as a valuation service

tions, Damian Harrington, head of EMEA

on what happens with the broader global

provider which he says leads him to believe

research at Colliers International, told BR.

investment cycle, not just the European

that in 2017 the local real estate market could

Exactly how that will break down will most

one,” said Harrington. Brexit will impact the

see investments in new deals reaching EUR

likely become clearer by the end of the first

European economy, but the global economy

1 billion, above 2016’s level. This year could

semester, although some trends are already

is now also being altered by the prospect of

be a tipping point for the market as new play-

shaping up.

Donald Trump as US president as of this Janu-

ers could enter while some of the existing

ary, he explained. “There is also the matter of

major investors could look into assets located

countries such as Germany, France and the

different referendums and elections coming

in regional cities, he outlined. Should this

UK posting the sharpest declines, as they are

up in other big European countries in 2017.

trend develop, it would bring about a much-

the first to approach the end of the growth

There is a lot of uncertainty. You can handle

needed liquidity increase in the market, the

cycle, he explained. Having had a later start,

one or two, maybe three things at a time, but

lack of which is currently one of prospective

second- and third-tier countries including

seven or eight as it looks like, I suspect this

investors’ main concerns about investing in

Romania are now enjoying a final wave of

could curtail investment activity until at least

Romania, he added.

Investments fell in 2016 with first-tier


www.business-review.eu Business Review | February 2017

INTERVIEW 9

Orbis Group thinks big for local hotel market Orbis Hotel Group, the largest network of hotels in Eastern Europe, is looking to expand its presence in Romania and become market leader, the group’s president and CEO, Gilles Clavie, told BR in an interview. By Ovidiu Posirca the near future in Ploiesti, Pitesti, Oradea,

people to fuel the expansion of its operations,

Craiova, Cluj-Napoca and Iasi. Those are the

but in some countries in Central and Eastern

locations where we should have a network.

Europe (CEE) there are issues.

The first cities I mentioned are more in terms

“We have difficulties hiring people, we

of subsidiaries, and all the rest through

lack people to face the demand that we have,

management or franchise. You can also add

and which in some places has exerted a kind

Brasov and Arad,” says the executive.

of pressure on payroll, pressure on costs. Budapest, Prague and Warsaw are really

ROMANIANS TAKE MORE PLEASURE IN LEISURE

facing that issue (lack of staff - e.n.), more so

Orbis is seeing an increase of demand in

trend is the same. We have been able to de-

Romania from the business and leisure seg-

velop some alternative solutions, we’ve been

ments, as the country is becoming more vis-

able to change the strategy of our topline a bit

ible abroad and the transportation network is

as well, and it helps us to protect the margin,”

improving.

explains Clavie.

“There’s no doubt that the leisure clients

than we can see here in Bucharest yet, but the

Meanwhile, the group wants more people

(base - e.n) is growing very fast. From my

in the decision-making process, and has

point of view, it’s the reason why we have

rolled out a special committee that includes

Today, we have seven hotels in total in

such an improvement in the topline activity

millennials.

our network in Romania and, as for the

for Romania,” says Clavie. The executive adds

Orbis goal – we are already the leader

that Poland and Romania were the countries

can get more opinions before making deci-

in the region and we want to be the leader of

that registered the biggest gains in terms of

sions.

each country where we are. This is the case

occupancy rates.

in most of the countries, but not for Romania

He suggests that this might also be linked

Clavie says this move is useful because he

“They have already been able to implement a few things, from the simple to the

yet. When you know that the leader has about

to geopolitical issues in many countries in

more complex. It can be from the design of

11-13 hotels, we are not so far from this,” says

Europe, Africa and the Middle East. For these

the hotel. This is the case with the Mercure

Clavie, suggesting that Orbis could become

reasons, Romanians are choosing to remain

Hotel in Cracow we opened last month (Octo-

market leader in two years.

in the country, for the weekend for example,

ber - e.n.) – they arrived and raised the issue

and other people from the region are keen to

that our design was not maybe in line with

increase in its revenues to EUR 237.2 million

travel to Romania as well, according to the

our socializing target so they totally refreshed

in the first nine months of 2016 versus the

head of Orbis Group.

the lobby and we opened with a lobby they

The group, which registered an 8.6 percent

designed,” says the executive.

same period of last year, plans to open a Mer-

Asked about the UK’s vote to leave the

cure Hotel in Brasov and an Ibis Styles unit in

European Union, Clavie says the effect on the

Arad this year. In 2019, it aims to open an Ibis

group’s operations has been insignificant so

year after Accor, Europe’s largest hotel group,

Styles Hotel in Bucharest.

far. “We can’t say that Brexit has had an im-

which is its main shareholder, set up a board

pact on our business today and the FX impact

comprising young people to contribute to the

for the hospitality industry is limited.”

group’s strategy.

Asked about the group’s development plans in Romania, Clavie mentioned several

Orbis launched the millennial board last

cities, aside from Bucharest. “The key cities where we could think about investments are Sibiu, Constanta,

LISTENING TO THE VOICE OF THE MILLENNIALS

Timisoara, and furthermore – aside from

With the group’s business growing, Poland-

financing topics – we should have hotels in

based Orbis is constantly looking for new

7

The number of hotels controlled by Orbis Group in Romania


www.business-review.eu Business Review | February 2017

10 COVER STORY

Local economy looks to steady ship in global storm

Trump administration’s limited political experience could delay radical measures

In order to ensure ongoing sustainable development, Romania needs to adapt its approach and capitalize on its main advantages in a challenging and difficult climate. International economic threats may lead to a local slippage that can be counterbalanced by a coherent and realistic development strategy.

G

iven the current political uncertainty, it is hard to believe that Romania, one of the emerging players on the global market, could be isolated from the potential major changes

that look set to shape the international scene. According to pundits, today’s complex economic and political context could lead investments and projects to be either postponed or have only a marginal impact on the Romanian economy, at least this year. Regardless of when the UK activates Article 50, starting the procedure to exit the European Union, there will be a “window” of two years of negotiations until the country’s actual departure. “The real impact for Romania will come from the way the European Union could change in order to face the challenges and crisis generated by Brexit,” says Codrut Pascu, senior partner and managing director at Roland Berger. As for Donald Trump’s tenure, pundits

By Anda Sebesi

say that his protectionist policies could lead to a commercial war;


www.business-review.eu Business Review | February 2017

however, even this is unlikely, as the Trump

COVER STORY 11 “The impact for Romania could be both a

administration’s limited political experience

reduction in investments and a fall in produc-

could delay radical measures.

tion capacity based on reduced demand from

One of the top three challenges for the EU

abroad. The latter may not happen in 2017,

economy is the potential political shifts in the

but could still be a danger further into the

key countries of Germany, France, the Neth-

future,” says Rene Schob, tax partner at KPMG,

erlands and Italy, where important votes have

and head of the German Desk. In his opinion,

recently taken place or where elections will

in order to mitigate these effects, Romania

come in 2017. Those shifts will also influence

should focus more on the development of the

the EU economy. In addition, the refugee crisis

domestic market by closing the infrastructure

continues, with adequate solutions not yet

gap with other countries, and facilitating key

in place, potentially creating further political

local industry growth stimuli by focusing on

problems. Another challenge will certainly be the European Central

domestic demand and consumption.

Bank’s monetary policy. Quantitative easing may have reached its limits and we have already seen a first move away from it by the US.

ROMANIA CAN STILL FLOURISH

The EU, one of the institutions that will play a key role in Ro-

Schob of KPMG says that Romania still has huge potential in

mania’s development in the future, will need to drastically change

various sectors and names agriculture and the related production

in the coming years. From an economic perspective, Romania is

of semi-finished or finished products, where efficiency and quality

strongly anchored in the European sphere, as the majority of its

improvements would help a lot, among them. “Also, in the tourism

foreign investors and commercial partners come from the region.

sector, there is big, still dormant, potential. Furthermore, innovative

In addition, it is likely that a potential reconfiguration of the commercial relations between the US, Europe and Asia would have a negative impact on the local economy. “All we can do is ensure that, at least internally, we take all the necessary measures to put the

approaches in healthcare and energy could fuel both growth and wellbeing for Romanians,” adds Schob. Pascu of Roland Berger shares this opinion, noting that Romania has substantial capacity to adapt to different economic situations.

local economy on a solid basis in order to keep

“This could be a significant opportunity in

it competitive in a more and more difficult in-

times of profound economic reshaping, but

ternational context. Meanwhile, Romania can

only if we manage to translate this advantage

capitalize on advantages which we shouldn’t

into valid economic models that can contrib-

neglect, such as the high level of adaptation of

ute to an increase in competitiveness. We now

the local economy, an increasing entrepreneur-

have the chance to find increased support and

ial spirit and the high skill level of Romanians

flexibility from the EU in the current context,”

with international expertise,” says Pascu.

he says.

In his opinion, the real progress that Roma-

However, Pascu warns that it is important

nia has made in the past few years has placed it

for Romania to develop its capacity internally

in a position to better face current challenges.

in order to create comprehensive economic

“The local economy is stable – with the highest

programs and develop coherent investment

growth rate in the EU – public debt is at a low

programs that address critical development

level (less than half of the EU average), the

needs, like infrastructure, education and the

country rating has improved and Romania has

healthcare system. “In addition, we have the

jumped in international rankings (it was ranked 36th in the last Do-

advantage of maintaining interest rates at a low level, which could

ing Business report compared with 73rd in 2014),” adds Pascu.

contribute to the financing of investment projects if they prove they

However, despite these major steps towards stable development, it may not be enough for Romania to ensure long-term sustainable

are able to create added value.” He adds that institutional investors, who are interested in attrac-

growth. Bureaucracy represents a significant brake on investments,

tive yields, are refocusing some of their activities towards emerging

the transportation infrastructure is still poor, the education system

markets. “Romania has the opportunity to attract funds for new

does not meet the demands of the private sector and the public sec-

development programs to which some of the Romanians who have

tor is still oversized.

built their careers or undertaken studies in Europe or North America

Based on the structure of industries in Romania, the current

in recent years can contribute. In the new context generated by the

international challenges will affect the country, since it is still highly

changes of attitude at a global level and the increased opportunities

dependent on the main European economies to perform well,

for development, coming back to Romania becomes a more attrac-

pundits say. “The biggest threat may be the end of the quantitative

tive idea. We’re speaking about well-trained professionals with a

easing cycle, since this has a direct impact on the markets in which

stronger entrepreneurial spirit who can bring an added value to our

most of the main Romanian investors operate.

economy if they are used to their real value,” says Pascu.


www.business-review.eu Business Review | February 2017

12 COVER STORY

2017 rings in more political instability in Europe With the EU in crisis-fighting mode, the big question for the European economy in 2017 seems to be how much will populist politics put pressure on an already tepid economic outlook.

I

By Simona Bazavan

nvestors are

tatives. There is

heading into

also the matter of

2017 with

Brexit shaping up

their eyes wide

as well as several

open as a string

developments out-

of elections this

side the continent

year are feared to

which could have

act as flashpoints

spillover effects

that could ignite

on European

brewing political

countries, such

discontent across

as US-Russian

the continent.

and US-Chinese

Europe’s po-

relations under the

litical landscape is

Trump administra-

changing, and not

tion.

for the better. The continent is struggling with the rise

A BUMPY RIDE AHEAD

of populism, while

France is getting

at the same time

ready for presi-

the idea of Euro-

dential elections

pean integration is

this spring while

losing its popular

Germany will hold

appeal, recent

federal elections

events suggest.

come fall. The first

All this has

to deal with will be

investors worried.

the Dutch general

“European equi-

elections in March.

ties could have a

Leading in polls at

strong year if the

the end of Decem-

anti-euro populist candidates that have gained traction over 2016

ber was controversial Dutch politician Geert Wilders who has vowed

fail to win elections, as polling suggests. But if populist candidates

that should his far-right Party for Freedom (PVV) win, he will take

triumph in coming votes, the prospect of a Eurozone breakup could

the country out of the EU. Wilders, who was found guilty in Decem-

return to markets,” wrote the Wall Street Journal.

ber of inciting discrimination at a rally where he called for “fewer

The Eurozone could hold half a dozen elections in total in 2017, according to PwC. The most important are those in Germany, France and the Netherlands, but there is also a chance for Italy and Greece

Moroccans”, has used the event to portray himself as a defender of free speech and a victim of political correctness. Moving south to France, the country’s “saving grace” – as Time

to join their ranks. All in all this means that countries that account

magazine puts it – is its two-round presidential system, which, if

for about 70 percent of the Eurozone’s GDP could experience dis-

the polls are reliable, should mean that the Front National’s Marine

ruption to their normal political cycle in 2017, warn PwC represen-

Le Pen, a candidate with an outspoken anti-immigrant and anti-


www.business-review.eu Business Review | February 2017

INTERVIEW 13

EU stance, is defeated in the second round. December polls show

are also the concerns inherited from the previous year in the form

her losing ground after Francois Fillon emerged as the Republi-

of the prospect of Brexit and a Donald Trump presidency.

can candidate against the more moderate Alain Juppe. However, “anyone who thinks that Fillon’s success clears the ground for a resounding defeat of far-right ideas in France’s 2017 presidential race should think again,” warns Natalie

The biggest unknown by far this year is whether Trump will remain true to his campaign promise to “get tough” on US trading partners and how that might impact the global and European economies. Analysts’ views on whether

Nougayrede of The Guardian. Fillon’s discourse

this was only campaign rhetoric or it will actually

focuses on “economic sacrifice, major changes

happen are divided. However, the nomination

in the French workplace and a crackdown on

of economist Peter Navarro – the author of

immigration and Islam” according to the New

books such as Death By China, The Com-

York Times. Described as a “Thatcherite”,

ing China Wars, and Crouching Tiger: What

the Republican Party’s candidate is widely

China’s Militarism Means for the Rest of the

expected to be one of the two finalists in the

World – to lead the newly-created National

general election in the spring. Back in Germany, Angela Merkel is hotly tipped to secure a fourth term as chancellor following federal elections in autumn; however, the road will be bumpy. To put it in the chancellor’s own words, “this

Trade Council may hint at troubles ahead. Economists are also split on what the impact of a more aggressive anti-China trade policy might be and which of the two countries stands to lose more in the process. “What happens if the protectionist-in-chief

election will be difficult, like no other election since reunification”.

goes ahead and does it, as I suspect he will? Claims that there would

Merkel has seen her popularity dented over the past year. Her

be huge net job losses are extremely dubious. But what would hap-

open-door policy to refugees has come under constant fire, most

pen would be a global trade war, which would disrupt the existing

recently this December following the Berlin terrorist attack. Popular

economic structure, which is built on elaborate international supply

discontent with how the

chains. In the long run,

authorities handled the

a new structure with

arrival of around a million

shorter chains would be

refugees and immigrants

built. But in the mean-

in 2015 has bolstered the

time, some industries,

popularity of right-wing,

some factories, would

anti-immigrant and Eu-

end up becoming sud-

rosceptic party Alterna-

den losers — in the US

tive for Germany, which

as well as in developing

did surprisingly well in

countries,” predicts Paul

Germany’s state and local

Krugman in his New York

elections last year.

Times column.

With such populism on

However, a protection-

the rise throughout the

ist turn that reversed the

continent and euroscep-

trade growth so far would

tics more emboldened

generate the same kind of

than ever, her reelection

“disruptive shifts in pro-

would be a welcome sign

duction that fed blue-col-

of stability. Given that in

lar anger going into this

her 11 years on the job,

election,” adds the Nobel

Merkel has put her per-

Prize-winning economist.

sonal stamp on European

“It’s like the old joke

politics and economics,

about the motorist who

and she is widely regarded

runs over a pedestrian,

as the EU’s de facto leader,

then tries to undo the

her reelection would also ensure a much needed voice advocating for a unified EU.

damage by backing up — and runs over the victim a second time. That is, I’d argue, the way to think about the coming Trump shock,” he goes on.

THE GREAT TRUMP UNKNOWN

Should Trump decide on a full blown trade war with China,

Not only does the EU have to deal with the uncertainty brought

he might just be able to rebalance the US trade balance before the

about by elections in some of its main economies in 2017, but there

World Trade Organization rules against him, speculates another


14 COVER STORY

Nobel Prize-winning economist, Joseph Stiglitz, in The Guardian. China is more dependent on exports to the US than the US is on exports to China, which gives the US an advantage, but a trade war is not a zero-sum game, warns Stiglitz. China may be in a better position to retaliate by causing the US acute political pain, he argues. “It’s anybody’s guess who can stand the pain better. Will it be the US, where ordinary citizens have already suffered for so long, or China, which, despite troubled times, has managed to generate

www.business-review.eu Business Review | February 2017

OPINION

Codrut Pascu, senior partner & managing director, Roland Berger

Political forces will shape the economic landscape in 2017

growth in excess of 6 percent?” asks Stiglitz. But as the world’s largest economy leads the way into uncharted political waters in 2017 and beyond, attempting forecasts is a difficult task, besides his obvious conclusion that “the waters will almost certainly be choppy.” Beyond Trump’s relations with trade partners such as China and Mexico, the newly installed president could also have a hand in the European economy. According to Fortune magazine, Trump “may even play a role in the Eurozone drama, as he has indicated his willingness to quickly negotiate a trade deal with Britain, making the option of leaving the EU a more enticing ones for states that continue to be members”.

