As part of a “strategic reorientation”, German power company Vattenfall Europe AG is to be merged into its immediate shareholder Vattenfall Deutschland GmbH, which will be renamed Vattenfall GmbH.

Tuomo Hatakka, previously chief executive of Vattenfall Europe AG, will be chairman of Vattenfall GmbH, which is 100 per cent owned by Vattenfall AB and will be based in Berlin, Germany.

Oystein Loseth, chief executive of Vattenfall AB, said the merger was intended to “create leaner and simpler structures, thereby improving operational work streams and reducing costs”.

Vattenfall is best known as a wind power operators but also owns coal, natural gas, hydro, biomass and nuclear plants.