EDF, Edison, Delmi and Edipower Switch Up Stakes

French giant EDF will take a majority stake in Italian Edison following an agreement between EDF and Edison's Italian stakeholders, the French company has announced today.

EDF will increase its share in Italy's oldest and second largest energy company from 50 per cent to 80.7 per cent at a cost of €700 million. EDF will purchase a 50 per cent stake in TdE, which holds a 61.3 per cent of Edison, from Delmi, the holding company for Italian energy company A2A. The stake will be in addition to EDF's existing 50 per cent stake in TdE.

In turn, Delmi will seek to acquire Edison and Swiss energy company Alpiq's stakes in Edipower, at 50 per cent and 20 per cent respectively, at a cost of €600 million and €200 million respectively. Following the acquisitions, Edipower would be wholly owned by Delmi (70 per cent), A2A (20 per cent) and Iren (10 per cent).

Under the agreement, Edison and Edipower will enter a contract for gas supply. The contract would see Edison supply a minimum of 50 per cent of Edipower's gas needs at market terms for the next six years.

All agreements are subject to approval by each company with the final contracts expected to be signed by 15 February 2012.