Immense social pressures resulting from major discrepancies in income distribution and systemic middle-class job losses in some regions (and industries) have given way to new political currents, increasingly popular, but still in search of a functional economic ideology. 2017 will

HOW TO BREXIT

therefore bring about major challenges for the global economy, result-

Back in Europe, Brexit is the great unknown European leaders will

ing from attempts to realign the status quo established within the last

have to deal with in 2017. After a narrow majority of British voters

decades and redefine business models for organizations worldwide.

voted to leave the EU in a referendum last June, British Prime Minister Theresa May has set March 31 as the deadline to formally serve notice to the EU of the UK’s decision to quit the bloc. The two sides are then supposed to have two years to negotiate a settlement on

First of all, the extent to which the Trump administration will succeed in putting in place the entirety (hard to believe) or just part of its economic agenda will set the stage on several fronts: global trade, relocation of production capacities, capital movements by large

how to manage the breakup. However, the lack of a clear blueprint

corporations facing fiscal changes, massive infrastructure development

for the process could make the negotiations drag on, even stretch-

programs and, maybe most importantly, potential realignments of

ing into the next decade, according to Bloomberg. That would obviously spell more uncertainty in the years to come which will put additional pressure on the markets.

global value chains by geographical criteria. Secondly, China is facing problems inherent to the development stage its economy has reached, currently in search of a new model to

In January, May finally brought some clarity by announcing a

sustain growth. A pivot towards domestic consumption will probably

12 point plan, outlining the country’s Brexit negotiating strategy.

accelerate, versus its historic focus on exports, and the country’s rela-

This confirmed that Britain will leave the single market in order to

tionship with the US will go through challenging times. This will have

regain full control of immigration. Her speech and hints at turn-

repercussions for the entire Asia-Pacific region, which has become an

ing the UK into a tax haven, should the EU drive a hard bargain,

export machine, geared towards China and the US, and which, together

prompted key figures in Brussels to say that the country was on

with China, has long been the growth engine of the global economy.

track for a “hard Brexit”. All in all, negotiations are expected to be

Last but not least, Europe will see elections in its key members, Ger-

tough, with Brexit Secretary David Davis having previously de-

many and France. Following Brexit and the Italian referendum in 2016,

scribed the talks as the most “complicated negotiation of all time.”

the European structure has been further weakened and is increasingly

So far, the Brexit vote has produced little of the doom and gloom

exposed to potential pressures due to elections in the two countries.

predicted by the “remain” campaign before the vote in June. The

The Eurozone remains fragile, threatened by economic challenges in

British economy grew by 0.6 percent in the three months after the

several countries: in Italy, the banking system is on the edge of a crisis

vote, the same as the previous quarter, but stronger than analysts’

and anti-Euro sentiments are spreading. An Italian exit from the Euro-

estimates of about 0.3 percent, according to the BBC. But experts point out that this is because the country is still an EU member, and

zone would be a further shock, too strong to bear. All of these challenges demand complex solutions and strong

the rupture from EU structures has yet to take effect. And worries

leadership. It is difficult to say, for example, whether the Eurozone can

are growing over prospects for 2017. “Growth will slow markedly

continue existing without undergoing structural transformations. But

in 2017, household incomes will be squeezed by higher inflation

given the current political context, further complicated by elections in

and businesses will hold back on investment decisions because of uncertainty about Brexit,” said the majority of economists in an annual Financial Times survey.

the European landscape, 2017 could very well turn out to be another year in waiting, as we risk not seeing the strong decisions needed on the global stage.


www.business-review.eu Business Review | February 2017

COVER STORY 15

Ruling coalition set to clash with President Iohannis on sensitive bills After last year’s general elections, which brought to power a new center-left government controlled by the Social Democratic Party (PSD) and Alliance of Liberals and Democrats (ALDE), the leaders of the two parties clashed with Romania’s president, Klaus Iohannis, as early as the start of January, due to controversial amendments proposed to the Penal Code.

T

By Ovidiu Posirca

he head of state has

constantly that Grindeanu’s

already questioned the

cabinet will base its activity on

government’s plans to

the government manifesto, a

increase the minimum wage

surprise draft bill popped up

by 16 percent to RON 1,450 and

overnight, which would grant

to cut taxes, while keeping the

pardons to around 2,500 jailed

budget deficit at sustainable

criminals. The measure was

levels.

not included in the manifesto that was made public.

Economists have also cast

Shortly after the draft

doubt on the government program, as it is based on an-

bill was put up for debate in

nual average GDP growth of 5.5

mid-January, members of the

percent in the next four years,

public took to the streets to

and the economy is already

express their anger, saying the

starting to slow down. The

move would give a “get out of

World Bank estimates that Romania’s GDP rose by 4.7 percent last year, a figure that is set to fall to 3.7 percent this year and gradually decrease through to 2019.

jail card” to the corrupt politicians currently behind bars. Romania’s anti-graft institution, the DNA, had already warned that the planned changes to the legal framework would limit prosecutors’ ability to investigate crimes of abuse in office.

POLITICAL CONFLICT REMAINS A RISK Although the business environment has welcomed the elimination of the extra fuel excise of 0.7 percent and the scrapping of the

Several NGOs warned that the approval of a pardon bill by government ordinance was incompatible with EU practice. Meanwhile, President Iohannis initiated procedures for a ref-

special construction tax, which were due to be rolled out at the start

erendum in which Romanians would be asked if they wanted the

of 2016, potential political conflict between the government and

anti-corruption campaign to continue or not. The PSD head also

President Iohannis is keeping them in risk-averse mode.

claimed that Parliament would launch two separate referendums.

Analyst Radu Magdin thinks that Romania might descend once

One would consult the public on a proposed change to the Constitu-

again into political fighting, depending on the opposition’s capacity

tion, defining marriage as the union between a man and a woman

to regroup and the government’s propensity to make mistakes.

(effectively banning same-sex marriage). The other would be on

“Secondly, the return to conflict mode all depends on the government’s ‘courage’ to enact quick change, according to its manifesto, and on the opposition it will face for the most controversial

immunity for politicians holding officials positions. Both referenda should take place this spring. As the British PM Theresa May announced that Europe should

of the proposed changes, namely the ones in the judicial field. Here

get ready for a “hard Brexit”, meaning that the UK would renegoti-

personalities come into play: one is Dragnea (Liviu Dragnea - e.n.),

ate all its ongoing relations with the European Union, and with the

the influential leader of the PSD, currently heading the Chamber

incoming US president, Donald Trump, taking a mixed approach

of Deputies; another is Grindeanu (Sorin Grindeanu - e.n.), as the

to globalization, Romania should make sure it can cope with the

official prime minister, possibly keen to show his own personality

potential risks.

and power to act; another is Iohannis,the best positioned from an

The Trump administration’s temptation to make a deal with

institutional point of view, to lead the opposition camp against the

Russia will also impact Romanian leaders’ positioning, both in the

PSD, with a view also to 2019 presidential elections and a possible

region and in Brussels: ironically, US-friendly Romania may con-

renewal of his mandate,” Magdin told BR.

sider Brussels more important than Washington, if DC ignores its

Despite the head of the Social Democrats, Dragnea, saying

strategic interests,” said Magdin.


www.business-review.eu Business Review | February 2017

16 DEALS OF THE YEAR

Local M&A market hops on mega-deals trend With the potential start of the United Kingdom’s exit from the European Union and Donald Trump assuming the presidency of the United States of America, the outlook for Romania’s mergers & acquisitions (M&A) market looks more uncertain in 2017, after climbing past EUR 3 billion in value last year. By Ovidiu Posirca In Romania, the market saw just over 100 transactions with a total value exceeding EUR 3.4 billion, an increase of 35 percent in volume and 25 percent in value, compared to the previous year, according to data from Deloitte Romania. “The current market level is even more impressive if we look back to see that between 2010 and 2013, the market was stable at around EUR 1 billion,” says Visa. He added that the sectors that saw ten or more transactions in 2016 included real estate, business & consumer services, telecom, media and technology, financial services, industrial goods and healthcare. “Another catalyst that fuelled the transactions market this year was the increased willingness of the banking community to finance acquisitions (pre-or-post deal),” Cornelia Bumbacea, partner, deals, at professional services firm PwC Romania, and Dragos AtaBogdan Vaduva, KPMG Romania

I

Florenta Birhala, EY Romania

nasiu, senior manager, deals, PwC Romania, told BR. Meanwhile, private equity funds have con-

n 2016, Romania registered a record

based Ursus and five other Eastern European

tinued to play a significant role in financing

number of deals worth over half a billion

beer brands from Anheuser-Busch InBev in a

and educating local companies in a structured

euros, according to Florin Visa, director,

EUR 7.3 billion move.

and robust corporate culture, according to

financial advisory, at professional services firm Deloitte Romania.

THE BIGGEST TRANSACTIONS LAST YEAR

Aside from the big deals, the market

Bogdan Vaduva, partner at professional ser-

recorded transactions with average values of

vices firm KPMG Romania, head of M&A and

EUR 30 - 40 million.

of energy and natural resources.

M&A consultants told BR that the Roma-

“Most of the private equity houses have or

He mentioned China Energy Company

nian M&A market has continued to expand,

are currently clearing their previous funds’

Limited’s acquisition of a 51 percent stake in

although the global figures point to a slow-

portfolio as they have exceeded their normal

KMG International Romania and Mid Europa

down in deal making.

investment timeline and return yields. But

Partners’ purchase of retail chain Profi from

According to preliminary data by Thomson

they are also raising additional funds with a

Enterprise Investors for EUR 533 million. The

Reuters, the global M&A volume fell by 17

clear focus on Romania, encouraged by the

Deloitte director included in the mega-deals

percent to USD 3.6 trillion in 2016 vs 2015’s

positive economic outlook and the fact that

category Asahi’s decision to buy Romanian-

record.

companies are getting the right investment


www.business-review.eu Business Review | February 2017

DEALS OF THE YEAR 17 of a commercial war with China, will likely discourage M&A activity all over the world. Furthermore, an anti-EU result in the upcoming French elections might raise a question over the future of the EU and discourage investments in Romania and the countries in the east of the EU,” he added.

SECTORS DRIVING ROMANIA’S DEAL MAKING THIS YEAR The M&A consultants agree that there are still target companies with high potential in Romania and the country’s good economic prospects will convince more investors to make a move. Cornelia Bumbacea, PwC Romania

Florin Visa, Deloitte Romania

The sectors that will generate deals this year are IT, consumer goods, financial services, real estate, manufacturing and medical

scale,” Vaduva told BR.

sold its 7.75 percent holding in the healthcare

services, because these industries have con-

firm.

firmed good returns and still offer potential

Visa of Deloitte Romania added that the

for further consolidation and expansion,

M&A MARKET SET TO REMAIN IN GROWTH MODE

local M&A market’s growth trend is more

More companies founded by Romanians could

resistant to domestic shocks, citing the coun-

be part of transactions this year, contributing

try’s macro-economic stability and the fact

and industry as popular sectors for transac-

to the overall growth of the M&A market, sug-

that Romania’s GDP has grown by more than 3

tions in 2017.

gested the consultants working on deals.

percent in the last four years.

suggested Birhala of EY Romania. Vaduva of KPMG Romania also sees energy

“The total M&A market value on the other

“The domestic risks are rather that con-

hand will be influenced by how many mega-

increasing interest, particularly among locally

sumption will be over-stimulated in the next

transactions we’ll see, but I would not be sur-

based companies, in the next year (2017 e.n.),

two years and an economic bubble will inflate

prised to see double-digit growth again,” said

as a result of the significant number of local

and burst sometime in 2018 or beyond,” said

Visa of Deloitte Romania, who also mentioned

players wishing to explore the value that has

the director.

telecom, media and technology, and construc-

“We would not be surprised to observe an

tion as additional sectors with potential this

been built up over the years, by selling their

year.

companies. Additionally, we believe the en-

THE BREXIT AND TRUMP EFFECTS

hanced medium-term stability brought by De-

With Romania becoming even more integrat-

cember’s elections, coupled with Romania’s

ed in the global economic system, major po-

CMS Cameron McKenna, medium and large

steps towards developing major infrastructure

litical shifts that impact corporate behemoths

companies will most likely be more inclined

projects, which have been insufficiently ex-

ultimately have an effect locally in terms of

to be involved in M&A operations this year.

ploited until now, will constitute strong con-

appetite for transactions.

tributing factors in raising investors’ interest

In the case of Brexit, Vaduva of KPMG

in the Romanian market,” commented Vaduva

Romania says the impact on the local M&A

of KPMG Romania.

market has been rather limited so far, and

This year we should also expect to see

there are still British firms looking to invest in

more private and state-owned companies

Romania. He said that stakeholders will have a

listed on the stock exchange, according to

clearer view once the British authorities pres-

Florenta Birhala, M&A manager, transaction

ent the terms of withdrawal from the EU.

advisory services, at professional services firm EY Romania. At the end of last year, private health-

Meanwhile, Visa of Deloitte Romania

USD

3.6

trillion

the value of the global M&A market in 2016, according to preliminary data from Thomson Reuters

says that the world seems to have come to terms with Brexit and Donald Trump as US

care services firm MedLife was listed on the

president, but further election surprises and

Bucharest Stock Exchange. The company

populist anti-globalization measures might

raised EUR 50.8 million from the sale of a 44

occur in 2017.

percent stake that marked the exit of private

According to representatives of law firm

“Events in the UK are not expected to in-

equity fund V4C from MedLife. The fund sold

fluence Romania significantly, but the actions

its 36.25 percent stake, while the IFC partially

of the United States, including the ignition

EUR

3.4

billion

the value of the Romanian M&A market in 2016, according to Deloitte Romania estimates


www.business-review.eu Business Review | February 2017

18 INTERVIEW

Local M&A market loses its luster in 2016 Silviu Stoica, partner at Popovici Nitu Stoica & Asociatii, outlines the current state of the local M&A market to Business Review, describes its main trends and features and shares his projections for 2017. By Anda Sebesi How did the Romanian M&A market evolve in 2016?

sector in South Eastern Europe (SEE) and

The first nine months of 2016 saw M&A activ-

Romania was ranked fifth in the first half of

ity in Romania fall against the same period

2016, with a total of 56 M&A deals.

of 2015. This slowdown basically mirrors the

ABOUT Silviu Stoica, partner at Popovici Nitu Stoica & Asociatii Silviu Stoica focuses on a range of contentious and non-contentious competition matters, with an emphasis on cartel investigations and sector inquiries, abuses of dominant position and antitrust disputes. He holds a degree in Law from the University of Bucharest and is member of the Bucharest Bar and Romanian Bar Association.

one of the most active M&A markets in 2015,

Therefore, M&A activity in Romania

real issue at European level. So, the label for CEE in 2016 was prudence

prevailing trend in the regional M&A market

during 2016 was less intense than expected.

mixed with uncertainty, yet to a lower degree

for the same period. M&A specialists’ projec-

Although the local M&A sector experienced

than in previous years. Although lots of M&A

tions at the end of 2015 and beginning of 2016

a slight slowdown in the past 12 months,

deals made it to the negotiating table, many

for the overall Central and Eastern European

mostly strategic but also financial investors

transactions stalled on the way and failed

(CEE) M&A market were quite optimistic,

are keeping a close eye on Romania as it of-

to reach completion, as buyers and sellers

perhaps fueled by 2015, a record-breaking

fers quality projects and attractive opportu-

were more reluctant to accept compromises.

year in the M&A sector.

nities.

The money is there, but expectations for substantially “good” projects are also high.

But the enthusiasm boost about the M&A sector gradually began to lose its “aura” after the first half of 2016, as the number and

What were the main features of the local M&A market last year?

value of deals failed to meet expectations.

