July 26 (SeeNews) - Italy-based electricity and gas trading firm Europe Energy said it has signed through its wholly owned subsidiary LE Trading A.S. a binding letter of intent for the acquisition of EDS Serbia and EDS Croatia for 6 million euro ($6.6 million).
Following the acquisitions, Europe Energy will start selling electricity and gas via its two new subsidiaries, to be renamed to Energy Power & Gas Serbia and Energy Power & Gas Croatian, it said in a statement published on its website on Monday.
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The deal falls in line with the company's strategy to grow its business in the Balkan market, Europe Energy noted, adding that in early 2017 it plans to acquire power distribution companies in Slovenia, Montenegro, Bosnia, and Kosovo.
EDS Serbia is the second largest distributor of electricity to end users behind the Serbian state-owned energy utility EPS.
EDS Croatia is a smaller company, which started operations in 2014, focusing on energy supply to the household segment.
Europe Energy ended 2015 with a consolidated turnover of 963 million euro and a net profit of 2.9 million euro. It estimates that it will earn 110 million euro in the Balkan market this year.
($=0.909 euro)