Endesa, Spain’s largest electric utility, responded to press reports that it was looking to merge its renewable 
energy unit with the green energy unit of Italy’s Enel, its parent company.
MarketWatch reports that Endesa, yesterday, issued statement confirming it was studying “strategic possibilities” for its renewable unit with Enel Green Power. The Spanish company used standard M&A language that basically confirms it’s at least seriously considering a merger with Enel.
Last Week Enel Chief Executive Officer Fulvio Conti announced that it would look to sell a minority stake in Enel Green Power as part of the company’s bid to slim its large debt load.
The Italian utility seeks to cut its debt to €45 billion ($61.5 billion / £40.72 billion) by the end of this year from €51 billion last December, Dow Jones News reports.
Last August GER reported that Enel Green Power was looking to sell up to 49 percent of the company. We wrote that the Italian company was considering selling between 25 and 30 percent of its green subsidiary to institutional investors and the balance (24 – 19 percent) via an Initial Public Offering (IPO). Estimates then valued Enel Green Power at between €13 and €14 billion.
Just in its home market of Italy, Enel Green Power controls 2,513 megawatts of installed capacity of which 331 megawatts is in wind, 671 megawatts in geothermal, 4 megawatts in photovoltaic solar and 1,507 megawatts in hydroelectric. It operates about 600 megawatts of wind and hydroelectric power In the U.S. and Canada.
In Spain and Portugal Endesa’s renewable energy unit controls 2,791 megawatts of installed capacity, according to the company Website.