Shanghai Electric Power Co Ltd is in preliminary contact with top German utility E.ON over the possible purchase of its Italian assets.

 

E.ON, whose market value has plunged by nearly three quarters since 2008 on the back of a sluggish European economy, is in the middle of a massive restructuring that will see it split its business in two to focus on renewable energy.

 

As part of this restructuring plan, the German utility giant is also selling non-core assets such as its operations in Italy.

 

Sources said early last month that the Italian assets could be worth more than 2 billion euros (2.49 billion USD).

 

A Shanghai Electric official said the Chinese company was in early stages of communication with E.ON over those assets, but declined to comment further. A spokesman for E.ON declined to comment on whether the company had been approached by Shanghai Electric.

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