German concern RWE, specialised, among others, in waste recycling, sold at the end of June the 50 percent stake it held in RER firm (RWE Romania), where it was associated with the Bucharest City Hall in cleaning the Capital city. The stake was sold to another German waste collecting and recycling company, GmbH, headquartered in Dusseldorf, Andre Bauguitte, a RWE spokesperson, told Ziarul Financiar on Monday.
The transaction, which was operated on June 30, practically meant "the complete withdrawal of the group from the Romanian market," the German official stated. The German group's turnover, derived from activities developed in Romania during the fiscal year 1998-1999, amounted at 31 million euros.
The German group withdrew from the business without previously notifying the Romanian side, sources within the municipality stated on Monday, quoted by Mediafax news agency. Discontent with the decision made by the German partner, the Romanian side expressed its intention to withdraw the share capital brought at the moment RER company was set up and transfer it to the regie for city cleaning, RASUB. The regie was not liquidated from a juridical point of view after the service for the Capital's street cleaning was put up for sale.
Following the sale of RER by RWE, the municipality leadership met last week with members of REBU management board to the end of settling the stages in which the association with the German firm is to be cancelled.
RWE was associated with the Bucharest City Hall, within REBU cleaning contract and was also active in Oradea, Timisoara, Galati, Braila and Craiova.
RWE Umwelt has functioned in Romania since 1993, mainly focusing on residue recycling and street cleaning. REBU RWE Ecologic Service was founded in 1997, thus taking over the task of collecting household waste for approximately two million inhabitants.
Remmert firm, which will entirely take over RWE's activities in Romania, has a 40-year history within the domain of storage technology.
RASUB municipal regie that secured city cleaning before REBU was set up, will be granted the necessary equipment so as to take over from REBU the cleaning of three Bucharest districts until cleaning services are to be put out for sale, following a future decision by CGMB, referring to the decentralisation of this service, according to an intention voiced by the Capital's general mayor Traian Basescu.
During the last three years, there have been numerous conflicts between the German firm and municipality regarding the sums the City Hall had to pay for services rendered by REBU in the Capital.
Pentru alte știri, analize, articole și informații din business în timp real urmărește Ziarul Financiar pe WhatsApp Channels
