E.ON to merge Romanian operations

The current Chairman of the E.ON Gaz Romania Board of Directors, Frank Hajdinjak, is to head the German E.ON utility company’s operations in Romania, after the gas and electricity segments are united in a single company. E.ON currently has two companies in Romania, E.ON Gaz Romania, on the natural gas segment, and E.ON Energie, on the electricity segment. The subsidiary will become E.ON Romania, a company with turnover exceeding €1 billion, to be operational as of 1 January, market sources told Business Standard. “If everything goes as planned, the appointment of Frank Hajdinjak as CEO should become effective on 31 December,” sources added. The new company will be the first, and only so far, integrated utility supplier on the local market, with more than two million clients. Local E.ON officials declined to comment on the information. Sources indicated that Hajdinjak has already begun taking over some tasks in the business administration field for electricity distribution and supply. These were part of the prerogatives of former E.ON Energie Romania Board head, Guenther Schubert, who was recently appointed CEO of E.ON Bulgaria. “Schubert is still a member of the board, but has already taken over the management of E.ON Bulgaria operations. His tasks are gradually being taken over by Hajdinjak, so there is a sort of parallel management. As of 1 January, Schubert will probably no longer be on the board,” sources added. Information obtained by Business Standard shows that the merger will be made with the absorption of E.ON Energie Romania by E.ON Gaz Romania Holding. The two entities will have equal representation on the Board of Directors, each with two members. The merger will not lead to layoffs, sources said. Last year, E.ON had turnover exceeding €1.1 billion in Romania, of which some €800 million came from gas supply and distribution and the remaining €300 million from electricity supply.