France's EDF to take over Italy's Edison for $915m

AP News
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Posted: Dec 27, 2011 12:36 PM
France's EDF to take over Italy's Edison for $915m

Electricite de France says it has reached a preliminary agreement to take over Italy's Edison for euro700 million ($915 million).

Under the proposed deal, the French utility will increase its stake in Edison from 50 to just over 80 percent by acquiring shares from Delmi, a holding company controlled by Italian utility A2A. Delmi

The deal is essentially a swap, since Delmi plans to take over Edison's 50 percent stake in another energy company, called Edipower, for euro600 million. Delmi will acquire another 20 percent stake in Edipower from another company.

The plan announced Tuesday must still be approved by the boards of the companies involved and regulatory authorities. EDF said it should take effect by Jan. 31.

EDF's takeover is one of a number by French firms of Italian ones that have rankled Rome.