Fortum wants to buy Espoo electric utility
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The majority state-owned energy company Fortum hopes to get a majority holding in the electric utility E.ON Finland - formerly the municipal electric company of the City of Espoo.
On Monday Fortum said that it plans to buy 65.6% of the utility from the German E.ON. Fortum says that it has a valid option to buy the holding.
After that, Fortum wants to buy out the 34.2% holding that the City of Espoo has in the company, and is willing to pay EUR 257 in cash. If the deal is closed, Fortum also promises to invest EUR 300 million in the Suomenoja power plant in the south of Espoo.
So far, the City of Espoo has opposed giving control of the company to Fortum, fearing a possible electricity price hike.
With the move, Fortum hopes to get a foothold in selling electricity in the Helsinki region, where the market is dominated mainly by electric utilities controlled by the local authorities.
The City Board of Espoo called an extraordinary meeting on Tuesday to discuss the Fortum announcement.
Helsingin Sanomat
