Amsterdam, The Netherlands — (METERING.COM) — March 4, 2009 – Dutch Nuon and Swedish Vattenfall have announced they will join forces with the aim of forming a leading European energy company.
A statement from the companies says Vattenfall has made an all cash offer of €8.5 billion enterprise value for 100 percent of the shares of Nuon. Nuon’s grid company Alliander is not included in this transaction. The partners have agreed that Vattenfall acquires initially 49 percent of the shares. The remaining 51 percent of the shares will be acquired in the coming six years under fixed terms.
“I’m very pleased that we can take this important step,” said Lars G. Josefsson, CEO of Vattenfall. “Nuon’s widely respected knowledge in renewables and clean energy technologies is a very valuable addition to our own. It will accelerate the realization of Vattenfall’s strategy to make electricity clean. The partnership also enables us to further implement our strategy towards a leading position in the European energy market and enhance our position in gas.”
Øystein Løseth, CEO of Nuon, added: “Together, Vattenfall and Nuon have the scale to continue securing reliable, affordable and clean energy. I’m very pleased to say that in Vattenfall, Nuon has found a partner that enables the company to continue pursuing the current strategy and realize our objectives.”
The statement says that Nuon will become the third regional business group of Vattenfall responsible for managing operations and driving growth in the Benelux. The management board of Nuon will remain in place and will be represented in Vattenfall’s executive group management. In Germany, building on Nuon’s experience, the partnership will bring dual fuel offering to the next level on a countrywide basis. A full integration of the Nuon German sales operation into Vattenfall’s is anticipated.
According to the statement the companies will continue to develop renewable and clean energy projects.
In addition besides the focus on customer growth, securing and increasing customer satisfaction will be a key priority for the joint entity. Offering value added products that can improve energy efficiency and superior services will be the key instrument to gain high customer satisfaction. Nuon will continue to operate under its brand in the Benelux for at least four years.
The transaction, which is subject to the approval of at least 80 percent of Nuon shareholders, is expected to be completed by the end of the second quarter of 2009.