Companies embracing sustainability for a better future

While the level of CSR investments made by companies operating in Romania are proportional to the size of the economy, our country has been evolving in terms of the diversity of projects, their impact, and the creativity of the campaigns, and it is actually delivering good practices to the region in terms of company-led sustainability initiatives. Business Review sat down with several companies that have been highly involved in long-term sustainability programmes in Romania to highlight the main trends on the local market.

The CSR scene in Romania has been growing more mature in recent years, as companies are seeking long-term strategies and not just targeted actions. Directions and trends are still being dictated by large companies, which have clear strategies and objectives set at the global and regional level and adapted to local needs. “The gap with other European countries will narrow as we are going to see increased involvement from authorities and local companies in the future,” says says Mustafa Tiftikcioğlu, CEO at Garanti BBVA. He notes that there is still confusion between CSR and sustainability in Romania, as initiatives under the CSR umbrella are also tools for reputation building. “Sustainability goes beyond CSR and creates both requirements and opportunities for a sustainable future,” he says.

So far, many companies in Romania have understood the value of a robust CSR strategy, which must be aligned and integrated with their operations, values, and mission. This translates into tangible action programmes in education, environment, and sports— just to name few. “In recent years, there has been growing interest in integrating responsible practices along the entire value chain, up to customer relations and employee well-being. In addition, depending on the company’s community, specific causes such as children’s education and services for disadvantaged groups are addressed more frequently,” Tiftikcioğlu adds.

Mihaela Nita, Public Affairs Manager at Coca-Cola Romania, points out that some years ago, most companies would focus on complying with regulations and investing in initiatives that brought a positive contribution to society. “CSR was somehow referred to as sustainability too, which meant that if legislation did not impose it, operational sustainability investments were seen as mere nice-to-haves. For few years now, we’ve been seeing significant changes,” she says. Specifically talking about the Coca-Cola System, Nita adds that sustainability is addressed by all departments and that it is among the company’s main priorities. CSR remains to be addressed by dedicated teams, with the main focus on making a positive change in communities, in order to leave a better world for the generations to come. “We take all aspects of the business into account, from products and production to human development, use of resources, waste generation, and responsible marketing,” Nita notes. Alexandra Barroso, Legal and Corporate Affairs Director at Bergenbier SA, says that while until recently, the focus on social responsibilities was mainly seen as a link between business operations and local communities, recent years have shown us how important it is to invest in—and commit to—environmental, social, and sustainability issues. “Now, people are the ones who expect companies to get involved in the community and actively contribute to its development, and companies pay much more attention to current needs,” she says. And in their CSR approach, companies now tend to start from the idea that success is closely linked to the sustainability of the communities in which they operate. “There has been a changeover, from isolated sponsorships and donation projects to complex initiatives that dedicate significant resources to making a positive impact in the community. Organisations have realised that they had both the responsibility and the ability to drive such changes, like never before. Romania is actually delivering good practices to the region from this point of view,” says Ioana Gorganeanu, Head of Marketing and Communication at Mastercard Romania, Croatia, Israel, and the Balkans. She adds that Romania is also advancing in covering the diversity of sustainability areas—and this is not a random choice of words. “We are happy to see greater openness and action in supporting minorities, women, the LGBTQIA+ community, and more.” Gorganeanu believes that education is the backbone of an evolved society, while financial education particularly nurtures stability and autonomy for individuals and the national economy. “Infrastructure and innovation also rank among critical needs for sustainable local development. As for protecting the environment, it is no less than crucial, if we want a healthy space to live in and a better future,” Gorganeanu adds.

While the level of CSR investments made by companies operating in Romania are proportional to the size of the economy, our country

has been evolving in terms of the diversity of projects, their impact, and the creativity of the campaigns. “We’re now seeing major platforms really driving the change locally: in mindsets, behaviours, and result multiplication. We’re also seeing change in Romanians’ attitude towards recycling, with more and more people becoming aware of their impact and the importance of every gesture in the bigger picture,” says Ileana Dumitru, Legal and External Affairs Director of the Central South Europe Area at BAT. She adds that through BAT’s campaigns so far, over 2 tonnes of cigarette stubs have been prevented from reaching the streets and used in energy recovery in cement factories, and 11,000 of previous versions of glo devices went to recycling. “Still, more effort is necessary in terms of awareness, education, and driving systemic change through small, repetitive individual actions,” she says. Dumitru adds that harm reduction, sustainability, and environmental protection are crucial, while social contribution and irreproachable business ethics and commercial conduct, are also major areas on which companies should focus, now and in the future.

