Luxembourg and private equity firm Ardian agreed to buy the stakes in local utility Enovos International SA held by E.ON and RWE, the two German utilities said in a statement on Wednesday.
The deal, flagged by Reuters earlier this year, is expected to close in the first quarter of next year, the utilities said, moving ahead with the disposal of marginal holdings in their quest to escape a prolonged sector crisis.
The parties agreed not to disclose the purchase price but sources told Reuters in February that the stakes — RWE’s 18.36 percent and E.ON’s 10 percent — were worth a combined 570 million euros ($623 million).
Enovos in 2014 posted earnings before interest, taxes, depreciation and amortisation (EBITDA) of 212 million euros on sales of 2.58 billion.
The state and city of Luxembourg already hold a combined 33.44 percent stake in the company, while Ardian owns 23.48 percent, a stake it bought from ArcelorMittal in 2012 for 330 million euros.
GDF Suez, recently renamed Engie, and Societe Nationale de Credit et d’