German utility firm E.ON has signed a letter of intent with power generation company Statkraft to take over the 44.6% stake in E.ON Sverige currently held by Statkraft worth E4.4 billion.
The acquisition will strengthen E.ON’s position in the Nordic market as the sole shareholder of E.ON Sverige.
In return, Statkraft will receive assets held by E.ON in Sweden, Germany, the UK and Poland, as well as more than 2% of E.ON shares to compensate the difference in value. The deal is to be finalized as early as in the first half of 2008 and must be approved by the relevant authorities and the board of directors of the respective companies.
Wulf Bernotat, E.ON’s CEO, said: Taking over 100% of E.ON Sverige puts us in a position to push ahead with our Nordic activities swiftly and to integrate the business of E.ON Sverige into the new trading and renewable energy companies with their international reach.