Skip to content. | Skip to navigation

Personal tools
Sections
You are here: Home Breaking news Finnish power firms divest to comply with EU rules

Finnish power firms divest to comply with EU rules

26 January 2011, 18:43 CET
— filed under: , ,

(HELSINKI) - Finnish power companies Fortum and Pohjolan Voima, an associate of paper giant UPM, said Wednesday they are selling off their shares in the national energy transmission network in order to comply with European Union competition regulations.

The Finnish state is set to buy 81 percent of each company's 25-percent-holding in the distribution operator Fingrid.

The rest of their shares are being bought by Finnish insurance company Ilmarinen.

"With this divestment, we are also contributing to the development of a single, liberalised European energy market," Fortum's executive vice president Timo Karttinen said in a statement.

The transactions are being carried out in order to comply with EU regulations that call for the separation of transmission and power generation.

Both Fortum and Pohjolan Voima said they will each earn 325 million euros ($444 million) from the sales.

The preliminary agreements still have to be approved by the governing boards of all the parties concerned, as well as by the Finnish Competition Authority.

Before the transaction, the state owned 12 percent of Fingrid and insurance companies held 38 percent.


Document Actions