PPC acquires Enel Romania

Public Power Corporation on Wednesday announced the completion of the agreement for its acquisition of Enel Romania, which is the company’s first major expansion abroad. The acquisition of all the stakes held by Enel and its Romanian subsidiaries was launched last November, with the exclusive negotiations between the two companies resulting in a binding agreement on March 9, 2023.

In the framework of this agreement PPC paid a consideration of approximately 1.24 billion euros, which is equivalent to a total enterprise value of approximately €1.9 billion (for 100%). According to Enel’s statement, the agreement also provides for a mechanism for a possible further payment after closing, based on the future value of the retail portfolio held by its subsidiary in Romania.

With the completion of the acquisition of Enel’s activities in Romania, the PPC group now has a total of almost 9 million customers and the total installed capacity of the group’s RES (hydroelectric, wind, photovoltaic, etc) will increase to approximately 4.4 gigawatts. In addition, all of Enel’s electricity production in Romania comes from RES, which increases the “green portfolio” percentage in PPC’s total EBITDA.

“Today we are starting a journey of development and transformation in Romania, with the ambition to become the undisputed leading energy company in the country,” said the head of PPC, George Stassis, pointing out that PPC’s goal is to become a leading company of clean energy in Southeastern Europe. Enel Romania is one of the main players in the Romanian energy market. It is number one in RES, with a total installed capacity of 600 MW and an additional 5 GW in the pipeline, which fits in perfectly with PPC’s strategy. In the supply of electricity and natural gas, the company has 3.1 million customers and 81 stores across the country. It owns the distribution network in three regions of the country, including Bucharest, by far the most important region in the country. It distributes energy to about a third of Romania, with a network totaling over 133,000 kilometers.