UPDATE 1-Grupo Villar Mir, EDP eye E.ON's Spanish assets

Wed Jul 16, 2014 9:01am EDT
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* EDP joins forces with Borealis

* Grupo Villar Mir teams up with investor

* Businesses on sale worth up to 2 bln euros - bankers (Recasts, adds detail on price, information from sources)

By Arno Schuetze

FRANKFURT, July 16 (Reuters) - Spain's Grupo Villar Mir and Portuguese utility Energias de Portugal (EDP) have emerged as potential buyers for German utility E.ON's Spanish assets, two people familiar with the process told Reuters.

EDP is teaming up with Canada's Borealis Infrastructure , while Grupo Villar Mir is joining forces with a financial investor, the people said. According to one of them, a first round of bids - for all or part of E.ON's Spanish activities - is due in early August.

Bankers and analysts have told Reuters the Spanish business could fetch between 800 million and 2 billion euros ($1.1-2.7 billion), depending on whether the company sells the whole business or only individual assets.

"The grid in the Basque Country is the most attractive part and will likely fetch 1 billion euros," one of the people familiar with the situation said.

The person said E.ON was unlikely to make any profit on its investment of roughly 1 billion euros in Biscay-based wind energy assets.   Continued...