Powergen sells overseas operations for £130m

Energy group Powergen has sold its German and Hungarian operations in a £130m deal.

The company has sold its mining and power station interests in the two countries to US group NRG Energy.

NRG first agreed to buy Powergen's German assets in April and today's announcement marks the completion of the entire deal.

Powergen has pulled out of Germany and Hungary as part of its strategy to focus on the US and UK markets.

It will, however, retain its minority shareholdings in Asia.

Earlier this year, Powergen announced it had agreed to be taken over by German utility Eon in a deal worth nearly £10bn.

Pending regulatory approval, the Eon transaction should complete next spring.