E.ON, EDF said to be weighing swap of power capacity

E.ON AG, Germany's largest utility, is in talks to swap power generating capacity with Electricite de France SA as part of a deal in which it would gain full control of its French unit, three people familiar with the matter said.

E.ON, based in Dusseldorf, would acquire the 35 percent it doesn't own in E.ON France from EDF, said the people, who spoke on condition of anonymity because the talks are private. Energie Baden-Wuerttemberg AG, a German utility 45 percent owned by EDF, would get power capacity from E.ON, the people said.

E.ON is looking to scale back in Germany to cut debt and resolve an antitrust probe by the European Union. As part of the transaction, it would also get nuclear power capacity in France from EDF, one of the people said. Due diligence on the transaction has already begun, two of the people said.