State-controlled hydropower group Hidroelectrica, the largest energy producer in Romania, abandons the plan to buy the electricity distribution arm of CEZ Group in Romania - CEZ Vânzare (now owned by Macquarie Infrastructure and Real Assets MIRA), according to Ziarul Financiar quoting converging sources familiar with the discussions.

Among the reasons invoked is the legislative instability in the energy market, a rather awkward argument in the context in which Hidroelectrica is a state company, and the state itself makes the legislation in the energy field - yet not less relevant given the lack of coordination between state#s actions.

The company had postponed a final decision at the beginning of October after the company's Supervisory Board had approved Hidroelectrica's offer in the CEZ Vânzare acquisition process in the semi-annual report.

andrei@romania-insider.com

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