In a surprise move, the Romanian Government plans to use its pre-emption rights over the Naval Shipyard in Mangalia, the largest shipyard in Romania, thus blocking the deal between Dutch buyer Damen Shipyards Group and seller Daewoo.

The deal has already received the OK from Romania’s Competition Council. Damen Shipyards was willing to pay USD 26 million to Daewoo for 51% in the shipyard.

The state, which is co-owner of the shipyard, has the first acquisition right, and intends to use it, thus becoming sole shareholder, said Prime Minister Mihai Tudose. Romania needs this shipyard both for its military and for its civilian fleet.

“Maybe we will build a frigate for the Army, as well as provide maintenance. Maybe we build some ships there. It’s not possible for a country with access to the Danube and the sea to lack a shipyard,” said the Romanian PM.

Daewoo had already signed an agreement with the Dutch buyer.

editor@romania-insider.com