The transaction through which the Romanian state becomes majority shareholder in Daewoo Mangalia Heavy Industries (DMHI), has been completed, the economy minister announced on July 23.

Economy Minister Danut Andrusca noted that it is the first time the Romanian state has become a majority shareholder in a strategic industrial company that had previously been privatised.

The activity at the shipyard, which has been delayed in the last few months, can be relaunched, the ministry said. Following the transaction, the Romanian economy ministry owns, through 2 Mai Mangalia Shipyard, 51% of the shares in DMHI, while its Dutch partner Damen Shipyards Group will hold the remaining 49% stake. Damen will also take over operational control.

“I am glad to announce the completion of the transaction related to the shares of Mangalia shipyard at exactly four months after we publicly announced that together with the team at the ministry we solved a blockage that had lasted for too long. Now we have reasons to be optimistic about the future of the shipyard and its revitalisation. I trust that the Dutch partner will contribute to the relaunch of the activity on the shipyard and its development,” Andrusca said.

Damen was originally expected to become majority owner of the shipyard, after crisis-hit South Korean conglomerate Daewoo Shipbuilding & Marine Engineering (DSME) put assets in Romania and other countries up for sale. 

Damen Shipyards Group announced in November it had entered into a share purchase agreement with DSME to acquire its majority share in DMHI in Mangalia. 

However, in January, the country’s then prime minister Mihai Tudose said that the Romanian government was committed to taking over a 51% stake in Mangalia shipyards from Daewoo and reviving the yard by producing military ships. 

Two months later, after negotiations with Damen, the economy ministry announced that 2 Mai Mangalia Shipyard would give up exercising its pre-emptive rights regarding the acquisition of shares held by DSME in DMHI. According to the agreement with Damen, the Dutch company was to transfer a 2% stake to 2 Mai Shipyard, so that the Romanian state would become a majority shareholder with a 51% stake, while Damen will hold a 49% stake.