EC nods to Enel's partial sale of Greek renewables arm

Italian utility Enel SpA (BIT:ENEL) has obtained approval from the European Commission (EC) to offload a 50% stake in its Greek renewable energy unit to a fund owned by Macquarie Asset Management for EUR 345 million (USD 363.3m).

The antitrust regulator has cleared the plan as it is not expected to harm competition. In its decision on Thursday, the EC said its determination is based on the limited combined market position of the companies involved in the transaction.

Under the deal announced in July, the Macquarie Green Investment Group Renewable Energy Fund 2 (MGREF2) will buy a 50% stake in Enel Green Power Hellas (EGPH), which is currently owned solely by Enel Green Power SpA. As a result, the business will be run as a joint venture. The transaction values 100% of EGPH at around EUR 980 million.

Enel Green Power Hellas has a portfolio consisting of 65 plants with a total installed capacity of 566 MW across wind, solar and hydropower. The portfolio includes six solar power facilities totalling 84 MW currently under construction. The company is also developing a portfolio of wind and solar projects.

Enel anticipates the divestment to generate a positive impact of about EUR 390 million on 2023 Group ordinary and reported earnings before interest, tax, depreciation and amortisation (EBITDA). The sale aligns with its goal to tighten spending in 2023-2025 by shedding EUR 21 billion worth of assets.

(EUR 1.0 = USD 1.053)

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