First Romanian acquisitions abroad
Things seem to be changing after two decades in which Romanian companies had neither the economic power, nor the internal environment favorable for external expansions, nor the authorities’ logistic support. At least in what concerns the energy sector where Romania is better positioned from the standpoint of resources and technical capability.
In this context, Energy Minister Razvan Nicolescu stated yesterday that two Romanian energy companies are currently negotiating the takeover of assets abroad. The official refused to state which the two companies are.
On the other hand, also yesterday, Victor Cionga, the new president of Electrica, the biggest electricity distributor in Romania, pointed out in an interview that he does not rule out the purchase of assets outside Romania. Cionga pointed out that Electrica is now focused on its current operations in Romania. “Depending on the opportunities, we do not rule out analyzing an expansion at regional level; in this case, it would be better to be as best prepared from a managerial standpoint for such a step. If in the near future a sufficiently interesting opportunity appears so much so that we would consider the possibility of an acquisition, we will probably move forward with the process, but only following a very serious analysis of this “business case,” an analysis offered by the government, of talks within the Administrative Council, and obviously of the shareholders’ agreement and decision,” the President of Electrica stated.
In what concerns the state of the energy market, Nicolescu emphasized: “After the elimination of the cogeneration tax Romania’s energy exports have grown, giving coal-fired plants the chance to enter the market too.” Asked by an energy supplier when it will be possible to sign new bilateral contracts outside the OPCOM energy stock exchange, Nicolescu pointed out that he is not considering such a modification. “We are not yet ready for this, but I am not ruling out the fact that new investments could be waivered (from the obligation to sell energy on OPCOM – editor’s note),” Nicolescu added.