The best words to describe the general

Numbers indicate that the Romanian market

feeling around doing M&A in CEE would be

Compared to 2015, the Romanian M&A sector posted an undeniable drop in 2016. In 2016, many expected the implementation of major initial public offerings (IPOs)

decreased by almost 50

prudence and uncertainty. Players

for several strategic state-owned compa-

percent from ap-

took quite a prudent approach

nies, such as the biggest Romanian airport

proximately USD

when it came to selling and also

(Otopeni Airport) and the most important Ro-

2.1 billion in H1

buying. And Romania was no

manian port (Constanta), announced by the

2015 to some

exception to this rule.

government since 2015. Perhaps this type of

USD 1.1 billion in H1 2016, as reported in the E&Y M&A Barometer. From a leadership role in the M&A

Political and economic events at both global and regional levels shape M&A activity as they influence the appetite of investors and

deal will take place, or at least be initiated, in 2017, as this would refuel the engines of the M&A sector and resume the growth tendency of the local M&A market.

sellers. 2016 brought quite shocking events: worth mentioning are happened against all odds, and the

What were the main sectors that attracted the most M&A transactions in Romania?

continuous tensions between Rus-

As predicted by M&A specialists in 2015, the

the highly unlikely Brexit vote that

sia and Western countries, including the unrest in

leading economic sector in the local M&A market 2016 seems to have been manufactur-

Ukraine. And, of

ing. Financial services and IT&C, retail and

course, there is

real estate follow closely. Glancing at transac-

also the ongoing

tions by economic sector, the Romanian

debate around

M&A market also saw deals in various other

“migrants” that

areas, such as banking and agribusiness. This

turned into a

local picture mirrors the sectors’ allocation


www.business-review.eu Business Review | February 2017

INTERVIEW 19

Looking at the investor profiles, the ma-

should be more active this year as Roma-

number of deals, manufacturing registered

jority of deals in Romania can be attributed

nia still has a lot to offer in terms of great

343 transactions while IT&C was second with

to strategic investors, as financial investors

investment opportunities and “must-have”

a total of 298 deals.

were not that active. An investor population

businesses in various sectors.

at regional level in 2015, when, in terms of

snapshot at regional level confirms the local

Many negotiations and due diligence

past 12 months mainly due to the new 20

picture: more than 75% of the M&A deals in

processes initiated last year are ongoing

percent VAT rate, and the upward trend will

Central and Southeast Europe were closed by

and expected to be finished in the first

most likely be maintained in 2017. This will

strategic investors.

half of 2017. The players on the local M&A

The retail market in Romania grew in the

positively influence the transactional area as

Private equity players became more active

market will probably be busier than in the

we cannot exclude some movements for the

and interested as potential buyers. They are

past two years, as Romania still offers a lot

hypermarkets with big players scrutinizing

mainly looking for good opportunities to

of “too-good-to-refuse” investment op-

potential opportunities.

invest in both new and “familiar” industries.

portunities. Potential investors should also

The most talked about deal in 2016 was

Their appetite for placing their money in

consider important factors that contribute

probably the acquisition of the hypermarket

businesses that are new to their existing

to making Romania a welcoming business

chain Profi by Mid Europa Partners invest-

portfolios comes second. Private equity in-

environment: the investment-friendly tax

ment fund. Another big deal closed before

vestors’ first and basically natural approach

regime, regulatory and legal framework,

the end of 2016 was the acquisition of the

is to try to consolidate the businesses they

good macroeconomic indices, and economic

top Romanian dairy producer Albalact by

are already accustomed to and know better

development.

Lactalis, a French group active at global level

how to develop.

in the same industry. Another notable deal

As in previous years, various private

at local level was the sale of McDonald’s

equity funds with investments across the

How did the CEE M&A market evolve last year?

operations in Romania. The sum paid for the

region have their hands full with exits from

A still fragmented regional M&A market

McDonald’s franchise in Romania amounted

already mature investments. Business own-

managed to bring here mostly strategic but

to more than USD 65 million.

ers and entrepreneurs acting as sellers tend

also financial investors. Private equity inves-

to have a more reasonable attitude

What types of deals took place last year on the Romanian market?

tors maintained a quite enthu-

when negotiating. They have

siastic interest in the CEE

changed their approach

M&A landscape, searching

and expectations in

for opportunities to put

terms of valua-

their money to work.

tion indices for

However, contrary to

In 2016, inves-

their businesses,

specialists’ expecta-

tors and busi-

allowing them to

tions, the overall M&A

be present on the

rhythm slowed down in

ness owners met at the negotiating

market and be seen

table but the atti-

by investors as a realistic

tude was more reserved than in 2015 as they became

2016 in the region, both in terms of value and number

partner for discussions. Investors can confirm that the banking

of deals. As in recent years, investors gener-

cautious, so negotiations lasted longer than

sector in Romania supports M&A activity

ally continued to “redirect” their money

initially predicted. This also influenced to a

with banks and financial institutions that

towards CEE, still looking at Russia’s M&A

certain extent the overall “closing rate” of

show an uncontested will to become busi-

offer rather reluctantly. CEE economies are

M&A deals.

ness partners, particularly for investors.

still in the recovery phase and have become

And, at the same time, the steady recovery of

more and more appealing to the investor

as it offers a full spectrum of deals in so

the overall banking sector continues, which

population in general, as they promise quite

many economic sectors. And the businesses

proves again that Romania has the prereq-

interesting businesses at tempting prices

put on the table meet the essential criteria of

uisites for being seen as a healthy business

with prospects of high returns to investors’

the investors, the most important one being

environment.

satisfaction. that amongst the preferred industries for

potential targets is the quality of the busi-

How do you expect the local M&A market to perform in 2017?

ness. And businesses in Romania display this

Prospects are encouraging for the Romanian

services, and IT. These sectors stand out in

“must-have” as Romanian entrepreneurs

M&A market in the 12 months ahead. After

terms of the number of deals, but the overall

have understood this necessity and are aim-

a quite calm 2016 in terms of transactions,

value of M&A deals in the region was below

ing to improve their businesses at all levels.

with no megadeals, vendors and investors

the 2015 results.

Romania has a very dynamic M&A market

Investors’ behavior in 2016 showed

the potential for healthy, sustainable growth. Another quality investors seek in their

investing their money were manufacturing,


www.business-review.eu Business Review | February 2017

20 DEALS OF THE YEAR

consolidated its business profile in Central European markets.

Lactalis acquires Albalact Value of transaction: EUR 75 million

Legal team buyer: Leroy & Asociatii, EY Romania Legal team seller: Schoenherr Description: French group Lactalis took over Romanian dairy producer Albalact, which is listed on the Bucharest Stock Exchange. Albalact is the largest company in Romania’s dairy industry, with an annual turnover of

Chance (legal), PwC (commercial), EY (finan-

more than EUR 100 million. The company has

cial and tax)

Asahi/AB acquires InBev

a market capitalization of EUR 50 million.

Description: The transaction required a

Legal team buyer: RTPR Allen & Overy

Lactalis buys Covalact

completion, including intergroup restructur-

Value of transaction: N/A

ing, repayment and refinancing. According

Hogan Lovells, EY Romania (financial)

Legal team buyer: Leroy & Asociatii, EY Roma-

to Mergermarket, the sale of Smyk was the

Description: RTPR Allen & Overy advised

nia (financial)

largest private equity transaction in the first

Japanese group Asahi Group Holdings, Ltd. on

Legal team seller: Schoenherr

quarter of 2016 in CEE (excluding Russia).

the acquisition of Ursus Brewery, one of the

Description: Investment fund SigmaBleyzer

largest beer producers in Romania, in a trans-

sold dairy producer Covalact to French group

action in which Asahi acquired five former

Lactalis, one of the largest dairy producers

SABMiller businesses in Central and Eastern

in the world. Covalact has annual sales of

Europe. This was the largest M&A transaction

around EUR 45 million. The company oper-

Legal team buyer: RTPR Allen & Overy for 3TS

in CEE in 2016.

ates two dairy processing plants in Romania

Catalyst Romania

FOOD & BEVERAGES

number of specific carve-out actions prior to

Value of transaction: EUR 7.3 billion Legal team seller: Suciu Popa, Freshfields,

3TS Catalyst and Gecad Group buy stakes in SmartBill Value of transaction: EUR 1 million

with over 350 employees, and has a local

Legal team seller: DLA Piper Romania

Premier Capital buys McDonald’s Romania

market share of approximately 5 percent.

Description: Private equity and venture capital

SigmaBleyzer, the investment fund exiting

fund 3TS Catalyst Romania took over a 25

Value of transaction: EUR 65 million

Covalact, manages assets worth some EUR 1

percent stake in SmartBill, a local provider of

Legal team buyer: Musat si Asociatii, Potter

billion, located mostly in Eastern European

invoicing software. Gecad Group, founded by

Anderson & Corroon LLP, Tuca, Zbarcea &

countries such as Romania and Ukraine.

Radu Georgescu, took over a 7 percent stake for EUR 229,771. The founders of the company

Asociatii, Deloitte (financial) Legal team seller: Tuca, Zbarcea & Asociatii Legal advice to creditor: Clifford Chance Badea Description: Maltese Premier Capital took over

Food Union takes over Alpin 57 Lux Value of transaction: EUR 20 million

the local operations of American restaurant

Legal team buyer: KPMG Advisory (financial)

chain McDonald’s. The deal included 67 res-

Legal team seller: N/A

taurants, 19 coffee shops and the company’s

Description: Romanian entrepreneur Ioan

whole franchise in Romania.

Istrate, the founder of Alpin 57 Lux, signed a

will use the additional funds to support the development of the company, which has more than 33,000 users.

MedLife sells 44 percent stake in IPO on BVB Value of transaction: EUR 50.8 million

joint-venture association with Food Union of

Legal team: Schoenherr (MedLife), NNDKP

Orkla takes over Hame

Latvia, whose portfolio includes dairy and ice

(V4C Eastern Europe Holding V Limited),

Value of transaction: N/A

cream products. In 2015, the manufacturer

Leroy & Asociatii (International Finance Cor-

Legal team buyer: DLA Piper Romania, Novalia

had a EUR 20 million turnover while in 2014 it

poration), RTPR Allen & Overy (managers)

(Czech Republic), Randa Havel Legal (Czech

posted a profit of RON 5.5 million.

Description: Romanian private healthcare services provider MedLife was listed on the

Republic) Legal team seller: CMS Cameron McKenna Romania

PRIVATE EQUITY

Bucharest Stock Exchange (BVB) after the company was able to sell a 44 percent stake to

Empik Media & Fashion sells Smyk Group to Bridgepoint

retail and institutional investors in an initial

Value of transaction: EUR 247 million

exit of private equity fund V4C from MedLife.

Slovakia, with a strong position in Romania,

Legal team buyer: Weil, PwC (financial)

The fund sold its 36.25 percent stake, while

Hungary and Russia. Following the deal, Orkla

Legal team seller: JP Morgan (M&A), Clifford

the IFC partially sold its 7.75 percent holding

Description: Orkla, a top international FMCG player, took over Hame, a leading branded food company in the Czech Republic and

public offering (IPO). The offering marked the


www.business-review.eu Business Review | February 2017

DEALS OF THE YEAR 21 Description: Enterprise Investors sold Profi

retailer in Romania, from the Constantinescu

supermarket chain to Mid Europa Partners, in

family and Balkan Accession Fund, a private

Wirecard AG takes over Provus Group from Innova Capital

the largest deal ever completed by a private

equity fund advised by Axxess Capital.

Value of transaction: EUR 32 million

in the retail sector in the country’s history.

Legal team buyer: N/A

This was also one of the largest M&A transac-

Legal team seller: Clifford Chance Badea

tions in Romania in 2016.

in MedLife.

equity fund in Romania and the largest deal

Description: Innova Capital sold Provus, a

Catalysts Romania invests in Marketizator Friends Value of transaction: N/A

Legal team buyer: RTPR Allen & Overy

Global Finance sells Total Soft

Legal team seller: Ionescu & Sava

Value of transaction: N/A

Description: RTPR Allen & Overy advised

AG. Clifford Chance advised Innova Capital

Legal team buyer: Eversheds Lina & Guia and

Catalyst Romania, the private equity fund

on the 2011 acquisition of Provus, which

Kolcuoglu Demirkan Kocakli

advised by 3TS Capital Partners, in relation to

entailed the acquisition of Romcard and

Legal team seller: RTPR Allen & Overy

an investment in Marketizator Friends (which

Supercard Solutions & Services, two Roma-

Description: Global Finance, the South

provides online businesses with conversion

nian subsidiaries. Provus operates Romania’s

Eastern European Fund, sold Total Soft, the

rate optimization services, surveys, traffic

largest processing center and is among the

biggest ERP producer in Central Europe,

segmentation and web personalisation).

leading providers of outsourcing solutions in

to Turkish company Logo Yazilim, which

Eastern Europe.

is owned by the Mediterra Capital Partners

leading Romanian payment processing and technological service provider, to Wirecard

private equity fund.

Oresa Ventures takes over La Fantana from Innova Capital

Value of transaction: N/A

Catalyst Romania invests in SmartDreamers

Technology in Central and Eastern Europe to buy out Internet Corp Value of transaction: N/A

Legal team buyer: RTPR Allen & Overy

Value of transaction: N/A

Legal team seller: N/A

ciatii (for Cristian Amza) and David & Baias

Legal team buyer: RTPR Allen & Overy

Description: Technology in Central and East-

(for Oresa Ventures)

Legal team seller: Eversheds Lina & Guia

ern Europe, the private equity fund advised by

Legal team seller: Clifford Chance Badea

Description: Catalyst Romania, the private

3TS Capital Partners, bought out two share-

Description: Innova Capital sold La Fantana,

equity fund managed by 3TS Capital Partners,

holders of Internet Corp (currently one of the

the leading provider of water coolers and

made investments in SmartDreamers, a well-

biggest players on the online publishing mar-

coffee machines, back to its previous owners

known online recruitment platform.

ket, which owns several well-known websites

Legal team buyer: Popovici Nitu Stoica & Aso-

such as wall-street.ro, 9am.ro, start-up.ro).

– private equity fund Oresa Ventures. La Fantana is a provider of spring water for offices in Romania and Serbia, and coffee machines in Romania.

Axxess Capital buys share package in Elefant Online Value of transaction: EUR 5.5 million (according to media sources)

Enterprise Investors sells Smartree Romania Value of transaction: N/A

Abris Capital Partners takes over Green Group

Legal team buyer: Tuca Zbarcea & Asociatii

Legal team buyer: N/A

and sole practitioner Gabriela Assoum Pre-

Legal team seller: RTPR Allen & Overy

Value of transaction: N/A

descu

Description: Enterprise Investors sold Smartree

Legal team buyer: Clifford Chance Badea

Legal team seller: RTPR Allen & Overy

Romania, a notable player on the market of

Legal team seller: N/A

Description: RTPR Allen & Overy advised Ele-

outsourcing payroll and personnel administra-

Description: The private equity fund Abris

fant Online and its shareholders, Millennium

tion process services.

Capital Partners bought the Romanian

Gold Resources and the Catalyst Romania

waste-management business Green Group,

private equity fund, on an investment in

the fund’s fourth major investment in the

Elefant Online by the Emerging Europe Ac-

country.

cession Fund, advised by Axxess Capital, and

The acquisition expands Abris’s local port-

a supplementary investment from minority

folio, which also includes Urgent Cargus and

shareholder Catalyst Romania.

PehartTec – the leading tissue paper producer

REAL ESTATE

NEPI merges with Rockcastle Value of transaction: N/A

Legal team for NEPI: Clifford Chance Badea Legal team for Rockcastle: Dentons

Enterprise Investors buys Noriel

Description: The South African investment

Value of transaction: EUR 24 million

(NEPI), the largest real estate investor in

Enterprise Investors sells Profi

Legal team buyer: RTPR Allen & Overy

Romania by assets, announced a framework

Value of transaction: EUR 533 million

Legal team seller: Reff & Associates

agreement to merge its business with South

Legal team buyer: Bondoc & Asociatii

Description: Enterprise Investors acquired

African fund Rockcastle, of similar size and

Legal team seller: RTPR Allen & Overy

the Noriel group, the largest toys and games

activity in Poland.

in Romania and the largest independent business of its type in the CEE region.

fund New Europe Property Investments


www.business-review.eu Business Review | February 2017

22 DEALS OF THE YEAR

Description: RI Property SPV 1 sold Scoala

Piper and Reckitt Benckiser.

Herastrau Business Center, an office building in Bucharest, to Romanian investment company Egrom Invest Fund. The building comprises a total leasable area of 3,500 sqm

NEPI buys plot of land from Belrom

Value of transaction: EUR 10 million (market

on the ground and five upper levels arranged

estimate)

on regular, rectangular shaped floor plates of

Legal team buyer: Reff & Associates

approximately 700 sqm.

Legal team seller: Voicu & Filipescu Description: South Africa-based New Europe

GIC buys P3 from TPG Real Estate and Ivanhoe Cambridge

Property Investments (NEPI) took over 12

Value of transaction: EUR 2.4 billion

cording to media reports, NEPI could build a

Legal team buyer: Dentons

new retail park in the area.

The resulting new entity will be the largest

Legal team seller: N/A

CEE retail real estate company, and one of the

Description: GIC, Singapore’s sovereign wealth

top such entities in continental Europe.

fund, completed the purchase of P3, one of the main pan-European owners, developers

hectares in Ramnicu Valcea from Belrom. Ac-

NEPI buys Sibiu Shopping Center from Argo Group Value of transaction: EUR 100 million

Smartown Investments buys insolvent Swan Office Park

and managers of logistics properties, from

Legal team buyer: Reff & Associates, EY Roma-

TPG Real Estate and Ivanhoe Cambridge. In

nia (financial)

Value of transaction: EUR 30.3 million

Romania, P3 owns logistics park P3 Bucha-

Legal team seller: PeliFilip

Legal team buyer: Wolf Theiss Rechtsanwälte

rest, which was taken over from Immobilien

Description: NEPI bought Sibiu Shopping Cen-

GmbH & Co KG

Anlagen AG in early 2015. The park, which is

ter from investment company Argo Group.

