EnergiMidt A/S and Elro A/S will merge to form Denmark’s fourth-largest utility in terms of sales, moving trading desks and seeking international growth.
“The merger gives us the right strategic fundaments for future growth,” Jens Joern Justesen, chairman of the board of EnergiMidt, said today in an e-mailed statement. “Our markets aren’t merely local, they’re national and to a certain extent international.”
Under a decision taken yesterday, the companies will merge under the name EnergiMidt A/S with sales of 3 billion Danish kroner ($510 million) while energy trading activities will be transfered from EnergiMidt’s office in Silkeborg to Randers, where Elro is based, according to the statement.
Holger Blok, chief executive officer of EnergiMidt and Chris Dahlerup, CEO of Elro, did not respond to phone calls seeking comment.
Approval from the Danish Energy Agency and competition authority is expected by the end of the year, while the merger is to be completed in 2014, the companies said in a joint statement.