The integration of the liquefied natural gas trading and optimization businesses of Japan’s JERA and France’s EDF Trading has received the green light from the European Commission.
JERA Trading, an entity controlled jointly by JERA and EDF Trading, has been given the European Commission’s approval to acquire the LNG trading and optimization business of UK-based EDF Trading
The Commission concluded that the proposed acquisition would not raise competition concerns, because it does not result in any overlaps.
Under the deal signed in July this year, the two companies agreed to combine their LNG optimization and trading activities into JERA Trading which will become the exclusive optimizer for JERA and EDF, managing their collective short and medium term LNG optimization activity.
Through the partnership both JERA and EDF aim to better position the company to respond to the uncertainties of LNG demand in Japan and Europe.
The LNG trading business merger follows integration in April 2017, of EDF’s coal and freight trading business into JERA Trading, which is 67-percent owned by JERA and the rest by EDF Trading.
LNG World News Staff