The European Bank for Reconstruction and Development (EBRD), owner of Giurgiulesti International Free Port, Moldova’s main sea-to-river port, has launched a structured mergers and acquisitions (M&A) process through an international tender to identify potential strategic and financial investors who can further support the successful long-term development of this strategic asset for Moldova, Report informs via the EBRD.
The ongoing M&A process is being conducted in full coordination with the government of Moldova, including on the future commercial and legal framework of the port, aimed at facilitating inward investments in full alignment with international best practices and standards for the sector.
Since acquiring Giurgiulesti International Free Port in 2021, the EBRD has increased efficiency, throughput volumes and profitability. The EBRD has consistently stated its intention to attract reputable investors to further support and develop the port into a competitive hub for regional and international trade.
The EBRD is being advised on this M&A process by Raiffeisen Bank.
The port is located on Moldova’s short stretch of Danube river frontage and borders both Romania and Ukraine. As Moldova’s main port, it handles over 70 percent of Moldovan’s waterborne import and export trade, securing supply chains for Moldova across multiple types of cargos, significantly benefiting the Moldovan economy and playing a pivotal role in its future growth. Its strategic role has increased in the region and the port is well positioned to serve for the future reconstruction of Ukraine.
The EBRD has supported the construction and operation of Giurgiulesti International Free Port since 1995. In its history, the port encountered various financial and operational problems while developing as a fully functional enterprise. In 2013, the EBRD provided a new loan and became the primary economic beneficiary of the operation of the port.
In 2021, the EBRD acquired 100 percent of the capital of the Danube Logistics group of companies, becoming the sole ultimate owner of Danube Logistics SRL, the operator of the port.
Earlier, in an interview with Report, Deputy Prime Minister, Minister of Infrastructure and Regional Development of Moldova Vladimir Bolea said that the issue of bilateral cooperation between the port of Giurgiulesti and the Baku International Sea Trade Port is being worked out within the long-term strategy. According to him, the relevant initiatives are already under consideration.
