CEZ has made a flurry of M&A moves in eastern Europe, announcing the purchase of majority stakes in two Polish power plants, and launching a bid for a Romanian distribution company.
CEZ did not reveal the exact price it had paid US firm PSEG Global for the majority stakes in Elektrownia Skawina and Elektrocieplownia Elcho, although reports suggest that the net gain from the transactions could total $300 million.
CEZ said it had fought off 11 rivals for the Polish plant stakes, and revealed that it was pleased to have won the deal as the two stations are located in a fast-developing part of Poland. CEZ has a 75% stake in Skawina and an 89% share in Elcho.
Meanwhile, the Czech firm – Europe’s largest power exporter – has also launched a tender to buy Romanian electricity distributor Electrica Muntenia Sud alongside eight other bidders. The Romanian government expects to raise in the region of $500 million from the sale of the distributor, which has over 1 million accounts in the Bucharest region.
CEZ’s expansionist moves are being seen as firmly in keeping with its aim of becoming a regional energy champion in central and eastern Europe. In recent years it has made significant purchases in Romania and Bulgaria, and harbors further expansion plans for Ukraine, Poland and the Balkans.