VERBUND sells marketing subsidiary APC
The Slovenian company Istrabenz Energetski Sistemi, DOO and VERBUND signed the contract of sale for the VERBUND power marketing subsidiary VERBUND-Austrian Power Vertriebs GmbH (APC) today.
In an international bidding procedure Istrabenz had outbid strong Austrian and foreign competitors. Istrabenz will pay a price of 8,345,000 euros for the 100-percent-interest in APC.
The Slovenian company Istrabenz Energetski Sistemi, DOO and VERBUND signed the contract of sale for the VERBUND power marketing subsidiary VERBUND-Austrian Power Vertriebs GmbH (APC) today. In an international bidding procedure Istrabenz had outbid strong Austrian and foreign competitors. Istrabenz will pay a price of 8,345,000 euros for the 100-percent-interest in APC.
The EU competition authority had made its approval of the merger of VERBUND trade and marketing and the EnergieAllianz companies, which will bring the partner companies synergies totalling 80 million euros annually, conditional on the sale of APC.
“With this sale we are taking the biggest hurdle on the way to the implementation of the Austrian Power Solution”, says VERBUND CEO Hans Haider. “We are optimistic that the arm of the competition law in Brussels will have no objections against the purchaser, Istrabenz, because the new bidder is stimulating competition in the domestic key account market according to the regulations”, says Mr. Haider. After obtaining the consent of the EU as expected the operational implementation of the Austrian power solution will be started as soon as possible.
Taking over the APC customers and their power consumption of more than 1 GWh annually ensures Istrabenz a very good starting position in the domestic business customer market. Since its establishment at the end of the year 2000 the VERBUND subsidiary had succeeded in positioning itself as a driving force, with a market share of 14 percent, as number two in this customer segment.
Today, APC sells an overall volume of electricity of 3.3 TWh and the proceeds amount to approx. 160 mn Euro p.a. With the new member in their energy sector, Istrabenz expects to sell a volume of 4.8 TWh of electricity and generate a turnover of 260 mn Euro until 2009.
To secure the electricity volume APC requires, VERBUND and Istrabenz have concluded a supply contract for the next 4.5 years. Moreover it was agreed that, in compliance with the regulations of the EU competition authority, VERBUND will refrain from competing actively with APC.
It is the declared goal of Istrabenz to also position itself as a substantial supplier in the power markets of Central and Southeast Europe as soon as these markets will become part of the EU market. For Istrabenz the purchase of APC is a milestone in its pursuit of this business strategy.