Partnership Vattenfall

In February 2009 Nuon and Swedish Vattenfall announced they would join forces to form a leading European energy company. The combination will boost the transition towards a climate neutral operation by 2050 through joint investment programmes.

Step-by-step transfer of shares

On 1 July 2009 Vattenfall acquired the first 49% of the shares and operational control of Nuon. The remaining 51% will be acquired in the coming six years. The step-by-step transfer of shares underlines the joint commitment of Nuon’s shareholders and Vattenfall to secure the public interests and Dutch identity of Nuon. A foundation has been set up to monitor and safeguard the public interests served by Nuon. Nuon’s works council advised positively on the partnership.

Highlights of the partnership

• Financial capacity, stability and scale to ensure security of supply, support investment plans and diversification of Nuon’s generation and sourcing capacity
• Strong commitment and financial strength to accelerate investments in renewable energy and development of Carbon Capture and Storage (CCS)
• Creating the number one position in off-shore wind in Europe
• Nuon is the third regional Business Group of Vattenfall, responsible for driving growth in the Benelux, taking a leading role in the development of gas activities.
• Combination of expertise offers customers best-in-class solutions to realise energy efficiency and attractive offers.
• Respecting the collective labour agreements and promoting employee development opportunities; no lay-offs as a result of the transaction
• Strong cultural fit providing the basis for a successful integration

Øystein Løseth, CEO of Nuon:

"Together, Vattenfall and Nuon have the scale to continue securing reliable, affordable and clean energy. I’m very pleased to say that in Vattenfall, Nuon has found a partner that enables the company to continue pursuing the current strategy and realise our objectives. As a thought leader in the environmental debate, Vattenfall is a strong force in combating climate change. Our partnership will boost Nuon’s investment programme for new, cleaner production and innovative energy technologies for our customers."

Lars G. Josefsson, CEO of Vattenfall:

"I'm very pleased that we can take this important step. Nuon's widely respected knowledge in renewables and clean energy technologies is a very valuable addition to our own. It will accelerate the realisation of Vattenfall’s strategy to make electricity clean. The partnership also enables us to further implement our strategy towards a leading position in the European energy market and enhance our position in gas. The Benelux market is highly complementary to our existing European activities. Our combined strengths make us an independent and competitive player. Nuon’s great customer service model will certainly help to further strengthen that position. All in all, this deal makes perfect sense."

Opportunities for employees

The combination offers a strong platform for the development of the employees. There will be a natural involvement of Nuon and Vattenfall employees in further cross-border career development. The companies will respect general employment terms. There will be no lay- offs as a result of the partnership. Nuon’s head office in Amsterdam and regional offices will be kept at their current locations.

Renewable and clean energy

Both Nuon and Vattenfall are known for their innovations in renewable and clean energy.

The two companies will join forces, to continue to develop projects, such as the CCS installations at Schwarze Pumpe (Vattenfall, Germany) and Buggenum (Nuon, The Netherlands). Both companies are global front runners in the development of CCS.

Investing in off-shore wind will be a key priority, adding to current large wind farms such as at Egmond aan Zee (Nuon), Lillgrund  and Kentish Flats (Vattenfall). This will support the combined group’s ambition to generate 15TWh of wind power by 2015 (compared to 2.5TWh in 2009).

Other alternative energy sources, such as solar foil development and ocean power, are part of the R&D investments of the combined companies.

Customers benefit from the partnership

Besides the focus on customer growth, securing and increasing customer satisfaction will be a key priority for the joint entity. Offering value added products that can improve energy efficiency and superior services will be the key instrument to gain high customer satisfaction. Nuon will continue to operate under its brand in the Benelux for at least four years. The retail activities in Germany will be sold in accordance with the requirements of the European Competition Authority. Until then Nuon Germany will operate at arms length from Nuon.