Jera Trading Acquires EDF Coal/Freight Business

Japan's Jera, the 50-50 supply & trading joint venture of utilities Tokyo Electric and Chubu Electric, and EDF Trading have signed binding agreements regarding the latter’s coal and freight business, the two announced December 21.  

According to these, Jera’s wholly-owned subsidiary, Jera Trading Singapore, will acquire EDF Trading's coal and freight by early April 2017.

However EDF Trading will hold 33% of the shares in Jera Trading – something not detailed in their original Jera/EDF announcement two months ago. Jera and EDF Trading also said they will also further discuss developing wider collaboration platforms including in LNG.

Already in May 2016, Jera and EDF Trading entered into an LNG sales and purchase agreement for delivery to European LNG terminals.

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 60mn metric tons a year.   

Jera's ambitions for 2030 (Graphic credit: Jera)

Jera Trading will be managed from Singapore with an additional commercial hub in London that will run its Atlantic basin activities.  Ronan Lory, finance chief at EDF Trading has been appointed Jera Trading's managing director.  Bert van Druten, head of coal and freight trading at EDF Trading has been appointed trading chief at JERA Trading. They and the trading team will transfer to Jera Trading from April 2017.

Jera and EDF Trading's joint statement declined to provide any financial details. London-based EDF Trading is wholly owned by French giant EDF.

Mark Smedley