Japanese energy company JERA has signed a non-binding agreement with EDF Trading, part of French energy giant EDF, for subsidary JERA Trading Singapore to acquire EDF Trading’s coal and freight business.
JERA and EDF Trading have worked together closely since 2008 via a coal optimisation and trading joint venture, and JERS says the new agreement affirms the intention to combine EDF Trading’s coal and freight expertise in the Atlantic Basin with JERA’s footprint in Asia and the Pacific.
Under the terms of the deal EDF Trading’s existing contractual agreement with JERA will be converted into a minority equity interest in JERA Trading Singapore. JERA Trading Singapore will also acquire EDF Trading Australia, which holds a 7.5% interest in the Narrabri coal mining joint venture in Australia, and Amstuw which operates the Rietlanden coal terminal in the Netherlands.
A final agreement is expected to be reached in December 2016.