The Montenegrin government plans to merge two state-owned companies: Željeznički prevoz Crne Gore (Railway Transport of Montenegro) and Održavanje željezničkih voznih sredstava (Maintenance of Railway Vehicles). A public tender has been announced for economic and legal services to facilitate this merger by absorption.
The tender, valued at €25,000, includes legal and economic consulting, preparation of all necessary documentation such as the merger agreement, and obtaining relevant approvals from regulatory authorities. The process must comply with the Law on Commercial Companies and involve administrative procedures with several institutions, including the Central Register of Business Entities, Capital Market Commission, Central Securities Depository, Real Estate Administration, Competition Protection Agency, and various ministries.
The contract deadline is December 31, 2025, with bids due by August 1.
The merger decision was approved by the government last year with the goal of creating a single, more efficient, and financially sustainable company that benefits both the state and citizens. The Railway Transport company has already appointed a consultant, the audit firm HLB Mont Audit, to assist with the merger.
An economic study conducted by the Faculty of Economics in Podgorica evaluated two scenarios: one involving rationalization including workforce reduction, and another without such measures. The study concluded that the merger would only be beneficial if accompanied by rationalization, as maintaining the current workforce would not improve profitability.
The study also highlighted that the maintenance company (OŽVS), with about 190 employees, is at risk of bankruptcy if not merged, which would threaten the continuation of railway operations. Labor costs currently make up about 80% of the company’s operating expenses, contributing to its unprofitability.
