Romanian Senate OKs Automobile Craiova Sale

The Senate’s privatization committee debated the draft law Tuesday and approved it unanimously.

The draft law still needs approval of the Chamber of Deputies, which is the decision factor.

The European Commission launched a probe into the plant sale to Ford to see whether the Romanian government attached specific conditions to the privatization, resulting in a lower sale price and leaving Ford the only bidder in the sale. If this is the case, the privatization could involve elements of illegal state aid, the commission said.

The European Union, which Romania joined last year, has rules to prevent governments from favoring one company over another through the use of state aids.

In September last year, Ford agreed to pay EUR57 million for a 72.4% stake in the state-run Automobile Craiova and promised to invest another EUR675 million to upgrade the plant.