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