Energy M&A increased 300 times in H1

“This value, which can seem too high, is based on two significant transactions: [energy company] Enel took over [local energy supplier] Electrica Muntenia Sud and [oil company] Petrom took over [oil services company] Petromservice,” said the energy and utilities general manager of investment fund Romanian-American Enterprise Fund, Valeriu Binig. He added transactions will continue in H2, but at a slower pace, because some investors expect the general election results and a new policy in energy.

The CEO of Raiffeisen Investment Romania, Ioana Filipescu, said the transactions could reach the record value registered 2007, when local oil company Rompetrol, one of the largest in the country, was sold to state owned Kazakh company KazMunaiGaz.

“Markets are undergoing consolidation. Transactions on the wind energy segment and liquefied petroleum gas (LPG) distribution segment are expected,” Filipescu said.

Ten transactions were finalized in H1 on the local energy market. Enel took over Electrica Muntenia Sud, for €820 million, based on a contract signed in 2006. Also, Petrom took over Petromservice for €328.5 million. Czech CEZ energy group purchased a wind energy project in Dobrogea, southern Romania, from Continental Wind Partners (CWP). Spanish Iberdrola Renovables company bought 50 wind energy projects from Rokura Bucharest, for €200-300 million. Czech PPF investment fund acquired Gaz Sud gas distributer for €45 million and is currently negotiating the purchase of other small distributers.