German energy supplier E.ON has gobbled up a spot in Turkey’s growing energy market with a share swap.
The country has recently seen what some described earlier in the year as an energy “gold rush”, with the Turkish Electricity Transmission Company expecting demand to rise by 6% every year up to 2023.
E.ON is getting a slice of the action after signing a deal to swap a stake in some Bavarian hydroelectric stations with Austrian firm Verbund, in exchange for half the shares of Turkish power distribution business EnerjiSA. The deal is expected to close in the first quarter of 2013.
Johannes Teyssen, E.ON SE’s CEO said: “Turkey has one of the fastest-growing economies in the world and the rise in its energy demand has been strong and steady. This transaction gives us a superb platform for value-enhancing growth outside our markets in Europe.”
EnerjiSA has 2,000 megawatts of capacity being built with 1,500MW more on the way. Along with its new partners Sabanci, E.ON aims for the firm to have up to 8,000 megawatts of generating capacity in Turkey by 2020, at least a 10% share of Turkey’s generation market.