Growth prospects fuel M&As
Deals worth more than 2 billion euros have been completed in the first five months of 2023
The first five months of the year recorded significant momentum in terms of business transactions.
The prospects for high growth rates among SMEs, the new landscape shaped by Recovery Fund financing sthat require the formation of strong players capable of facing domestic and international competition, and the upgraded profile of the Greek economy in view of its being so close to investment grade are fueling the barrage of mergers and acquisitions. In this context, Mytilineos recently acquired Unison for 26 million euros, expanding into the market of facility management services. This particular transaction is one of about 20 that have taken place since the beginning of the year and their cumulative value is put at more than €2 billion, based on the prices announced. This amount may be higher if numerous real estate transactions are taken into account, such as Dimand-Premia's acquisition of 65% of the Skyline company with a real estate portfolio of €438 million, as well as a significant number of deals whose amount has not been announced.
The total figure is expected to be many times higher by the end of the year, as a significant number of deals are in the pipeline. For example, the formalization of the acquisition agreement of Terna Energy by First Sentier whose value is seen at €2 billion, is imminent.
The goal of energy transition motivates market players. Therefore, PPC is expected to complete the acquisition of Enel Romania, the largest renewable energy company and second in the supply and distribution of electricity in the Balkan country, for €1.26 billion by early fall. This move allows the energy provider to add to its capacity over 130,000 kilometers of distribution network, an additional 3.2 million new customers and 534 megawatts of renewables in operation. Motor Oil also recently made its move on the energy front, acquiring – through its subsidiary MORE – 75% of the electricity producer Unagi. Unagi controls 51% of the share capital of Baliaga, Pivot Solar and Teichio, which have a portfolio of 16 solar projects with a total nominal capacity of 1.9 GW in Macedonia and Central Greece.