Legal team seller: CITR

the biggest in Romania, has 11 buildings and

Shopping City Sibiu has a leasable area of

Description: The insolvent office project Swan

covers 305,000 sqm. All in all, P3’s asset base

79,000 sqm. The center was opened in 2006

Office & Technology Park was sold by Casa

comprises 163 warehouses with an average

and was later expanded.

de Insolventa Transilvania, the insolvency

age of 8.4 years, totaling 3.3 million sqm

administrator for the real estate project. The

across nine countries

final sale price was around 50 percent above the price approved by creditor.

Growthpoint Properties buys 26.8 percent stake in Globalworth Real Estate Investments

Global Finance sells Automatica/former Ford factories

Samsic buys controlling stakes in three Real Estate Service Group companies Value of transaction: EUR 5 million (market

Value of transaction: N/A

sources)

Legal team buyer: Popovici Nitu Stoica &

Legal team buyer: Schoenherr and in-house

Asociatii

Samsic France

Value of transaction: EUR 186.4 million

Legal team seller: Bondoc si Asociatii

Legal team seller: Reff & Associates

Legal team buyer: Wolf Theiss Rechtsanwälte

Description: Global Finance, through its real

Description: French player Samsic took over

GmbH & Co KG (local counsel)

estate division, sold the land of Automatica/

80 percent of three companies belonging

Simmons & Simmons (UK counsel)

former Ford factories in Calea Floreasca (Bu-

to the Real Estate Service Group (RESG).

Legal team seller: N/A

charest) to Auchan, One United (a company

The group is controlled by Dutchman Ben

Description: Globalworth Real Estate Invest-

specialized in luxury residential projects) and

Martens. The three companies provide land-

ments issued shares in a bid to raise EUR 200

a company specialized in office buildings.

scaping, cleaning and building management

million. The investment will support Glo-

The three investors intend to develop a mixed

services.

balworth’s development projects and could

project on the former platform.

fuel new acquisitions in Romania and across the broader Central and South East Europe regions. The transaction will also allow Growthpoint to grow its investment position

PPF Real Estate buys Metropolis Center Office

GTC Group buys two office buildings in Bucharest Value of transaction: N/A

Value of transaction: EUR 48 million

Legal team buyer: PeliFilip, EY Romania

Legal team buyer: KPMG Advisory (financial)

(financial)

Legal team seller: N/A

Legal team seller: Schoenherr

Business center sold to Egrom Invest Fund

Description: Czech investment fund PF Real

Description: Immigon portfolioabbau ag (for-

Estate, controlled by the richest man in the

merly Österreichische Volksbanken-Aktienge-

Value of transaction: N/A

Czech Republic, Petr Kellner, bought the

sellschaft) sold two modern A-class buildings

Legal team buyer: N/A

Metropolis Center office project in Bucharest.

in Bucharest to the local subsidiary of the

Legal team seller: Wolf Theiss Rechtsanwälte

Metropolis Center comprises office and retail

GTC Group. The transaction involved the sale

GmbH & Co KG SCA

spaces and its tenants include EBRD, DLA

of the buildings Premium Plaza and Premium

in the region.


www.business-review.eu Business Review | February 2017

DEALS OF THE YEAR 23

Point, in central Bucharest. The buildings

pean energy group, carried out a crossborder

ment rental and leasing company, to TVH, a

have a total leasable area of 15,000 sqm, and

restructuring of its operations, which included

Belgium company engaged in manufacturing

are considered to be among the top five office

the transfer of the Romanian business to a

forklift trucks, aerial platforms and industrial

buildings of their size in the city.

third party buyer.

in-plant vehicles.

NEPI buys 30 percent stake in Mega Mall from Real4You

PPG acquires DEUTEK from Axxess Capital

Legal team buyer: N/A

Legal team buyer: N/A

Legal team seller: N/A

Legal team seller: N/A

Description: South African investment fund

Description: American PPG reached an agree-

New Europe Property Investments (NEPI) took

ment with Emerging Europe Accession Fund

over a 30 percent stake in Mega Mall from Aus-

(EEAF) to acquire DEUTEK, a leading Roma-

trian development group Real4You. Following

nian paint and architectural coatings manu-

the deal, NEPI became the sole shareholder of

facturer. EEAF is owned by Axxess Capital.

the shopping center in Bucharest, which has a

DEUTEK recorded sales of EUR 30 million in

gross leasable area of 75,500 sqm.

2015.

Value of transaction: N/A

ENERGY

Allianz Capital Partners buys E.ON Distributie Romania

Value of transaction: EUR 270 million (accord-

Value of transaction: N/A

CONSTRUCTION MATERIALS

QuadraCir makes its exit from Alas Romania

Saint Gobain buys Pietta Glass Working Value of transaction: N/A

Legal team buyer: Zamfirescu Racoti & Partners, EY Romania (financial) Legal team seller: Popovici Nitu Stoica &

Legal team buyer: RTPR Allen & Overy

Value of transaction: N/A Legal team buyer: Bulboaca & Asociatii

Legal team seller: Botezatu & Asociatii

Legal team seller: RTPR Allen & Overy

Description: French Group Saint-Gobain

Description: Allianz Capital Partners acquired

Description: QuadraCir, a holding company for

bought 100 percent of the shares of Pietta

30 percent of E.ON Distributie Romania, the

a variety of construction and related busi-

Glass Working from Valenii de Munte, a com-

largest electricity and gas distribution network

nesses, made its exit from Alas Romania, a

pany with annual turnover of EUR 20 million.

operator in northern Romania. This is the

Romanian company specialized in aggregates,

Pietta Glass Working was founded in 2000

biggest transaction in Romania in the energy

concrete, recycling and processing hard stones

by the Pietta family, which has owned a glass

sector in recent years.

and other derivatives.

processing business for over 40 years. At pres-

ing to media sources)

Asociatii

ent, the company sells its products mainly on

Repower AG sells Repower Romania

BraasMonier buys Elpreco factory

Legal team buyer: N/A

Legal team buyer: Schoenherr, Deloitte (finan-

Legal team seller: KPMG Advisory (seller’s

cial)

financial representative)

Legal team seller: D&B David si Baias

Description: Repower AG sold Repower Roma-

Description: Luxembourg-based pitched roof

nia, the local subsidiary engaged in electricity

products manufacturer Braas Monier bought

supplying, to MET Group, a Switzerland-based

the Romanian concrete tile factory Elpreco.

holding company with an interest in regional

Braas Monier Building Group has operations in

electricity distributors. Through the transac-

36 countries and 118 production facilities and

tion, MET aimed to consolidate its position on

employed around 7,700 people last year.

Value of transaction: N/A

European markets.

Value of transaction: EUR 8 million

the Romanian market and increase its market share to 5 percent.

Andelta transfers Romanian firm to third party

Axxess Capital exits from Industrial Access Value of transaction: EUR 20-25 million Legal team buyer: NNDKP

Value of transaction: N/A

Legal team seller: KPMG (financial) and Gabri-

Legal team buyer: Wolf Theiss

ela Assoum Predescu (legal team)

Legal team seller: N/A

Description: Axxess Capital sold Industrial

Description: Andelta, a leading Central Euro-

Access, a Romanian construction equip-

BANKING

Forte Partners secures EUR 50 mln from UniCredit Bank for The


www.business-review.eu Business Review | February 2017

24 DEALS OF THE YEAR Bridge project

enterprises.

sector taking place between two lenders.

APS Holding buys NPL portfolio from Intesa Sanpaolo Romania

FITNESS

Value of transaction: EUR 50 million Legal team buyer: Reff & Associates, acting for Forte Partners Legal team seller: Tuca Zbarcea & Asociatii,

Value of transaction: EUR 261 million (portfolio

World Class Romania buys Club Sport Fitness Center

acting for UniCredit Bank

size)

Description: Real estate investor consortium

Legal team buyer: Savin si Asociatii, Dinulescu

Forte Partners announced the construction

si Maxim, Cunescu Balaciu si Asociatii

Legal team buyer: Stratulat Albulescu, EY

start for The Bridge office project near the

Legal team seller: Reff & Associates, Deloitte

Romania (financial)

Basarab overpass, with the investment for the

(financial)

Legal team seller: Ijdelea

first phase reaching EUR 50 million. The busi-

Description: APS Holding, one of the most

Description: Fitness chain operator World

ness park will be erected in two phases on 15,

active managers of performing and non-per-

Class Romania, controlled by private equity

Orhideelor Street, on the site of the former

forming loans in Romania, took over an NPL

fund Resource Partners, took over Club Sport

bread factory, Spicul.

portfolio worth EUR 261 million from Intesa

Fitness Center, which operates a network of

Sanpaolo Romania.

19 fitness centers across Romania. World Class

APS Holding acquires NPL portfolio in Romania Value of transaction: EUR 1.07 billion (the nominal value of the NPL portfolio)

Value of transaction: N/A

Romania has 31 fitness centers, out of which

Kruk buys NPL portfolio from Piraeus Bank

20 are in Bucharest and the rest in the main cities around the country.

Value of transaction: EUR 161 million (portfolio

Legal team buyer: Tuca Zbarcea & Asociatii

size)

Legal team seller: Schoenherr

Legal team buyer: N/A

Description: APS Holding has acquired a port-

Legal team seller: Reff & Associates

folio of non-performing loans (NPLs), which

Description: Kruk acquired an NPL portfolio of

includes secured and unsecured corporate

EUR 161 million from Piraeus Bank. The lend-

and SME loans, with the secured positions

er registered a gross profit of EUR 3.8 million

held against mostly residential, commercial

in the first nine months of 2016, compared to

and industrial property. The investors are

a loss in the same period of 2015.

the International Finance Corporation (IFC), a member of the World Bank Group, APS, a distressed debt investment and recovery company, and other global institutional investors. The transaction is the largest ever of its type in South Eastern Europe.

Banca Transilvania buys performing loans portfolio from Bank of Cyprus Value of transaction: N/A

Legal team buyer: Reff & Associates Legal team seller: PeliFilip

TELECOMMUNICATION & BPO

IFC and Kruk acquire retail NPLs from Bancpost

Description: Banca Transilvania took over the

Value of transaction: EUR 597 million

of Cyprus. Banca Transilvania, the third big-

Legal team buyer: Tuca Zbârcea & Asociatii,

gest lender by assets in Romania, registered a

acting as legal advisor for International

net profit of RON 657 million in the first nine

Value of transaction: EUR 30-35 million Legal team buyer: PwC Romania and Tuca

Finance Corporation (IFC) and Polish debt

months of 2016, almost double the amount in

Zbarcea & Asociatii

collection company Kruk

the previous year.

Legal team seller: KPMG Romania and Leaua

retail performing loans portfolio from Bank

Legal team seller: CMS Cameron McKenna

Direct One takes over Netcity Telecom

si Asociatii

Nextebank (Patria Bank) acquires 54.7 percent of Banca Carpatica

Description: Romanian firm Direct One,

Value of transaction: EUR 50 million

underground telecom infrastructure Netcity

Eurobank Group in Romania. The move was

Legal team buyer: Tuca Zbarcea & Asociatii,

from UTI Group for an undisclosed sum. The

aimed to help speed up the resolution of

acting as legal advisor to Nextebank

acquisition allows Direct One to expand on

NPLs and increase the liquidity of the bank-

Legal team seller: N/A

the local telecom infrastructure market and

ing sector in Romania and the region. The

Description: Nextebank’s acquisition of over

will further contribute to the development

transaction is part of the IFC’s Debt and Asset

half of Banca Carpatica further strengthens

of the network, which currently consists of

Recovery Program (DARP), which focuses

Nextebank’s (currently Patria Bank) position

around 1,000 km of fiber optic.

on the acquisition and resolution of NPLs

on the Romanian financial services market

and the restructuring of small and medium

and marks one of the few deals in the banking

Description: The IFC and Polish debt collection company Kruk have agreed to purchase a EUR 597 million portfolio of NPLs from Bancpost and other subsidiaries of Greece’s

which is specialized in the management of fiber optic networks, took over the Bucharest

Visma Romania Holding sells all


www.business-review.eu Business Review | February 2017

DEALS OF THE YEAR 25

its shares in Visma Services

Poland and Romania. It has 300 employees in

nia. Following this deal, Fairfax will become

Value of transaction: N/A

the CEE region and works for 550 companies

the main strategic multinational network

Legal team buyer: White & Case

in 26 countries.

partner serving AIG’s global clients in these countries.

Legal team seller: Wolf Theiss Rechtsanwälte GmbH & Co KG Description: Visma Romania Holding sold all the shares held in Visma Services Romania, as part of the carve-out and sale of Visma BPO (Business Process Outsourcing) to HgCapital. The BPO business was sold in a competitive

INSURANCE & FINANCIAL SERVICES

Vienna Insurance Group buys AXA Life Insurance Romania

Fairfax buys insurance subsidiaries in Romania from Eurobank Group Value of transaction: EUR 316 million

Value of transaction: N/A Legal team buyer: Schoenherr, Deloitte (financial)

Legal team buyer: N/A

Legal team seller: CMS Cameron McKenna

insurance subsidiaries in Romania (Eurolife

Description: Vienna Insurance Group (VIG)

ERB Insurance Group Holdings) to Fairfax

TMF Group buys UCMS

bought AXA Life Insurance in Romania. AXA

Financial Holdings Limited, part of the wider

Value of transaction: N/A

entered into an agreement with VIG to sell its

disposal of the group’s global insurance busi-

Legal team buyer: Hogan Lovells – lead counsel

local life and savings insurance operations,

ness. Fairfax acquired 80 percent of Eurolife

(Polish and Hungarian counsel). Wolf Theiss

marking its exit from Romania. BCR Asigurari

from Eurobank for EUR 316 million, while

Rechtsanwälte GmbH & Co KG assisted with

de Viata and Omniasig were the buyers.

Eurobank will retain a 20 percent stake.

Fairfax buys AIG business in Romania and other CEE countries

RP Explorer sells minority stake in Access Financial Services

outsourcing services, has announced the

Legal team buyer: Dentons

Legal team buyer: N/A

takeover of the local subsidiary of UCMS

Legal team seller: N/A

Legal team seller: Zamfirescu Racoti & Partners

Group, for an undisclosed sum. The buyer said

Description: Canada-based Fairfax Financial

Description: RP Explorer (Netherlands) sold

the deal was made it a bid to consolidate its

Holdings Limited acquired insurance opera-

a minority stake of the shares held in Access

market position in the local outsourcing sec-

tions from American International Group

Financial Services IFN, a Romanian nonbank-

tor. UCMS Group has operations in Hungary,

(AIG) in various jurisdictions including Roma-

ing financial institution acting in the field of

sales process, following Visma’s strategic decision to focus increasingly on its Software as a Service (“SaaS”) offerings.

Legal team seller: CMS, Shearman & Sterling Description: Eurobank Group sold two

the preparation of the Romanian jurisdiction related transaction documents. Legal team seller: N/A Description: TMF Group, which provides

Value of transaction: USD 240 million

Value of transaction: N/A


www.business-review.eu Business Review | February 2017

26 DEALS OF THE YEAR

SME financing.

agement of Imobiliare.ro.

provider of facilities solutions to the oil & gas production and processing industry, sold

IT&C

Vector Watch gets sold to Fitbit Value of transaction: N/A Legal team buyer: N/A Legal team seller: Matt Sachse, Pagemill Part-

eMAG takes over PC Garage

its Romanian business to Expert Petroleum.

Value of transaction: EUR 20 million (market

Petrofac’s exit from the 15-year produc-

estimate)

tion enhancement contract for nine mature

Legal team buyer: N/A

oilfields was concluded with OMV Petrom, the

Legal team seller: N/A

Austrian oil and gas group.

ners; Charles Welch, Menalto Advisors; Ted

Description: Online retailer eMAG took over PC

Cominos and Cristina Audran-Proca, Faegre

Garage, the online IT and electronics retailer,

Baker Daniels Llp; Marc Van Campen and

which was owned by Romanian entrepreneur

Leonie Kraakman of Van Campen Liem law

Marius Ghenea. eMAG, which is controlled by

firm; Dragos Radu, Radu Ionescu and Nicoleta

internet and media giant Naspers, will help PC

Legal team buyer: Deloitte (financial)

Gheorghe of EY Law | Radu si Asociatii; Ionut

Garage expand regionally.

Legal team seller: N/A

Simion and Andreea Mitirita of PwC Romania. Description: Vector Watch, the smartwatch startup founded by Romanian Andrei Pitis, has been sold to Nasdaq-based Fitbit, the provider of health and fitness devices, for an

Value of transaction: N/A

Description: Hague-based Mazarine Energy, a

OIL & GAS

KazMunay Gas sells 51 percent of KMGI to CEFC

vestors in Vector Watch was Gecad Ventures,

Value of transaction: N/A Legal team buyer: Dentons Romania, KPMG Advisory (financial)

which is controlled by Radu Georgescu.

