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Press Release

JERA Trading Acquires EDF Trading's Coal and Freight Business

2016/12/21

JERA Co., Inc. (“JERA”), through its wholly-owned subsidiary, JERA Trading Singapore Pte. Ltd. (“JERA Trading”), and EDF Trading Limited (“EDF Trading”), a wholly-owned subsidiary of EDF S.A., are pleased to announce the signing of binding agreements for the acquisition of EDF Trading’s coal and freight business by JERA Trading.

By early April 2017, JERA Trading expects to complete the acquisition of:

  • an established coal and freight trading team;
  • a portfolio of coal and freight transactions;
  • 100% of the shares of Amstuw B.V. (that operates the Rietlanden coal terminal in the Netherlands);

and

  • 100% of the shares of EDF Trading Australia Pty Limited (that holds a 7.5% interest in the Narrabri coal mining joint venture in Australia).

EDF Trading will hold 33% of the shares in JERA Trading.

Following completion of the transaction, JERA Trading will become one of the largest coal traders globally, with a major presence in both the Atlantic and Pacific basins and total physical coal sales of approximately 60 million tonnes per annum. Coal is an important part of the fuel mix in the global energy markets and the transaction considerably strengthens JERA’s competitive procurement and sales capabilities.


JERA Trading is committed to ensuring continuity for its own and EDF Trading’s customers in the coal and freight markets, and anticipates being able to deliver a broader and more competitive product offering as a result of its increased scale. JERA Trading will be managed from Singapore with an additional commercial hub in London that will run its Atlantic basin activities. Ronan Lory, Chief Financial Officer of EDF Trading has been appointed Managing Director of JERA Trading. Bert van Druten, Head of Coal and Freight Trading at EDF Trading has been appointed Head of Trading of JERA Trading. Ronan, Bert and the trading team will transfer to JERA Trading from April 2017.


In May 2016, JERA and EDF Trading entered into an LNG Sales and Purchase Agreement for delivery to European LNG terminals. JERA and EDF Trading will further discuss developing wider collaboration platforms including LNG.


“We look forward, through JERA Trading, to building and strengthening relationships with both current and new counterparties”, said Yuji Kakimi, President of JERA.


“EDF Trading has a world class coal and freight business which is now combined with JERA Trading to make it a global leader in this market. I’m excited to be part of this venture and look forward to developing an even closer relationship with JERA”, said John Rittenhouse, Chief Executive, EDF Trading.


About JERA:

JERA is an energy company with global reach that has strength in the entire energy supply chain, from participation in LNG and other fuel resource projects and fuel procurement, through fuel transportation to power generation. Established in 2015 as the equal joint venture of two major Japanese electric companies, Tokyo Electric Power Company and Chubu Electric Power Company, JERA’s mission is to supply power and energy on a globally competitive basis, by effectively developing and managing its portfolio of energy chain assets and continuously optimizing its business.


About EDF Trading:

EDF Trading is a leader in the international wholesale energy markets. It manages a portfolio of assets which give it the ability to source, supply, transport, store, blend and convert physical commodities around the world. These capabilities enable EDF Trading to deliver essential asset optimisation services, risk management and wholesale market access to the EDF Group and its third party customers, helping them to realise the value inherent in their asset portfolios.


EDF Trading is active in the electricity, natural gas, LNG, LPG, coal and freight and environmental products markets. It is one of the largest wholesale market traders in Europe for power and gas and one of the leading marketers of gas and power in the US. Its subsidiary, EDF Energy Services is one of the main providers of generation services for power generation companies in the US and a leading US energy retailer for large commercial and industrial customers.


EDF Trading is a 100% owned subsidiary of EDF, the world’s biggest electricity generator.


EDF Trading has around 950 employees with offices in the UK, Europe, Singapore, China, the United States and Canada.