EON says it will pay 11.8 bln euros for European energy assets

28th March 2008, Comments 0 comments

German energy group EON is to pay 11.8 billion euros (18.6 billion dollars) for energy assets in France, Italy and Spain.

   BERLIN, March 28, 2008 - The German energy group EON is to pay 11.8
billion euros (18.6 billion dollars) for energy assets in France, Italy and
Spain as part of a deal that ended its bid for the Spanish group Endesa, EON
said on Friday.
   EON directors "approved the acquisition of a substantial package comprising
power stations and other shareholdings above all in Spain, France and Italy,"
a statement said.
   The German group is to pay 8.9 billion euros directly and take on debt
currently estimated at around 2.9 billion.
   It saw the "extensive transaction as a constructive way of ending the
dispute over the acquisition of a majority interest in the Spanish energy
company Endesa."
   The Italian power group Enel and Spanish firm Acciona were also involved in
the deal.
   EON dropped its bid for Endesa in April 2007 following a battle of more
than one year against Spanish government opposition, in exchange for an
agreement that allowed the German firm to buy major assets in return.
   The EON statement quoted chief executive Wulf Bernotat as saying: "With
this transaction we are considerably expanding our position in Spain, where we
are already strong in the wind power market, and Italy."
   He added that "EON now has an international presence unmatched by any other
energy company, thus obtaining an even better platform for further profitable
growth in Europe."
   In Madrid, Endesa said Friday in a statement that it would make a pre-tax
capital gain of 4.5 billion euros on the transaction.

AFP

0 Comments To This Article