Romania's Posta Romana only attracts one bid

By bne IntelliNews October 2, 2014

bne -

Belgian postal company bpost has emerged as the sole bidder for a 51% stake in Posta Romana, despite earlier expressions of interest from several other European operators. Bucharest has been trying for several years to privatise a stake in the company as part of its commitments to the International Monetary Fund. 

The size of the bid from bpost, which is controlled by the Belgian government, for the Romanian state postal services company has not been disclosed. 

bpost will now be given access to Posta Romana's financial data and management information, paving the way for the Belgian company to submit a final bid after it completes its due diligence. The bid from bpost will also trigger a debt-to-share conversion process at Posta Romania, a requirement for the sale of the company to go ahead. 

"The decision of the Belgian operator fulfills the requirement for successful privatisation," said Posta Romana director-general Alexandru Petrescu, in a statement. "It reflects the consistent, transparent and reliable path taken by the privatisation commission over the past two years, working with the organisation and the ministry."

bpost was the only bidder for the company, despite reports in the local media that several other companies including Britain's Royal Mail, France's La Poste and postal operators from Holland and Poland had expressed an interest prior to the September 30 deadline. 

Romania's Information Society Minister Alexandru-Razvan Cotovelea said that the bid for Posta Romana - the first step towards its privatisation - was evidence of the increase in efficiency at the company, where a restructuring process was launched in 2011. 

"This shows the seriousness of the Romanian government regarding the privatisation of large Romanian companies. It is a long way to the successful completion of negotiations, but I assure you that the discussions will be based on transparency, professionalism and concern for all employees," Cotovelea said in a statement published on the ministry's website.

Posta Romana owns Romania's main postal distribution network and more than 5,600 post offices across the country. Although around 12% of the workforce was laid off during the restructuring, the company remains Romania's largest employer.

The Romanian government has been trying to find a strategic investor for several years. Bucharest initially agreed with the IMF that it would sell a 20% stake in the company. This plan was scrapped in December 2012, when the government rethought its privatisaton strategy for the company, in favour of selling a majority stake in an attempt to attract investors. However, an attempt to sell the company in early 2013 flopped despite expressions of interest from around 10 potential buyers. 

The Romanian government is in the process of selling off stakes in several state owned companies. Progress has been mixed, with successful IPOs of power company Electrica and Romania's largest natural gas company Romgaz SA, but lengthy delays in restructuring and repeated failures to sell off other companies such as rail freight operator CFR Marfa, Posta Romana and petrochemicals company Oltchim.

More companies may also be put up for sale - Fondul Proprietatea's manager Grzegorz Konieczny, CEO Romania of Franklin Templeton Investment Management, said in September the fund was in talks with the Romanian government over proposed IPOs of the operators of Bucharest international airport and Constanta Port, the largest port on the Black Sea, as well as salt monopoly Salrom. Decisions are expected in early 2015. 

Related Articles

Macedonia kept on hold as Balkans edges towards EU goal

Clare Nuttall in Bucharest -   Macedonia’s EU accession progress remains stalled amid the country’s worst political crisis in 14 years, while most countries in the Southeast Europe region have ... more

Austria's Erste rides CEE recovery to swing to profit in Jan-Sep

bne IntelliNews - Erste Group Bank saw the continuing economic recovery across Central and Eastern Europe push its January-September financial results back into net profit of €764.2mn, the ... more

INVISIBLE HAND: Rhetorical wizard Draghi conjures up a QE battle

Liam Halligan in London -   Mario Draghi is being hailed, once again, as a rhetorical wizard. The president of the European Central Bank has done it again. After the October meeting of the ECB’s ... more

Register here to continue reading this article and 2 more for free or 12 months full access inc. Magazine and Weekly Newspaper for just $119/year.

If you have already registered, enter the information below with the same email you used previously and you will be granted immediate access.

IntelliNews Pro subscribers click here

Thank you. Please complete your registration by confirming your email address. A confirmation email has been sent to the email address you provided.

Thank you for purchasing a bne IntelliNews subscription. We look forward to serving you as one of our paid subscribers. An email confirmation will be sent to the email address you have provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

If you have any questions please contact us at

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

IntelliNews Pro subscribers click here

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

If you have already registered, enter the information below with the same email you used previously and you will be granted immediate access.

Thank you. Please complete your registration by confirming your email address. The confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.