Legal team seller: Freshfields (international

undisclosed sum. One of the early stage in-

Mazarine Energy buys 19 onshore fields from OMV Petrom

counsel), NNDKP with Tuca Zbarcea & Asoci-

Logo Yazilim purchases TotalSoft

atii (for Romanian matters)

private oil and gas exploration and production company, will take over 19 onshore oil fields and three workover rigs, alongside 200 employees in Romania from Austrian oil major OMV Petrom.

Synergy Energy Holdings buys CDI Oilfield Services Value of transaction: N/A

Description: In October 2016, KazMunay Gas

Legal team buyer: DLA Piper Romania and Hall

Value of transaction: EUR 30.2 million

sold a 51 percent stake in KazMunayGas Inter-

Estil (US)

Legal team buyer: Eversheds, Kolcuoglu

national N.V. (KMGI) to CEFC (China Energy

Legal team seller: Winston & Strawn (US) and

Legal team seller: Clearwater, Allen & Overy

Company Limited). The strategic partnership

Eversheds Lina & Guia (Romania)

Description: Turkish Logo Yazilim, an inde-

will deliver benefits for KMG, CEFC and KMG

Description: Synergy Energy Holdings LLC, a

pendent software company, took over Roma-

International and will establish the neces-

US company active in the oil & gas sector, took

nian software firm TotalSoft from Ferabosco

sary framework for future joint projects and

over CDI Oilfield Services, the Romanian sub-

Investments Limited and South Eastern

contribute to the economic and social growth

sidiary of John Crane and Smiths Group. The

Europe Fund (SEEF), both owned by Greek

of the areas where those projects are imple-

acquisition of the local company was part of a

investment fund Global Finance. TotalSoft

mented, including Romania.

bigger transaction including the acquisition of the artificial lift business of John Crane Group,

was founded in 1994 by Romanian entrepreneur Liviu Dragan and currently has over 400 employees.

Kraftanlagen Munchen buys IPIP and Petroconsult

LTD in US (a subsidiary of Smiths Group).

Value of transaction: N/A

ONLINE

Ringier acquires Imobiliare.ro

Legal team buyer: EY Romania (financial) Legal team seller: N/A Description: Kraftanlagen bought the Design

Value of transaction: EUR 30 million (accord-

Institute for Petroleum Installations and

ing to media sources)

Petroconsult, in a bid to expand its service

Legal team buyer: Tuca Zbarcea & Asociatii,

offering as a general contractor for the chemi-

KPMG Advisory (financial)

cal and petrochemical industry, as well as to

Legal team seller: Schoenherr

reinforce its market position in engineering.

Description: Ringier, one of the leading inter-

The buyer is part of Swiss Alpiq Kraftanlagen

national media groups operating in Roma-

Gruppe.

nia, acquired a majority stake in Imobiliare. ro, the country’s largest real-estate portal. Ringier’s acquisition of the Imobiliare.ro portal includes the purchase of 87 percent of

Petrofac sells Romanian business to Expert Petroleum Value of transaction: N/A

RETAIL

Carrefour Romania buys Billa Romania

Value of transaction: EUR 70-90 million (ac-

the shares in Realmedia Network from their

Legal team buyer: Leroy & Asociatii

cording to media sources)

former owners – Broadhurst Investments

Legal team seller: Suciu Popa

Legal team buyer: Tuca Zbarcea & Asociatii

Limited, Kurt Götz and the executive man-

Description: Petrofac Ltd., an international

Legal team seller: Schoenherr


www.business-review.eu Business Review | February 2017

DEALS OF THE YEAR 27

Description: Carrefour Romania acquired the

Gotshal & Manges

supermarket chain owned by Billa Romania

Description: Affidea Group, the leading

from its German competitor Rewe. Through

healthcare investor and provider of diagnostic

this acquisition, Carrefour becomes the

imaging and cancer treatment services in Eu-

leading supermarket operator in Romania,

rope, acquired from SouthEast Europe Equity

strengthening its multiformat offer to better

Fund II (managed by US-based Bedminster

serve its clients.

Capital Management) and Harkstede Holding, the Brasov-based Hiperdia network, a leading

Carrefour sells two supermarkets in Braila

provider of diagnostic imaging services in Romania.

Value of transaction: N/A

Legal team seller: Tuca Zbarcea & Asociatii

Value of transaction: N/A Legal team buyer: Tuca Zbarcea & Asociatii

Fresenius buys Premium Medical

Description: Romanian retailer Zanfir Super-

Legal team seller: Wolf Theiss

Legal team buyer: CMS Cameron McKenna

market took over two Carrefour stores in

Description: Interbrands Marketing and Distri-

Legal team seller: Reff & Associates

Braila. When Carrefour took over the Billa

bution acquired full ownership of Europharm

Description: German Fresenius, a provider of

retail chain, it made a commitment to the

Distribution from British company GlaxoS-

dialysis services, took over Premium Medical,

Competition Council that it would give up

mithKline (GSK). Europharm Distributie is a

a dialysis and nephrology clinic, founded by

three stores to other supermarket operators in

major local medicine distributor with a 20-

Romanian businessman Virgiliu Grigorescu.

Braila: two Carrefour Market and one Billa.

year background on the local market. Inter-

Fresenius has a network of 35 dialysis centers

brands is part of Sarkis Group International,

in Romania.

Legal team buyer: N/A

First Property Group buys nine stores from Lidl Value of transaction: EUR 10.5 million Legal team buyer: Reff & Associates Legal team seller: Oana Albota Law Office

Value of transaction: N/A

the largest Romanian FMCG company.

Regina Maria takes over Dr. Grigoras

Medlife buys Dent Estet Value of transaction: N/A

Legal team buyer: Popovici Nitu Stoica &

Value of transaction: N/A

Asociatii

Description: British investment fund First

Legal team buyer: Bondoc & Asociatii

Legal team seller: BPV Grigorescu Stefanica

Property Group bought nine local supermar-

Legal team seller: Tuca Zbarcea & Asociatii

Description: Medlife took over the majority

kets from German retailer Lidl. Out of the total

Description: Private healthcare clinic opera-

stake of Dent Estet shares, a business founded

acquisition price, EUR 4 million was covered

tor Regina Maria made its third acquisition in

by Oana Taban. Dent Estet is the largest op-

by the fund and its investors, while the rest

May 2016 by purchasing the three Dr. Grigoras

erator of dental services in Romania, posting

was attracted from other sources.

medical centers in Timisoara and Lugoj. With

EUR 5.5 million in turnover in 2015 and hav-

this acquisition, Regina Maria aims to become

ing seven clinics in Bucharest and other cities.

Goodmills Romania sells retail business to Lantmannen Unibake

a leader in the western market.

Legal team buyer: N/A

Value of transaction: N/A

Regina Maria buys Ponderas Hospital

Diaverum buys International Healthcare Systems, operating network of 15 dialysis centers

Legal team seller: Reff & Associates

Legal team buyer: RTPR Allen & Overy

Legal team buyer: DLA Piper Romania

Description: Goodmills Romania sold the

Legal team seller: D&B David și Baias

Legal team seller: Peli Filip

group’s retail activity, comprising 46 food

Description: The private healthcare services

Description: Diaverum, a leading international

stores, to a local investor, involving the

provider Regina Maria and Mid Europa Part-

healthcare services provider in the nephrol-

transfer of employees, equipment, good will,

ners bought the Ponderas Hospital, the only

ogy field, took over International Healthcare

stocks, receivables and trademarks. Two more

Centre of Excellence in Bariatric and Metabol-

Systems, one of the biggest local dialysis

stores were sold in a separate deal to Bake

ic Surgery with a double accreditation from

services providers, operating a network of 15

Expert.

Eastern Europe – European and American.

dialysis centers.

MEDICAL SERVICES & PHARMA

Affidea buys Hiperdia from Bedminster Capital

Stevanato Group buys Balda Medical

Legal team buyer: Rizoiu & Asociatii, Clifford

Legal team buyer: Wolf Theiss Rechtsanwälte

Chance, Skadden, Arps, Slate, Meagher &

GmbH & Co KG (local counsel), Gleiss Lutz

Flom, Deloitte (financial)

(lead lawyers)

Legal team seller: Bondoc & Asociatii, Weil,

Legal team seller: N/A

Value of transaction: N/A

Interbrands Marketing and Distribution acquires full ownership of Europharm Distribution

Value of transaction: N/A

Value of transaction: N/A

Value of transaction: EUR 95 million


www.business-review.eu Business Review | February 2017

28 DEALS OF THE YEAR Sage Automotive Interior takes over Apollo, with stake in Romanian company

ane Arad, Meva SA and Romvag Caracal).

ing the deal, the buyer also became the sole

Legal team buyer: Gianni, Origoni, Grippo,

Value of transaction: N/A

shareholder of Romania-based Balda Medical

Cappelli & Partners (lead counsel), Wolf Theiss

Legal team buyer: La Torre Morgese Cesaro

Systems.

Rechtsanwälte GmbH & Co KG

Rio (Italy), Noerr (Romania), EY Romania

Legal team seller: Boscolo & Partners

(financial)

Sensiblu buys 78 pharmacies from Polisano

Description: Sage Automotive Interiors ac-

Legal team seller: Tuca, Zbarcea & Asociatii

quired Apollo, a leading Italian textile group

Description: Japanese Nidec has taken over a

Value of transaction: N/A

active in the supply of products for automo-

94.8 percent stake in ANA IMEP, which is con-

Legal team buyer: PeliFilip

tive interiors, which also holds a majority

trolled by the family of Romanian business-

Legal team seller: N/A

share participation in the Romanian company

man George Copos. The company manufac-

Description: Sensiblu and some of its affili-

European Interior. Sage Automotive Interiors

tures washing machine and drying machine

ates purchased 78 pharmacies from Polisano

has its HQ in the US and has operations across

motors. Its subsidiary, ANA MEP SDV, makes

belonging to Sibpharmamed, part of the

the globe.

molds for automobile components and plastic

Description: Italian Stevanato Group, specialized in the production of materials for the pharma sector, took over the operating business of Balda in medical technology. Follow-

Value of transaction: N/A

Nidec buys ANA IMEP from Copos family

cases. Nidec wants to develop locally an engi-

Polisano group. The move hiked the number

Harsha Engineers buys plant in Romania

neering and shared-service center to support

AGRIBUSINESS & FORESTRY

Legal team buyer: CMS Cameron McKenna

Bekaert Textiles takes over DesleeClama, with production plant in Romania

of units owned by the Romanian brand by 20 percent.

its growth strategy in emerging EU markets.

Value of transaction: N/A

Legal team seller: NNDKP Description: Harsha Engineers, an India-based

Ameropa buys agristorages

global producer of brass, steel and polyamide

Value of transaction: N/A

cages and other automotive components,

Legal team buyer: DLA Piper Romania

Legal team buyer: Popovici Nitu Stoica &

entered on the Romanian market through the

Legal team seller: Allen & Overy

Asociatii

acquisition of a production facility in Brasov.

Description: Belgian company Bekaert Textiles took over DesleeClama, which has a produc-

Legal team seller: N/A Description: Swiss company Ameropa Grains, one of the largest local traders of raw agri-

Value of transaction: N/A

TRANSPORTATION

tion unit in Miercurea Sibiului. The new group will be known as BekaertDeslee Textiles and

TTS buys Plimsoll Kft

will become the world’s leading mattress

Value of transaction: N/A

fabric supplier, with 19 production sites and

facility, equipment, contracts and person-

Legal team buyer: Zamfirescu Racoti & Part-

around 2,600 employees worldwide.

nel) operating in Carpinis, Timis county from

ners, Deloitte (financial)

InterCereal SA. InterCereal is part of the

Legal team seller: N/A

InterAgro group. Ameropa Grains also made

Description: Transport Trade Services SRL

a multi-million acquisition of three indepen-

(TTS) bought 51 percent of the share capital

dent agri-storage and distribution businesses

of the Hungarian company Plimsoll Kft. The

Legal team buyer: N/A

in Teleorman, Calarasi and Tulcea.

acquisition of the share capital quota was per-

Legal team seller: Suciu Popa, KPMG Romania

formed by means of a share capital increase

(financial)

operation.

Description: Vrancart, a listed Ukraine-based

cultural material, bought an agri-storage and distribution business (storage and distribution

IKEA arm buys forests in Romania Value of transaction: N/A

Legal team buyer: Wolf Theiss Rechtsanwälte

Vrancart buys majority stake in Rom Paper Value of transaction: EUR 5 million

company specialized in manufacturing cor-

INDUSTRY

rugated paper for corrugated cardboard and hygiene papers, bought Rom Paper, a Roma-

Greenbrier takes over Astra Rail Management

nian manufacturer of tissue paper. Through

Value of transaction: EUR 60 million

date its position on the Romanian market and

Swedish IKEA Group, acquired 12,795 hectares

Legal team buyer: KPMG Advisory (financial)

increase its market share by 30 percent.

of forest in Iasi and Neamt counties, from

Legal team seller: N/A

Prokon Hit Timber SRL, a company engaged

Description: Greenbrier, a giant controlled by

NOTE: The transactions listed in this article

in forest operations.

BlackRock, RBC and Merrill Lynch among oth-

represent a compiled based on information

ers, took over the majority stake in Astra Rail

provided by local law firms and consultancies.

Management, a company that operates three

The article is not a comprehensive report on the

production facilities in Romania (Astra Vago-

Romanian M&A market.

GmbH & Co KG Legal team seller: Dentons Description: IRI Forest Assets, part of the

AUTOMOTIVE

the transaction, Vrancart aimed to consoli-


www.business-review.eu Business Review | February 2017

INTERVIEW 29

UrbanizeHub founder: ‘Romania is not there yet’ Renewable energy, technology and smart cities are already shaping other European cities, while in Romania, with a few notable exceptions, the discussion is still at a basic level, according to Gratian Mihailescu, founder of UrbanizeHub. By Otilia Haraga First of all, please explain to BR readers how UrbanizeHub works.

currently be the most impactful for Romania.

cant amounts of funding, and have had open-

Many cities have suffered during the transi-

minded administrators who were willing to

UrbanizeHub is a global startup whose

tion years and they need such regeneration

create partnerships with universities and the

long-term objective is to create a global com-

of their public spaces. I also think that proj-

private sector. This type of thing can happen

munity of people who are passionate about

ects that stimulate participation in communi-

in all of Romania, if there is transparency,

sustainable urban development. The plat-

ties are very important. Civil society needs

openness and willingness, as well as a proac-

form will function as an aggregator of news,

to become more active and involved in the

tive attitude from the authorities. Unfortu-

solutions, ideas, opinions, projects and poli-

problems of different communities. These

nately, Romania is not there yet, except for

cies concerning urban development. We have

two examples are for small and mid-sized

some isolated cases.

an integrated approach that is distinct from

cities. For Romania’s large cities, smarter

other platforms of this kind, including topics

solutions are needed for transportation and

related to the environment, transportation,

innovation.

urban regeneration, inclusion, technology and innovation. We have contributors from

What are UrbanizeHub’s current or future projects in Romania? In Romania, we would like to organize conferences related to the future of cities.

all continents who bring their own expertise

You have a global/regional vision. What are the trends in other countries?

from various sectors and new perspectives

The trends in developed cities are related to

alternatives and proposals to open-minded

to the discussion also adds great value to our

technology, renewable energy and smart cit-

mayors and administrators who want to

platform.

ies. The most important aspects are creating

transform their cities through smart projects.

Another innovative element of the platform is the fact that it is open to

a better quality of life and cities that are friendly to their inhabitants.

The longer-term intention is to come up with

We will provide solutions through expertise and specific proposals. This is something

everyone who wants to become a

This means more cultural events,

we want to do at a European level, not just

contributor. They can log in using

modern and efficient public

in Romania. Our first objective, however, is

their Facebook accounts and write

transport, better leisure facilities,

to become known as a startup and get more

an article, and if their article fits the

bike-sharing programs.

people to join us, to gather more expertise

website’s topics and categories, the administrators will publish it. People can get involved in shaping their cities, and this is reflected by the UrbanizeHub slogan: ‘Let’s shape the future of cities together’.

and attract more readers; in other words, to

Can you give me some examples of projects implemented in Romania so far? Take the examples of projects in

I think urban regeneration projects would

and a lot of work.

