Romanian hydropower company Hidroelectrica announced on Monday (11 March) that it has signed an acquisition contract to transfer UCM Reșița’s business operations to Hidroelectrica’s subsidiary Uzina de Construcții Mașini Hidroenergetice.
The document is the final stage of the transaction, certifying that the relevant parties have fulfilled all the conditions and that the buyer has paid out the acquisition price of around 67.9 million Romanian lei (13.6 million euros).
By completing the transaction, Uzina de Construcții Masini Hidroenergetice acquires all assets, know-how, ongoing contracts, patents and licenses necessary for the continuation of the provision of services for the manufacture, refurbishment and improvement of hydro units and auxiliary equipment operated by UCM Reșița.
“The signing of this contract represents an extremely important moment for Hidroelectrica, a strategic step not only for us but also for the Romanian hydropower,” said Karoly Borbely, CEO of Hidroelectrica. “We are focused on what we have to do next, on the consolidation and capitalisation of the unit we took over today and on its integration with Hidroserv, so as to significantly increase the value of both assets. We want to maximise our potential, to bring more value, performance and competitiveness. Basically, through this acquisition, Hidroelectrica strengthens its technological capabilities and, furthermore, it prepares to meet the future challenges of the industry.”
“We know for sure that Uzina de Construcții Masini Hidroenergetice S.R.L. shares our vision and we are confident that this transaction will contribute to the positive consolidation of the industry and it will bring significant benefits to Hidroelectrica,” Mr Borbely added. “We take on our own shoulders the continuation of the tradition of excellence of UCM Resita – the oldest industrial unit in our country and the manufacturer of over 80 per cent of the equipment installed in the hydropower plants in Hidroelectrica‘s portfolio. We also know very well the importance of this unit for the local community in Reșița and we want to build together a new successful stage in the hydropower field.”
Hidroelectrica operates 187 power plants across Romania with a hydropower capacity of 6.3 gigawatts (GW) and a wind farm in Crucea (eastern Romania) with an installed capacity of 108 megawatts (MW).