The privatization committee said the transaction cannot be carried through because the suspensive conditions regarding the transfer of shares were not met, the same sources said. The conditions are stipulated in the government decision regarding CFR Marfa sale.
Romania’s government did not extend the privatization deadline of CFR Marfa in Wednesday’s Cabinet meeting last week.
GFR called on the Transport Ministry on Sunday, October 13, to make public the privatization contract of CFR Marfa and for Transport Minister Ramona Manescu to get directly involved in the matter, to avoid a failed sale. GFR said the state’s failure to secure an extension of the deadline to allow time for antitrust clearance is setting the deal up to fail.
Manescu said last week that GFR had until Monday, October 14, to pay the remaining EUR170 million for 51% in CFR Marfa.
In June, private freight railway operator GFR won an auction to take over 51% of CFR Marfa, offering EUR202 million. GFR transferred EUR20 million into an escrow account, accounting for 10% of the sale price, and previously paid a EUR10 million guarantee to be allowed to bid for CFR Marfa.
CFR Marfa is the largest freight carrier in Romania and GFR is its main competitor.