Romgaz (stock symbol SNG) is set to finalise on September 1 the transaction through which it takes over the assets necessary for Azomureş’s production activity, as well as the contracts and employees necessary for the transferred activity, according to a report submitted to the Bucharest Stock Exchange on August 31.

The transaction, for which Romgaz and Azomureş signed the business transfer agreement on May 29, was conditional on the approval of Romgaz shareholders, the unconditional clearance from the Competition Council and the approval of the Foreign Direct Investment Review Commission. The last condition was met on August 28, so, according to the agreement, the transaction completion date is September 1, Ziarul Financiar reported.

Romgaz aims to resume and continue the production of chemical fertilisers and related industrial products at the plant, in an effort to diversify its activities and achieve vertical integration.

Separately, the company expects to begin electricity production at its new gas-fired power plant in Iernut.

The Iernut power plant is expected to enter the testing phase this winter and operate at full capacity in the first quarter of next year, interim prime minister Ilie Bolojan said on Monday while visiting Mureş County. Bolojan explained that the Iernut investment is important, including in light of the geographical imbalance between energy production and consumption in Romania.

“It is an important objective that Romgaz also manages and, as you know, it is one of the strategic power plants for Romania, on the one hand, because it was supposed to replace coal-fired units years ago, and on the other hand, because in the Romanian National Energy System there is a deficit of energy production in central and western Romania and we have an energy surplus in southeastern Romania, in the Dobrogea area,” Bolojan said.

According to him, the Iernut power plant would contribute to balancing the energy system and reducing pressure on the electricity transmission infrastructure.

iulian@romania-insider.com

(Photo source: Facebook/Azomures)