A major deal in the electricity market is about to be struck, which—if it comes to fruition—will lead to further concentration in the production and supply of electricity and gas. GEK Terna and Motor Oil have confirmed in statements that they are discussing the fate of Heron Energy, a subsidiary of the former group. 

The two groups are reportedly considering a possible merger of Heron (GEK Terna) with NRG (Motor Oil) or the acquisition of Heron by Motor Oil with a view to merging it with NRG and creating a provider with a market share of close to 15%.

THE ANNOUNCEMENTS

In yesterday's announcements in the SA, in response to a letter from the Securities and Exchange Commission, they make it clear, however, that so far there has been no agreement between them, noting, however, that they are indeed in the process of discussions. 
In detail:

Motor Oil says that "with a view to developing its business and finding synergies, it is continuously exploring on an ongoing basis the possibilities with the prospect of cooperation with various groups, including the GEK Terna group, with which it already cooperates through the company Thermoelectric Komotini S.A."

GEK Terna said that "as part of the strategy to further develop the strong position held by our subsidiary company Iron Energy in the electricity generation and trading sector, various options are under constant consideration, and discussions are ongoing with various groups, including the Motor Oil group. No decision has been taken at this time. Any developments will be communicated to the investing public in a timely manner."

COOPERATION 

It may be recalled that the two groups are already collaborating on the construction of the 877 MW gas-fired power plant Komotini Thermoelectric Power Plant with a joint investment of 375 mn. The plant is currently in trial operation and is expected to be put into commercial operation in the next period.