The remaining company, Electrocentrale Bucuresti (ELCEN), and Electrocentrale Constanta will be transferred to the local authorities and merge with heating distributor RADET, the company said in a statement.
The state remains the majority shareholder of Electrocentrale Bucuresti (97.51%) through the Energy Department, while state-owned natural gas producer Romgaz Medias (SNG.RO) will own a 2.49% stake.
Romania also owns Electrocentrale Constanta (100%) and a 28.8% stake in Electrocentrale Titan, while the rest of the shares are owned by Electrocentrale Grup (70.47%) and Romgaz (0.73%).
Thus, ELCEN will own Bucharest-based thermoelectric power plants Vest, Sud, Grozavesti, Progresu and Uzina de Reparatii.
Electrocentrale Constanta will own thermoelectric power plant Palas and the thermal power transport network for Constanta city, as well as other assets of ELCEN, while Electrocentrale Titan will own thermoelectric power plants Titan and Fantanele, as well as other assets of ELCEN.
Ahead of the merger, heating distributors RADET Bucuresti and RADET Constanta will be turned into trading companies, while the shares of Electrocentrale Bucuresti and Electrocentrale Constanta will be transferred to the city halls of Bucharest and Constanta, respectively.
ELCEN was established in December 2002, as a unit of power producer Termoelectrica, and is currently owned by the Economy Ministry, with a 97.51% stake. It is the biggest thermal power producer in Romania (40%) and Bucharest (90%) and one of the major electric power suppliers in the country (4.8%).
In the first six months, ELCEN reported a turnover of nearly RON1 billion (EUR227 million).