The final agreement between the groups was signed almost nine months after the proposed deal was announced. They had expected to finalise the terms in the first quarter of this year. However, the deal is still subject to regulatory approvals, and the groups hope that it can be closed by the end of the year.

Under the deal Statkraft gives over its minority, 44.6% stake in E.ON’s Swedish business, E.ON Sverige, plus a hydro plant in Sweden. In return, it will receive an asset package that increases its installed capacity by approximately 2.5GW, and which includes 51 hydro plants.

The hydro assets represent one third of E.ON Sverige’s hydropower production (from 40 plants with a combined capacity of more than 900MW) plus 11 plants in Germany (a 220MW pumped storage plants plus 10 plants with combined capacity of 42MW) and also a 56MW plant in Wales.

In addition to the hydro plants, the assets being given swapped include five district heating plants in Sweden and two-gas-fired plants in Germany. Statkraft also receives a structured gas storage and electricity supply contract under the deal. The final gain under the agreement will include shares in E.ON worth approximately Euro2.18B (US$3.43B).

The swap will give E.ON full ownership of E.ON Sverige, which it currently controls with a majority holding of 55.4%.