Jun 13, 2008 | Amsterdam Nuon opts for international alliance
The Nuon production and supply company plans an alliance with an international partner to strengthen its strategic position on the European energy market. The choice is the result of a careful process of consideration and is underwritten by the Management Board, Supervisory Board and shareholders of Nuon.
In anticipation of the implementation of the unbundling act, Nuon is forming two independently operating companies, a network company and a commercial production and supply company. The preparations for making Nuon ready for unbundling are virtually complete. Against that background, various further steps for the production and supply company have been examined. Such a step is needed for solid growth on the European energy market, where the competition is becoming stronger.
In recent months there have been intensive discussions between the Management Board, Supervisory Board and shareholders over the various ways that the Nuon production and supply company can develop into an international player. After reviewing the possible further steps, the choice fell on a structured alliance with a foreign company. At the same time an examination is being made of how shareholders can dispose of their shares if they so wish.
"A carefully chosen strategic partner can increase the scale and power of Nuon," says Management Board chairman Øystein Løseth. "This guarantees the continuation of the role of Nuon itself and enables Nuon to best serve the interests of its customers, shareholders and society."
In order to take this next step forward, Nuon is looking at companies that complement partially or wholly its production and supply company. This could involve a stake in gas fields, joint construction of power plants or investments in renewable generating capacity, thus for the long term enabling security of supply.
Ultimately, a competitive process will result in the selection of a party with whom Nuon will work exclusively to bring about the alliance. This process is expected to take at least six months.
About Nuon
Nuon is an ambitious energy company, serving more than three million consumers and organisations with over 10,000 employees in the Netherlands, Belgium and Germany. Nuon produces, transports and delivers electricity, gas, heating and cooling, and engages in energy trading in the major international markets. Nuon also supplies additional services and technological innovations to businesses and consumers. In doing so, Nuon aims to provide a reliable, sustainable and affordable energy supply.
With a turnover of EUR 5.7 billion in 2007, Nuon occupies a prominent position in the Dutch energy market. The shares are held by local and regional authorities.