Turkey Approves Socar-EWE Deal
Turkey's energy regulator and competition agency have approved Azeri Socar's purchase of German EWE's assets, local media Haberturk reported May 17.
Socar paid $140mn for EWE's gas distribution and telecommunication business January 30, but the transaction was subject to the approval of the two bodies.
EWE holds controlling 80% stakes in Kayserigaz and Bursagaz, which hold monopoly gas distribution rights to the Turkish cities of Kayseri and Bursa respectively, as well as gas and power trader EWE Enerji which holds a wholesale gas portfolio of around 2.5bn m³/yr and energy consultancy and solutions provider Enervis.
The remaining 20% stakes in the two distributors are split 50-50 between Turkey's Calik Enerji (10%) and the respective municipalities (10%).
EWE’s Millenicom also provides telecommunication and internet services in Turkey. The information and communications regulator is expected to approve Socar's purchase of Millenicom soon and the transaction is projected to complete by May 29.
Socar owns several big downstream projects in Izmir, southwest Turkey, including 51% of the Petkim petrochemical complex and the wholly-owned Star refinery; and a power plant. These facilities use 3-4bn m3/yr. Socar wants to buy the gas distribution systems in this region and to supply the gas to these facilities. Turkey imported 2.1bn m3 Azeri gas in the first quarter of this year.