Gaz de France bidding by itself for Distrigaz

Gaz de France, one of the leading groups on the natural gases market in Europe will submit final bids for the controlling interests in the two state-run natural gas distributors in Romania by itself, said Jean Abiteboul, head of Gaz de France International, the group’s international business division.

The Romanian State is selling 30% in the two distributors directly to strategic investors, which will later participate in a capital increase to acquire the rest up to 51%. It will not sell both Distrigaz-es to a single investor. The two transactions are estimated at about $480-$500 million, sources close to the privatisation process say.

The gas distribution in Romania has drawn the attention of international energy giants and the competition appears to be tight. Gaz de France competes for the two gas distributors with Germany’s Ruhrgas (part of the E.On Group), Russia’s Gazprom and Italy’s Enel.

The French do not rule out a partnership after the start of the privatisation process.

Gaz de France’s plan is to enter the Romanian natural gas market and build an integrated portfolio, which, besides distribution, may include production, supplying, development of underground storage facilities, sale of electricity or even financial services on the energy markets.

“We will submit final bids for the two natural gas distribution companies in Romania. We are set to proceed by ourselves to the end, but we do not rule out a possible partnership,” Jean Abiteboul said. He feels GdF has the upper hand on its competitors, because it is already involved in gas distribution.

The bids for Distrigaz are expected until July 15.

“If we go into distribution, we will invest in other areas to be present on the entire chain of operations. Gaz de France is an integrated company with a strong emphasis on its core business (natural gases i.e.),” Abiteboul added.

“Gaz de France’s cash flow is sufficient for the acquisition, which amounts to approximately 31.8bn euros a year. We can also take out a loan in local currency (ROL that is),” the French official specified.
adrian.mirsanu@zf.ro