Romania, Greek PPC selected as buyer of ENEL’s Romanian assets for 1.9 billion euros

, SEE Energy News

Lack of opportunities for growth in the market, as well as worsening financial indicators are among the stated reasons for the sale.

The Italian energy company will seek to reduce its external debts, which have reached 69 billion euros, by around 21 billion euros in 2023.

The company’s new strategy is to consolidate in six major markets

In the next 3 years, Enel will invest around 37 billion euros

One of the largest energy companies in Romania, owned by the Italian Enel, plans to sell off all its assets in the country by April 2023, the value of which is estimated at around 1.9 billion euros.

The company was the first foreign investor to take over power distribution units and then one of the largest distribution network operators in Romania and is now the next in line to withdraw from the market. Two years ago, CEZ also decided to sell its operations in Romania to the Macquarie group, as part of a deal worth one billion euros.

Enel’s exit from the market is a process that has been ongoing for several years, but was delayed due to the pandemic.

Three companies have been linked with the purchase of part of the Romanian assets of Enel – Greek PPC, Canadian Brookfield Asset Management and British Amber Infrastructure. However, on Thursday, December 15, it was announced that the Greek PPC had entered into an exclusive contract with the Italian company. Under the terms of the agreement, the two companies will negotiate the transaction while PPC evaluates the assets. The deadline for submitting the official offer is the end of January 2023.

Through its local subsidiaries, Enel manages a third of Romania’s national energy distribution network, with a total length of approximately 128 thousand kilometers, mainly in the Banat and Dobruja regions.

Separately, it owns renewable energy power plants with a total capacity of 623 MW – 125 MW of solar parks and 498 MW of wind farms in the south of the country.

Enel supplies electricity to around 3 million customers and has over 3,100 employees in Romania.