E.ON receives 800 million euro bid for its EfW arm
Energy giant E.ON has received a bid worth more than 800 million euros (£642m) for its energy-from-waste business division, according to Reuters.
German utilities firm MVV Energie has approached E.ON with the offer according to a source close to the sales process.
“MVV has submitted a bid for E.ON’s energy-from-waste,” the source told Reuters, adding that the offer was for the entire unit, including 18 incinerators.
The source said the final transaction price would be lower because the German city of Bielefeld’s local utility planned to make use of a right of first refusal and buy incinerators in Bielefeld and Hameln.
The deal would be MVV Energie’s biggest takeover and see it replace E.ON as the largest operator of incinerators in Germany.
MVV operates in the UK as MVV Environment, as a registered subsidiary of MVV Umwelt. In Germany, MVV Umwelt operates six energy-from-waste and biomass plants, managing 1.6m tonnes of waste a year.
The sale of the waste-burning unit is part of E.ON’s 15 billion euro disposal programme to streamline its activities. Other parties rumoured to be interested in the business are Morgan Stanley Infrastructure and Swedish private equity group EQT.
Both MVV and E.ON and MVV have declined to comment on the matter.
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