E.ON and Distrigaz Sud, the two most important gas distributors on the Romanian market, plan to form a consortium to issue an Initial Public Offering (IPO) to take over Petrom Distributie Gaze (PDG) gas distributor, informs newspaper Business Standard. In this way, the two companies are favourite to take over one of the most important small gas distributors, a business estimated to be worth 50-70 million euros.
Officially, neither Distrigaz Sud nor E.ON has confirmed its intention to issue a joint offer.
"Confidentiality clauses prevent us from offering information," said representatives of Distrigaz Sud, owned by French Gaz de France.
Another company that hopes to take over PDG is Conef, owned by businessman Dan Adamescu, who also controls Alro in Slatina (southern Romania) and Megaconstruct. "Conef would derive the greatest advantages from taking over PDG. It has gas from Gazprom, obtained at preferential prices, and can develop through the PDG network," said market sources. Conef officials refused to comment.
Megaconstruct has only one distribution point, near Bucharest. "Taking over PDG would help the company with 42 distribution points," said market sources. Adamescu refused to comment on the possible takeover of PDG.
The Competition Council will analyse the effect on the market of the E.ON – Distrigaz Sud consortium.
"If it is determined that this takeover could have negative effects on free competition, it will not receive a favourable decision," said the Vice President of the Competition Council, Alexe Gavrila.