Every visit to Bucharest by officials from European Union member countries brings with it the signing of big contracts with Romanian companies. Following last month's visit by Gerhard Schroeder, the German Chancellor, it is now the turn of French Premier Jean Pierre Raffarin, to arrive in Bucharest accompanied by a powerful business delegation - Gaz de France, Vinci, and Alcatel.
The contracts signed yesterday at Government headquarters, and in the presence of the Romanian and French Premiers, are together worth around one billion euros. These deals with French companies come after the contract signed with Airbus this year, a deal, which had political importance since the Americans from Boeing had seen their offer rejected.
The main priority was the privatisation of Romania's largest natural gas distributor, Distrigaz Sud. The contract, which was also of significant political importance, was won by Gaz de France.
Gaz de France agreed to pay 128 million euros for the direct acquisition of a 30% stake in Distrigaz Sud. The French company will then make a further cash contribution of 183 million euros to raise its stake to 51%. The French company also took over the net financial debts of 95 million euros registered by Distrigaz Sud on April 30. The transaction will be completed this year, and will allow Gaz de France to have a say in all strategic decisions of the Romanian company.
The Minister of Economy and Trade, Dan Ioan Popescu, said there will be no layoffs at Distrigaz Sud, which has more than 10,000 employees, and that the price of natural gas will not surge. Distrigaz Sud had been valued at 426 million euros.
Another big contract was signed between Romania's National Road and Motorway Company and French giant Vinci for the building of the Predeal-Comarnic segment of the Bucharest-Brasov hig
