Finance
Endesa buys 626 MW hydro assets from Acciona for $1.1 billion
Global Banking and Finance Review
Company
MADRID (Reuters) -Spanish power utility Endesa has agreed to buy 626 megawatts (MW) of hydroelectric assets from power company Acciona Energia for 1 billion euros ($1.05 billion), Acciona Energia said on Friday.
MADRID (Reuters) -Spanish power utility Endesa has agreed to buy 626 megawatts (MW) of hydroelectric assets from power company Acciona Energia for 1 billion euros ($1.05 billion), Acciona Energia said on Friday.
The deal follows the recent sale by Acciona Energia, controlled by construction conglomerate Acciona, of 175 MW of hydroelectric generation capacity as part of its strategy to strengthen its balance sheet through disposals.
Under the agreement, Endesa will buy 100% of Corporacion Acciona Hidraulica, which controls 34 hydropower plants in Spain.
The sale will lead to a capital gain of 620 million euros ($654.47 million), Acciona Energia said, adding that it should be completed by the first half of next year.
Reuters reported in October that Acciona Energia was considering a sale of its hydroelectric business.
Endesa, owned by Italian energy giant Enel, was advised by Rothschild.
($1 = 0.9473 euros)
(Reporting by Pietro Lombardi, Editing by Louise Heavens)
Hydropower is a form of renewable energy that generates electricity by using the flow of water, typically from rivers or dams, to turn turbines.
A capital gain is the profit realized from the sale of an asset, such as stocks or real estate, when the selling price exceeds the purchase price.
Renewable energy is energy derived from natural sources that are replenished at a higher rate than they are consumed, such as solar, wind, and hydropower.
An investment is an asset or item acquired with the goal of generating income or appreciation. Investments can include stocks, bonds, real estate, and more.
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