EDF in trading alliance
Electricité de France (EDF) and the French trading group Louis Dreyfus have joined forces to establish a joint venture to trade in electricity and energy products. The new entity – EDF Trading – will begin operations this autumn and will have offices in London and Paris.
EDF said that the announcement is the company`s natural response to the opening up of Europe`s electricity market to competition. The state-owned utility will have a stake of 66.7 per cent in the new company while Louis Dreyfus will hold the remaining 33.3 per cent. The company will have an initial capital of $30.6m. The deal is subject to the necessary European regulatory approvals.
Francois Roussely, EDF president, said that EDF Trading will cover Europe and the Mediterranean basin, dealing in physical transactions in electricity and energy products as well as in paper transactions. He added that EDF will benefit from Louis Dreyfus` expertise in the trading sector.