Gazprom And SUEK Agree to Merger

Russian energy firms Gazprom and SUEK have agreed terms for merging their power and coal assets into a holding company.

The joint venture will create a company that will partially re-monopolise the sector, worth around US$15bn-US$16bn, Reuters reports.

The combined generating capacity of the company will be 30.5GW, about 15 percent of Russia's electricity production.

The merger depends on approval from the Federal Antimonopoly Service.

Gazprom and SUEK say shares in the holding company will eventually be publically listed.

By staff writer