PGE Polska Grupa Energetyczna has signed a conditional agreement to acquire EDF's Polish power and heating assets for around €1.4bn.
Under the deal, PGE will acquire eight co-generation or combined heat and power (CHP) assets from EDF in Poland.
The company will also buy eight CHP plants in Gdynia, Gdansk, Kraków, Wroclaw, Torun, Zielona Góra, Zawidawie and Siechnica.
The deal includes the acquisition of Rybnik plant, the coal cogeneration plants of Krakow, Czechnica, Gdansk, Gdynia, Torun and Wroclaw, in addition to gas fired cogeneration plants of Zawidawie and Zielona Gora.
According to EDF, the transaction perimeter represents a total installed capacity of 4.4GWth and 1.4 GWe.
The deal also included the heat distribution networks of Czechnica, Torun, Zawidawie and Zielona Gora.
PGE will indirectly own Wroclaw plant, the plants and heat distribution networks of Czechnica, Zawidawie and Zielona Gora through a 50% + 1 share stake via the Kogeneracja company.
Subject to regulatory approvals and authorizations, the deal is expected to complete in the second semester of 2017.
The deal is said to follow the negotiations started in January 2017 with a consortium of Polish utilities. EDF Group’s carbon footprint is expected to reduce by 23%, once the deal concludes.
EDF said the deal is part of its CAP 2030 strategy and represents another major milestone in the assets disposal plan of about €10bn over the 2015-2020 period.
EDF group carries out operations in Poland through its subsidiaries EDF Energies Nouvelles and DK Energy Polska.