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6/15/2018, 7:34 PM (Source: TeleTrader)
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EU approves Fortum's acquisition of Uniper

Fortum Corp. was given a green light on Friday by the European Commission for its bid to acquire a minority stake in German power generation and energy trading company Uniper SE, valuing it at €8.05 billion. Margrethe Vestager, the top competition official, didn't express any concerns. "We can approve their proposed merger, in particular because of the high level of interconnectivity between different countries in the Nordic area and because there is significant spare generation capacity in Sweden," she said, referring to electricity.

The combined power producers would have 30% of the market in power generation and "a significant spare capacity" in Sweden. Illegitimate coordination in the country, including in wholesale, would be too complex, the press release said and cited the possibility for electrical energy to be imported.

E.ON spun off the subsidiary in 2016 and narrowed ownership to 47%. In January it agreed to the sale of the stake for €22 per share or €3.76 billion in total, enabling the Finnish company to take control. Uniper's management has resisted the offer.

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