Romania sold Petrom to OMV in 2004; the company's market value tripled

Petrom, Romania's largest company, entered the 2000s unable to invest: the state-owned oil and gas group faced declining reserve replacement, outdated technology, environmental problems and no real option for international expansion. The government decided on a strategic privatization rather than a stock-market float.

By December 2004 OMV had paid €1.499 billion — €668.81 million for a 33.34 percent stake plus €830.5 million injected through a capital increase — for 51 percent of the company. The EBRD converted a $73 million loan into a 2.03 percent holding to support the privatization, and the state retained a large minority stake.

The capital increase was earmarked for modernization, and the new management delivered. By 2006 Petrom's market value had roughly tripled since privatization; 2005 turnover was €2.97 billion with EBITDA of €766 million, and the company planned more than €3 billion of investment through 2010 — double the amount agreed in the privatization contract.

OMV paid €1.5 billion for 51%; by 2006 market value had tripled, 2005 turnover was €2.97 billion with €766 million EBITDA, and over €3 billion of investment was planned.

The capital increase put the buyer's money inside the company rather than only into the state's budget.

OMV brought modern management, standards and international reach that Petrom lacked.

EBRD participation signaled institutional confidence and added governance discipline.

A clear development strategy was set immediately after closing, focused on competitiveness and EU standards.

A strategic sale with a capital increase — not just a cash grab — can work: the buyer's money went into the company, and modern management, not the state, drove the turnaround.

Petrom — now OMV Petrom — became Romania's largest company by revenue and its biggest single contributor to the state budget, with the state and its property fund collecting roughly 40 percent of the company's profits as shareholders. The EBRD exited its remaining stake in 2013, calling Petrom the successful, strong and attractive company it is today.