The Danish competition authorities have just approved the acquisition of Radius Elnet and Ørsted’s residential customer and exterior lighting business by the energy and fibre-optic group SEAS-NVE.
With the approval of the Danish competition authorities, the creation of one energy system in Eastern Denmark has now become a reality. SEAS-NVE becomes the largest Danish energy and distribution company with 2.8 million customer relationships and 40 per cent of all energy transported in the Danish distribution network.
The acquisition is a natural continuation of SEAS-NVE's strategy to strengthen the group’s existing core business areas and competency level through a continued consolidation of the energy sector.
CEO of SEAS-NVE Jesper Hjulmand is happy about the approval and the new position of strength, which will be used to drive the energy system in a greener direction.
”Today we have taken a decisive step towards the SEAS-NVE of the future. Our new strength comes with an obligation. We know that. We will be taking on a central and leading role in the green transition. We want to take part in ensuring the ambitious objective of reducing the emission of CO2 by 70% by 2030”, CEO Jesper Hjulmand states.
With the acquisition, SEAS-NVE’s ability to operate and develop a large part of the Danish electricity grid is strengthened, and the increased scale in the core business shall ensure benefits to the customers, including continued falling tariffs and new smart energy solutions for Danish homes.
”We will be working to get more renewable energy through the energy system and out to the customers, we will strengthen the charging infrastructure to get more electric cars on the roads and we will create the future energy system that can handle this development. We share this vision with our new colleagues. Together, we can run our business more efficiently and more cost-effective than separately”, CEO Jesper Hjulmand states.
Critical infrastructure in Danish hands
As a cooperative society on Zealand, which has grown from consolidations, it has been a keystone for SEAS-NVE to secure Radius Elnet in Danish, consumer-owned hands.
”In Denmark, we have a long-standing tradition of owning things in common. It does matter who owns our electricity grid and thus makes decisions about investments in security of supply and the green transition. Being a consumer-owned enterprise, we guarantee that returns are used for the interest of society and our many cooperative members and customers”, chairman of the board of directors at SEAS-NVE Jens Stenbæk says.
The transaction, which was published in September 2019, has a total value of DKK 21.3bn.
Facts about the acquisition
The transaction includes the following:
- Radius Elnet with more than 1 million grid customers and an electricity grid extending approximately 19,000 km
- 101,000 street lights as well as service and operation agreements for approximately another 50,000 street lights
- 696,000 energy customers
- 750 employees
SEAS-NVE holds investments in the following companies:
- Cerius A/S (ownership interest: 100 %) – electricity grid company on Western and Southern Zealand and the islands in the area
- SEAS-NVE Strømmen A/S (ownership interestl: 100 %) - energy trading
- Clever A/S (ownership interest: 94.9 %) – e-mobility solutions for the transport of the future – electric cars
- Energi Danmark A/S (ownership interest 40.5 %) – sale of energy for corporate customers in Denmark and abroad
- Fibia P/S (ownership interest: 65.5 %) – fibre-optic broadband on Zealand, the islands in the area and Eastern Jutland
- Rødsand 2 Offshore Windfarm AB (ownership interest: 80 %) – production of renewable energy
- Ørsted A/S (ownership interest: 5 %) – SEAS-NVE´s historic ownership in energy production