Turkey's Palmet in talks for EWE energy assets after Azeri firm drops out
ANKARA, Jan 17 (Reuters) - Turkish gas distributor Palmet is
in talks to acquire the Turkey energy business of Germany's EWE,
an official from Palmet said on Thursday, after Azeri state firm
SOCAR confirmed it had withdrawn from discussions to buy the
Reuters reported last month that SOCAR was negotiating to
acquire EWE's Turkish business, which includes gas distribution
networks in the industrial cities of Bursa and Kayseri. The
acquisition was due to be completed in the first quarter of this
However, a SOCAR official said it had now withdrawn from the
negotiations, without giving a reason. A representative for
Palmet said it was in advanced talks for the assets, and would
pay between 130 million and 150 million euros ($148-170
An EWE spokesman declined to comment.
EWE, the fourth-largest natural gas supplier in Turkey in
terms of customers, has said it was looking to sell its local
distribution units after being hit by the weakening lira.
The lira lost 30 percent of its value last year, putting
pressure on companies, particularly in energy and construction,
that have large foreign debts and lira-denominated revenue.
Palmet has gas distribution businesses in the Gebze district
of Kocaeli province and the eastern city of Erzurum.
EWE's energy operation in Turkey includes gas distributors
Bursagaz and Kayserigaz. It also includes the EWE Enerji and
Enervis businesses, which are involved in energy trade and
service, according to its annual report.
($1 = 0.8791 euros)
(Reporting by Can Sezer; Additional reporting by Tom Sims in
Frankfurt; Writing by Ece Toksabay; Editing by David Dolan and
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