Energy, Estonia, Gas, Legislation, Mergers and take-overs

The transaction, which substantially grows the natural gas customer base of Alexela and by nearly 65 kilometers Adven's natural gas network, will provide both companies with the chance to focus on their main activity, the companies said.

"We wish to offer our customers complete energy solutions and the expanded natural has portfolio will enable us to be a good partner to an even bigger number of customers. With this transaction we are also exiting the natural gas distribution business which is not the company's focus at present," CEO of Alexela Energia Maria Helbling said, adding that in this business the scope effect is beneficial and that is not achieved by a company the size of Gaasienergia AS alone.

"Adven as Estonia's second largest natural gas distribution service provider is always open to opportunities for expanding its service area and with this transaction we are able to grow our natural gas distribution network by a third," CEO of Adven Eesti Urmo Heinam said.

All present client contracts will remain in effect.

The companies have agreed to not disclose the price of the transactions.