Greece’s PPC: The benefits of the acquisition of Enel’s assets in Romania

PPC and Greece will gain strong momentum if the Greek company’s deal with the Italian company to acquire the latter’s assets in Romania is successful.

It is typical that Enel’s assets in the Balkan country correspond to three quarters of the current Greek PPC.

Suffice it to mention that the number of customers of the energy companies in Romania is estimated at 3 million, while around 5 million are the consumers who are electrified by PPC in Greece.

PPC and Enel, as announced yesterday evening, are in exclusive negotiations for the acquisition of all the activities of the Italian energy group in Romania.

Read also: PPC eyes purchase of Enel’s activities, assets in Romania

The winners

According to market players and analysts, if an agreement is reached then this means that the shareholders of PPC, the Greek public and the country as a whole will win in the following:

1. Strong geostrategic presence of Greece in a Balkan country that is adjacent to Central Europe. The entry of PPC also serves the goals of Greek foreign policy and diplomatic economy.

2. Greater value for the shareholders of the Greek company as they become its property (PPC, if the acquisition is completed, also acquires the management of the companies) assets, which according to unofficial estimates are estimated at approximately 1.2 to 1.3 billion. euro.

3. Dynamic positioning of PPC and the country in the so-called Southern Energy Corridor. The electricity distribution networks of European countries are interconnected. As are natural gas pipelines. The transfer of quantities of energy either in electricity or natural gas from sources through our country to the states of Central Europe is of critical importance for the weaning off of Russian fuel.

4. RES development in Romania has great prospects. PPC acquires ready-made projects with a capacity of almost 600 Megawatts, resulting in a more competitive basket of electricity prices for its customers either in Romania or Greece.

The companies

The majority percentages of the Romanian public in Enel companies have entered the negotiation table. These are the three companies with a 130,000 km long distribution network:

1. E-Distribute Muntenia Sud, which electrifies the Muntenia region including Bucharest,

2. E- Distribute Banat with distribution networks in the area of the same name where the country’s industrial zone is located

3. E-Distribute Dobrogea, distributes electricity in the homonymous tourist area

The acquisition of the two leading electricity and natural gas providers, Enel Energie and Enel Muntenia, is also under negotiation. As well as Enel X which provides electrification, smart meters and energy efficiency services.

The acquisition of the 13 operating RES projects with a total capacity of 534 MW, belonging to Enel Green Power, is also under negotiation.