With parent company Enel (ENEI.MI) needing to slash its debt burden, Endesa (ELE.MC) sold 80 percent of its gas grid to Goldman Sachs (NYSE:GS) fund for $1.1 billion.
If the deal is cleared, it would help the Italy-based Enel to turn a before tax profit of 450 million euros, said the company.
Enel is the most indebted utility in all of Europe, owing about 51 billion euros at the close of 2009, with a goal of cutting that to 45 billion euros by the end of 2010.
Goldman is acquiring the grid via two of its infrastructure funds.
Enel is also attempting to raise an additional 3 billion euros through the sale of its stake in Enel Green Power (ENZ:SG).
Bank of America analysts said in a note to clients, "Ahead of the IPO of Enel Green Power (EGP), this is another important step in (Enel's 2009-2010) 10 billion euros disposal program."