27 June 2002 – E.ON is to merge three utilities in northern German in which is holds interests to form a group with annual electricity sales of 10 TWh, said a spokesman for the firms Wednesday.
Broad agreement to the merger has been achieved although financial and procedural details of the deal are yet to be agreed, said the spokesman.
The merger would bring together Herford-based EMR, Pesag of Paderborn and Hamelin-based Wesertalwerke. “EMR and Pesag have adjacent supply grids and have been aiming to merge for more than a year. The resulting synergy effects will be even more enhanced if the nearby Wesertalwerke also joins in,” said an EMR spokesman.
E.ON has a 54.51 per cent share in Pesag, a 37 per cent stake in EMR, and since April has had complete ownership of the Wesertal electricity sale and supply activity which it bought from Finland’s Fortum group for €545m then worth $479m.
A Wesertal spokesman said all parties wanted to complete the merger this year so that it could become effective retroactive to July 1, 2002.
E.ON has a strategy of merging small supply subsidiaries to form large regional entities to become more competitive.