HAGAG Europe Development diversifies its operations in Romania and enters the energy sector through the acquisition of BTD Distribuție și Furnizare, a Romanian company specializing in infrastructure development, distribution, and supply of natural gas.
The acquisition marks Hagag’s entry into the structure of the existing company, taking over, in full, all current operations, including employees, systems, activities derived from successful tenders, as well as the rights and obligations resulting therefrom.
Moreover, the investor has opened a new local division to operate under the sub-brand Hagag Energy and plans to invest over 400 million euros on the energy market, for the further expansion of its presence in the sector, over the upcoming years.
“Over the past eight years, our real estate developments have redefined Bucharest’s urban landscape. Today, we are expanding our vision beyond buildings, taking a first step towards the evolution of the group here in Romania. We continue to be a trusted real estate developer, while also striving to establish ourselves as a strategic player in the energy sector, all guided by the core values that define us — long-term vision, innovation, reliability, quality, and the unwavering commitment to deliver positive social and economic impact. The distribution and supply of natural gas is, for us, just the starting line, as our global vision is to expand our company’s presence across more than one segment of the energy industry, in line with our approach in the real estate sector.”, said Yitzhak Hagag, Cofounder and Chairman of the Board of Directors of Hagag Europe Development.
Hagag Europe Development enters the local energy market with a volume of 67 contracts covering the concession of the public natural gas distribution service, namely design, execution, and operation of natural gas distribution networks.
With three natural gas distribution networks completed and currently in operation, 21 in design phase, 23 under development, and 20 now in permitting, the company expects to commission a total of 64 new networks over the next 24 months.
“Romania remains the heart of our activity in Europe, and our goal is to grow here, together with the local market. At the same time, we see Romania as one of the main players in the natural gas field, with the national production covering between 70% and 80% of domestic consumption. Therefore, in the context of the energy sector’s evolution—encouraged equally by, but not limited to, the accelerated public investments in gas infrastructure and the Neptune Deep project —the decision to diversify our activity in this field comes at a time of progress not only for the industry but also for us as an organization.”, Yitzhak Hagag added.
By the end of 2027, the Energy division alone is set to create at least 200 new jobs. Furthermore, Hagag estimates an increase of at least 35 percent in the number of active customers generated by its natural gas distribution and supply activities.