E.ON "red heart" Gazprom

A marriage (of sorts) has been announced between Russia's largest State company and the worlds biggest privately owned energy company.

Subject to approval by the European Union Commission and Hungarian authorities,Russian State controlled Gazprom, has acquired assets in Hungary`s gas and power sectors in exchange for giving German based energy firm E.ON a 25 percent stake in its Siberian gas field, E.ON said on Thursday.

Gazprom will acquire a minority interest of 50 percent minus one share in Hungarian gas companies E.ON Foldgaz Storage and E.ON Foldgaz Trade, a stake of 25 percent plus one share in the regional power and gas supplier E.ON Hungaria and a compensation still to be quantified, while E.ON will obtain a a stake of 25 percent minus one share in the Siberian gas field Yuzhno Russkoye.

Perhaps of greater significance to EU consumersE.ON and Gazprom have also agreed to cooperate on specific gas-fired power station projects (no details available) in Europe as they plan to conclude a detailed agreement on the exchange of assets by the end of the year.

E.ON UK is the second largest electricity generator in the UK and own the second largest distribution network in the UK. They are part of E.ON, based in Germany who claim to be the world's largest investor-owned power and gas company.