E.ON’s plans to reduce its debt have suffered a blow after GDF-Suez stated it was no longer interested in acquiring the German utility’s Italian assets.
Reuters quotes an inside source at the French company as saying that it will not be making a binding offer for the assets. GDF had expressed initial interest in E.ON’s (FWB: EOAN) hydroelectric, solar and wind plants in Italy as well as its gas client portfolio.
“It has decided to withdraw from the race because it has other priorities at the moment,” the source said.
With more than 30 billion euros ($38bn) in net debt and its traditional generation business under pressure from renewable energy, E.ON is keen to sell its country operations in Italy and Spain.
Meanwhile Enel and EDF-backed Edison are now said to be interested in the German giant’s Italian client portfolio as are some other regional utilities such as A2A, people familiar with the matter have said.
Binding offers for Italian assets are expected at the beginning of November. E.ON has some 6,000 MW of installed power capacity in Italy.
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