Centrica to acquire Neas Energy for $244m

Centrica has signed an agreement to acquire Denmark-based energy management company Neas Energy in a transaction valued at £170m ($244m).

The acquisition will enable the company to expand its route to European market services and continue to use its knowledge of European energy markets to benefit from trading and optimisation activity.

Furthermore, Centrica will get access to Neas’ business model that is complementary to its exiting energy marketing and trading activities.

Centrica chief executive Iain Conn said: "Our new strategy recognises that the energy landscape is rapidly changing, with a trend away from large centralised power generation to decentralised technologies, much of it intermittent renewable generation.

"Neas has developed a business model and capabilities that are able to capitalise on this trend and, combined with Centrica’s existing strengths, this acquisition will allow us to accelerate our energy on marketing and trading growth strategy, and serve renewable and distributed energy customers at a wholesale level across Europe."

Neas Energy CEO Bo Rydahl said: "In our efforts to grow and expand Neas’ activities in markets where competition is increasing, economies of scale will be essential to success.

"Becoming part of Centrica will provide opportunities to grow the scale of our existing business activities further and enter new markets."

The transaction also adds improved analytics, IT and trading capabilities in Continental Europe, is subject to customary European Union regulatory approvals and is slated for completion in the middle of 2016.

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Image: With the acquisition, Centrica will get access to Neas’ business model that is complementary to its exiting energy marketing activities. Photo: © Centrica plc.