EU approves power company Vattenfall's sale of German coal business

The European Commission on Thursday cleared the way for plans by the Swedish state-owned electricity company Vattenfall to sell its lignite operations in Germany.

"The commission found [that] the deal would not adversely affect competition in the relevant markets," the European Union's executive said in a statement.

Vattenfall in April announced it had found a buyer - a Czech consortium comprised of energy company EPH and its financial partner PPF Investments - for its coal-fired power plants and mines in the east German states of Brandenburg and Saxony.

The sale was part of the utility's move to pull out of that energy sector, amid a shift to renewable resources.

But environmental groups have criticized the sale, saying the coal should remain in the ground to avert global warming.

Under the terms of the acquisition, EPH is to take over assets, including cash, worth 15 billion kronor (1.8 billion dollars), as well as liabilities and provisions totalling 18 billion kronor.

Last update: Thu, 22/09/2016 - 16:49
Author: 

More from Business

US unemployment rate dips to 9-year low

The US unemployment rate fell in November to 4.6 per cent, a nine-year low, the Bureau of Labour Statistics said...

Chinese firm building full-size Titanic replica for tourists

Construction has begun on the world's first full-size replica of the Titanic in China, a country that fell in love...

Erdogan calls on Turks to sell dollars and buy lira and gold

President Recep Tayyip Erdogan urged Turkish citizens on Friday to sell their dollars and buy gold and lira, as the...

EU agrees to let Germany introduce road toll, staving off legal feud

The European Commission has approved Germany's plan to introduce a road toll on its motorways, top transport...

Danish container shipping giant Maersk Line to buy German rival

Global shipping giant A/S Maersk Line of Denmark on Thursday announced plans to grow its business by buying German...