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JERA to buy EDF Trading’s coal and freight business

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Dry Bulk,


JERA Trading Singapore, a subsidiary of JERA Co. – a joint venture between Japanese utilities, Tokyo Electric Power Co. and Chubu Electric Power Co. – has reached a non-binding agreement to acquire EDF Trading’s coal and freight business from EDF.

The deal will create a “truly global coal and freight trading business,” EDF Trading said in a press release, that combines EDF Trading’s coal and freight expertise in the Atlantic Basin with JERA’s footprint in Asia and the Pacific.

JERA and EDF Trading have worked together since 2008 when a coal optimisation and trading joint venture was established between the two companies. On completion of the deal, EDF Trading’s contractual agreement with JERA will be converted into a minority equity interest in JERA Trading Singapore.

As part of the deal, JERA Trading Singapore will acquire all of EDF Trading Australia, which holds a 7.5% interest in the Narrabri coal mining joint venture, and all of the shares of Amstuw, which operated the Rietlanden coal terminal in the Netherlands. EDF Trading’s coal and freight employees will also transfer to JERA.

Discussion between the two companies will continue with a final agreement expected to be reached in December 2016.

Read the article online at: https://www.drybulkmagazine.com/dry-bulk/11102016/jera-to-buy-edf-tradings-coal-and-freight-business/

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