Greece's PPC in exclusive talks to buy Enel's Romanian assets

Greek power utility PPC SA (ATH:PPC) said today it has entered exclusive talks with Enel SpA (BIT:ENEL) over the potential acquisition of the Italian energy company's business in Romania.

The exclusivity agreement covers the period until the end of January 2023, during which Enel Romania will open its books. Once the due diligence is completed, PPC’s board of directors will decide whether to make a binding proposal to the Italian peer.

In Romania, Enel serves 2.8 million customers through its supply and distribution network. The group’s local green energy arm Enel Green Power Romania owns 12 wind and solar parks of 534 MW in total.

Enel’s intention to offload its assets in Romania is part of the group’s plan to tighten spending in 2023-2025 by shedding assets worth EUR 21 billion (USD 22.3bn) as it works to bring down net debt and focus on six core markets. The strategy, presented in November, envisages the sale of assets in Romania, Peru, Argentina and Brazil.

According to local media reports, Canada's Brookfield Asset Management and UK-based Amber Infrastructure are also among the suitors of Enel's Romanian business, apart from PPC.

Under its 2022-2026 business plan, PPC aims to grow its installed renewables fleet to 7.2 GW by 2024 and 9.5 GW by 2026 and move away from coal. The utility has committed to investing EUR 9.3 billion in support of the goal.

(EUR 1.0 = USD 1.064)

Choose your newsletter by Renewables Now. Join for free!