In turn, Alice Nichita, Corporate Affairs & Sustainability Director at Coca-Cola HBC Romania, thinks that our market is keeping up with the global context, as multinational companies are guided by a global strategy and working to make a positive local impact under the global framework. “Moreover, businesses that were developed in Romania, especially in recent years, are looking closely at how they could contribute to tackling social and environmental challenges—and we’re seeing this across all kinds of businesses, from small shops to large music festivals,” Nechita notes. Referring to the Coca-Cola System in Romania, she says that one of the company’s important targets is the 100 percent collection and recycling goal. “By 2030, we aim to help collect and recycle the equivalent of 100 percent of the packaging we put on the market. Our most recent commitment is reducing emissions across our entire value chain to net zero by 2040.”

ESG: THE NEW WAVE IN SUSTAINABILITY

We often hear about companies in Romania that have created their standalone ESG departments. This is the result of the transition to a sustainable society, which involves systemic changes in organisations and an adequately prepared human resource. Therefore, setting up dedicated departments and training people to support ESG trends over the coming decades is crucial. In addition, the UN Sustainable Development Goals, as defined in 2015, have become a common framework for action for governments, companies, and NGOs. “Creating ESG departments is a major step forward and a proof of the companies’ serious approach towards ESG. For real action and change to take place, the right mindset should always be accompanied by adequate resources—in terms of both financial investments as well as human resources, tools and instruments, technology, and knowhow,” Dumitru argues. “Years ago, ESG used to be a ‘nice-to-have’ department on a company organisational chart; today, it is a must. By integrating ESG practices into its operations, a company can improve long-term performance and manage risk effectively, which ultimately contributes to increasing investor and customer confidence in the company’s future prospects,” says Perry V. Zizzi, Managing Partner at Dentons Romania. He adds that climate change, the fallout from

the covid-19 pandemic, and now the war in Ukraine have highlighted how unprepared the global economy is for catastrophic change. “Both investors and businesses have catapulted ESG from a marginal issue to one that requires urgent action, and ESG has moved to the forefront of concerns for companies looking to be more conscious of their impact and influence on the environment, on social causes, and corporate governance structure and policies.”

Barosso of Bergenbier thinks that the implementation of ESG will certainly bring a change of vision regarding the role of a company and its impact on the environment and the community in which it operates. “There is also a need for reporting, and companies are going to have to allocate resources,” she says. For example, Oxygen was the first integrated communication agency in Romania to become carbon neutral and it is committed to moving to the next level, where environment and sustainability are priorities. Setting up a sustainability department within the agency, through which Oxygen provides the corporate sector with strategic consultancy and communication on sustainability, has been a major step in this direction. This move is part of Oxygen’s commitment to fight against climate change and support companies in taking steps towards creating a business environment that is more focused on sustainable development. “We feel that it’s no longer enough to talk about sustainability. We operate in an industry that has the power to change society. But for this to happen, we need to act and contribute to systemic changes both for ourselves and for our clients and partners,” says Irina Manole, Head of Sustainability and CSR at Oxygen, who will coordinate the agency’s new sustainability department. Both the agency and its 70 employees in Bucharest and Cluj-Napoca have become carbon neutral. The process had two stages: the calculation of the agency’s 2021 carbon footprint and its neutralisation thorugh the acquisition of equivalent carbon credits from the voluntary carbon market.

WHAT ARE COMPANIES DOING?

In 2020, BAT embarked on a mission to build A Better Tomorrow, which implies a consistent transformation journey, with ESG (Environmental, Social, and Governance) principles as key pillars of the process. “From the global to the local level, our approach is very clear: reducing the health impact of our business is our main focus area, and so is placing a greater emphasis on the importance of addressing climate change and environmental management. At the same time, we remain committed to delivering a positive social impact and ensuring robust corporate governance across the Group,” says Dumitru of BAT. She adds that last year, more than 18.3 million adult consumers worldwide chose BAT’s non-combustible products (4.8 million more than in the previous year), which is a major step forward in supporting tobacco harm reduction policies, a transition towards reduced risk alternatives (based on the weight of evidence and assuming a complete switch from cigarette smoking; these products are not risk-free and are addictive). Also, the highlights of BAT`s environmental progress include a 42.7 percent reduction in Scope 1 and 2 CO2 emissions in 2021 versus the 2017 baseline and 64.4 percent of renewable electricity sourced for its operations sites. As for the Coca-Cola System in Romania, Nita says that its sustainability approach remains consistent: the company remains connected to its strategic

priorities: A World Without Waste, leadership for water, actions to reduce emissions and fight against climate change, reducing the sugar content of its beverages while providing options across its portfolio, supporting its people and communities. “However, if we were to speak about changes, we believe that the way we communicate about sustainability has changed in the last few years. Our brands have integrated messages and calls to action to the general audience. Also, corporate communication is mainly about sustainability, and we are trying to make our messages as simple as possible for our audiences and get them engaged with our initiatives,” Nita concludes.

