The ministry is majority shareholder in all four companies involved in the merger.
Minority stockholders Fondul Proprietatea (FP.RO), Termoelectrica and ICM also agreed with the operation, the ministry said in a statement.
“The shareholders expressed their clear decision to set up a strong and viable company as soon as possible,” the statement noted.
Complexul Energetic Oltenia is likely to generate around EUR1 billion in annual revenue, according to ministry estimates.
Romania also plans to set up of a second energy company, Complexul Energetic Hunedoara, which would include thermal power companies Paroseni and Mintia and four of the seven units operated by the mining company Compania Nationala a Huilei (CNH).
The authorities want to privatize the two power companies by the second half of 2012.