Masdar to acquire Greece’s Terna Energy in $3.4 billion deal

Agreement is the largest energy transaction on the Athens Stock Exchange

A solar power park in Kozani, Greece. Masdar has been pushing to expand its footprint in Europe. Bloomberg

Masdar has signed an agreement to acquire Greece’s Terna Energy for an enterprise value of €3.2 billion ($3.43 billion) as the Abu Dhabi clean energy company seeks to reach a renewable power generation capacity of 100 gigawatts by 2030.

Masdar will initially acquire 67 per cent of Terna's outstanding shares at completion of the transaction.

It will subsequently launch an all-cash mandatory tender offer to acquire all the remaining shares of the company, the Greek company said on Thursday.

The transaction and subsequent offer value Terna’s total equity at €2.4 billion with an enterprise value of €3.2 billion, making it the largest energy transaction on the Athens Stock Exchange, Terna said.

“Today marks a major milestone in Masdar's strategy to expand its portfolio and it will make a substantial contribution to the renewable energy capacity of Greece,” said Dr Sultan Al Jaber, chairman of Masdar and UAE Minister of Industry and Advanced Technology.

“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.”

Masdar, jointly owned by the Abu Dhabi National Energy Company, better known as Taqa, Adnoc and Mubadala, is active in 40 countries.

It aims to expand its capacity to at least 100 gigawatts of renewable energy by the end of the decade from about 20 gigawatts currently.

The company has also been pushing to expand its footprint in Europe, which has made significant strides in clean energy adoption in recent years.

“We are injecting capital and global expertise to accelerate Terna’s expansion, supporting Greece's renewable energy ambitions and extending Masdar's global reach,” said Mohamed Al Ramahi, chief executive of Masdar.

Terna, which was established in 1997, specialises in financing, developing and operating renewable energy plants focused on wind, solar, hydroelectric and pumped storage projects.

The company recently unveiled its plan to achieve a renewable energy operational capacity of six gigawatts by 2030.

The EU has set an ambitious binding target to increase the use of renewable energy sources, aiming for at least 42.5 per cent of overall energy consumption to come from renewables by 2030, with some member states aiming for as high as 45 per cent by the same year.

Following the closure of most of its coal-fired power plants as part of a plan to phase out coal by 2026, Greece has more than doubled its renewable energy output since 2014.

"Our agreement ... is also a strong vote of confidence for Greece and its prospects," said Georgios Peristeris, chief executive of Gek Terna, the parent company of Terna Energy.

The world added 50 per cent more renewable capacity in 2023 than in 2022, and the next five years will see the fastest growth yet, but a lack of financing for emerging and developing economies will continue to be a key issue, according to the International Energy Agency.

The amount of renewable energy capacity added around the world reached almost 510 gigawatts last year, with solar PV accounting for three-quarters of additions worldwide, the agency said in a January report.