Masdar Strikes $3.43 Billion Deal To Acquire Greece’s Clean Energy Company

Masdar, the UAE's clean energy leader, has announced its intention to acquire a majority stake in Terna Energy, a leading European clean energy platform. The agreement will initially see Masdar purchasing 67% of Terna Energy's outstanding shares, with the intention of eventually acquiring the remaining shares and reaching a 100% ownership. This transaction, subject to regulatory approvals, is valued at $2.57 billion and is set to be the largest ever energy transaction on the Athens Stock Exchange.

The deal is expected to contribute significantly to Greece's National Energy and Climate Plan and the EU's target of achieving net zero emissions by 2050. Masdar's growth plans in the region are demonstrated by this acquisition, solidifying its role as a trusted global energy transition partner.

Image Courtesy: Masdar

Terna Energy, established in 1997, specializes in financing, developing, constructing, and operating renewable energy facilities across Europe. With a track record of over 25 years, the company focuses on wind, solar, hydroelectric, and pumped storage projects. Terna Energy plans to increase its renewable energy operational capacity to 6GW by 2030. This acquisition aligns with Masdar's ambition to achieve a global capacity of 100GW by the same year. Masdar's confidence in Terna Energy's growth potential and the strength of the Greek market and renewables sector are evident in this transaction.

Georgios Peristeris, Terna Energy's Executive Chairman, and Emmanuel Maragoudakis, Chief Executive Officer, will continue in their roles following the completion of the acquisition, providing continuity in leadership. This move also supports GEK Terna's strategy of becoming the leading diversified infrastructure group in Greece and Southeast Europe.

Dr Sultan Al Jaber, Chairman of Masdar, said: "Today marks a major milestone in Masdar's strategy to expand its portfolio to 100GW of clean energy by 2030 and it will make a substantial contribution to the renewable energy capacity of Greece. As one of Europe’s biggest renewable energy transactions in 2024, this investment reflects the UAE's clear commitment to Greece and Europe's clean energy development and it represents another major practical step in realizing one of the central goals of the UAE Consensus, to triple global renewable energy capacity by 2030. In short, this deal underlines the smart growth opportunities of a responsible and orderly energy transition stimulating new industries, new jobs and low carbon economic development."

Mohamed Jameel Al Ramahi, CEO of Masdar, added: "We are injecting capital and global expertise to accelerate Terna Energy’s expansion, supporting Greece’s renewable energy ambitions and extending Masdar’s global reach. As a leading European development platform, Terna Energy is expected to play an important role in Masdar’s growing portfolio in Greece and Europe. We look forward to completing the transaction and starting to work with Terna Energy’s leadership team to supercharge their ambitious growth plans in support of Greece’s energy transition."

Georgios Peristeris, Chairman and CEO of GEK Terna, and Executive Chairman of Terna Energy, also added: "Our agreement with Masdar is a recognition of the great value of Terna Energy and the result of the hard work of hundreds of people for more than 25 years. At the same time, it marks the beginning of a new era of even greater growth for GEK TERNA Group. It is also a strong vote of confidence for Greece and its prospects. Terna Energy is the leading RES investor in Greece and a key pillar of the national effort to transition to a future with cleaner and cheaper energy for all."

Rothschild & Co. is serving as Masdar's sole financial advisor, while Simmons & Simmons, Bernitsas Law, and Latham & Watkins are the legal advisors for the transaction and financing. GEK Terna Group is being supported by Reed Smith LLP and Potamitis Vekris as the international and Greek legal advisors, respectively, with Morgan Stanley acting as the sole financial advisor to Terna Energy.