12/5/2012

E.ON moves into Turkish energy market with swap deal

Milliyet - Making a move into one of the fastest growing economies in the world with an ever-increasing energy demand through a stake swap deal, Germany’s E.ON enters into a partnership with the Sabanci Group in the Turkish power company Enerjisa. An asset swap deal with Verbund, Enerjisa’s former 50 percent stakeholder, has given the German utility company an equal share in a Turkish power generation and distribution company with regional ambitions and a solid foothold in one of the most promising energy markets in Europe.

E.ON CEO, Johannes Teyssen, said that the Enerjisa deal would offer growth perspectives for the company having hard times in low-growth Europe. "Turkey has one of the fastest growing economies in the world and the rise in its energy demand has been strong and steady," he said during the press event announcing the swap deal.

Turkey’s Minister of Energy, Taner Yildiz, also present at the event, said that Turkey’s energy policies condoned the private sector to enter into power generation business. “The private sector’s installed capacity levels have reached 60 percent from 34 percent a decade ago,” said Yildiz. “Turkey plans to invest around USD 130 billion in energy over the next ten years” said the Minister.

Enerjisa’s former partner Verbund will continue its operations in Turkey via its own venture, currently building a dam and a hydropower plant on the Euphrates river in southeastern Turkey.
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turkey; energy sector; turkish energy market; energy investment; renewable energy; enerjisa; sabanci; verbund; e.on