Following German utility E.ON's previous announcement that it is consolidating its trading activities into one unit and its renewables and environmental protection activities into another, the company has revealed that the new units will be based in Dusseldorf. In addition, the company has revealed plans to delist from the New York Stock Exchange.
E.ON hopes that its trading arm will help to increase the liquidity of the European coal, gas, electricity and emissions trading markets, while at the same time acting as a catalyst for the convergence of the European energy sector.
By pooling trading activities the group is tapping into the potential of this international business, as the expertise of professional E.ON traders will be concentrated in one company with one trading strategy, the company added in a press release.
Meanwhile, the new unit for renewables and climate protection will be responsible for steering and developing E.ON’s renewable energy business, and for managing projects in the field of climate protection. One of the key tasks of the unit will be expanding the company’s renewables activities internationally. E.ON has already made a significant step in this direction with the acquisition of Spanish and Portuguese renewables business activities from Dong Energy.
The company decided to locate the trading and renewables units in Dusseldorf, which is also where the group as a whole is based. In addition, the new trading company will establish a regional office in London to ensure that E.ON is also represented in this key trading location.
Meanwhile, E.ON said that it expects its decision to delist its American depositary shares from the New York Stock Exchange (NYSE) and to terminate its reporting obligations with the Securities and Exchange Commission to become effective on September 7, 2007. The company said that the move is intended to reduce administrative complexity and costs, but added that it will not affect its business strategy in the US.