Romanian state-owned power producer Hidroelectrica ponders buying the distribution and supply networks, and the wind farms operated by foreign groups CEZ and Enel in Romania.

The company has begun preliminary procedures to assess these potential acquisitions, stated the company’s general manager Bogdan Badea, confirming information already circulated by local media, Economica.net reported.

The hydropower producer is also interested in some assets of the machinery producer UCM Resita, a supplier of equipment for Hidroelectrica’s power plants. Hidroelectrica started procedures to select legal advisers for the planned takeovers, but hasn’t started discussions with the two energy companies yet, Badea said.

Recently, information has emerged about the intention of Czech group CEZ and Italian group Enel to sell their operations in Romania.

Hidroelectrica, the largest electricity producer in Romania and one of the most profitable companies controlled by the Romanian state, had bank deposits of about RON 2.5 billion (EUR 530 million) at the end of last year, according to the data recently published by the company.

The company announced in 2018 it sketched a five-year investment plan, but deferred unveiling it after the Government issued the emergency ordinance (OUG) 114 that forces the company to sell part of its production at a regulated price to households. Under the five-year plan as sketched last year, the company’s management was envisaging expansion and diversification of the production base to introduce renewables. Horvath & Partners Management Consulting developed the plan.

Hidroelectrica is the largest electricity producer in Romania with a total installed power of 6,444 MW in 208 plants. The Romanian state controls 80% of the company’s shares, with the remaining 20% held by investment fund Fondul Proprietatea.

(Photo: Hidroelectrica on Facebook)

editor@romania-insider.com