EDF, E.ON and EnBW Unveil Asset Swap

30 September 2009 (Last Updated September 30th, 2009 18:30)

France's EDF and Germany's E.ON and EnBW have unveiled asset swap deals as part of agreements made with Brussels in 2008 to settle cartel cases. Under the arrangements, EDF will sell its 18.75% stake in French energy firm Snet to E.ON, while E.ON receives 800MW of French nuclear power

France's EDF and Germany's E.ON and EnBW have unveiled asset swap deals as part of agreements made with Brussels in 2008 to settle cartel cases.

Under the arrangements, EDF will sell its 18.75% stake in French energy firm Snet to E.ON, while E.ON receives 800MW of French nuclear power output.

E.ON will also take a 35% share in Snet from EDF and Charbonnage de France, making it SNET's sole owner.

As part of the deal, EnBW will get E.ON's 50.4% majority stake in the Rostock coal-fired power station.

The company will also obtain power procurements rights from E.ON's coal-fired station Buschhaus as well as 800MW of German nuclear purchasing rights.

The EU Commission has viewed with suspicion the market power of big energy utilities in Europe and has insisted they give one another more access in their home markets, reports Reuters.

E.ON CEO Wulf Bernotat said the asset swaps, which have yet to be approved by its boards and cartel authorities, will promote energy competition in Europe.

"By fully taking over Snet we are now able to better bundle our activities in France and tap valuable synergies. We are thus strengthening our position in the important French energy market, the second largest in Europe," he said in a statement.