With the enactment of Government Decision 550/2001, the Romanian government has issued additional procedural rules for the privatization of commercial companies.
The key points are as follows:
- Among the documentation that potential buyers must provide upon submission of the final offer is evidence that the Competition Council has been notified of the proposed acquisition of shares in the company undergoing privatization. In spite of the ambiguous wording, this provision appears to require only that the Competition Council be informed of the proposed acquisition in principle, rather than that a formal notification be submitted regarding any economic concentration that may result from the intended transaction.
- Buyers may qualify for acquisitions of shares upon presentation of a technical offer. In cases where negotiation is the chosen method for selling the shares, the public institution involved is entitled to make a selection of potential buyers based on the technical offers that they have submitted.
- Potential buyers are entitled to conduct due diligence at the subject company. They are allowed direct access to technical, economic, financial and legal information on the subject company upon advance payment of a fee in a quantum set by the public institution involved.
- The privatization strategies for companies that represent commitments of the Romanian government to international financial bodies, and the fundamental elements of the respective privatization transactions, are subject to government approval.
For further information on this topic please contact Adriana Gaspar at Nestor Nestor Diculescu Kingston Petersen by telephone (+40 1 201 1200) or by fax (+40 1 201 1210) or by email ([email protected]).