Ford Romania has completed another step in the post privatization process with the transfer of shares in a non-car manufacturing spin off company to the Romanian state. It is another step in the reorganization and restructuring process of the formerly state owned Automobile Craiova, which the US car manufacturing giant Ford took over five years ago.

A deal was signed late on January 7 between Ford Romania and the State Assets Recovery authority (AVAS), which transferred 100 percent of shares in the newly set up Active Conexe SA to the state authority.

Active Conexe will not have anything to do with car making, with real estate and the Mecatim factory given as examples of the company's business activity. No details on the value of the deal were released, in which Romanian law firm Nestor Nestor Diculescu Kinsgston Petersen (NNDKP) acted on behalf of Ford Romania.

Ford took over the bulk of shares in Automobile Craiova in 2007, in a deal worth some EUR 730 million, of which EUR 57 million was paid for the shares and the rest to be directed to investments.

Since taking over Automobile Craiova, Ford has made investments “in excess” of EUR 700 million, according to NNDKP. In March 2012, Ford reached a new agreement with the Romanian government that simplified the restructuring process and set a new timeline for post-privatization commitments after missing investment targets.

editor@romania-insider.com