Austria utility wins EU approval for Turkey joint venture

Austrian utility Verbund announced it received approval from the European Union to proceed with its power production joint venture with Turkey’s Sabanci Group.

“We received the green light … on Wednesday night and the closing for the Verbund joint venture with Sabanci was on Thursday,” Verbund said June 1.

Verbund said in March it would invest US$326.6 million to buy a stake in power firm EnerjiSA from Sabanci and purchase new shares issued in a capital increase at EnerjiSA, bringing its total stake to 49.99 percent and providing EnerjiSA with US$242.2 million in fresh funds. (HNN 3/16/07)

EnerjiSA will use the funds to acquire further options to operate hydropower plants and implement planned electricity generation projects, Verbund said.

EnerjiSA holds hydropower generation licenses for 268 MW. It also operates gas power plants totaling 370 MW and a coal facility of 450 MW, Verbund said.

Verbund and Sabanci in December agreed to tackle the Turkish power market together and build electricity production, transmission, and distribution companies, aiming for a 10 percent share of Turkey’s power market by 2015.

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