Endesa in Talks to Buy Rest of Enel Green Power’s Spanish Unitby
Endesa SA, a Madrid-based energy company majority owned by Enel SpA, is in talks to buy the remaining 60 percent of Enel Green Power SpA’s Spanish subsidiary that it doesn’t already own.
It isn’t clear whether the discussions will result in an acquisition, Endesa said in a regulatory filing. The deal could be worth between 2 billion and 3 billion euros ($2 billion to $3.3 billion), according to Bloomberg New Energy Finance.
The transaction would streamline the ownership structure of Enel’s clean-energy assets, which were mostly held through its publicly-traded Green Power unit until the two were combined starting last year.
“Enel Green Power was brought back into Enel last November so they could have greater access to capital to develop new projects in emerging markets,” said Meredith Annex, analyst at Bloomberg New Energy Finance. “Today they’re freeing up operational assets by taking them from EGP to Endesa, freeing up cash for EGP to really focus itself on new projects.”
Enel has 97 renewable-energy plants in Spain. About 1.6 gigawatts is wind, as well as 13 megawatts of solar, 43 megawatts of hydropower and 39 megawatts of biomass and biogas. Endesa has owned 40 percent of Enel Green Power Espana since 2010, and Enel acquired a majority stake in Endesa in 2007.
Enel declined to comment. The company is developing renewable energy projects in Latin America, Africa and Asia.