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E.ON Launches Sale of Waste Energy Unit

Germany’s E.ON, the world’s largest utility, has launched the sale of its waste energy unit E.ON Energy from Waste, in a deal that could fetch up to 1.8 billion euros ($2.4 billion), Reuters said on Thursday. E.ON has hired Barclays and Royal Bank of Scotland to manage the sale process, Reuters said.

(Reuters) – Germany’s E.ON, the world’s largest utility, has launched the sale of its waste energy unit E.ON Energy from Waste, in a deal that could fetch up to 1.8 billion euros ($2.4 billion), banking sources said on Thursday.

E.ON has hired Barclays and Royal Bank of Scotland to manage the sale process, the sources said.

Private equity firms could be among interested bidders, they added.

E.ON was not available to comment, but the group said in July it was considering selling its waste-burning power plants as part of its 15 billion euro divestment programme.

E.ON Energy from Waste generated sales of 544 million euros in 2011 with its 18 power plants in Europe.

The unit has earnings before interest tax depreciation and amortisation (EBITDA) of around 200 million euros, the banking sources said.

($1 = 0.7622 euro) (Reporting by Isabell Witt; Editing by Dan Lalor and Mark Potter)