Barosso of Bergenbier says that in recent years, the company has adopted a clear focus on sustainability. “Through our actions aimed at protecting the resources we use, we contribute to the preservation of a sustainable environment. In recent years, we have continuously streamlined the consumption of utilities and we have managed to increase the share of recovered waste by focusing on cutting carbon emissions.” In addition, the company has implemented a water management system in its factory which allows used water to be treated and to re-enter a new circuit, thus improving the efficiency of water consumption. Last but not least, Bergenbier has promoted responsible alcohol consumption through campaigns that have generated a positive impact in its communities, and it has also implemented "Cool down and reforest!," one of the largest reforestation projects, which was initiated 5 years ago.

IS THE FUTURE LOOKING BRIGHT?

“We hope to see closer collaboration between the private sector, authorities, and NGOs and a greater openness among companies for non-financial reporting. We also want to see relevance and impact in sustainability initiatives, as companies should correctly identify social and environmental issues that are specific to their business sector, and act based on the 2030 Sustainable Development Goals Agenda,” Tiftikcioğlu states, adding that the future is full of legislative and operational challenges that we all need to address.

“The pressure of climate change is growing, so authorities will be putting even more pressure on companies to integrate ESG factors into their business agendas,” says the CEO of Garanti BBVA. Along the same lines, Dumitru of BAT says that advancing on the sustainability path requires a multi-stakeholder approach, and it’s crucial to have a concerted effort from corporate actors, public stakeholders who are responsible for a balanced and efficient regulatory framework, the media, civil society, and individuals. “Investors can do it best by backing companies that can make a difference, those that are committed to transforming the industry and operating to the highest standards. Our stretching targets in harm reduction and ESG are a marker of our commitment,” says Dumitru. Barroso of Bergenbier thinks that the local CSR market will grow in the near future as the circular economy becomes a must-have for companies. In terms of the development of the local CSR market, Zizzi says that we are currently witnessing significant changes on each and every level, from the political, social, and economic points of view. In this global context, Romania will be forced to initiate strong reforms to comply with EU requirements. “Companies are acting on CSR initiatives and ESG projects as well as on implementing sustainable development goals (SDG), and all of these must be part of the economic recovery,” he says.

CSR is a type of business self-regulation, in the name of social accountability and making a positive impact on society, including—but not limited to—being environmentally friendly and eco-conscious, promoting equality, diversity, and inclusion in the workplace, giving back to the community and ensuring business decisions are ethical. “Redefining CSR in order to fully incorporate ESG objectives and gradual SDG implementation is the natural step forward for companies that want to differentiate themselves on the market, to contribute efficiently to the circular economy, and to have a strong long-term business strategy that goes beyond profitability, growth rate, and brand recognition. In fact, building a circular economy is a corporate social responsibility,” Zizzi of Dentons concludes.

• rPET portfolio: In 2020, the Coca-Cola System started bottling the Dorna natural mineral waters in rPET¬—100 percent recycled PET. In a year of consumers choosing Dorna, 5,000 tonnes of new plastic are no longer produced, the equivalent of the weight of 400 trucks or 70 planes. Since 2021, 20 percent of the Coca-Cola System’s beverage portfolio has been bottled in rPET.

• Keel Clip: (April 2021) Implemented in the System’s Timisoara plant, the new technology received an investment of EUR 2 million and through it, the amount of plastic in foils is reduced by approximately 200 tonnes per year. It also reduces the amount of energy used during production by 15 percent.

• Garla Mare-Vrata ecological restoration. For over 8 years, WWF-CEE and The Coca-Cola Foundation have been engaged in the Living Danube Partnership, whose vision is to restore wetlands and floodplains along the Danube and its tributaries. The programme is carried out in 6 countries, including Romania, where over 400 hectares of floodplain located between the Garla Mare and Vrata localities (Mehedinti county) were recently returned to nature, following reconstruction works that reconnected the ponds on the Danube bank with the river.

