E.ON is taking a half share in Turkish power company Enerjisa as it targets emerging markets to offset slow growth in its home market of Germany and other parts of western Europe, reports the Financial Times.

The EUR1.5bn ($2.0bn) transaction is an asset swap with Austrian utility Verbund, which will trade its 50 per cent stake in Enerjisa for full ownership of eight Bavarian hydro plants it operates with E.ON.

The German utility last month issued a profit warning for 2013, with surging renewables capacity undermining its revenue from gas-fired power stations in Germany.

E.ON expects Enerjisa to increase its stake in the fast-growing Turkish electricity market from about 4 per cent to 10 per cent by 2020, said E.ON CEO Johannes Teyssen.

Enerjisa aims to raise its generating capacity from 1.7 GW to about 5.2 GW in 2015, with E.ON investing about EUR200m a year, he said.

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