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Hydro Kraft AB to be to acquired by Swiss energy company

May 26, 2005, 09:30 CEST

Swiss energy company EGL has entered into an agreement to acquire all shares in Hydro's Swedish power trading company, Hydro Kraft AB.

Hydro has decided to sell its Swedish power trading company Hydro Kraft AB to the Swiss energy company EGL, listed on the Zürich Stock Exchange, and one of the leading energy trading companies in Europe. The acquisition complements EGL’s existing activities in the Nordic market and will make EGL the fourth largest power supplier in Sweden.

"We believe to have found a very good solution for the continuation of Hydro's power supply and portfolio management business in Sweden", says Marten A. Turksema, head of Power Marketing in Hydro.

"With EGL, our customers and employees in Hydro Kraft AB obtain a genuine perspective on continued delivery of competitive products and services and room for further growth ambitions in Sweden and Denmark."

"These have been important criteria for us in selecting parties to acquire Hydro's power supply and services business. Hydro is now focusing more on power activities close to its own asset base, namely power production in Norway and power sourcing requirements for its aluminium industries," says Turksema.

An important step

The fit between Hydro Kraft AB and the existing trading activities of EGL Nordic is considered optimal, and the acquisition is an important step towards realizing one of EGL’s objectives of becoming a substantial player in the long-term segment of Nordic electricity trading and portfolio management.

After the acquisition, Hydro Kraft AB’s current business will be retained unchanged. The company will be named EGL Sweden, and will continue to have its offices in Malmö.

Earlier this year, Hydro’s Norwegian power services customer base was transferred to Elkem Energihandel AS, while continental power customers were supported with alternative solutions.

With the sale of Hydro Kraft AB, the last step in the winding down of power marketing within Hydro's Oil & Energy business area has been formalised.