Romania’s state-controlled electricity utility group Electrica plans to borrow up to €1bn to finance acquisitions in the energy sector, according to documents submitted for shareholder approval. The group, in which the Romanian state holds a 49% stake, operates electricity supply and distribution businesses and is listed on the Bucharest Stock Exchange.

The proposed financing will support Electrica’s plan to acquire companies, business lines, or individual assets related to its core activities, both in Romania and other EU member states. The company’s management also requested approval, in principle, to launch due diligence processes for potential transactions.

Economica reported on October 7 that Electrica is in talks with investment fund Macquarie over a possible takeover of Distribuție Energie Oltenia (DEO). Macquarie, which purchased several energy assets from Czech group CEZ four years ago, has been gradually divesting them, and DEO is its last major remaining asset in Romania.

Energy sector sources indicate that Macquarie has also held discussions since the spring with France’s Engie, which operates in gas distribution, supply, and renewable energy generation in Romania. While Macquarie reportedly seeks to exit its distribution business in Oltenia relatively quickly, it is not expected to sell below the regulated asset base, estimated at about €750mn. Some sources suggest the fund may seek up to €1bn for the asset.

If approved, Electrica’s proposed borrowing would mark one of the largest corporate financing initiatives in Romania’s utility sector in recent years and could significantly expand the group’s operational footprint across the region.