Greece’s state-owned electricity company (PPC) is preparing a major move to expand the energy market, seeking to acquire 70% of Italian group Enel’s Romanian subsidiary in a deal that values ​​Enel Romania as a whole at 1.8. billion euros, writes news.ro.

A memorandum of understanding has already been signed between the two major groups, PPC and Enel, the deal is valued at 1.3 billion euros of equity and 70% of the subsidiary’s debt, including loans. According to Profit.ro, PPC management will soon start negotiations with Greek banks Ethniki, Piraeus, Alpha Bank, Eurobank, Attica and Optima to finance part of the investment.

According to a Greek media report, the plan calls for PPC to pay 300-400 million euros in cash and cover the rest with loans. Romania is a market that PPC president and CEO Georgios Stasis, who previously ran the Italian group’s Romanian operations, knows.

The Public Power Corporation (PPC) is the largest electricity company in Greece, while Enel is a giant in the global electricity, natural gas and renewable energy markets, operating in more than 30 countries worldwide and with a total installed capacity of over 88 GW. .

PPC operates energy distribution networks in Greece, as well as nearly 100 manufacturing plants.

In May of this year, following a quarterly loss of 154 million euros in Romania, Enel CFO Alberto De Paoli said that price cap and distribution tariff rules in Romania were “severely affecting” results in that country.

“It doesn’t make sense to invest in an overly punitive environment,” De Paoli said when asked if the rules in Romania could affect the group’s presence in the country.