What happens when someone comes up with a project, how do they get help implementing it?

cities like Cluj,

We want to create a database of experts in

Alba Iulia and

various sectors: urban designers, environ-

Oradea. These are cities

What type of projects would best suit Romania?

create a strong brand – this takes a lot of time

which have

mental activists, renewable energy and waste management specialists, technology, innovation and transportation experts. Ide-

had a great

ally they will bring their own ideas, which we

evolution,

would publish and promote on the website.

they have

City administrators should then want to col-

managed

laborate with us, as we provide an integrated

to access signifi-

approach and propose smart and sustainable solutions.


www.business-review.eu Business Review | February 2017

30 TELECOM

2017 rings in the telecom changes This year begins with a new face at the helm of the Ministry of Communications and Information Society, as well as a much higher budget for the institution. The effect of some of the measures taken by the new government is starting to be felt by market players. BR outlines the major developments to expect on the communications front in 2017. By Otilia Haraga online, any form that an economic entity submits must be submitted online and all public institutions’ informatics systems become inter-operable so people no longer have to come with documents and information, and run from one institution to the other. All these could automatically be obtained via informatics systems by public institutions,” said Jianu, quoted by Agerpres newswire. He added that citizens should trust the digital services they are offered. “That’s why we will also pay attention to the cybernetic security component, and of course, to the infrastructure, because it is obviously necessary to develop internet access in the remaining white areas in Romania,” he added. Romania is second to last in the EU as far as digital skills are concerned, according Augustin Jianu, minister of communications and information society

T

to the Digital Economy and Society Index (DESI). The high number of IT specialists in the

he budget for the Ministry of Com-

Jianu, 30, formerly general manager of the

economy is one of the reasons why Romania

munications for this year is set to

National Center for Response to Cybernetic

is not last for digital skills. When it comes

increase 22-fold, to approximately

Security Incidents (CERT-RO), was confirmed

to integrating technology in businesses,

as the new minister of communications and

Romania does come bottom, according to the

information society. He said his term priori-

survey.

RON 610.3 million. The highest sum will go on projects using European funds and capital expenses, ac-

ties center on the National Interoperability

cording to the draft budget published on the

Framework.

website of the Ministry of Public Finance.

The Ministry of Communications has

One major move by the Sorin Grindeanu government has the potential to destabilize or pose challenges to the IT industry. The

The pool for financing projects from external

developed the framework with a view to the

measure to remove the limit of five average

non-reimbursable funds is around RON 321.5

implementation of the National Strategy for

salaries on which pension and healthcare

million, which is 50 times more than in 2016.

the Digital Agenda 2020. This framework is

taxes are payable, effective February 1, was

Capital expenses will go up to RON 275.3 mil-

meant to ensure the electronic transfer of

adopted without any public consultation. By

lion, representing a 55-fold increase on the

information, both between authorities and

eliminating this ceiling, the prime minister

previous year.

public institutions and between these bodies

wants to bring the state budget approximately

and citizens and companies. This should

RON 1.4 billion. The measure is already being

8.2 million, up by about 20 percent on the

decrease the time that people and businesses

contested by the IT industry, which is one of

previous year. Spending goods and services

spend on obtaining various public services.

the most dynamic industries in Romania and

will rise by only around 7 percent to RON 3

“December 1, 2018 is a very ambitious

one of the main ones to be affected, because

Staff costs are set to be around RON

million. At the beginning of January, Augustin

timeframe by which all taxes and payments made by a company should be carried out

of its well above-average salaries. “Companies that work in R&D employ


www.business-review.eu Business Review | February 2017

TELECOM 31

highly qualified senior specialists who are

It will also set up a unique point of informa-

instruments to help them decide what they

paid accordingly, above the industry average.

tion regarding the setting, route, type and

are interested in as far as the services they

Given that the largest costs for IT companies

current use of infrastructure. The telecom

receive are concerned, whether we are talking

are those of human capital, the impact on the

watchdog will also set the maximum tariffs

about voice or internet,” said Marinescu.

company budget is significant,” said Valerica

for the right to access public property and will

Dragomir, executive director of the Associa-

evaluate the costs of the physical infrastruc-

agenda within the next year is to decrease red

tion of Software and Services Industry.

tures to set some benchmark access tariffs.

tape and lower the costs of building networks

And it will develop the technological norms

for operators.

Another measure that the new minister is considering is to transfer the National

regarding the design and make-up of the

Institute for Research and Development in In-

electronic communication networks.

formatics under the umbrella of the Ministry of Research. “We must carefully analyze the institute’s

One of the planned measures is to develop

Another important topic on the ANCOM

Authorizations should no longer be released with a delay by city halls, and the costs of using the public domain or the poles of

a mobile application to allow users to mark on

energy providers should become less prohibi-

a digital map the experience they’ve had with

tive. The telecom watchdog also plans to

activity. As far as I know, it is not in a very

the voice and data services of a certain opera-

good financial situation,” said Jianu, in rela-

tor, as well as publish data regarding the qual-

organize a public consultation regarding the

tion to the move.

ity of the communication services offered by

allocation of radio spectrum for broadband

these operators. The reason for doing so is

communication in 450 MHz, 700 MHz, 800

dog, ANCOM, also has a yearly plan that it

the consumer. Catalin Marinescu, head of the

MHz, 1500 MHz, 2600 MHz and 3.4–3.8 GHz.

intends to see through, for the development

institution, said market research has shown

This spectrum should be able to support the

of the communications sector.

that there has been a shift in the mindset of

efficient development of the networks, given the progress of mobile internet consumption.

Meanwhile, the Romanian telecom watch-

Topping the list are measures regarding

Romanian users, who no longer consider the

the effective application of the stipulations of

price to be most important, but the quality of

the new infrastructure law 159/2016, with the

services they are getting.

Additionally to this new tender allocating national, regional and local multiplexes

“We will also expand the Netograf

of digital terrestrial television, in 2017 the

platform (ed. note: which tests the speed

authority will check whether the coverage

and quality of the internet) by launching an

obligations imposed by previously awarded

national inventory of public communication

application that can be installed on a mobile.

licenses for national and regional multiplexes

networks and related infrastructure elements.

We must place at the disposal of the user

have been met.

aim to reduce the costs of the installation of broadband networks in Romania. ANCOM will continue this year to make a


www.business-review.eu Business Review | February 2017

32 IT

The cyberthreats of 2017 With a very prolific year in cybercrime behind us, experts now warn that the higher specificity of attacks will set the tone in cyber-security for year ahead. Here are the main threats that online users and companies will have to face in cyberspace in 2017, according to security pundits. By Otilia Haraga criminals do not start to withdraw money

GUIDELINES FOR ONLINE SECURITY Don’t click on unknown links, even from friends or from social media websites or email Don’t fill in info about your card on unknown or suspect websites, especially if these websites have incredibly good offers Always check that the webpage is real before introducing any personal or confidential data. Fake websites may look the same as authentic ones Install a security solution on your device, containing technologies created to prevent the financial fraud (Source: Kaspersky Lab)

C

from the stolen cards right away. Often, they wait for weeks or even months before accessing the money they have procured,” said Oleg Kupreev, security expert at Kaspersky Lab. The user has reason to be very careful and alarmed. Even banks and payment organizations find it hard to keep financial fraud under control, given the inter-connected and technologically complex environment, according to a survey carried out by Kaspersky Lab. Over one third, 38 percent of organizations, say it is more and more difficult to decide whether a transaction is fraudulent or authentic. 2016 was a year which abounded in ran-

yber-attacks via smartphone will

as intelligent devices. Moreover, users are

somware attacks. According to Bitdefender

multiply in 2017, which will cause a

rarely preoccupied with the security of smart

experts, ransomware is one of the most

bottleneck in the activity of frequent-

devices.

lucrative cyber-crimes, with returns of invest-

ly-used online services, such as news sites, social networks and online stores.

Producers of these gadgets are not so preoccupied with security, either, as insuffi-

ments of up to 1,500 percent. The secret to the profitability of these at-

cient resources and memory on these devices

tacks is the fact that users need their personal

geted attacks against companies. While in the

do not allow complex or constant software

data and information, but they do not make

past we detected only persistent advanced

updates. The fact that personal gadgets are

backups and do not constantly update their

threats, now we are witnessing a comeback

being used in the corporate environment

cyber-security software, according to Bitde-

for more rudimentary tactics, such as simple

will complicate data security even more, say

fender experts.

viruses that try to access companies’ internal

Bitdefender experts.

“We have noticed a simplification in tar-

networks,” said Catalin Cosoi, chief security

The intensity and number of cyber-attacks

This year too, developers of ransomware are expected to allocate supplementary re-

also depends on the time of the year, becom-

sources to improve the system that automati-

ing more aggressive during the holidays,

cally targets victims. This feature will help

and the rebirth of the dark internet dedicated

when consumers are prone to spend more.

them tell the difference between regular users

to the illegal traffic of goods and services

For instance, in the last quarter of last year,

and companies, and try to blackmail compa-

represent the main trends for 2017, according

the number of users who were confronted

nies for large sums of money.

to Bitdefender experts.

with malware programs that were capable of

strategist at Bitdefender. Ransomware activities, aggressive ads

According to the 2016 Cisco Connect

stealing money or important financial infor-

Survey, security will be the greatest challenge

nies’ websites will be amplified because it is

mation reached 319,000, 22.5 percent more

for companies’ IT departments over the next

easy to control poorly secured smart devices.

than during the same period of 2015. The

three years.

This type of attack will continue to develop

number of attacks peaked on Black Friday,

on the wave of the explosion in the number

Cyber Monday and at Christmas, according to

and risk management top IT agendas, fol-

of smart devices connected to the internet,

Kaspersky Lab data.

lowed by the rapid growth in traffic, for 40

Such attacks that block access to compa-

they add.

“As an after-the-fact measure, we recom-

For 66 percent of respondents, security

percent of respondents, and digitalization and

mend those who used their card to buy gifts

cloud computing, each cited by 34 percent.

opportunity for crossed attacks, since 60

and goods over the last three months to care-

One third of the respondents indicated that

percent of users keep their personal data

fully monitor the records of their financial

cost reduction was also one of the main fac-

in computers that are in the same network

transactions over the next period. Typically,

tors that will affect IT departments.

Gadgets with vulnerabilities create the


www.business-review.eu Business Review | February 2017

TECH 33

Technological innovations that could shape the future Technology buffs have just got a glimpse of gadgets and apps that might define the future, during the 50th edition of the Consumer Electronics Show (CES) in Las Vegas. Robots and “smart everything” ruled the CES this year. BR presents a selection of innovations to watch for.

Honoring remarkable innovations in technology of 2016 More details at awards.business-review.eu

By Otilia Haraga smart home concept. The robot does home

you when you brush your hair, and an accel-

cleaning, air purification and home security.

erometer and gyroscope that can count how

It comprises a range of infra-red distance

hard or how many times you do so, which

sensors, door and window sensors, water

then send the information to an app on your

sensors, air quality sensors, a vacuum capable

phone.

of cleaning many types of surfaces and an air

THE BLIND NAVIGATOR. The Aira visual

filtration system to purify the air.

interpreter for the blind is a solution that

THE FRIDGE PAPARAZZI. A camera that takes

helps the visually impaired explore their sur-

photos of the food that you have left inside

roundings. The platform works on wearable

your fridge and lets you know when you

devices such as Google Glass and Vuzix that

need to restock things? Why not, if you’re a

can be paired with your smartphone. A cam-

technology buff? The FridgeCam comprises

era can be installed on the wearable device,

a camera designed to withstand “freezing

which provides instant feedback, and a team

temperatures,” equipped with recognition

of trained agents can assist those with sight

software that identifies what you have in

problems to explore their environment.

your fridge. It even suggests recipes to you

THE SMART RING. The Motiv ring is, simply

and updates the list of the groceries you have

put, a piece of jewelry that is at the same time

ore than 3,800 exhibiting compa-

inside by taking pictures every time you open

an activity and sleep tracker, recording the

nies in addition to 600 startups

the fridge.

wearer’s active minutes, active heart rate,

made CES 2017 a record-breaker,

THE FLEXIBLE WASHING MACHINE. Here’s a

calories burned, distance, activity types,

gathering more than 175,000 industry profes-

washing machine with two washers and two

sleep duration, resting heart rate and number

sionals, of whom 55,000 were from outside

dryers in the same system, which allows you

of steps. The fitness ring, which can be worn

the US. For a few days every year, CES is the

to wash smaller and bulkier loads separately,

day and night, comes in a variety of colors

hub of the technology world – here are some

with different settings. The FlexWash™ +

and sizes and is compatible with iOS 9 or a

M

of the trends that emerged this year.

FlexDry™ laundry system developed by

later OS. It has a typical battery life of three to

THE 5G ULTIMATE ENABLER. While we still

Samsung also allows the user to wash more

five days.

haven’t explored or experienced everything

clothes and even control the machine using

THE RESPIRATION WATCH. This smart watch

that 4G has to offer, the 5G revolution may

the Samsung Smart Home app, compatible

designed to combat sleep apnea, called

already be upon us. 5G is expected to spawn

with Android OS 4.0 or later or iOS 7 or later.

MOTIO HW and invented by Neogia, could be

a technological uproar that will enable the

life-changing and even life-saving for some

existence of whole ecosystems of smart cars,

THE HAIRBRUSH THAT MAKES BAD HAIR DAYS HISTORY. When it comes to hair, it’s

smart cities and smart homes; it is expected

amazing that humanity has lasted so long

prevents, diagnoses and monitors sleep ap-

to create approximately 20 million jobs and

without the Kerastase Hair Coach Powered

nea, a potentially dangerous and sometimes

will probably be rolled out by 2020. Nokia,

by Withings, a smart brush that knows it all:

even fatal condition, where sufferers experi-

Intel, Ericsson and Qualcomm are just a few

if your hair is dehydrated or has split ends,

ence shallow breathing, or even stop breath-

of the technology giants involved in making

if you brush it too much or too often, if it is

ing for a few moments during their sleep. The

people. It is a wearable medical device that

this happen.

unruly and what you should do to improve

Neogia smart watch collects biometric data

THE ALL-IN-ONE ROBOT. Unibot developed

its condition. In other words, if you had a bad

which is sent to an application that can be

by ECOVACS Robotics is the first multifunc-

hair day and you didn’t know why before, at

used on smartphones, tablets and computers.

tional home management robot which per-

least now you will know the reason, thanks to

The data is processed by an algorithm that

forms various household tasks as part of the

a built-in microphone that actually listens to

helps prevent and monitor the condition.


www.business-review.eu Business Review | February 2017

34 ADVERTISING

Timisoara’s advertising market takes off One of the most Westernized cities in Romania, known for its scenery as well as for many “firsts” in the Romanian market, Timisoara is little by little becoming another town to watch in the local advertising industry, following Bucharest and Cluj-Napoca. By Romanita Oprea cies registered offering marketing & advertising services , many of them present in several categories, Foursquare’s “radar” picks up only nine advertising agencies (Man Cave, ROV Images, Ornella Print, Optima Business Park, Rainfall, Star Marketing Consulting, Business Hive, Live Media, Genuine Advertising). This could suggest that, for the moment, local agencies may not be that interested in promoting their business – digitally, that is. According to BR research, more than 80 advertising agencies are currently operating in Timisoara. However, in 2014, The Advertising Agencies’ Night, organized by The Institute every

T

year, gathered three agencies in Timisoara: Celmaimare Studios, Adwiser and Synopsis,

he year ended on a high for Timiso-

headline “Shine your light – Light up your

the same number as in 2015: Celmaimare

ara, which edged out three other

city!” wanted to reflect the journey from the

Studios and Electric Resistance with Kape

strong local contenders (Baia Mare,

individual to European aware and involved

Illustration (the last two together).

Bucharest, Cluj-Napoca) to claim the title of

citizen that has very well routed the values of

European Capital of Culture in 2021. It was

community and the passion. Therefore, the

service market; therefore it reflects the city’s

not an easy battle and marks another first in

headline represented an invitation to a double

economic situation. Right now, we are in the

the city’s history. As winner of the prestigious

motivation: on one hand inviting the citizens

middle of a really big transition that started

mantle, Timisoara will also receive a special

to dear and show their values and attitudes,

27 years ago, when Timisoara became the first

prize of UR 1.5 million. The city’s candidacy

metaphorically described as an interior light,

communism-free city. Since then, the road to

ran under the concept and slogan “Shine your

and on the other hand, to use this light in

capitalism has been anything but easy for the

light – Light up your city!”. The projected op-

order to dismiss the dark and the passivity

country as well as for the region. However,

erating budget is EUR 48.5 million, of which

around them, through a civil process powered

the geographical position of this city made

EUR 33.9 million will be allocated to the pro-

by culture.

it possible for investors across Europe (and

gram’s expenditure. Timisoara hosts between

Tibor Navracsics, commissioner for educa-

“The advertising market in Timisoara is a

beyond) to implement their business models

3,500 and 4,000 cultural events each year

tion, culture, youth & sport, said he hopes

here, therefore creating jobs, a need for all

and close to 90 percent of the local cultural

that the title will bring cultural, economic and

kinds of services the Western world was

budget goes on supporting public institu-

social benefits for Timisoara, replicating the

already accustomed to and a general sense

tions, while the rest is allotted to NGOs.

successful development of other cities that

of growth in economic terms,” said Eugen

were cultural capitals.

Neacsu, co-founder of Electronic Resistance.

