E.On and Statkraft have reached an agreement for a multi-billion euro asset swap that will strengthen E.On’s position in the Nordic power markets as well as making Statkraft a major shareholder in the German utility.
E.On will take over Statkraft’s 44.6 per cent stake in E.On Sverige while Statkraft will receive assets held by E.On in Sweden, Germany, the UK and Poland as well as more than two per cent of E.On shares.
‘Taking over 100 per cent of E.On Sverige puts us in a position to push ahead with our Nordic activities swiftly’ said E.On CEO Wulf Bernotat.
The move will make Statkraft the largest generator of renewable energy in Europe, and will strengthen the company’s position in Sweden and Germany, Statkraft Chief Executive Bard Mikkelsen said.
By purchasing the 44.6 per cent interest – worth EUR4.4 billion – in E.On Sverige, E.On will gain full control of power plants with a capacity of 6400 MW, 40 per cent of which are nuclear power and 28 per cent hydroelectric.
Statkraft is acquiring 934 MW in Swedish hydroelectric plants and around 1.1 GW in power plant capacity in Germany, Poland and Great Britain. The preliminary agreement also includes electricity supply in excess of 100 MW for ten years as well as a structured gas contract up to 100 million cubic metres for ten years.
In 2006, E.On Sverige – the Nordic market’s fourth-largest power supplier – covered about 20 per cent of Sweden’s demand for power, E.On said.