• Today for a Tomorrow Without Waste. Launched in 2019 by the CSR Nest Association and funded by the Coca-Cola Foundation, Today for Tomorrow is a platform that aims to encourage the circular economy, with a focus on recycling. Currently, the platform's initiatives are aimed at bringing together all relevant actors who need to collaborate in order to implement the selective waste collection system in Romania, enabling individuals and legal entities to create partnerships with local authorities and waste collectors. So far, the platform has supported schools, hospitality operators, and citizens in implementing separate collection systems. The platform has also issued a guide on selective waste collection.

• Sustainable Futures. A project developed by Social Innovation Solutions, supported by The Coca-Cola Foundation and co-organised alongside Global Shapers Bucharest Hub. The project aims to raise understanding and awareness of the importance of sustainable business-making and the circular economy as key drivers of future progress in Romania, while also providing concrete solutions for implementation.

• After us, it’s on us to collect: partnerships with customers for selective collection. “EcoBon” – a pilot project developed in Brasov, in 3 Penny stores, resulted in 14,000 PET bottles collected; in the four months over which the “Pet-Collect” campaign was rolled out, more than 1,500 Romanians brought a total of 86,325 PET plastic packaging in the collection spaces placed in Auchan stores throughout the country; “Pay with a PET,” the partnership with Carrefour, was also very successful, with over 15,000 participants and 291,000 PET bottles collected.

• I’m Working Again (Lucrez din Nou). Launched in December 2020 by the Social Incubator Association, in partnership with Coca-Cola HBC Romania, the Working Again (Lucrez din nou) programme is the first online professional retraining platform that aims to help those who have lost their jobs in the difficult context created by the covid-19 pandemic. The platform offers a diverse range of tools, such as vocational counseling, career tests, video trainings, and resources for those who want to improve their resume—all free of charge. By 2021, over 560 people had found new jobs, over 7,300 platform users were registered with an account on the platform (enjoying the open resources), 200 users were receiving counseling and training, and the platform had 151,000 unique visitors.

OPINION: Roxana Ionescu, Partner & Co-ordinator of the Environmental Rights and Data Protection practices at NNDKP

The recent developments on the ESG side of the local business community are welcomed and we believe that creating ESG departments, developing

ESG strategies, and communicating results will greatly contribute to the well-being of companies that choose to make this transition. Indeed, we have noticed active efforts from the local business community to adapt to market requirements and restructure their strategies in order to develop frameworks that are suitable for sustainable growth. However, we believe there is still a lot of room for improvement in terms of the coordination between the internal teams developing

ESG strategies and the compliance and legal teams in charge of implementing such strategies, as there will always be an overlap between a company’s ESG-related objectives and the legal requirements it must comply with in order to achieve these objectives. Having synergy within their teams would allow companies to better anticipate what needs to be done and better adapt their programmes, including ESG programmes, to obtain better results in a more efficient manner. In recent years, ESG has been taking center stage in business conversations due to the multitude of challenges our society is facing right now: climate change, increasing inequality, energy shortages, human rights, and privacy concerns. Addressing all these issues requires a holistic approach. Due to the increased pressure to transition from a linear economy to a circular one in order to better utilise available resources, the environmental element is first on the list for executives trying to integrate ESG principles into their business strategies. Achieving carbon neutrality is one of the main concerns of the local business market, due to its complex nature and the need for congruent actions and sustained efforts. Nevertheless, we can see the social element catching up, considering the fact that the client management facet of ESG, which includes data privacy, has a direct impact on the way a company is perceived on the market. In addition, the governance aspect needs to be adjusted to ensure a proper and active management of the environmental and social elements of a company’s programmes, as the corporate element has an umbrella effect on any ESG initiative.

Acting now for a carbon neutral future

Eric Stab, CEO at ENGIE Romania, sat down with Business Review to discuss the company’s focus on sustainable development and share his thoughts about what the private sector should do to help create a more sustainable local economy.

By Anda Sebesi

What are the building blocks of your sustainability strategy and how do they translate into the projects you implement?

