Enel SpA (BIT:ENEL) is in late-stage talks to buy a set of assets from Italian renewable energy group ERG S.p.A. (BIT:ERG) that could be worth around one billion euros ($1.2 billion), two sources said. “The talks could be wrapped up in coming days,” one of the sources said, cautioning a series of issues still needed to be ironed out. ERG, one of Europe's leading wind power players, is selling hydroelectric assets along with some gas-fired power plants to speed up the process to create a pure wind and solar player.

Last Thursday Enel CEO Francesco Starace declined to comment when asked about the utility's interest in the assets during a conference call on earnings results. Enel, Italy's dominant hydroelectric player with almost 12.5 gigawatts of capacity, could bring some of its own renewable assets to the table to clinch the deal, the second source said. But the source added the option was still open-ended.

ERG and Enel declined to comment.