Romania's Romgaz proposes price range ahead of takeover talks with fertilizer maker Azomures

Romanian natural gas group Romgaz (BVB: SNG), which is in negotiations to take over the country's largest fertilizer producer, Azomures, from Swiss Ameropa, announced that it sent to Azomures a letter informing it about the price range proposed for the acquisition of the company's assets.

In case the price range would be accepted, the parties could enter extended negotiations of terms and conditions about the transaction, the company said.

"In the context of Azomures press release, we will inform the capital market if negotiations between the parties actually start and, subsequently, we will inform on the negotiation outcome," the Romanian gas company explained.

The details, disclosed in a note to investors, were made public after Azomures announced in a press release that the takeover talks stalled despite the due diligence process being completed. The fertilizer maker's announcement, combined with the decision to send part of the employment home under technical unemployment, was seen by Romgaz as pressure.

"Romgaz does not act, nor does it perform corporate formalities for the satisfaction of intrinsic interests of a third party acting as seller. Romgaz performs its corporate processes in a rigorous and balanced manner, ensuring that no decision would affect the company's economic interests," the company's note reads.

Romgaz announced last November that it may officially submit a binding offer to acquire fertilizer plant Azomureș by the end of 2025, provided the final stages of its due diligence process confirm the financial, legal, and operational feasibility of the transaction.

(Photo source: Inquam Photos/Adel Al-Haddad)