Swedish utility Vattenfall has entered into an agreement for the sale of its Polish subsidiary Gornoslaski Zaklad Electroenergetyczny (GZE) to energy producer and supplier Tauron.

GZE is a power distribution, network services and electricity sales company in the Upper Silesia region.

The companies have agreed on an enterprise value of PLN3.5bn ($1.2bn) for GZE, and the equity value amounts to PLN4.6bn ($1.6bn) to be paid in cash for GZE.

The transaction is expected to be completed by the end of this year after obtaining approval from the competition authority.