Abu Dhabi’s Masdar Acquires Controlling Stake in Greek Renewable Energy Giant Terna

The United Arab Emirates’ renewable energy champion, Masdar, announced a significant move into the European market on June 20th, 2024, with a definitive agreement to acquire a controlling stake in Greece’s Terna Energy. The deal, valued at €3. 2 billion ($3. 4 billion), positions Masdar to become a major player in the European renewable energy sector and propel Greece’s clean energy ambitions.

Under the terms of the agreement, Masdar will initially purchase 67% of Terna Energy’s outstanding shares at a price of €20 per share. This acquisition values Terna Energy’s equity at €2. 4 billion and marks the largest energy transaction ever recorded on the Athens Stock Exchange. The agreement also includes Masdar’s intention to launch a mandatory tender offer to acquire the remaining 33% of Terna Energy’s shares, with the goal of achieving full ownership.

This strategic move aligns with Masdar’s aggressive expansion plans. The Abu Dhabi-based company aims to reach a global renewable energy capacity of 100 gigawatts (GW) by 2030. The acquisition of Terna Energy, Greece’s leading renewable energy investor with a target capacity of 6 GW, provides Masdar with a well-established platform to solidify its presence in the European market.

Masdar CEO Mohamed Jameel Al Ramahi expressed his enthusiasm about the deal, stating, “We look forward to completing the transaction and working with Terna Energy’s leadership team to supercharge their ambitious growth plans in support of Greece’s energy transition. “

The acquisition is expected to benefit both companies. Masdar gains access to Terna Energy’s extensive portfolio of renewable energy projects in Greece and the broader European region. This strengthens Masdar’s position as a leading global clean energy developer and helps it achieve its ambitious capacity targets. For Terna Energy, the deal brings significant financial resources and the expertise of a major renewable energy player. This collaboration is expected to accelerate Terna Energy’s growth trajectory and contribute to Greece’s goal of diversifying its energy mix and achieving energy independence.

The Greek government has also hailed the agreement as a landmark development. Prime Minister Kyriakos Mitsotakis highlighted the deal’s significance, emphasizing its contribution to Greece’s clean energy transition and economic growth.

The Masdar-Terna Energy deal is a significant development for the European renewable energy sector. It underscores the growing importance of international collaboration in accelerating the transition towards a sustainable energy future.