Romania’s state-controlled gas producer Romgaz (BVB: SNG) confirmed that negotiations to acquire fertilizer producer Azomureș are still ongoing, according to Ziarul Financiar, despite recent delays that have already impacted the target company’s operations.
Azomureș, currently owned by the Swiss group Ameropa, recently announced layoffs amid uncertainty surrounding the takeover. The deal is seen as strategically important, as Romgaz could provide a stable supply of natural gas – the key input for fertilizer production – to revive the plant’s activity.
According to sources familiar with the discussions, the main sticking point in negotiations remains the valuation of Azomureș, with disagreements over price delaying progress.
In parallel, the Romanian government is considering broader support measures for the domestic chemical industry. A draft project analyzed by Profit.ro provides a package of incentives for companies using natural gas in production, including a five-year exemption from profit tax starting from the first investment, super-accelerated depreciation, as well as exemptions from taxes on buildings and land. Additional provisions would waive fees related to changing land use or removing land from the agricultural circuit for investment purposes.
These measures are aimed at boosting competitiveness in a sector heavily affected by high energy costs in recent years.
iulian@romania-insider.com
(Photo source: Inquam Photos/Adel-Al Haddad)
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