CMS advises Hidroelectrica on acquisition of 108 MW wind farm in Romania

International law firm CMS has advised Hidroelectrica, the Romanian majority state-owned hydro power producer, on the acquisition of an operational 108 MW wind farm located in Constanta county from STEAG group, one of the largest generators of electricity in Germany.

Hidroelectrica is a leader in the production of energy and the main provider of ancillary services necessary for the National Energy System in Romania, a vital company in this strategic sector. This acquisition is one of the largest stand-alone M&A transactions in the renewables sector in Romania. The acqusition is part of Hidroelectrica’s strategy to consolidate its leading position in the Romanian energy market and to become a regional leader in renewable energy.

The CMS team advised Hidroelectrica on all legal aspects of the acquisition, from completing extensive due diligence to drafting and negotiating the transaction documents. The transaction is expected to complete in the first quarter of 2021, subject to regulatory approvals.

Horea Popescu, Managing Partner of CMS Romania and Head of CEE Corporate M&A, comments: “We are glad to have advised Hidroelectrica on its successful bid for the acquistion of this significant project in Romania. By developing new capacities based on other renewable energy sources, this deal will contribute to the diversification of Hidroelectrica’s production portfolio. The Romanian energy market has significant potential and despite the pandemic  we are seeing an increase in investor interest in this sector. We remain optimistic about the deal environment in 2021 and hope this trend will bring to completition several ground-breaking transactions, not only in the Romanian market but also across the region.”  

Mircea Moraru, Senior Associate in the Corporate M&A team of CMS Romania, added: “This landmark deal is the first private acquisition of a significant business by a Romanian majority state-owned company. The fact that this was a competitive sales process added to the complexity and time-pressure of the transaction, with the final negotiations being completed in record time.”

The transaction was led by Corporate Partner Horea Popescu and Corporate Senior Associate Mircea Moraru. The wider team included Varinia Radu, Ramona Dulamea, Raluca Diaconeasa, Madalina Constantinescu (Energy); Claudia Nagy, Claudia Popescu, Raluca Ionescu, Catalin Vasile, Simona Strava, Cristina Ciomos (Corporate); Roxana Fratila, Alexandru Dumitrescu, Alexandru Trandafir (Real Estate); and Valentina Parvu (Commercial).