Germany’s EEX energy exchange and France’s Powernext are currently negotiating a merger, German magazine Wirtschaftswoche said on its website citing well-informed circles close to the talks. According to the report, the two exchanges want to merge their spot trading businesses as of 20th October, with the futures businesses to follow later.
The new head of the merger exchange, which would be headquartered in Paris, would be the current EEX c.e.o. Hans-Bernd Menzel, while Powernext c.e.o. Jean-Francois Cornil-Lacoste would become the boss of spot market trading, Wirtschaftswoche said. The goal is to float the common company on the stock market in two to three years. A spokeswoman for EEX and a Powernext executive refused to comment on the story when contacted by Heren Energy.
But if the two exchanges were to merge it would not come as a big surprise. Only recently, EEX made clear that it was pursuing a course towards an integrated European energy market. At the end of last month, the Leipzig-based bourse announced the setup of a new company for spot power trading. EEX Power Spot GmbH was retroactively established from 1st January 2007 and started operating in early September.
EEX said at the time the new company was open for partners. The spin-off was aimed at facilitating the development of a common European market for energy. Future cooperation ventures – including steps towards more integration with neighbouring exchanges – would be easier, thanks to a clear separation of short – and long-term trading platforms. In June, Germany, France and the Benelux states signed a Memorandum of Understanding (MOU) with a view to starting flow-based marking coupling from 1st January 2009. EEX earlier spun off its clearing business and established European Commodity Clearing (ECC) in collaboration with the Dutch exchange Endex.
EEX currently has 174 member companies form 19 countries, and is Continental Europe’s most liquid power exchange. Its biggest shareholders are Swiss exchange Eurex (23.22%), Norway’s exchange Nord Pool (17.39%) and the state bank of the federal state of Saxony, Sachsen LB (17.39%).
Powernext was incorporated in 2001. It has a network of 115 European members, major actors on the markets of energy and environment. The exchange has launched four complementary markets: Powernext Day-ahead, Powernext Futures, Powernext Carbon and Powernext Balancing GRTgas, allowing the TSO GRTgaz to balance its daily network position. In addition, Powernext provides a full range of European weather indices. The bourse’s biggest shareholder is NYSE/Euronext with 34%.
(THE HEREN REPORTS - EDEM 11183 / 20 September 2007)