Wednesday, December 7, 2011

Romania Approves Merger of Power Plants, Mines in One Company

By Andra Timu

Dec. 6 (Bloomberg) -- Romania approved the merger of three state-owned thermal power plants and coal mines into a new company called Complexul Energetic Oltenia SA, the country’s Economy Ministry said.

Complexul Energetic Craiova SA, Complexul Energetic Rovinari SA, Complexul Energetic Turceni SA and Societatea Nationala a Lignitului SA will merge “to create in the shortest time period a strong and viable company which will ensure the necessary framework for increased efficiency and needed investments,” the ministry said today in an e-mailed statement.

Fondul Proprietatea SA, which holds minority stakes in the companies, has agreed to the merger after it sued the government last year to block a planned merger of Romania’s hydropower and hard coal holdings into one company called Hidroenergetica SA and coal-fired and hydropower plants and two nuclear reactors under a second holding called Electra SA.

The Balkan nation plans to sell majority stakes in the newly formed Oltenia to fulfill pledges to the International Monetary Fund and the European Union. Romania may also merge other two thermal power plants and coal mines under a second company called Hunedoara SA, according to a law draft on the ministry’s website.

--Editors: Douglas Lytle, Tim Farrand

To contact the reporter on this story: Andra Timu in Bucharest at

To contact the editor responsible for this story: James M. Gomez at

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