July 10, 2014 / 6:15 PM / in 3 years

UPDATE 1-EnBW to buy Eni out of German gas grid venture - sources

* Deal could be announced as soon as Friday -source

* EnBW, Eni both decline to comment (Recasts, adds details, background, no comment from Eni)

FRANKFURT, July 10 (Reuters) - Utility EnBW has agreed to buy out Eni’s 50 percent stake in a German gas grid joint venture to take full ownership, two sources familiar with the matter said, to take advantage of the stable income from regulated assets.

An announcement about the deal, expected to be worth more than 150 million euros ($205 million), could be made as soon as Friday, one of the sources said.

Germany’s EnBW and Italy’s Eni both declined to comment.

Eni said in October it was in talks with EnBW over the future of EnBW/Eni Verwaltungsgesellschaft, amid speculation the oil and gas group could sell its stake.

The joint venture controls gas transmission network TerraNets BW and gas supplier Gasversorgung Sueddeutschland (GVS).

The deal was previously reported by daily Stuttgarter Zeitung and the Wall Street Journal Deutschland, citing sources.

Sources previously said the joint venture, which operates a 2,000 km gas pipeline system in the German state of Baden-Wuerttemberg, could be worth about 300 million euros.

Regulated power and gas networks have become attractive assets for utilities, which are suffering from falling profits as a result of weak energy demand and a massive boom in renewable energy capacity across Europe.

Last month, EnBW, Germany’s third-biggest utility, said it would take 1.5 billion euros in one-off charges for the first half of the year, citing a gloomy outlook for power prices, which has already prompted rivals to book billions in writedowns.

$1 = 0.7331 Euros Reporting by Christoph Steitz; Additional reporting by Francesca Landini; Writing by Victoria Bryan; Editing by Mark Potter and Jane Baird

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