A settlement that splits ownership of German utility Bewag between Mirant Corporation and Hamburg based utility Hamburgische Electricitaets-Werke (HEW) has been approved by the Berlin Senate.
Under the terms of the deal, Atlanta-based Mirant and HEW, which is owned by Swedish utility Vattenfall, will each own 43 per cent of Bewag, Berlin’s principal power company, while the remaining 14 per cent will be publicly traded on the German stock exchange. Mirant currently owns a 26 per cent stake in Bewag.
When the details are worked out, the deal will form Germany’s third largest power company with 2.7 million customers. And with its stake, Mirant claims it will be in a good position not only to compete with Germany’s three main utilities for the country’s burgeoning power market but also to expand into Eastern European markets.
‘This agreement concerning Bewag together with Hamburgische Electricitaets-Werke and Vattenfall marks a positive step as we continue to expand our asset base in Germany and throughout Europe,’ said Barney Rush, chief executive officer of Mirant’s European business group. ‘We see this agreement of a first step in creating a fourth force in the German electricity market in which Mirant, through Bewag, will play an integral role.’