The CEO’s of Norwegian firms Glitre Energi and Agder Energi have been authorised by their boards to explore the possibilities for a merger between the two companies
A possible merger will strengthen the competitiveness and profitability of the groups, and develop jobs and value creation in the two regions, the companies said in a joint statement.
“It is important for us to take an active role in ensuring robust energy companies in our regions. A possible merger will be a great value-creating opportunity for the owners, which will contribute to the development of new business, green growth and attractive jobs. The goal is to create increased value for customers, owners and society as a whole,” explained Glitre Energi board chair Ann-Christin Andersen.
The two companies have been described as a good match. They both operate in the entire value chain from hydropower production to end customers, are publicly owned and have a common view of industry development. They have also collaborated on several projects and have similar corporate culture, business focus and management.
“We expect that a possible merger will facilitate significant gains,” said Lars Erik Torjussen , Chairman of the Board of Agder Energi. “Major players around us have merged and it is important that we also position ourselves to secure and further develop our values.”
A merger would create a solid, Norwegian power group with operations throughout the value chain. It would become the second largest network company with approximately 300,000 grid customers, and the third largest hydropower producer with an annual average production of around 10.8 TWh.