GREECE Trends and Developments Contributed by: Stefanos Charaktiniotis, Danai Falconaki, Stathis Orfanoudakis and Nadia Axioti, Zepos & Yannopoulos
their impact on the Greek and global transac - tional landscape. Green Energy and ESG Greece’s strategic location and abundant renew - able energy sources (RES) have always made the country an attractive destination for invest - ments in the energy sector. The global demand for a successful energy transition and the shift to a more sustainable green future have shaped the Greek energy sector as well, while the Greek government has been aiming at liberalising the energy market and promoting RES projects. True to the country’s long-standing presence in the energy M&A market of Southern Europe, deal makers have remained active in the past year, resulting in the continuous rise of the deal flow in the Greek energy sector while also progressively shifting the focus onto RES and green deals. Some notable examples are the transformation plan of Public Power Corporation S.A., which aspires to become a leader in clean energy in Southern Europe while prioritising the expansion of its green portfolio, with the aim of doubling it to 9 GW in 2026, and the “green investments” of Motor Oil, such as the recent acquisition of control in Anemos RES and the acquisition of a stake in Helector S.A., subsidiaries of the Ellaktor Group. In addition, the establishment of “green utility” has been in the pipeline of HEL - LENiQ ENERGY, which will focus on electricity and natural gas and will be the group’s arm in “green” and “clean” energy. The energy transition plans of Greek businesses, including the shift to RES transactions or green investments, are strongly interconnected with the demand for integration of environmental, social and governance (ESG) criteria into cor - porations, which goes hand in hand with the recognition of the importance of sustainability
and responsible business practices. ESG com - pliance has become a key factor in the investors’ interest in recent years while also safeguarding regulatory and reputational risks. All three components of the ESG strategy of a Greek business are mainly dictated and gov - erned by European regulations and directives, and there are efforts from the Greek state to fol - low the sustainability, social responsibility and corporate governance requests by gradually transposing the European framework into Greek legislation. In service of this effort, Greece has recently enacted Law 5178/2024 amending the Greek Corporate Governance Code regarding gender representation balance in the Boards of Directors of Greek listed companies, with effect as of 14 February 2025. However, the Greek legal framework for ESG imperatives remains largely fragmented. Moreover, complex ESG reporting and disclosure requirements are rather challeng - ing for companies in the context of their M&A strategies, while ESG considerations have been and will be part of due diligence exercises in M&A transactions for the years to come, weigh - ing on the shoulders of key stakeholders. It should be noted that institutional investors, private equity firms and financial institutions are placing great emphasis on ESG factors when evaluating investment opportunities, including M&A transactions. Companies seeking funding or strategic partnerships may need to demon - strate their commitment to ESG principles and showcase how they are effectively addressing ESG risks and opportunities. Education The education sector in Greece was traditionally out of reach for M&A deal makers. Regulatory constraints, economic challenges and cultural and political sensitivities left the industry hang -
772 CHAMBERS.COM
Powered by FlippingBook