The German power utility announced plans to sell its waste management subsidiary Eon Energy from Waste (EEW) on Wednesday. The company is to be purchased by a newly established joint venture between Eon and the Swedish infrastructure fund EQT Infrastructure II, managed by the EQT private equity group.
The infrastructure fund is to hold 51 per cent of EEW's stock, while the remainder will be held by Eon. The deal enables the Dusseldorf based utility company to reduce its involvement in waste incineration operations which are not a part of its core business. With the new joint venture, which has yet to be publicly named, the partners aim to consolidate EEW's market position, to promote operational excellence and to continue the geographical expansion of the company.
The transaction is still subject approval from anti-trust authorities. It is expected to be completed within the first quarter of 2013.