E.ON set for asset swap with VERBUND

Deal will see E.ON acquire 50% stake in Turkey's Enerjisa

The deal will see E.ON take a 50% stake in Enerjisa's growing business. (GETTY IMAGES)
The deal will see E.ON take a 50% stake in Enerjisa's growing business. (GETTY IMAGES)

Germany’s E.ON and Verbund of Austria have agreed a substantial asset swap deal which will see the two energy firms transfer stakes in businesses including Turkey’s Enerjisa. Under the contract, signed on December 3rd 2012, E.ON will take on Verbund’s 50% holding in Enerjisa, marking E.ON’s first entry into Turkey’s power sector.

Turkey is one of E.ON’s key target growth regions, and the Enerjisa holding will see it take on a significant share of a firm with almost 1,700 MW of installed capacity. In addition, the company has a further 2,000 MW under construction and 1,500 MW under development. Enerjisa also operates a power distribution business that has around 3.5 million customers in Turkey’s Baskent region.

The other half-share of Enerjisa is held by Sabanci Holding, one of Turkey’s biggest financial and industrial conglomerates. E.ON has said that the pair plan to have as much as 8,000 MW of generating capacity by 2020, amounting to at least a 10% share of the country’s generation market.

“Following our entry into Brazil at the start of the year, our entry into the Turkish energy market represents significant progress in the implementation of our corporate strategy. Turkey has one of the fastest-growing economies in the world, and the rise in its energy demand has been strong and steady. This transaction gives us a superb platform for value-enhancing growth outside our markets in Europe. In Sabanci, we’ve found a partner that has unique market knowledge and goals that are as ambitious as ours,” said Johannes Teyssen, E.ON CEO.

Verbund will, in return, acquire E.ON’s interest in hydropower capacity, principally on the Inn River in Bavaria, Germany. In total the different stakes and power interests amount to 351 MW of generating capacity. E.ON will still hold 2,300 MW of hydro capacity in Germany, with around 6 GW globally.

The transaction is subject to approval, particularly by the European Commission and Germany and Turkey’s antitrust agencies, together with Turkey’s energy regulator EMRA.



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