Enea buys French utility out of Poland

By bne IntelliNews March 15, 2017

Enea has acquired a 100% stake in Engie Energia Polska - the Polish business of French power company Engie - for PLN1.26bn (€290mn), the state controlled Polish utility said on March 14.

The deal sees Poland broaden its control over the energy sector, in line with ongoing government policy that demands strategic branches of the economy should see more state involvement. Another similar transaction could be completed soon, with a consortium of Polish state-controlled energy companies negotiating over EDF's local assets.

The takeover of Engie Energia Polska will add some 1,900 MW of electricity generation capacity to Enea’s existing portfolio of 3,300 MW. The key asset is the 1,800 MW Polaniec, the fifth largest power plant in Poland.

The Polish utility held an advantage in clinching the deal thanks to the government’s right of veto on assets deemed strategic for energy security. Speculation last year said Warsaw was ready to block any deal should Engie tried to sell to a non-Polish company.

This put Engie under pressure to sell to Enea, despite reports that the Polish firm offered just PLN1bn (€250mn) or so. Rival offers from Sunningwell International and a consortium of Chinese companies were reportedly pitched at PLN1.3bn-1.5bn and PLN1.8bn, respectively.

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