Exploring possible merger

In recent years, Glitre Energi and Agder Energi have developed a close, good partnership across a number of areas. The boards of the two groups have given their respective CEOs the authority to explore a possible merger.

A potential merger would increase the competitiveness and profitability of the groups, and would create jobs and support value creation in the two regions. 

Ann Christin Andersen lavoppl.jpgThe energy industry is undergoing rapid change and becoming increasingly complex as a result of electrification, the transition to a green economy and technological advances. Several major players in the electric power industry are involved in mergers, which is strengthening their technical expertise and competitive position. For the companies left standing alone, it will become more challenging to build a successful, profitable future.

- “It is important for us to work proactively to ensure that our regions retain strong energy companies. A potential merger would provide a big opportunity for the shareholders to create value, and it would help to develop new areas of business, promote green growth and create attractive jobs. The aim is to add value for our customers, shareholders and society as a whole”, says Ann-Christin Andersen, the Chair of the Board of Glitre Energi.

A good match

The view of the boards is currently that Glitre Energi and Agder Energi complement each other well. Both companies operate across the whole value chain from hydroelectric power generation through to retailing, are publicly owned and share a joint vision for the future of the industry. Through several joint projects, the groups have discovered similarities in their corporate cultures, business focuses and management styles.

Lars Erik Torjussen lavoppl.jpg- “We expect any merger to create significant potential synergies. Some of our large competitors are merging, so it is important for us to also move to secure and enhance the value of our business”, says Lars Erik Torjussen, the Chair of the Board of Agder Energi.

Next steps

A potential merger would create a powerful Norwegian power company with operations across the whole value chain. The merged company would be Norway’s second largest distribution system operator serving around 300,000 customers, its third largest hydroelectric power producer with mean annual generation of around 10.8 TWh, the country’s leading supplier to business customers and one of the biggest to domestic customers, with around 200,000 customers.

- “We stress that this is a very early stage of the process, and transparency is important to both the companies and shareholders. That is why we are now announcing the ongoing exploratory discussions. The boards want the companies to have more detailed discussions, and we’ll have to see whether the fit is as good as we think it is”, say Andersen and Torjussen.

The exploratory talks will initially continue with a view to possibly signing a letter of intent, after which full documentation would be provided to the shareholders in order to help them to reach their decision.

Contact people:
Ann-Christin Andersen, Chair of the Board of Glitre Energi, tel. +47 934 43 606
Lars Erik Torjussen, Chair of the Board of Agder Energi, tel. +47 905 12 330

About the companies:

About Glitre Energi:

Glitre Energi owns, develops and operates infrastructure based on hydroelectric power. We generate 100% renewable energy and supply it to a multitude of households and businesses. Our core focus is on creating value, taking environmental responsibility and promoting a fully electrified society. Glitre Energi AS is owned, through the company Vardar, by Drammen Municipality, with a 50 percent ownership interest, and 19 municipalities in the former county of Buskerud, with a combined ownership interest of 50 percent. 

About Agder Energi:

Agder Energi's mission is to provide clean energy for a sustainable society, now and in the future. The Group’s activities comprise the generation, distribution and sale of renewable energy, as well as providing energy-related services. Our vision is to be one of the leading companies in the Norwegian renewable energy sector. Agder Energi is owned by the municipalities in Agder, which have a combined ownership interest of 54.47%, and Statkraft Industrial Holding, which owns 45.53% of the shares in the company.