E.ON To Buy Energi E2 Renovables Ibericas
August 7th, 2007
German utility E.On AG said Tuesday it is buying Energi E2 Renovables Ibericas, which operates wind farms in Spain and Portugal, from Denmark’s DONG Energy in a deal worth â,¬722 million (US$997 million).
E.On said E2 currently has a generating capacity in Spain and Portugal of about 260 megawatts, mostly from wind farms but also including smaller hydroelectric and biomass plants.
It has further wind farms with an extra capacity of 560 megawatts planned for completion in the next four years.
The deal’s total value includes â,¬256 million (US$354 million) in net debt to be assumed by E.On, the Duesseldorf-based company said.
“Energi E2 Renovables Ibericas ideally supplements our future activities in Spain,” Chief Executive Wulf Bernotat said. “Wind power will play an important role in our future energy mix.”
On Monday, E.On won European Union approval to buy Spanish power utility Viesgo from Enel SpA and acquire additional generation capacity from Endesa SA, making it the fourth-largest player on the Spanish power market.
source: International Herald Tribune