BY Fraser Tennant
In a race which saw it outbid Czech billionaire Daniel Kretinsky, Spanish investment management firm Asterion Industrial Partners is to acquire German energy utility Steag in a transaction that values the business at €2.6bn.
Mr Kretinsky, who built his wealth in the energy industry, has recently embarked on an acquisition spree in Europe, attempting to buy Steag through his energy holding company EPH.
As well as developing Steag into a sustainable energy utility, the acquisition represents further growth of Asterion’s European energy presence into Germany beyond its existing footprint in Spain, France, Italy and the UK.
“Our firm is fully committed to the energy and heat transition,” said Jesús Olmos, chief executive of Asterion. “Steag is very well positioned to be a very relevant player in Germany and Europe in this process toward cleaner, more competitive and reliable energies such as solar and wind power, while offering an interesting energy mix that is also supported by coal and gas to guarantee the viability of this transition.”
For more than 85 years, Steag has stood for efficient and safe power generation both nationally and internationally, operating six coal power plants in western Germany. “It also has a team of experienced management and skilled employees with technical expertise in wind, solar, and district heating,” added Mr Olmos. “Its energy sites have excellent infrastructure and are optimally connected to the German energy grid.”
The transaction is expected to be completed by the close of 2023, subject to customary conditions and regulatory approvals.
“The sale decision is groundbreaking for the future of the group and its two divisions,” said Andreas Reichel, labour director and chairman of the management board of Steag. “After all, this decision provides greater economic room for manoeuvre for upcoming investments in the future and also helps to secure existing jobs in the long term. The best possible solution has thus been found for all parties involved, including our employees.”
Mr Olmos concluded: “With the experience of Asterion’s team in managing companies in green transformation, we are excited to work together to deliver on Steag’s decarbonisation plans and create new, green jobs.”
News: Spain's Asterion buys German utility Steag for $2.8 billion