The world’s largest private power and gas company, E.ON, has hired the HSBC Group as sole adviser in its bid for Spain’s largest electricity company, Endesa.

Germany company E.ON has offered E29.1 billion for Endesa and, if the bid is successful, it will represent the largest global utilities M&A (mergers and acquisitions) transaction since 1995. Excluding debt, it is the second biggest cash-only deal of all time, and the biggest ever in Europe.

The appointment is a significant coup for HSBC’s Corporate, Investment Banking & Markets (CIBM) division. One of the project’s directors, CIBM’s David Livingstone, managing director of Investment Banking and head of Global Investment Banking Advisory Europe, Middle East & Africa, commented: “Our appointment is the result of a fantastic team effort and is confirmation of CIBM’s strategy.”

E.ON, which expects the transaction to go through by mid-year, says that the merger will consolidate its number one position. The two companies’ combined 2005 sales would amount to 608 billion kWh of electricity and 945 billion kWh of gas, supplying more than 50 million customers and employing more than 107,000 people.

E.ON’s chief executive officer, Wolf H. Bernotat said: “This transaction not only gives E.ON a new dimension but it also offers significant advantages to Endesa and its employees. The company will remain intact, which is something that will also benefit Spanish consumers. It represents an important step towards creating a single European energy market.”

The HSBC Group’s global markets business ranks among the largest in the world. Operating through 86 treasury sites in more than 56 countries and territories, with more than 3,600 dealing and support staff, the business combines sophisticated 24-hour global coverage and detailed knowledge of local markets.

HSBC is one of the leading financial institutions servicing the requirements of the world’s central banks, corporations, institutional investors, and other market participants.

HSBC Bank Malta plc is also highly involved in the business area of corporate, investment banking and markets. With the support and expertise of HSBC Group it can execute mandates across a full range of advice and financing products, including advice on equity markets, corporate broking and debt capital markets. Customers can also be assisted and informed on the best way to raise capital in the local and international markets.