E-On reaches asset agreement with Enel/Acciona over Endesa bid

German energy utility E.On has withdrawn its bid for Spanish utility Endesa. The decision was taken after E.On reached agreement with rival joint-bidders Enel, an Italian utility, and Acciona, a Spanish construction and services company, to acquire some of Endesa’s assets should the Enel/Acciona bid succeed.

If Enel and Acciona gain control of Endesa, E.On will receive an extensive portfolio of equity holdings including operations in Spain, Italy and France as well as additional activities in Poland and Turkey. The total value of theses assets is around €10 billion.

In Spain, E.On will acquire the power utility Viesgo from Enel. Viesgo currently has an installed generation capacity of some 2,400 megawatts (Mw), which will have increased by about 50 percent by 2010, as a result of ongoing