Germany-based power utility firm E.ON will sell around 4500MW of its coal and gas generation assets in Italy to Czech energy company Energetický a Prumyslový (EPH).
Under the deal, EPH will acquire around 600MW of coal-fired power facility in Sardinia (Fiume Santo).
Nearly 3,900MW power capacity from E.ON’s six gas-fired power plants in the Italian mainland and Sicily will now be a part of EPH’s portfolio.
The transaction, which is expected to be concluded by the second quarter of 2015, still awaits approval of the EU competition authority.
E.ON CEO Johannes Teyssen said: "Our conventional generation activities in Italy are high-performing assets with a climate-friendly and diversified generation fleet.
"We will work closely with the new owner, our trade unions and their representatives to set a successful course for the future of the assets and our employees.
"We continue to assess a possible divestment of our other businesses in Italy as well."
EPH CEO Daniel Kretínský said: "We are proud to have the opportunity to continue E.ON’s tradition in the conventional power generation in Italy.
"Our strategy is long-term and development-focused.
"We look forward to working on this goal together with employees, trade unions and other stakeholders."