Our sustainability strategy has four main topics at its core: ethics, people, the decarbonisation of ENGIE’s and its clients’ activities, and providing muchneeded aid to communities. I believe everyone can relate to the importance of business ethics and zero tolerance for any incidents; it is why we have enforced this approach across all of our processes. As for people, we support our colleagues by creating a strong health and safety culture, focusing on gender diversity programmes, fostering the development of their skills, and paving the way for the next generations who will be interested in pursuing careers in our sector. Recently, our efforts have been recognised: we are the only company in the energy sector to have received the EDGE certification for our commitment to workforce gender diversity, with 43 percent of all our managers being women. Additionally, our dual education professional programme has been named the best in the country and we have successfully managed to hire all the students who have enrolled so far. In terms of the help we’ve provided to communities, we are happy to have improved the lives of more than half a million people through numerous projects in the field of environmental protection, energy efficiency, education, and healthcare. In doing all this, we always have in mind the essence of our business strategy: reaching carbon neutrality by 2045 by decarbonising our activities and providing secure energy which is consumed more efficiently, accessible for as many people as possible, and respectful of both society and the environment.

How has your business strategy adjusted since you’ve decided to develop a more sustainable business?

As a leader in low-carbon energy solutions, we set the stage by accelerating the transition towards a carbon-neutral economy. Here in Romania, we offer our B2B and B2C customers solutions for decentralised energy production, energy efficiency, and green mobility. For instance, this year we signed a partnership with SaintGobain Romania to build the largest onsite photovoltaic system in Romania, which will provide around 20 percent of the energy needed by their industrial site in Calarasi and avoid generating more than 2,400 tonnes of CO2 per year. On the other hand, we provide our B2C customers with green electricity solutions—by contracting it from our own renewables portfolio or having them produce it themselves via photovoltaic panels—as well as green mobility solutions.

What should the private sector do to support the sustainable development of the local economy?

I think each business should set an example by reducing its own carbon footprint. Second, I believe in education and in the impact of encouraging both our employees and customers to embrace a more sustainable lifestyle, by using green energy, switching to green mobility solutions, and paying much more attention to energy efficiency. Of course, our partners, suppliers, and subcontractors also play an important role and we are committed to increasing the share of partners who have high sustainability ratings.

What are the main projects your company developed last year?

There were many projects that made us very proud last year. I will mention one that can be seen as a best practice, especially in this dynamic and volatile energy context: turning SOS Children’s Village— an NGO that takes care of 400 disadvantaged children—into the first energy-efficient community that also produces its own green energy. Through a multi-annual programme, in partnership with Habitat for Humanity, we installed solar panels on the rooftops of the 15 social homes in Bucharest, and they produce green energy for self-consumption. Furthermore, after having rehabilitated these 15 homes between 2014 and 2016, we are now in the process of rehabilitating two more buildings that will be transformed into educational and therapy spaces. Overall, so far, the association has saved more than EUR 150,000 on its energy bills and redirected the funds to care programmes.

Sustainable financial products for a greener tomorrow

Mustafa Tiftikcioglu, CEO at Garanti BBVA, told Business Review about the lender’s strategy to contribute to the achievement of Romania’s Sustainable Development Goals (SDGs) and the ways in which it aims to encourage Romanians to make sustainable life choices.

By Anda Sebesi

What are the building blocks of your sustainability strategy and how do they translate into the projects you implement?

First, we must acknowledge the fact that sustainability is essential for each organisation and that it is no longer optional for companies. It is a principle that must be applied across our daily activities. At Garanti BBVA Romania, we strongly believe that operating sustainably is going to be a key driver of the bank's long-term success and we have already started developing our capacity to fight against climate change and support the growing relevance of social inclusion. A few years ago, our organisation decided that sustainability would be one of our five strategic priorities, in line with the role we have taken on as a major contributor to inclusive and environmentally caring economic and social development.

It is essential to note that as a bank, we act as a financier of a greener economy. We also share our knowledge, foster cooperation with external stakeholders, and use our influence in society to increase awareness and achieve results in promoting sustainable development. To become a more sustainable group, we have taken a few measures at the company level, encouraging all our employees to join our efforts. At the same time, we have expanded our offer by adding financial products that contribute to the protection of the environment.

Garanti BBVA Romania's message is that each person has a moral obligation towards others and future generations and they must be aware that while their healthy and sustainable choices may represent small steps, they positively impact future generations.

How has your business strategy adjusted since you’ve decided to develop a more sustainable business?

In recent years, Garanti BBVA has developed a multi-directional social responsibility strategy at the group level, aiming to contribute to society's welfare.

In its more than 20 years of operating on the local market, the bank has mainly invested in projects that have encouraged the protection of natural habitats, the development of Romanian entrepreneurship, access to financial education tools, and other initiatives with an impact on the community. Our partnership with WWF Romania, through which we support the WWF’s nature preservation policy, is an example of this longterm commitment dating back to 2010, when we launched the WWF Bonus Card, the first eco-branded credit card in Romania. In the coming years, we will continue to focus on adding new sustainable financial products, both to the bank’s portfolio as well as to the product ranges offered by Garanti BBVA Consumer Finance and Garanti BBVA Leasing.

