Two bioenergy companies merge for wood pellet JV
Two Scandinavian companies are to merge and form a large-scale wood pellet business, headquartered in Sweden.
Nordic energy firm Lantmännen and Scandinavian bioenergy company Neova will combine their respective wood pellet businesses to create a new company that will include Neova's wood pellet business in Sweden and the corresponding Lantmännen Agroenergy buisnesses in Sweden and Latvia.
The new company is expected to have an annual turnover of around SEK1 billion (€113 million) and 160 employees and will continue to market its products under the same brands as before, namely Neova Pellets Agrol and Agroenergi.
The company will take the form of a joint venture with Lantmännen and Neova each having a 50% stake. The merger is expected to be completed in the first six months of 2014 following approval by the competition commissions concerned.
Andreas Green, MD of Lantmännen Agroenergi, will head the merged company from its head office in Jönköping, Sweden.