Power companies Essent, Nuon to merge

15th January 2007, Comments 0 comments

15 January 2007, AMSTERDAM — Power companies Essent are in merger talks to create a company valued at an estimated EUR 20 billion.

15 January 2007

AMSTERDAM — Power companies Essent are in merger talks to create a company valued at an estimated EUR 20 billion.

"The talks are intensive and we're looking carefully at all the details," Essent spokeswoman Anneloes van der Voort said.

But the companies, owned by Dutch regional governments, have reportedly already agreed to merge and have sent a proposal to shareholders.

Under the proposal, Essent, based in Arnhem, Netherlands, will get 55 percent of the enlarged company and Amsterdam-based Nuon will have the remaining stake.

Nuon and Essent combined have about 4 million customers, or 60 percent of the Dutch market, with total revenue of EUR 11 billion, Bloomberg reported.

Essent is the largest Dutch utility and Nuon is its biggest domestic competitor.

A combination of Nuon and Essent may need to drop about 1 million customers to avoid having a dominant position in the Dutch energy market, the national competition regulator said last June.

[Copyright Expatica News + ANP 2006]

Subject: Dutch news

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