What should the private sector do to support the sustainable development of the local economy?

In recent years, we have seen leaders of public and private organisations in every sector beginning to assign more importance to sustainability. Companies are thus more concerned with making sure that their operations respond to the needs of the present without compromising the ability of future generations to meet their own needs. And in turn, banks have aligned themselves with this joint effort and are now placing sustainability and environmental protection among their top priorities.

What are the main projects your company developed last year?

In 2021, Garanti BBVA Consumer Finance launched the Green Credit, a product for individual customers who want to make sustainable purchases. By launching the green loan, we want to contribute to the achievement of Romania’s Sustainable Development Goals (SDGs) and encourage Romanians to make sustainable life choices.

Earlier this year, in collaboration with the Romania Green Building Council (RoGBC), Garanti BBVA launched the innovative financial product called Eco House, a green loan granted to individuals for the acquisition of green residential units which are certified as such by RoGBC. At the same time, Garanti BBVA became a Platinum member of the RoGBC. The collaboration between the two organisations aims to promote the financing of sustainable housing acquisitions by offering green mortgage solutions to individual customers.

Romania’s M&A market may see double-digit decline in 2022

The evolution of the private equity (PE) model has turned it into an engine for M&A The Romanian M&A market experienced stable growth last year, and 2022 began with a lot of optimism. Global signs indicate a decreased Romanian transaction market where entrepreneurs are involved. This possible doubledigit will change some of the expectations regarding M&A for both buyers and sellers.

By Claudiu Vrinceanu

The value of the global M&A market fell by 20 percent to USD 2 trillion in the first half of 2022 compared to the same period in 2021, and it is likely to drop further as economic repercussions are reflected on global markets, according to PwC. The trend can also be observed on the Romanian market following an outstanding year: the Romanian mergers and acquisitions market reached a record level in 2021 in terms of the number of transactions, with a total of 137, according to Deloitte Romania. "The uncertain economic outlook slowed down M&A activity in the first half of 2022 after the record pace of 2021. However, deals will continue to play an important role in companies' growth strategies. With inflation in many countries at its highest level in 40 years, both buyers and sellers involved in deals will need to approach the due diligence process using various inflation scenarios and, more than ever, taking into account the implications on market shares in relevant markets, pricing, relationships with key customers and suppliers, and key employees' remuneration and security," said Cornelia Bumbacea, Deals Partner at PwC Romania. equity (PE) model has turned it into an engine for M&A, providing an abundant source of deal-making capital. Global PE "dry powder" reached a record USD 2.3 trillion in June 2022—triple the amount seen at the start of the global financial crisis. This capital growth explains why PE's share of M&A has increased from approximately one third of total deal value five years ago to almost half of the total deal value today. As for investment funds in Romania, we’ve seen three major trends: exits made by private equity funds, several transactions concluded by funds, and several acquisitions completed by companies with investment funds. One relevant transaction was the agreement signed by Resource Partners for the sale of its holding in World Class Romania to African Industries Group. SARMIS Capital, a private equity fund dedicated to Romania and neighbouring countries, acquired the majority stake in Smart ID Dynamics, aiming to further consolidate the company's market position and help it expand internationally. ROCA Industry bought Dial, a company specialising in manufacturing wire products, from businessman Vasile Rosu. The transaction had a value of EUR 14 million.

The adoption of new technologies remains a priority and keeps technology, media, and telecommunications (TMT) on top regarding M&A investment. It accounted for over one quarter deal volume and one third of deal value in the first half of 2022. Business consultants expect technology demand to create M&A opportunities in software and infrastructure-enabling technologies in the second half of 2022. Publicis Groupe bought Tremend, one of the fastest-growing Romanian software companies, employing 650 engineers. Another transaction was signed by Arobs, who took over the business line and the software development services team from Enea AB in Sweden. In the meantime, we have also seen new mergers. For example, software and mobile application companies Essensys Software and mReady have completed a merger process and with the aim of building one of the most globally-relevant Romanian technology companies.

CONSUMER MARKETS AND HEALTH INDUSTRIES

M&A activity in the consumer markets industry for the next six months will be closely tied to how the uncertain economic outlook affects consumer confidence and spending. High demand for biotech and innovative new technologies such as mRNA, gene therapy, and telehealth capabilities are also attracting investor interest.