EDF, EnBW and E.ON sign agreements on a swap of electric drawing rights and generation assets for more than 1,200 MW; EDF and Charbonnages de France sell their stake in SNET to E.ON
– By Stephen Heiser –
EDF, EnBW, a German energy supplier jointly controlled by EDF, and E.ON have signed agreements on a swap of electric drawing rights and generation assets for more than 1,200 MW between France and Germany.
Under the terms of these agreements, EDF transfers its 18.75% stake in SNET to E.ON jointly with Charbonnages de France which was the historic shareholder with 16.25%.As part of the transactions, EnBW acquires:
• drawing rights for 800 MW of nuclear energy in Germany from E.ON’s nuclear portfolio,
• E.ON’s majority shareholding in the Rostock coal-fired power station, for a capacity of 256 MW,
• a drawing right for 159 MW from E.ON’s coal-fired power station of Buschhaus, in addition to the generation capacity that EnBW already acquired from E.ON in May 2009 in the Lippendorf (445 MW) and Bexbach (79 MW) power stations.
In total, EnBW will then have access to an additional 1,740 MW generation capacity in Germany.
In return, E.ON acquires drawing rights of 800 MW of nuclear power in France based on EnBW’s historic drawing rights from EDF’s nuclear generation. E.ON becomes the sole shareholder in SNET, the France’s third largest electricity supplier. These agreements, which are subject to approval from the competent authorities, contributes to opening the French electricity market to competition.
These transactions allow EnBW to significantly develop its generation portfolio and achieve a better balance with its supply business in Germany, Europe’s leading energy market. They are also in line with EDF Group’s strategy to strengthen its positions in key European markets. With the sale of SNET’s stake, they are also part of the asset divestment programme announced by EDF in February 2009 aiming at reducing its net financial debt by at least five billion euros by the end of 2010.
These agreements are made pursuant to E.ON’s commitment to the European Commission in 2008 aiming to divest 5,000 MW of generation capacity in Germany.
EDF and EnBW’s advisory banks for the operation are UBS Investment Bank and Calyon Global Investment Banking.