Romania's largest DIY company Dedeman has given up plans to invest €20mn in neighbouring Moldova due to excessive red tape, local media reported on October 20.

Dedeman, controlled by the Paval brothers, is the only company owned by Romanians to exceed the €1bn threshold in turnover. Last year, Dedeman's turnover increased by more than 20% to RON5.25bn. This year, Dedeman estimates its turnover will go up by 7%.

The decision to drop plans to invest in Moldova was explained by the company as a result of administrative barriers, excessive bureaucracy and the lack of certainty regarding a decision of the local authorities, unimedia.md reported.

Dedeman announced plans to enter Moldova in 2014. In 2015, the Romanian company concluded a contract with Moldova’s Piele SA regarding the construction of a store on the land owned by the former Moldovan leather plant. According to the agreement, 50 buildings of the plant, built between 1950 and 1960, most of them damaged, were going to be put down and the entire area was going to be turned into retail space.

However, in 2015, Chisinau city hall declined to issue a permit for the project design. At the end of last year, the city hall sent the project to the city council for the final approval, but it has remained blocked since then.

The investment was expected to create 200 jobs in Moldova. Dedeman was planning to open two stores in Moldova, according to local media.

Recently, Dedeman and AFI Europe agreed to cancel the sale transaction for the office buildings in AFI Park. The deal would have been the largest ever in the Romanian office segment.