DALLASTXU Europe has completed negotiations for a partnership with German energy company Stadtwerke Kiel (SWK). TXU Europe is acquiring a 51 percent stake of Stadtwerke Kiel’s equity for the sum of approximately 450 DM (US$215 million). This followed a unanimous vote in favor of the deal by the State Capital Kiel Parliament.
SWK is a municipally owned energy company in Kiel in Northern Germany. SWK has approximately 250,000 gas and electric customers, 175 MW of net generating capacity and 27 bcf of gas storage capacity.
“We are delighted that this partnership has been unanimously approved by the supervisory boards and the parliament, and we are very encouraged by the support we have had from all parties, including the workers council and trade union,” said Phil Turberville, TXU Europe chief executive. “We are convinced that this sets an excellent precedent for our partnership with the State Capital Kiel.”
“Stadtwerke Kiel is an excellent partner for us and provides a very strong entry point for us into the German market,” said Alan Wyatt, TXU Europe senior vice president. “With Stadtwerke Kiel’s knowledge and experience of the German market and our own experience in working in deregulated markets in the United Kingdom and Scandinavia, we will both benefit enormously from this new alliance. This partnership nicely complements our energy trading activity that started when the markets first began to deregulate in Germany.”
TXU Europe is a wholly owned subsidiary of TXU. TXU is one of the largest investor-owned energy services companies in the world with assets of more than $40 billion. With headquarters in Dallas, TXU is a multinational leader in electric and natural gas services, merchant energy trading, energy marketing, telecommunications and other energy-related services. TXU delivers energy to nine million customers primarily in Texas, the United Kingdom and continental Europe and Australia.