Energetický a průmyslový holding (EPH) acquisition of Vattenfall's German lignite coal operations

Overview:

• Energetický a průmyslový holding (EPH) and its financial partner PPF Investments acquired Vattenfall's lignite coal mines and coal-fired power plants in Germany for an undisclosed amount. 
• The acquisition gives EPH ownership of around a quarter of Germany's current electricity production capacity.   
• Assets in the deal include the Janschwalde, Boxberg and Schwarze Pumpe power plants; a 50% stake of the Lippendorf power plant; and the Janschwalde, Nochten, Reichwalde, Welzow-Sud mines.
• Swedish state-owned power company, Vattenfall divested of its loss-making German business as part of a strategy to move away from production linked to climate change.
• Reportedly, only a few bidders showed an interest in the deal. 
• Unlike in the nuclear sector, Germany has not yet set a timeline for phasing out coal-generated electricity production, although there is pressure to domestically and it has a target of supplying 80% of the country's electricity from renewable sources by 2050. 

Ben Naylor - Regional editor