Swedish state-owned electricity company Vattenfall AB said Monday it is buying Nuon N.V. in a deal valuing the Dutch generator at EUR10.3 billion.
Vattenfall said it has made an all-cash offer of EUR8.5 billion enterprise value for 100% of the shares, equalling EUR10.3 billion for the equity of Nuon's production and supply company after 2008 dividends.
The deal means Vattenfall will gain operational control of Nuon through an initial acquisition of 49% of Nuon shares with the remaining 51% of shares to be acquired in six years under fixed terms.
Nuon's grid company Alliander isn't included in the deal, Vattenfall said.
The management board and supervisory board of Nuon have unanimously recommended the offer to the Nuon shareholders, Vattenfall said.
Subject to approval by the Nuon shareholders, the transaction is expected to close by the end of the second quarter of 2009.