Electrica is reportedly interested in energy distribution in the southern region of the country, which includes Chisinau, while Conpet is lured by the oil terminal of Giurgiulesti Danube harbor.
Both companies declined to comment on the information, but different sources specified for ZF that both of them hired consultants for talks and Conpet also mulls contracting bank funding. The two companies are in talks with their counterparts of Moldova, but it is not certain any deals will come through, the above-quoted sources say.
Acquisitions could bring growth opportunities for the two companies, each of them a regulated monopoly in its field. Just like the possible takeover of some distribution companies owned by Italy’s Enel in Romania, for Electrica going abroad would be a way of using the substantial cash reserves it hoarded in the IPO of last year and expanding its asset base.
In September 30, 2014, the distribution holding sat on cash worth 2.4 billion lei.
Electrica is in talks to take over power distribution and supply in the southern region of Moldova with the current concessionaire, Spain’s Gas Natural Fenosa, the only private entity managing energy flow in Moldova. From the two activities, the Spanish company generated ales worth EUR242 million and operating profit of EUR29 million, according to its 2013 financial report.
Should a deal come through, Electrica would add another 846,000 energy consumers to the current 3.6 million distribution clients it has in Romania.
Beside power distribution, Electrica is also interested in taking over the supply activities, according with the above-quoted sources. Unlike the Romanian market, the Moldovan one is completed regulated. The regulated charge is below energy prices in Romania, but Moldovan authorities have voiced their intention of embarking upon market deregulation.
Conpet would not get the same synergy by purchasing the oil product terminal of Giurgiulesti, but with terminal would allow the company to get involved in gasoline and diesel oil imports in Moldova and Ukraine, which are going up. The terminal is owned by a Moldovan company, Danube Logistics.
For Conpet, expansion to Moldova would mean the first step toward the status of regional player the company has wanted to gain to offset the local dwindling crude oil flows. In September 30, 2014, Conpet stood on cash worth RON305 million.
Should Electrica’s and Conpet’s acquisition intentions have no outcome, the two companies would however join the group of Romanian state-run companies with regional ambitions.
(English version by Catalina Apostoiu)