A significant shift is underway in Greece’s energy sector as HERON and nrg merge to form what will become the country’s second-largest electricity provider for low and medium voltage consumers. This merger, the result of extensive negotiations between the heads of infrastructure group GEK TERNA and energy conglomerate Motor Oil—George Peristeris and Giannis Vardinogiannis—brings together two major players under one entity. While the name of the new company has yet to be finalized, it is currently referred to by insiders as UtilityCo.
The combined company will serve around 488,000 electricity customers and 61,000 natural gas users, translating to electricity sales of 8.3 terawatt hours and a 17% market share, along with an 11% share in the gas supply market. These figures are based on projections for 2024. UtilityCo’s leadership will reflect a blend of the two companies: Loukas Dimitriou, currently CEO of HERON, will become the CEO of the new company, while Anastasios Lostarakos, General Manager at nrg, will assume the role of Deputy CEO. Kostas Baslis, HERON’s Director of Energy Management, will lead the energy portfolio for the merged entity.
The merger is expected to create a vertically integrated energy company with the scale and expertise to compete aggressively in a Greek market that is forecast to expand rapidly through 2030. By combining infrastructure, customer bases, and technical know-how, UtilityCo is positioned to play a central role in the country’s energy future.
For GEK TERNA, the merger unlocks immediate financial benefits. The company will receive roughly €128 million in total—€79 million in cash from Motor Oil, with the remainder coming through a structured mechanism for future cash flows. This inflow strengthens GEK TERNA’s liquidity and allows it to redirect capital toward other strategic initiatives, while also reducing its exposure to the intensely competitive retail energy segment. Importantly, GEK TERNA will retain a 50% stake in the new venture, preserving influence and access to potential synergies. In addition, it is holding back key operations from HERON, such as international energy trading, participation in Greece’s power exchange (FOSE), e-mobility, renewables, and storage services—sectors with strong growth potential in which GEK TERNA will maintain full control.
Motor Oil, on the other hand, significantly boosts its strategic footprint in both energy retail and generation. Through the merger, it secures access to HERON’s substantial customer base, giving it a stronger foothold in retail energy. At the same time, the deal enhances its production capacity by adding access to several critical power assets, including the HERON II plant, the Komotini facility, and Korinthos Power, totaling 1.5 gigawatts. Motor Oil’s investment of €79 million is seen as highly competitive, given the scale and strategic importance of the assets acquired.
One unknown aspect of the agreement is whether there are any formal provisions regulating the potential sale or transfer of shares of the UtilityCo by GEK TERNA and Motor Oil.
As the merger is expected to close in early 2026, details about shareholder agreements or any limitations—such as lock-up periods, rights of first refusal, or exit clauses in case of strategic divergence—have not yet been disclosed. It remains unclear at this stage whether future share sales will be permitted, under what terms, or with what restrictions.
