PGE agrees to buy EDF's Polish assets

WSE-listed, state-owned power group PGE signed a conditional agreement to buy EDF's Polish power and heating assets. Under the deal, PGE will acquire all shares of EDF's Polish subsidiary, and PGE will have the option “to call PGE to sign the share sale agreement for the above-mentioned assets, provided that certain conditions are met, including inter alia EDF's corporate approvals. According to the media, the value of the deal could reach PLN 1 billion. Previously, PGE held a 60 percent share in the buying consortium with other state-run utilities Enea and Energa at 20 percent each, but they backed out. EDF Polska owns four power and heat-generating plants and a coal-fuelled power plant, as well as EDF's 50 percent stake in Kogeneracja, which owns another four power and heating plants. The final deal is expected to be signed no later than July 26.