E.ON AG (EOA.XE) expects to reap recurring synergies of up to EUR70 million a year by taking over power generation assets from Spain's Endesa S.A. (ELE.MC) and Italy's Enel SpA (ENEL.MI).
According to a presentation published on E.ON's Web site, the company expects around synergies of EUR50 million a year resulting from "overlapping market activities."
A further EUR20 million a year in savings will be possible in light of integrating the assets into E.ON's procurement structure, according to the presentation, which Chief Executive Wulf Bernotat is due to give in a conference call at 1200 GMT Friday.
The company said there is further upside potential for synergies as "other best practice transfer potential has not yet been assessed."
Earlier Friday, the world's largest investor-owned utility by market value said it will acquire the assets, which are predominantly located in Spain, France and Italy, for around EUR11.8 billion including debt.