The German energy utility's newly formed Iqony business unit operates the areas including photovoltaics, wind energy, hydrogen and energy storage projects, decarbonisation solutions, optimised plant operation or energy balancing digital tools and district heating supply
Energy utility STEAG to be acquired by Asterion in €2.6bn deal. (Credit: Wiki05/Wikimedia Commons)
Investment management firm Asterion Industrial Partners has agreed to acquire German energy utility STEAG from the consortium Kommunale Beteiligungsgesellschaft (KSBG) in a deal that values STEAG at an enterprise value of about €2.6bn.
The KSBG consortium represents the municipal utilities of the German cities of Dortmund, Duisburg, Bochum, Essen, Oberhausen and Dinslaken.
Based in Essen, STEAG reorganised it with two independent companies, Iqony and STEAG Power, earlier this year.
The newly formed Iqony operates the areas, including photovoltaics, wind energy, hydrogen and energy storage projects, decarbonisation solutions, optimised plant operation or energy balancing digital tools and district heating supply.
STEAG Power will focus on the company’s traditional power plant business.
Both units are located under the umbrella of STEAG.
STEAG management board chairman and labour director Andreas Reichel said: “After all, this decision provides greater economic room for manoeuvre for upcoming investments in the future and also helps to secure existing jobs in the long term.
”The best possible solution has thus been found for all parties involved, including our employees.”
Through the transaction, Asterion intends to develop STEAG into a sustainable energy producer with its own climate-friendly capabilities by utilising STEAG Power and Iqony.
Asterion also plans to expand the Iqony business by investing in green technologies including solar and wind generation, hydrogen, batteries and district heating.
It is expected to generate new green jobs and support employment in the Ruhr and Saar regions.
Besides, the acquisition of STEAG will enable the investment management firm to enter the German energy market.
Furthermore, Asterion aims to advance STEAG’s goal of becoming climate-neutral by 2040.
Asterion Industrial Partners CEO Jesús Olmos said: ”STEAG is very well positioned to be a very relevant player in Germany and Europe in this process towards cleaner, more competitive, and reliable energy sources such as solar and wind power, while offering an interesting energy mix that is also supported by coal and gas to guarantee the viability of this transition.”
Subject to customary conditions and regulatory approvals, the transaction is anticipated to be completed by the end of the year.