Timisoara’s campaign concept for this contest revolved around “program-stations/

Besides a higher touristic profile, the city

Moreover, according to him, the local

projects” and paths alongside the Bega canal,

is set to earn more business investments and

advertising market in Timisoara naturally

linking ideas, people and places. The cam-

receive greater attention from the cultural

follows this growth path, currently being in

paign was also backed by a website, created

and business sector, both locally and inter-

the “early twenties” phase, characterized by

by local agency EBIG, and communication by

nationally. This effect will also reflect on the

recklessness, uninterrupted enthusiasm and

PR agency PR Beta.

marcomm industry.

creative youthfulness.

an important role in Timisoara’s history, the

YOUNG MARKET DRAWS IN TALENT

cies here are not as old and mature as their

program was centered around the light. The

While the website timisoreni.ro has 31 agen-

Western peers. However, this does not mean

“Even the oldest advertising studios/agen-

Starting from the fact that the light played


www.business-review.eu Business Review | February 2017

ADVERTISING 35 project is important, Cinca mentioned the on-

in experience is compensated for by the raw

line platform Industrialin and the two annual

creative talent that the city still manages to at-

trade fairs, Automotive Expo and Industry

tract. We believe that, as the city continues to

Expo, among the firm’s major achievements.

grow, the need and opportunity for advertis-

“These tools and events help our custom-

ing agencies will also grow,” added Neacsu.

ers benefit from access to the latest industry

Founded in 2004 as a design studio, four years

information, the chance of developing col-

ago Electric Resistance became a mix between

laborations with targeted business partners,

a graphic design studio, an animation and

promotion, improvement and strengthening

video production house, a rock’n’roll band, a

their image on the market,” added Cinca. The

projection mapping collective and an adver-

agency offers marketing & advertising, graph-

tising agency. Its services include the creation of advertising campaigns, video commercials, multimedia presentations and affiliate marketing projects. The firm will be launching cinematography projects soon. Representatives of the agency Green Roua,

Photo: Cristian Vaduva

we are naive or unprepared. The lack of years

ic & web design, event organization, consultancy, training and workshop, team building and procurement outsourcing services. Moreover, with a profitable 2016, expecEugen Neacsu, Electronic Resistance

tations also run high for 2017. “2016 was a good year. Turnover increased by 60 percent

who say they are proud not to have been

compared to last year and we predict similar

affected by the economic crisis, have also

growth for 2017. We have both regional and

witnessed the development and growth of

international clients in our portfolio. We

the market in recent years. More than that,

are optimistic about attracting more foreign

according to Alexandra Cinca, marketing spe-

customers, as a result of the trust and im-

cialist at Green Roua, since the crisis, profes-

age boost brought by the European Capital

sionals have realized that, by following their

win. The advertising market in Timisoara is

first instinct and cutting marketing budgets,

a growing market, both in terms of revenue

they only worsen the losses. “The market has

and opportunities. Clients are realizing the

developed during the last few years, across

increasing importance of marketing, as their

all marketing functions, from strategic plan-

competition is also intensifying,” concluded

ning to the choice of creative path and media

Cinca. Elsewhere, representatives of Electronic

channels. Online advertising is evolving at a

Resistance said that, after repositioning in

fast pace, while traditional advertising may be used additionally, with effective results. The

Alexandra Cinca, Green Roua

2013, every year has been better than the previous one in terms of productivity, clients

advertising market in Timisoara is a growing market, both in terms of revenue and oppor-

that can refresh a business, green being a

and projects. “2016 was great for us, more

tunities. Clients are realizing the importance

symbol of creativity and freshness. “At the

precisely because one of our clients won a

of marketing [and acting on it], as their com-

same time, we can make new companies

very important and strategic prize and we

petition is also intensifying,” added Cinca.

bloom, offering a touch like the morning dew

helped them create the winning presentation.

(Roua). Saying that we are innovative would

Another recent event held in town by Agentia

CLIENTS AND CREATIVITY

be a cliché and boasting about our profes-

de Dezvoltare Regionala Vest put us before an

When it comes to how open clients are to cre-

sionalism is redundant, because if we had

audience comprised of automotive corporate

ative and innovative ideas, Eugen Neacsu tells

not possessed these strengths, we wouldn’t

executives, large business owners and tech in-

BR that it depends on the type of person you

have managed [to succeed] in this field. Green

novators. It was an important opportunity to

are working with. “I have been surprised to be

Roua tries to be a real friend to businesses,

tell them what we do and what it looks like.”

welcomed with great confidence and trust in

helping them grow and improve, while having

said Neacsu. Apart from its clients, the agency

my choices by people from public institutions

fun. We also want to transmit the connection

has its own projects and started a cultural

and I have also felt disappointed to be treated

we have with our clients, so it can be further

association dedicated to video art. As for the

like an amateur by people working in adjacent

conveyed to their customers, rendering the

changes brought by Timisoara’s newly-gained

or the same fields as us. Generally, we tend to

same purchase experience,” said Alexandra

title, the agency’s previous international col-

propose doable-and-not-so-fancy solutions

Cinca.

laborations (Europe & USA) will continue in

to our clients and they appreciate this during

The agency has a wide range of clients

the future. “We haven’t invested in market-

our collaborations. If you listen well to your

from different industries, multinational com-

ing in those countries yet, but as we evolve

clients’ needs, your creativity will do the rest

panies, law firms, medical offices and so on,

as a company, we will keep an eye on other

of the job,” said Neacsu.

such as Profi, Continental, Decathlon, Takita,

market opportunities as well,” concluded the

Kemper and Flaro. Though she says every

Electronic Resistance representative.

Green Roua was conceived as a company


www.business-review.eu Business Review | February 2017

Photo: Noam Chen. All photos courtesy of Israeli Ministry of Tourism

36 TOURISM

Israel prays in Jerusalem and parties in Tel Aviv The Holy Land’s two main cities – Jerusalem and Tel Aviv – make for a contrasting holiday destination for history buffs, party goers and sun lovers alike, BR discovered. By Simona Bazavan

T

hink about Israel and the first thing

which leads into Jerusalem’s emblematic and

ruins, some dating back almost 3,000 years.

that comes to mind is most likely

history-packed Old City. Best to make a head

At night the citadel’s walls serve as the stage

Jerusalem, whose old city district

start in order to avoid the crowds, especially

for the “Night Spectacular”, an open-air sight

covers less than one square kilometer but

if you visit the city during the peak summer

and sound show that depicts the city’s rich

whose name nonetheless resonates in the

months. First on the to see list should be the

history.

hearts of Christians, Jews and Muslims alike.

Tower of David Museum, also known as the

Then head along the Via Dolorosa, the

Yet a trip to the Holy Land and Jerusalem for

Jerusalem Citadel, a fortification dating back

route marked by the 14 Stations of the Cross,

that matter is not only for the religious. As BR

to King David’s time that has been destroyed

where Jesus stopped on the way from where

found, Jerusalem makes for a great city break

and rebuilt repeatedly over the centuries. Its

he was tried to his crucifixion and burial,

or longer holiday destination, and should

courtyard boasts important archaeological

according to Christian tradition. Navigating

you combine it with the capital you will get Photo: Noam Chen

a feeling of why the locals say they pray in Jerusalem and party in Tel Aviv.

PRAY IN JERUSALEM There is so much to see and do in Jerusalem that doing your homework and putting together a travel plan before arrival is highly recommended in order to help you make the most of your time. Although the number of sights can be baffling, the good news is that most of the tourist attractions which make the city famous are packed within its Old City district and can be visited within a day. Whether you’re religious or not, a walk down Via Dolorosa, and a visit to the Church of the Holy Sepulcher, the Wailing Wall and the Dome of the Rock are a must for any first-time visitor. The starting point to all that is through the 16th century Jaffa Gate,

Jewish Quarter in the old city


www.business-review.eu Business Review | February 2017

TOURISM 37

through the vibrant Muslim Quarter, where,

and history buffs in particular will enjoy

of earthly pleasures to enjoy. The Arab souk

the city’s numerous museums and whole

is a warren of alleys packed with street stalls

caboodle of churches and historical sites, but

selling everything from chintzy souvenirs to

don’t overlook the town’s more modern side.

lovely sticky sweets, spices, freshly squeezed pomegranate juice and fragrant street food. At the end of it all is the massive Church of the Holy Sepulcher, a maze of chapels and altars belonging to various Christian Photo: Dana Friedlander

denominations with the Holy Sepulcher at its center. If you’re considering visiting some of the other religious sites in JeFloating orange tree in downtown Jaffa

rusalem such as the Wailing Wall or the

the twisty route can prove challenging at

Temple Mount, keep

times and some of the stations – marked by

in mind that these

medallions indicating each station in Roman

involve security

numerals – can be easy to miss without a

checks and access

guide.

can be restricted

The route takes the modern pilgrim

There is plenty more to see in Jerusalem,

leaving aside the religious, there are plenty

during holidays.


www.business-review.eu Business Review | February 2017

38 TOURISM

Visitors can shop in the upscale Mamilla Mall

in itself, with vending stalls and small eateries

or enjoy dinner in one of the numerous

that showcase perhaps the best of Jerusalem’s

restaurants scattered across the city. For a

diversity and rich heritage.

better taste of local produce and cuisine head to the Mahane Yehuda market. Referred to

TEL AVIV PARTIES

simply as “The Shuk”, Mahane Yehuda is the

Capital Tel Aviv is only 72 kilometers away

city’s largest market and an iconic landmark

from Jerusalem, but the two towns couldn’t

GETTING THERE The best way to get to either Jerusalem or Tel Aviv is via Ben Gurion airport. Should you fly with Israeli airline El Al, consider arriving at Otopeni airport a bit earlier than for a regular flight to allow time for the extensive security check. Once in Israel, the accommodation is very varied, ranging from low-cost hostels to five-star hotels.

Photo: Dana Friedlander

Several local travel agencies also offer packages to Israel. For example, a EUR 669 per person package from Cocktail Holidays includes a Tarom flight, airport fees, transfers, five nights’ accommodation in three- and four-star hotels at half-board, as well as entry to several sights and tours. In addition to Jerusalem and Tel Aviv, holidaymakers get to visit other attractions in Israel, such as Nazareth, Bethlehem, the Dead Sea and Mount Tabor. A similar five-night package costs EUR 404 per person, not including airport fees, with Agetur. Starting prices for another religious-oriented tour with Paralela 45 are EUR 470 per person, with booking required six months in advance.

Night life in Tel Aviv

be more different. Israel’s second largest city and business center may be small – with some 420,000 inhabitants – but it manages to pack in an array of attractive tourist options. Cosmopolitan and vibrant, Tel Aviv brandishes an effortlessly cool and trendy atmosphere. Those looking for sun bathing, shopping and clubbing will certainly find the city to their liking, while it also boasts a rich cultural scene. The best way to explore is definitely on foot. Must-sees include the Rothschild Boulevard, the city’s main artery, and the

Photo: Noam Chen

beautifully restored yuppie neighborhood of Neve Tzedek. Scattered all around the city center are more than 4,000 Bauhaus buildings which have earned Tel Aviv the UNESCO Pedestrian mall in downtown Jerusalem

World Cultural Heritage site title as well as the nickname of “White City”. Even the weather is different in Tel Aviv. The city is on the Mediterranean coast, making its average temperature milder than that of hilly Jerusalem. So mild in fact, that sunbathing and swimming are possible as late as November on sunny afternoons. There are eight major beaches to choose from, lined

Photo: Dana Friedlander

with hotels, bars, restaurants and sports courses. Walking along the beachfront promenade one reaches the nearby Jaffa, a restored ancient seaport, nowadays part of Tel Aviv. It The promenade alongside the beaches of Tel Aviv

is a maze of picturesque alleys with bohemian art galleries, boutiques, restaurants and bars,


www.business-review.eu Business Review | February 2017

TOURISM 39

Photo: Itamar Grinberg

Photo: Noam Chen

Typical Israeli brunch

colony established by German Templars in 1871,

Aviv. Nearby is the Manshia Train Station,

but it has been transformed into a complex cen-

an Ottoman-era structure built back in 1892

tered around the market. Outdoors are pictur-

which has been turned into a leisure com-

esque houses, restaurants and boutiques along

plex packed with more galleries, boutiques,

green alleys, lily ponds and relaxation areas,

restaurants and cafés.

where visitors can enjoy a laidback atmosphere

When it comes to dining options there is

nestled by the surrounding high-rises. Indoors

plenty to choose from, both in Tel Aviv and in

is the market itself, which boasts dozens of

Jaffa. The cuisine is generally Mediterranean,

specialist food shops selling local produce such

but with a distinctive combination of flavors

as vegetables, pastries, wines, olive oil, cheese

typical of the more modern and adventurous

and dried fruit. In addition there is also an

Israeli fare. Locals have a laidback attitude to

impressive international range to choose from

eating, enjoying long, rich meals, so expect

as well as small restaurants.

plenty of tapas-style dishes in numerous

At nighttime Tel Aviv transforms. Start the

eateries. Don’t miss out on household names

evening in one of the numerous seaside bars,

such as the creamy local hummus and ke-

pubs or downtown wine bars and even “gallery

babs or falafels with tahini and fire-roasted

bars”. Past midnight the clubs slowly start to

vegetables, but do venture to try the many

fill up, yet choosing one can prove quite a chal-

local dishes that reflect so well the city’s rich

lenge given Tel Aviv’s notable clubbing scene.

cultural heritage.

The safest bet for first-time visitors is to go back

Just like in Jerusalem, be sure to check out

Photo: Dana Friedlander

that also offers a stunning overview of Tel

The Arab souk in the old city of Jeursalem

to the southern end of the Rothschild Boule-

the city’s markets. The bustling and colorful

vard, the city’s main artery, where some of the

Carmel market is Tel Aviv’s most famous, but

best bars and clubs can be found. Parties go on

don’t miss the trendy Sarona compound as

until dawn, confirming that Tel Aviv is indeed a

well. This area of Tel Aviv was an agricultural

city that never sleeps.

Neve Tzedek neighbourhood in Tel Aviv


www.business-review.eu Business Review | February 2017

40 CULTURAL MANAGEMENT

Shine your light, Timisoara: international expert Chris Torch illuminates winning bid Since its European Cultural Capital 2021 win, Timisoara’s next moves have included nominating Chris Torch artistic director of Timisoara 2021. An expert for the European Commission on intercultural policy issues and studies, Torch is also on the Board of Culture Action Europe, the foremost advocacy platform for culture in Europe. Will Timisoara live up to its promises? Business Review talked to Torch to find out the next steps. By Oana Vasiliu

How did you get involved in Timisoara 2021? I had previously worked on the artistic teams for the successful bids of Matera 2019 (Italy) and Rijkea 2020 (Croatia). I was planning to remain with the Rijeka initiative, as program director. However, during the European Culture Forum in 2016, I was contacted by TM2021 executive director, Simona Neumann. She engaged me to help in the final months of the bid for 2021. She convinced me that Timisoara was committed to realizing a sustainable structure with long-term visions and I couldn’t resist.

What distinguished Timisoara from its rival cities? Timisoara is ready to bloom. It has a sustainable size, a dynamic economy and several high-level educational institutions. The bid focused on revitalizing the passion and the energy that has always marked the city, not least that which sparked the revolution of 1989. This is an


www.business-review.eu Business Review | February 2017 energy that Europe urgently needs.

What’s the first phase for Timisoara 2021? We call this initial phase StartUp, and it is planned to last into early 2019. First and most important is to cultivate a skilled team of creative producers, communicators, capacity-builders and competent cultural managers. One popular definition that defines a startup is an “organization formed to search for a repeatable and scalable business model.” This inspires a combination of reckless courage and paralyzing fear for us, knowing the immensity of the responsibility that has been given to us by the citizens of Timisoara and the European Commission.

In one sentence, what is your vision for 2021 for Timisoara? A green city that continues to mature, with citizens who are open to both psychological and physical borders, re-generating the courage of 1989, transforming it into a platform for a renewed European Project and rooted in cultural encounters and curiosity.

What is Timisoara’s biggest challenge this year? For the European Capital of Culture project: recruiting and cultivating a qualified team of people ready to root themselves in Timisoara and realize this project with us! As a city, generating citizen engagement and empowering them with creative energy and critical thinking.

How does Timisoara plan to use this opportunity to promote stronger ties with Europe? The title “European Capital of Culture” says it all. It is a trans-national project, rooted in a local and national context. It is an amazing opportunity to network, learn, co-produce and evolve with cities at other edges of Europe. A key challenge, in Timisoara as across Romania, is cultivating skilled professionals to fuel an expanding economy. We will open opportunities for creative producers and active citizens to improve organizational skills, intercultural competence and networking capacity throughout Europe: internships, seminars, conferences and practical experience during the StartUp, into 2019. Europe 2020 has been the guiding EU strategy in the last few years, focusing almost completely on economic development. Timisoara 2021 comes at the right historical moment, igniting a shift towards a cultural/social focus.

