Polish Utilities to Buy Polish Windfarm Business of DONG Energy

WARSAW--Two state-controlled Polish utilities Tuesday said they will buy the Polish onshore windfarm business of DONG Energy A/S.

PGE Polska Grupa Energetyczna SA (PGE.WA) and Energa SA agreed to buy the Danish company's Polish portfolio for 1 billion zlotys ($319 million), PGE said in a statement.

The deal will see PGE acquire windfarms with a capacity of 60.5 megawatt and a contact to sell the electricity to a buyer. It has also acquired a package of planned wind projects with 555 megawatt potential capacity, with 130 megawatts "at an advanced stage of development," PGE said.

Energa Hydro Sp zoo, a subsidiary of wholly state-controlled Energa SA, will acquire one 51 megawatt capacity windfarm and a 220 megawatt portfolio of planned wind projects.

DONG's 40-person team in Poland will be incorporated into PGE's operations and will help strengthen the Polish company's know-how in its renewable energy unit, PGE and DONG said in separate statements.

The transaction, which PGE said it expects to close over the coming months, will require approval by Poland's competition authority.

Write to Marynia Kruk at [e-mail]