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Estonian competition watchdog has week to decide over Eesti Energia, Nelja Energia merger

Estonian news - eteap October 31, 2018

Baltic News Service. 31th of October, 2018

The Estonian Competition Authority is to decide within a week if the Estonian state-held energy group Eesti Energia will be allowed to buy renewable energy company Nelja Energia.

“The Competition Authority has yet to make a decision regarding the merger of Eesti Energia AS and Nelja Energia AS,” Maarja Uulits, head of the PR department of the Estonian Competition Authority, told BNS.

Supplementary proceeding regarding the transaction was initiated on July 6 with a maximum duration of four months. Hence, the decision is to be made in early November.

The Competition Authority decided to take additional time to determine whether competition on the market could be significantly damaged as a result of the transaction, foremost by way of the emergence or strengthening of a market dominating condition.

The transaction has already been approved by the Latvian and Lithuanian watchdogs.

The Eesti Energia renewable energy subsidiary Enefit Green at the end of May signed an agreement with Nelja Energia majority shareholder Vardar Eurus AS and minority shareholders, whereby it would buy Nelja Energia for 289 million euros and would also take over Nelja Energia‘s liabilities worth 204 million euros. Eesti Energia later intends to list Enefit Green.

After the acquisition of Nelja Energia, the amount of renewable electricity produced by Enefit Green will almost triple from the present 0.4 terawatt-hours to more than one terawatt-hour. Enefit Green last year produced altogether 372 gigawatt-hours of renewable energy.

Enefit Green owns four wind farms with a capacity of 111 megawatts, three co-generation plants in Estonia and Latvia, one hydroelectric power plant and one solar power plant. Enefit Green produces energy from wind, biomass, water, mixed municipal waste and the sun.

Nelja Energia owns 17 wind farms in Estonia and Lithuania with total capacity of 287 megawatts. In addition, last year the company opened a pellet factory in Latvia with an annual yield of 140,000 tons a and combined heat and power plant producing from biomass a total of 3.9 megawatts of energy and 19.2 megawatts of heat.

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