Romanian Nuclearelectrica interested in some of Enel’s operations in Romania

Romanian state owned power producer Nuclearlectrica (BVB ticker: BVB) is analyzing the opportunity to buy some of Enel’s operations in Romania, the company announced on Friday. Nuclearelectrica is the second large state owned company that expresses interest in Enel’s assets, as electricity distributor Electrica, 49% owned by the state, is already in talks with the Italian group to buy some of its local operations. “Since 2013, Nuclearelectrica has expressed its intention to diversify its portfolio through strategic investments aiming at a sustainable growth of the company in the current competitive context of the energy market. In this framework, SNN is analyzing the opportunity arisen from the announced potential disposal of Enel’s operations in Romania and is currently performing a preliminary analysis on part of the transaction perimeter. No indicative or any other offer has been submitted to Enel,” reads a statement the company sent to the Bucharest Stock Exchange. A potential decision of Nuclearlectrica’s management on the transaction will be subject to shareholders’ approval. The State holds 81% of Nuclearelectrica. Romania’s energy minister Razvan Nicolescu went to Italy, on Wednesday, September 17, to negotiate with Enel. He was accompanied by Nuclearelectrica’s CEO Daniela Lulache and Electrica’s CEO Ioan Rosca. Italy’s Enel, which holds a third of the electricity distribution market in Romania announced it will sell its business by the end of this year.Enel holds the monopoly for electricity distribution in Bucharest and surrounding areas, in Banat and Dobrogea. Minister Nicolescu said on Tuesday that the electricity distribution business is strategic for the Romanian state, especially in Dobrogea, where there are a lot of wind parks and where the state plans to build two new nuclear reactors. The two nuclear reactors Romania currently functioning in Romania are also in Dobrogea, at Cernavoda, and are operated by Nuclearelectrica. The Cernavoda nuclear power plant covers 18 to 20% of Romania’s electricity output. “We are not encouraging anybody to submit offer to buy the distribution in Dobrogea, as there are Romanian companies interested in this,” Nicolescu said. Nuclearelectrica’s shares gained 8.4% in the last four trading sessions of the Bucharest Stock Exchange. Electrica’s shares also gained 6%. Andrei Chirileasa, andrei@romania-insider.com