Eastern takes Finnish stake
UK utility Eastern Group is paying £42m ($67.8m) for a 36 per cent stake in Finland`s seventh largest electricity company, Savon Voima Oy (SVO). The deal is part of Eastern`s growth strategy in Europe and follows the completion of due diligence on the deal first announced last year.
The purchase has to be approved by the 29 municipalities that own SVO, which supplies power and heat to 100 000 customers in the Savo province of Eastern Finland and has approximately two per cent of the 78 TWh market in Finland. The acquisition will further consolidate Eastern`s assets in the Nordic region, which is among the most liberalized in Europe. The 29 Finnish municipalities will retain up to nine per cent of SVO.
• Eastern Power and Energy Trading, the trading arm of Eastern Group, has become the first UK energy company to join the Swiss Electricity Price Index. Eastern will be able to buy and sell power in the Swiss market at SWEP-related prices.