Meridian acquires majority stake in Great Sea Interconnector

Paris, France. French asset management firm Meridian acquired a majority stake in the Great Sea Interconnector on Wednesday, taking over the controlling share previously held by Greece’s independent transmission system operator Admie. The deal places Meridian in charge of the project to connect the electricity grids of Cyprus, Greece and Israel.

Change in ownership

Meridian, which had a portfolio of assets valued at about US$23 billion (€19.9 billion) before the signing, succeeds Admie as the project’s majority shareholder after almost three years of Admie’s control.

Admie assumed responsibility for the project from Cypriot-owned EuroAsia Interconnector Ltd in October 2023, after which the company was wound down.

Meridian describes itself as a “transformational infrastructure specialist” delivering sustainable and resilient infrastructure over the long term.

Meridian projects

The company holds a 99-per-cent share in the rights to operate Sofia airport until 2055. It has also undertaken a 33-year maintenance project for the United Kingdom’s M8 motorway and a project to build five hospitals in Turkey, in Adana, Bursa, Gaziantep, Elazig and Yozgat.

Interconnector developments

Progress on the interconnector has been slow. In April, the governments of Cyprus and Greece jointly sent a letter to the European Investment Bank requesting a new diligence study for the project.

The request followed an announcement by the Cypriot and Greek governments in November last year that the project’s “economic and technical parameters” would be updated to attract further investors.

French cable manufacturer Nexans announced in March that an undersea trial of the cable type intended for the interconnector had been completed successfully.

European support and investigation

The European Commission has endorsed the project. Energy Commissioner Dan Jorgensen told the Cyprus Mail it was a “key strategic link” that would end Cyprus’ energy isolation, secure the stability of the electricity network across the island and lower energy prices.

The Commission has provided €658 million in grants for the project. In September last year, the European Public Prosecutor’s Office announced an investigation after allegations that a “politically exposed person” had used their position and connections to seek and secure the grants.