CEZ says will not bid for Slovenske Elektrarne stake

Czech state controlled electricity producer CEZ announced Thursday it will not make a firm bid for the majority stake in Slovakia’s dominant electricity company, Slovenské Elektrárne, held by Italian power company ENEL. CEZ added that is willing to discuss with both the Slovak government and ENEL ways to cooperate in the development of the Slovak energy sector. CEZ initially appeared keen to bid because of the synergies with its Slovak peer and the fact that the Czech and Slovak power grids are closely connected from the era of the former Czechoslovakia. But CEZ managers later expressed concern about the rising costs and continually postponed deadline for the completion of the Mochovce 3 and 4 nuclear reactors and the possibility of fraught relations with a Slovak government keen to regain control of the electricity producer.

Author: Ruth Fraňková