ATHENS – Public Power Corporation (PPC) announced today that it has completed the agreement to acquire all of Enel’s operations in Romania, marking a significant milestone in its strategic development in the renewable energy sector, as well as in the distribution and trade of electricity. This move is the company’s first foray into international expansion, with broader strategic significance for the country, particularly after Greek banks withdrew their investments from the Balkans during the financial crisis. “After a decade in which Greek businesses were forced to divest from significant and profitable assets to survive in Greece amid an economic crisis, PPC is the first company to reopen the way for dynamic entry into Southeast Europe. Furthermore, it provides Greece with a geopolitical advantage, as it will manage a significant portion of the energy resources and transmission networks in the broader region,” according to PPC sources.

This marks the company’s inaugural move to expand its business internationally, with broader strategic implications for the country, particularly following the Greek banks’ divestment from their Balkan investments during the financial crisis. “After a decade during which Greek businesses were compelled to divest from significant and lucrative assets to survive in Greece amid an economic crisis, PPC is the first company to re-establish a dynamic entryway into Southeast Europe. Furthermore, it provides Greece with a geopolitical advantage, as it will manage a substantial portion of the energy resources and transmission networks in the broader region,” according to sources at PPC. The purchase price was set at €1.26 billion, with a total value of €1.9 billion. It will be funded through both equity and debt (a 5-year loan of €800 million has already been secured from Greek and international banks).

The CEO and President of PPC, Georgios Stassis, declared, “This acquisition aligns perfectly with our strategic plan presented in November 2021, which outlined our international expansion into Southeast Europe. Enel’s activities in Romania are an ideal choice both geographically and from a business perspective. This is a unique opportunity to acquire a vertically integrated energy company with an attractive valuation, which will pave the way for PPC’s transformation into a leading clean energy company in Southeast Europe. We are confident that this significant development will enhance PPC’s competitiveness both internationally and domestically, providing benefits for our customers and creating value for all our stakeholders.”

PPC has fortified its position in the wider region by acquiring Enel Romania, thus emerging as the largest player in Southeast Europe. Furthermore, this move has enabled PPC to gain direct access to Renewable Energy Sources, leading to reduced production costs. In essence, PPC has effectively doubled its renewable energy production (excluding large hydroelectric plants). This step also effectively addresses the regulatory risk of constraints imposed on PPC in Greece, where the company is required to reduce its market share. Consequently, PPC can maintain and increase its size. Sources at PPC state that this move has allowed the company to execute its investment plan as it had previously presented to investors before the successful capital increase in November 2021.