When is Timisoara’s tipping point? I don’t believe much in tipping points. As a creative producer and cultural policy activist, I see change happening all the time. A city, as a unit, doesn’t shift suddenly into another stage or identity. Instead, many small encounters create a critical mass, a trend. Timisoara has been gathering experiences for hundreds of years. Certainly, the city’s intellectual position during the Austro-Hungarian Empire and the civil courage shown in 1989 are examples of significant shifts. But, if we must identify a tipping point, why not 2021? When citizens are empowered, when they’ve generated ways to express themselves, when they’ve opened themselves up to unknown impulses, who knows what might happen?

CULTURAL MANAGEMENT 41


www.business-review.eu Business Review | February 2017

42 CINEMA

Lights, camera, 2017: Romanian movies on the silver screen Many film fans believe that Romania’s strongest cinematic era began in the early 2000s, and, unlike previous new waves, there seem to be no signs of this one letting up: the 2016 Cannes Film Festival featured the latest works from Cristi Puiu and Cristian Mungiu in the main competition, with previous Palme d’Or winner Mungiu ultimately sharing the best director prize. By Oana Vasiliu

T

his could come as a surprise, as

upside-down, say festival officials. The movie

Romania is known as a country that

stars Teodor Corban, Laurentiu Banescu,

has traditionally shown little support

Maria Obretin and Simona Arsu. Vivi Dragan

for its film culture, both in funding and in

Vasile is director of photography, and Catalin

attracting local audiences. However, there

Cristutiu film editor.

are high hopes that this will change following the new cinema law approved by the recently

Next in line is Adrian Sitaru’s Fixeur, which

replaced technocratic government. BR takes a look at what local highlights will appear on the silver screen this year. Last week, Nae Caranfil’s 6.9 on the Richter scale hit cinemas. It was previously aired in Ovidiu Schumacher, Razvan Enciu, Susanne Bormann, Ana Ularu and Lutz Blochberger are part of the cast. Ana, mon amour is Calin Peter Netzer’s latest

will be in cinemas from January 27. Having premiered at the Toronto International Film Festival at the end of 2016, it has already won two awards – for Best Actor (Tudor Istodor) and a Jury’s Special Mention at Les Arcs European Film Festival. Fixeur centers on a summer, at the Transylvania International

young journalist who goes to Transylvania

Film Festival, and is a “partly realistic, partly

with a French TV crew, led by a top reporter,

unrealistic” comedy, according to writer-di-

to cover the case of a prostitute repatriated

rector Nae Caranfil. The movie tells the story

from France. The cast includes Tudor Aaron

of a young theater actor having a hard time

Istodor, Mehdi Nebbou, Nicolas Wanczycki,

and most eagerly awaited movie, starring

balancing his complicated part in a musical

Diana Spatarescu, Andreea Vasile, Adrian

Mircea Postelnicu, Diana Cavallioti and Car-

comedy, a jealous wife bordering on depres-

Titieni and Cristian Ilinca.

men Tanase, among others. It tells the story

sion and the obsession with a devastating

of Toma and Ana, who meet as students at

earthquake, announced as imminent by

February 3 will see the release of Ana Miruna

Literature College and quickly fall in love. But

experts. However, the true “earthquake” for

Lazarescu’s feature film debut, That Trip

Ana’s mental illness imperils their relation-

him turns out to be the unexpected reappear-

We Took with Dad. The story is set in 1968,

ship. The film premieres on March 3.

ance of his father after decades of absence.

when a Romanian-German family from the

Manipulative and amoral, he takes over his

city of Arad starts a journey to the German

More Romanian movies will be listed at

son’s world, turning his whole existence

Democratic Republic. Alexandru Margineanu,

www.business-review.eu


www.business-review.eu Business Review | February 2017

Jackie FILM REVIEW

By Debbie Stowe

CITY 43

out by a sniper. That plot and Lee Harvey Oswald’s subsequent killing are side notes, included only for the light they shed on Jackie’s response and her relationships with the people around her. Chief among those is the one with her brother-in-law Bobby Kennedy (our knowledge that he was to suffer the same fate as his

DIRECTOR: Pablo Larraín STARRING: Natalie Portman, Peter Sarsgaard, Greta Gerwig, Billy Crudup, John Hurt ON AT: Glendale Studio, Movieplex Cinema Plaza, Grand Cinema & More, Happy Cinema, Cine Globe Titan, Hollywood Multiplex, Cinema City Cotroceni, Cinema City Sun Plaza, Cinema City Mega Mall, Cinema City ParkLake

A

s the world’s media pore over another fashion-conscious woman in the White House, Pablo Larraín’s drama,

sibling within five years adds another somber note to the movie), played by Peter Sarsgaard. Their clashes, her differing views on appropriate funeral and burial arrangements from members of the administration and the Kennedy clan and her feelings of usurpation by the suddenly promoted vice-president Lyndon B. Johnson (John Carroll Lynch) and his wife Lady Bird (Beth Grant, seen sizing up fabric samples for new curtains by the grieving widow as she departs the White House) leave Jackie an isolated figure. Her sole source of unconditional support is her social secretary and long-term friend

focusing on John F. Kennedy’s widow during

Nancy Tuckerman (Greta Gerwig), whom we

the period of his assassination, feels timely.

first see encouraging a nervous First Lady

The eponymous First Lady is played by

to relax and smile as she shows the cameras

Natalie Portman, and she is as central to the

around her new home. The tour scenes reveal

film as the title suggests. We feel the ghost of

significantly that Jackie was apprehensive

JFK throughout, but in the flesh he appears

and brittle even before the devastating events

only fleetingly: it’s Jackie whom our business

of November 1963, rather than the poised

is with, and a captivating Portman is barely

style icon of legend.

off the screen. Her masterful and mature performance is

Portman’s FLOTUS is a deep and complex character, broken by her grief and loss – the

intensified by UK composer Mica Levi’s un-

scenes of her cleaning blood off her face using

settling score, which reflects the new widow’s

the same mirror in which she’d touched up

overwhelmed state of mind.

her make-up prior to the departure of the

A British soundtrack, a Chilean director

Dallas cavalcade, and peeling off gore-stained

and largely French locations – it’s not the

tights are among the film’s most affecting –

all-American treatment one would expect for

but also resolute in her wish to give her hus-

a US icon like Mrs. Kennedy. But this helps

band a suitably grand send-off and shape how

avoid any star-spangled reverence for the

they are remembered. Fragile Jackie in her

famous family and the Camelot mythology

pillbox hats and widow chic holds her own

that surrounds them, allowing the movie to

against the hulking suits surrounding her.

approach the subject fresh. The film jumps around in time, between a

But despite her candid conversations (in the days following her husband’s death, we

stilted 1962 televised tour of the White House,

see her opening up both to a priest, John

the infamous Dallas assassination and its im-

Hurt, and a journalist, Billy Crudup), we still

mediate aftermath, the run-up to the funeral,

don’t learn a lot about Jackie the woman – it’s

and an interview a week after JFK’s death that

only Jackie the widow who emerges. The

Jackie gave with Life magazine, in a bid to

movie is a striking depiction of grief; a prob-

shape the couple’s truncated legacy.

ing of the psychology behind the images so

It’s a fractured and disorienting narrative

familiar to us of the grassy knoll and blood-

– a suitable vehicle to depict the psychol-

spattered pink Chanel suit; and an intriguing

ogy of a woman who’s just cradled her dying

imagining of intimate unseen scenes of Mrs.

husband’s head in her lap, his brains blown

Kennedy and the Camelot coterie.


www.business-review.eu Business Review | February 2017

44 EXPAT EYE

From bashful to bold: Bucharest’s people power In the first of this year’s monthly columns considering events in Bucharest and Romania from an outsider’s viewpoint, BR’s resident expat reflects on government attempts to pardon convicted criminals and the public’s impressively indignant response.

politicians – who seem to be significantly more prone to criminality than the population in general. With the smoking ban, tenacious DNA measures to bring justice to rich and powerful crooks, the defeat of the PSD’s bid to steal

By Debbie Stowe

W

wedlock) and on immunity for Romania’s

the 2014 election by preventing the diaspora

hen I’m asked how Bucharest

a hardy group steeled themselves against

from voting, and the technocratic Dacian Cio-

has changed in my nearly 15

temperatures of around -7 degrees in January

los government, Romania had really seemed

years of living here, my first

to join a solidarity Women’s March against

to be on the right track in recent years,

Donald Trump on Strada Washington.

shaping a cleaner, better society (of things

response is usually: better restaurants. But turning my thoughts away from the carnal,

The Romanians I talked to often seemed

done properly, to borrow another phrase). A

another major difference is in the strength

– still do in some cases – to suffer from a

society that stands a greater chance of hold-

of civil society. In my early years here, many

totally unwarranted sense of embarrassment

ing onto its bright, ambitious young people,

Romanians appeared to have a deferential,

and insecurity because of their nationality.

rather than losing them to Western Europe.

fatalistic attitude to authority.

It’s heartening to see this aspect changing,

Now, if these proposed votes go the way

This was hardly surprising given decades of authoritarian rule and the fact that mass street protests had proved fatal for demonstrators within recent memory (the Roma-

and witness the people standing up for their

of the regressive, uneducated part of the

beliefs so visibly and vocally.

electorate – which seems to have become a

1

trend in the Western world lately – taking

A PRESIDENTIAL PROTESTOR

the law backwards on gay rights and giving

nian Revolution, the Mineriad). Many people

The biggest demos of recent weeks have been

grubby, thieving politicians immunity for

behaved as though little could be done to

against the newly elected PSD government’s

their crimes, much of this good work would

challenge the powerful.

shameless attempt to bring in an amnesty

be undone.

(This fatalism is also reinforced by the

law – ostensibly to relieve pressure on over-

Let’s hope Romanians can do better than

local folklore, which I still struggle to fathom.

crowded prisons, but actually, say critics, so

some so-called “more advanced” societies,

Don’t just plan your funeral after you find out

they can let their criminal cronies back on

and vote to take their country forward, not

the other shepherds want to kill you! You’ve

the streets and thwart the excellent efforts

back.

got a talking sheep, for goodness’ sake – lay a

of the National Anticorruption Directorate

trap for the plotters or at least just run away!

(DNA) to “drain the swamp”, to borrow a

And bricking up your wife behind a wall

phrase. Sad!

because she happened to be the first one to

How encouraging to see the president,

come along with your lunch is monstrous,

Klaus Iohannis, join protestors at the rally.

not the action of a prudent builder! If the

Okay, it may be a while before the country’s

monastery kept collapsing, try checking your

top politician leads a Pride march, Justin

architectural plans and construction materi-

Trudeau style, but it’s still a great leap for-

als before femicide!)

ward.

Today, it’s different. The Bucharest citizenry seem to take to the streets regularly,

2

REFERENDA RELOADED

whether in relation to government corrup-

Iohannis has initiated procedures for a refer-

tion, electoral scheming, Rosia Montana,

endum on the PSD’s devious new proposal.

diversity, women’s rights or the Colectiv

As a Brit, this rings alarm bells – referenda

tragedy.

don’t always yield a good result. In return,

And as if they didn’t have enough on their

1

the government now wants similar bal-

protesting plates with political misdeeds at

lots on plans to amend the Constitution to

home, Romanians are now taking it upon

define marriage as the union between a man

themselves to rally against foreign threats:

and a woman (therefore banning same-sex

2


www.business-review.eu Business Review | February 2017

RESTAURANT REVIEW 45

Surprise, surprise >>> Caju Brasserie, Str Nicolae Colescu 16, tel 0751 144 545 <<<

O

kay, I nominate Caju as the best

margins in this industry – and given the qual-

result was a culinary sensation. Clever (but

NEW chophouse this year. Natu-

ity of the menu, together with the overheads

greedy) girl.

rally you will point out that the

involved in running a restaurant in this area,

She then chose a ‘crispy baby squid with

year has just begun, but nonetheless I am

I am amazed at the financial wizardry neces-

saffron risotto’ at RON 38. Fresh saffron is

confident it will reign for a long time before

sary to give you such bargain prices. Harry

the world’s most expensive commodity,

a new, young contender takes its crown.

Potter, eat your heart out.

weight/weight. Costing more than gold or

It lives in the former premises of the

To its eternal credit the House is confident

certain class A drugs, it

much missed Byblos chophouse behind

enough to proudly publish the menu on the

is a world class luxury. And the House

the Atheneum. Those of you old enough

net, so Google it yourself and save me some

gave us pure saffron risotto for a mere RON

to remember Byblos will be amazed at the

valuable time in listing all the options that

38. Thank you House, and it was excellent.

physical makeover of the premises which

Blondie and I missed out on.

Away I dived into a perfect ‘salmon fettuccini pasta in a Vermouth

is nicely contemporary,

white sauce,’ Hey, many

although I hated the

would be confused

inclusion of plas-

by the differ-

tic ivy plants.

ence between

The new

fettuccini and

clientele is

tagliatelli,

a delight. Every-

with both

body cool,

being flat

young,

pasta. Well,

attractive

so what! It

and profes-

was Housemade pasta,

sional. Not

a task which

one shaven-

all restaurants

headed, gold chain lout in sight; House becomes more famous it will soon attract this nouveaux riche trash, so go there now whilst you can still dine in social comfort. I make a point of never reviewing a

should emulate as it

Let

although sadly, as the

only takes 120 seconds to

me concentrate

cook your pasta and serve you,

on what we ate, which was quite superb. I had a starter of ‘burrata’, a huge potato-

rather than the un-skilled Bucharest norm of making you wait for 20 minutes whilst

sized bulb of mozzarella and cream with

the lesser restaurants boil up shop-bought

truffles and tomato cubes. I asked our waiter

dried pasta. I closed with a ‘coconut samui shrimp’

brand new restaurant, as I want to give the

if it was real truffle or truffle oil. (FYI, truffle

House a chance to make its initial mistakes

oil contains no truffle whatsoever and is

in a sauce containing the unlikely combina-

and thereafter to correct them. But I do not

made from a vile petroleum chemical, ‘di-

tion of oyster sauce and red curry paste at

extend this period of grace to Caju, as the

thiapentane’). Run from a restaurant which

RON 52. It was pleasant enough, but the red

management has over 20 years of experi-

tries to fool you with ‘truffle oil’. But Caju

curry was nowhere near strong enough and

ence in running top restaurants, so I will

gave me pureed fresh truffle and I marveled

I had to add Tabasco to give it a kick.

take no prisoners! They can hit the ground

at how they could do this at a bargain price

running, and I write this one month after

of RON 36.

the opening. The menu has clearly taken months

Blondie chose a simple but superb tomato cream soup, but being the cunning rodent

to perfect. Almost every dish is priced at

she was, she mooched half my burrata and

less than RON 50. I know the small profit

truffle only to slap it into her soup. Her

Apart from the good food, another attraction is the excellent, fair prices. Caju will take off and I hope they do not increase those prices as a result. Michael Barclay Mab.media@dnt.ro


www.business-review.eu Business Review | February 2017

46 CITY

Cultural calendar

By Oana Vasiliu

The Anatomy of Restoration Until April 2 Romanian National Museum of Art Visiting hours Wed-Sun 10.00-18.00

Eighty works of art have been

magazine. Tickets cost from RON

Well-known director Andrei

orchestra, choir and ballet of

selected to represent the com-

95 to RON 265.

Serban returns to the Bucha-

Bucharest’s National Opera come

rest National Opera stage, this

together under the conducting

time presenting one of the

wand of Marcello Mottadelli. The

most acclaimed operas in the

scenography is by Octavian Ne-

world, Gaetano Donizetti’s

culai, while the costumes are the

to a painting or textile’s original

Lucia di Lammermoor, recently

work of Lia Mantoc. Prices vary

aspect is made possible by sci-

relaunched by the director at

from RON 15 to RON 120.

entific investigations, in-depth

the Opera Bastille in Paris. The

plexity of conservation procedures carried out by expert staff in all of the museum’s specialist laboratories. The journey back

Smurfs Live February 12, 19.00 Sala Palatului

knowledge of materials and techniques and their history, as well as by the conservator’s artistic training and sensitivity, say experts. All these are guided by internationally-endorsed

Most of us remember the blue

general principles and a code of

manikins living in the mushroom

ethics.

houses. Yes, the Smurfs are coming to Romania for the first time.

Tarja Turunen concert February 2, Timisoara; February 3, Sala Palatului, Bucharest

Eight favorite Smurf characters including Papa Smurf, Clumsy Smurf, Brainy Smurf and Smurfette will be on stage to transform the current wintry breeze

The Shadow Self, Tarja Tu-

in town into a colorful spring.

runen’s latest album, will be

The evil wizard Gargamel and

presented to Romanian fans

three puppeteers will accompany

in live concerts in Timisoara

the tiny blue creatures in this

and then Bucharest. “Since

‘Smurftastic’ journey. Tickets

going solo a decade ago, Tarja

cost from RON 53 TO RON 245.

Turunen has often struggled to find a balance between classical and metal overtures, but on The Shadow Self, she has got it brilliantly right,” notes Team Rock

Premiere: Lucia di Lammermoor February 25, 18.30 Bucharest National Opera




Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.