The acquisition marks Hagag's entry into the energy market, taking over all current operations, including employees, systems, and activities from tenders, as well as related rights and obligations. The investor has opened a new local division operating under the Hagag Energy brand and plans to invest over €400 million on the energy market for further expansion over the coming years.
This division strengthens Hagag Europe Development's local presence, complementing its established activity in the real estate development sector. "Over the past eight years, our real estate developments have redefined Bucharest's urban landscape. Today, we are expanding our vision beyond buildings, taking a first step towards the evolution of the group here in Romania," said Yitzhak Hagag, Cofounder and Chairman of the Board of Directors of Hagag.
Hagag enters the local energy market with 67 contracts covering the concession of the public natural gas distribution service, including design, execution, and operation of natural gas distribution networks. With three natural gas distribution networks completed and currently in operation, 21 in design phase, 23 under development, and 20 in permitting, the company expects to commission a total of 64 new networks over the next 24 months.
By the end of 2027, the energy division is set to create at least 200 new jobs. Furthermore, Hagag estimates an increase of at least 35% in the number of active customers generated by its natural gas distribution and supply activities.
