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Masdar to Acquire Greece’s Terna Energy for USD 3.4 Billion

Masdar is seeking to reach a renewable power generation capacity of 100 GW by 2030.

June 25, 2024. By News Bureau

Masdar, also known as the Abu Dhabi Future Energy Company, has signed a definitive agreement to acquire Greece’s Terna Energy for an enterprise value of EUR 3.2 billion (USD 3.43 billion).

The Abu Dhabi headquartered renewable energy company will initially acquire Terna’s 67 percent of the outstanding shares upon completion of the transaction, subject to regulatory approvals and other conditions. Masdar also plans to launch an all-cash mandatory tender to acquire the remaining outstanding shares with the intention of reaching 100 percent.

The deal between Masdar and Terna Energy will provide significant capital investment in Greece and other European countries, supporting Terna’s contribution to the National Energy and Climate Plan (NECP) and the EU’s net zero by 2050 target.

The proposed acquisition showcases the scale and ambition of Masdar’s growth plans in the region, and further strengthens its role as a trusted global energy transition partner for investors, developers and governments.

The acquisition is expected to strengthen Masdar’s portfolio in Europe, as it targets 100 GW of global capacity by 2030.

Terna Energy is a Europe-based renewable energy company with a track record of more than 25 years. It boasts a strong portfolio of solar, wind, hydroelectric and pumped storage projects in Greece and abroad.

Terna has announced its growth plan, targeting a renewable energy operational capacity of 6 GW by 2030. With a strong portfolio of projects in Greece and Europe, it is the largest investor in the renewable energy sector in Greece.

Commenting on the proposed acquisition, HE Dr Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, Chairman of Masdar and COP28 President, said: ‘‘Today marks a major milestone in Masdar's strategy to expand its portfolio to 100 GW 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 realising 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, Chief Executive Officer 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.’’

‘‘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. A future with greater energy autonomy for our country, based on clean energy that will be produced in our homeland. And we will continue on the same course with even greater power,’’ stated Georgios Peristeris, Chairman and CEO of GEK Terna, and Executive Chairman of Terna Energy.

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