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Eon is set to sell its Italian gas- and coal-fired generation assets to the same Czech energy company which agreed to buy the Eggborough coal power plant last year.
Eon said it will sell around 4.5 GW of generation capacity to Energeticky a Prumyslovy Holding (EPH), a move which forms part of the company’s radical strategy overhaul which will see much of its older thermal generation assets spun-off to allow a greater focus on emerging technologies and its retail business.
For EPH the acquisition is a further move towards greater influence in the European energy sector after agreeing to purchase the Eggborough power plant late last year.
The EPH group operates mainly in the Czech Republic, Slovakia and Germany, through a complete value chain. At the time, its acquisition of the 2GW Eggborough plant more than doubled the company’s installed capacity portfolio of 1.75GW.
Following its agreement to take on the Eggborough plant EPH chief executive Daniel Kretinsky said it reflects the company’s “genuine interest in the UK market”. In a joint statement with Eon he described the company’s strategy as “long term and development focused”.
Utilities analysts at Citigroup and RBC Capital said further disposals of Eon’s 6GW of Italian power assets are possible.
The sale to EPH is expected to close in Q2’15 subject to European Union competition approvals.
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