French state controlled utility group Electricite de France SA (EDF.FR) said Tuesday that it signed a preliminary deal to increase its stake Italian power utility Edison SpA (EDN.MI) to 80.7% from 50%, for EUR700 million.

According to a statement by EDF, EDF will buy a 50% interest in TdE, which holds 61.3% of Edison, from Delmi, a holding company controlled by and Italian utility company A2A SpA (A2A.MI). EDF already owns a 50% stake of TdE. A2A issued a similar statement Tuesday morning.

EDF said that, if the deal goes through, then it will own 80.7% in Edison, with the new 30.7% interest being purchased at EUR0.84 per share.

EDF, a global player in nuclear power, has been pushing for strategic control of Edison throughout 2011, an effort that aims to strengthen the company's natural gas holdings. But EDF has met resistance from Italian interests, forcing numerous extensions of the existing shareholder pact. The groups face another deadline at the end of December.

EDF also said that Delmi plans to buy a 70% stake in Edipower, a company that owns nine power plants in Italy, from Edison and Alpiq. Edison's 50% stake in Edipower will be purchased for EUR600 million, while Alpiq's 20% interest in the company will be acquired for EUR200 million.

EDF said the total price of the Edipower stakes of EUR800 million was equal to the price paid by EDF for the TdE stake plus EUR100 million.

The deal requires approval from the Italian market authority Consob and corporate representatives, EDF said. The deal should conclude no later than Jan. 31, 2012, according to the EDF statement.

-By Nadya Masidlover, Dow Jones Newswires; +33 1 4017 1740; nadya.masidlover@dowjones.com

A2A (BIT:A2A)
Historical Stock Chart
From Jul 2024 to Aug 2024 Click Here for more A2A Charts.
A2A (BIT:A2A)
Historical Stock Chart
From Aug 2023 to Aug 2024 Click Here for more A2A Charts.