1 June 2005 – Having been outmaneuvered in its bid to acquire both Elsam and E2, Vattenfall has come to an agreement with Danish power company Dong under which Vattenfall will relinquish its holding in Elsam in exchange for CHP and wind power assets in Denmark.
According to the agreement, Vattenfall will take over approximately 24 per cent of the generation capacity of Elsam/E2 (excluding the Avedöre II power station, where Vattenfall’s holding will be transferred to Dong/Elsam/E2). In exchange for these assets, Dong will take over Vattenfall’s 35.3 per cent holding in Elsam.
“This structure will ensure that we acquire new competence and greater resources in the Nordic operations so that we can continue the development of environment-friendly, sustainable energy solutions such as wind power, bioenergy and the reduction of carbon dioxide emissions,” says Vattenfall’s President and CEO, Lars G. Josefsson. “We are very pleased that the agreement is now in place. Our move into the CHP and wind power sectors in Denmark represents an important strategic investment in our Nordic operations.”
Vattenfall will take over the Nordkraft power plant in Ålborg, the Fynsverket plant in Odense and the Amagerverket plant in Amager, as well as plants in Helsingör and Hilleröd. These power plants are both coal- and gas-fired. Vattenfall will also take over Elsam’s on-shore wind power assets and 60 per cent of the Horns Rev wind farm.
“The Danish market will be handled by our Nordic organization under the management of Senior Executive Vice President Hans von Uthmann, head of Vattenfall Nordic. We will need all the Danish personnel who now work in the plants we have acquired in Denmark, so the takeover will not lead to any redundancies,” says Lars G. Josefsson.
The distribution in detail of the assets will be carried out during the summer and autumn. In connection with that, Vattenfall will decide the location of head office for the Danish operations.
The agreement is subject to the approval of all the transactions involved by the competition authorities, i.e. Dong’s purchase of shares in Elsam and Energi E2 as well as Vattenfall’s purchase of assets in Elsam and Energi E2. The agreement also requires the approval of the AGMs of the companies concerned.