E.ON targets Turkey with $2bn Enerjisa deal

E.ON is taking a half share in Turkish power company Enerjisa as it targets emerging markets to offset slow growth in its home market of Germany and other parts of western Europe, reports the Financial Times.

The EUR1.5bn ($2.0bn) transaction is an asset swap with Austrian utility Verbund, which will trade its 50 per cent stake in Enerjisa for full ownership of eight Bavarian hydro plants it operates with E.ON.

The German utility last month issued a profit warning for 2013, with surging renewables capacity undermining its revenue from gas-fired power stations in Germany.

E.ON expects Enerjisa to increase its stake in the fast-growing Turkish electricity market from about 4 per cent to 10 per cent by 2020, said E.ON CEO Johannes Teyssen.

Enerjisa aims to raise its generating capacity from 1.7 GW to about 5.2 GW in 2015, with E.ON investing about EUR200m a year, he said.

For more Mergers & Acquisitions news.

For more Europe news.



Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...

Reduce Engineering Project Complexity

Engineering document management presents unique and complex challenges. A solution based in Enter...

Revolutionizing Asset Management in the Electric Power Industry

With the arrival of the Industrial Internet of Things, data is growing and becoming more accessib...