France's Veolia Pens Deal for Czech Gas Plant

French water and water utility Veolia has agreed deals to acquire Hungarian combined heat and power producer Budapesti Eromu (Bert), and a district heating company in Prague, from Czech energy firm EPH, the companies said on September 7.

EPH will transfer its 95.6% stake in Bert which it has held since 2015 for an undisclosed price. Bert is the biggest heat producer Budapest, owning the 178-MW Kelenfoldi, 113-MW Kispesti and 105-MW Ujpesti gas-fired stations that meet 56% of the Hungarian capital's heat demand.

Veolia already owns several power stations in Hungary with a combined capacity of around 430 MW, and provides district heating to some 47,000 retail customers in the country directly.

The French firm is also set to acquire 100% of Czech district heating provider Prazska Teplarenska (PT), which supplies around 230,000 households and other customers on Prague's right bank. It will pay €230mn ($272mn) for the company.

Both transactions require approvals from regulators.

Veolia also made a bid at the end of August to buy a 29.9% stake in its smaller French peer Suez from France's Engie for €2.9bn. Engie says it is reviewing the offer, although both its management and that of Suez have told the French press that the deal undervalues the company.