After Muntenia Sud, Enel targets gas company

Italian-based Enel, the new owner of Electrica Muntenia Sud, the most valuable electricity company on the local market, is interested in the acquisition of a natural gas company, to provide clients with a full range of utility services. The Italians also say they will not make massive redundancies at Muntenia Sud, although the company’s results need to improve, with the restructuring programme expected to be completed in a few months’ time. “We know that the current market structure doesn’t leave a lot of room for new players; however, we will continue to examine potential opportunities on the gas transmission and supply market,” say representatives of the Italian group. After the privatisation of Distrigaz Sud and of the former Distrigaz Nord, now E.ON Gaz Romania, the only choice left for players on the electricity market that want to consolidate their presence on the natural gas market is to make greenfield investments or buy smaller companies, which already operate on the market. Such acquisitions have become quite attractive after the takeover of Gaz Sud and of Grup Dezvoltare Retele (GDR) by Czech-based PPF Investment, as well as after the sale announcement of Petrom Distributie Gaze, with Distrigaz Sud and Megaconstruct in the race to buy the company.