Asset Swap See E.ON Step Up in Turkey

E.ON, the German utility, has entered into an asset swap with Austria's Verbund, in which it gains a half share in Turkish power company Enerjisa Enerji A.S.

In a transaction valued at €1.5 billion, Verbund swaps its holdings in Enerjisa for full ownership of E.ON’s interest in eight run-of-river power plants in Germany with average pro rata annual generation of over 2 TWh.

The balance of the Turkish company is held by family-controlled Sabanci Holding. 

E.ON chief executive Johannes Teyssen said the Enerjisa deal would “offer growth perspectives.”  E.ON has been trying to expand its investment in emerging markets which it sees as offering better returns than its traditional European operations.  Last month Teyssen said the company was exploring whether to close certain assets.

For Verbund, Austria's leading utility, the deal is in line with its strategy of expanding its position as a leading renewable electricity company in Europe. 

The closing of the transaction is planned for quarter 1/2013 and is subject to regulatory approval including authorization under anti-trust law.