Power utility PPC and Italy’s ENEL have signed a sale and purchase agreement, following two months of negotiations, for the latter’s sale of its Romanian subsidiary ENEL Romania to the Greek corporation at a price of 1.26 billion euros.
The sale is expected to be completed by September, as long as competition-related authorities approve the agreement.
PPC plans to finance its acquisition of ENEL Romania through a loan of 800 million euros and 460 million euros in company capital.
A move of national importance, PPC’s acquisition of ENEL Romania promises to offer entry into a now-developed Balkan market, establishing the Greek corporation as a strategic market player with access to a significant energy corridor running from Romania and across Bulgaria, all the way to Greece.
Through the deal, PPC will acquire over 130,000 kilometers in electricity distribution networks, double its RES capacity and also gain 3.2 million new customers.