Statkraft has struck a deal with German power group E.ON AG that will see it acquire a significant tranche of hydro power assets mainly in Sweden and Germany.

Under their agreement, Statkraft will get 934MW of hydro power capacity in Sweden with annual average power production of approximately 4.2TWh.

In Continental Europe – principally Germany – Statkraft will get a 220MW pumped storage plant plus 10 small run-of-river plants with 42MW of combined capacity. The deal also involves transfer of a 56MW plant in the UK.

The Norwegian energy group is getting the assets in return for a 44.6% stake in E.ON’s Swedish subsidiary, E.ON Sverige AB. It will also get shares in E.ON AG, the parent group, and said that the value was expected to be a substantial part of the deal and details have yet to be firmed. The total swap is valued at Euro4.4B (US$6.2B) and is expected to be finalised in the first quarter of 2008.

Their agreement also includes transfer of some non-hydro assets, including gas-fired plants, a power purchase agreement and district heating schemes.

E.ON said that having complete ownership of E.ON Sverige AB would let it push its strategic growth in the Nordic region as well as integrate the business into its new Trading and Renewable Energy companies with international reach.