State-controlled gas producer Romgaz (BVB: SNG) may officially submit a binding offer to acquire fertiliser plant Azomureș by the end of the year, provided the final stages of its due diligence process confirm the financial, legal, and operational feasibility of the transaction. The update was provided by Gabriela Mareș, Romgaz’s Director of International Relations and European Funds, during the Q3/2025 results teleconference, Ziarul Financiar reported.
Romgaz is currently running two parallel due diligence tracks: technical, economic, and environmental due diligence, conducted by one consultant; and legal due diligence, carried out by a second consultant.
According to Mareș, the first interim reports are expected this week, after which Romgaz will evaluate the findings and prepare final assessments. If these confirm the viability of the takeover, the company plans to formulate and potentially submit a binding offer before year-end.
Azomureș, historically Romania’s largest fertiliser producer, has been shut down since late 2023 amid high gas prices and market volatility. Industry stakeholders see a Romgaz takeover as strategically coherent, given that natural gas accounts for roughly 70% of nitrogen fertiliser production costs.
A vertically integrated structure – with Romgaz supplying gas and Azomureș producing fertilisers – could stabilise costs, improve competitiveness, and reduce Romania’s near-total reliance on fertiliser imports following the plant’s shutdown.
The acquisition would also dovetail with Romgaz’s long-term upstream strategy. As co-developer of the Neptun Deep offshore gas project, due to start production in 2027, Romgaz could channel part of the future Black Sea output into domestic industrial use, strengthening Romania’s energy security while anchoring a major industrial consumer.
Romgaz reported net profit of RON 2.43 billion (EUR 480 million) for January–September, a 7% y/y increase, supported by stable hydrocarbon production of 23.96 million boe (+0.6% y/y).
The company’s market capitalisation reached RON 39 billion (EUR 8 billion) after its share price surged 84% y/y. The dividend yield from the 2024 profit distribution stood at 1.5%.
iulian@romania-insider.com
(Photo source: Inquam Photos/Adel-Al Haddad)
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