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Research Outline

Prepared for Miklos V. | Delivered February 11, 2020

Potential Acquisition Targets in the Energy Sector

Goals

To gain insights on the divestment plans of relevant players in the energy sector (EON, Uniper, RWE, Innogy, Centrica, DONG, Vattenfall, EnBW, EDF, Engie, Enel, Tauron, ČEZ, MVM, Tauron, SSE, Iberdrola, Statoil, Fortum, EPS, HEP, SEAS, EPH, Verbund, Energa, PGE, and Electrica) in selected geographical areas (Slovakia, Czech Republic, Poland, Austria, Slovenia, Croatia, Serbia, Romania, Macedonia, Montenegro, Bosnia and Herzegovina, Albania, Bulgaria).

Early Findings

  • Following E.ON’s commitments to exit certain businesses, the European Commission provided clearance to its takeover of Innogy.
  • As a follow-up to this new formation, according to E.ON’s CEO Johannes Teyssen, the company will need to divest its retail businesses with roughly 2 million supply customers, especially in Eastern Europe.
  • In 2019, Fortum declared its plans to divest its district heating and cooling businesses in Joensuu, Finland as well as in Pärnu (100% ownership) and Tartu (60% ownership), in Estonia.
  •  EnBW has plans to make divestments worth 0.7 Billion Euros by the end of 2020.
  •  Centrica made its plans public to exit from its interests in the North Sea explorer Spirit Energy by the end of 2020
  • Centrica has a 69% stake in Spirit Energy.
  • In September 2019, Czech state-run power group EZ initiated the divestment process on some of its Romanian assets.
  • Companies to be divested were: Energy Distribution Oltenia, Ovidiu Development, Tomis Team, MW Team Invest, CEZ Vanzare, TMK Hydroenergy Power and CEZ Romania
  • EZ is presently looking for expressions of interest in these assets as part of its larger strategy to divest from its assets in Bulgaria, Romania, Turkey and Poland.