Abu Dhabi's Masdar Seals Landmark Deal to Expand European Renewables Footprint

The Abu Dhabi Future Energy Company (Masdar), a leading force in the United Arab Emirates' clean energy sector, announced a significant acquisition on June 20, 2024. Masdar has struck a definitive agreement with GEK TERNA SA and other shareholders of TERNA ENERGY SA, a prominent Greek renewable energy company. The deal signifies Masdar's ambitious plans to solidify its presence in the European renewables market.

The agreement entails Masdar acquiring an initial 67% stake in TERNA ENERGY, subject to regulatory approvals and customary closing conditions. The transaction value is estimated at €3. 2 billion (US$3. 43 billion), making it the largest energy deal ever recorded on the Athens Stock Exchange and one of the most substantial in the European renewables sector this year.

Following the acquisition's completion, Masdar intends to launch a mandatory tender offer for the remaining 33% of TERNA ENERGY shares. This all-cash offer aims to achieve full ownership of the Greek company, further bolstering Masdar's renewable energy portfolio.

Commenting on the landmark deal, Dr. Sultan Al Jaber, Chairman of Masdar and UAE Minister of Industry and Advanced Technology, highlighted the strategic importance of the acquisition. "This move marks a major milestone for Masdar's expansion strategy and will significantly contribute to Greece's renewable energy capacity, " Dr. Al Jaber stated. He further emphasized the agreement's alignment with the UAE's commitment to supporting clean energy development in Europe.

The acquisition of TERNA ENERGY aligns with Masdar's ambitious goal of achieving a 100-gigawatt renewable power generation capacity by 2030. TERNA ENERGY's established presence in Greece, boasting a diverse portfolio of renewable energy assets, offers Masdar a strategic foothold in the European market. TERNA ENERGY's portfolio includes operational wind, solar, and storage facilities, along with a robust development pipeline. This acquisition is expected to accelerate Masdar's growth trajectory in the renewables sector and position it as a key player in the European energy transition.

Analysts suggest the deal presents several potential benefits for both companies. Masdar gains access to a well-established renewables platform in Europe, facilitating its expansion goals. TERNA ENERGY, on the other hand, is poised to benefit from Masdar's expertise and financial resources, enabling further development of its renewable energy projects. The combined entity is expected to play a crucial role in driving the clean energy transition in Greece and beyond.

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