Colombian subsidiaries of Spain’s Endesa said December 15 they will merge over the coming months to create a US$2.5 billion electrical generating company.
Endesa units Emgesa and Betania have combined capacity of 2,865 MW, mostly from hydropower, Emgesa said in the statement.
“The merger between Emgesa and Betania will establish a single, solid platform for expansion in line with the growth of the country.” the statement said.
The statement said the combined company will keep the name Emgesa S.A. and will represent 21 percent of Colombia’s installed capacity. Emgesa said proceedings will begin in coming months to make the integration agreement official.
The combined company is to include hydroelectric projects 540-MW Betania, 19.4-MW Charquito, 324-MW Guaca, 1,150-MW Guavio, 19.4-MW La Tinta, 18-MW Limonar, 276-MW Paraiso, 19.4-MW San Antonio, and 19.4-MW Tequendama, and 223-MW thermal plant Termozipa.
News of the merger comes at a time when German utility E.ON is frustrated with delays facing its 37 billion euro (US$47 billion) bid to buy Endesa. The offer is currently suspended because of Endesa’s legal action against an earlier rival offer for the company by Spain’s Gas Natural.