March 23, 2018 | Deals
GCA advises TEPCO Fuel & Power on its integration with Chubu Electric Power to form a US$20 billion energy company
GCA advised TEPCO Fuel & Power, Inc, the thermal power generation unit of Japan's largest electric power company group TEPCO (ultimate parent Tokyo Electric Power Company Holdings Co., Ltd., TYO:9501), on its agreement with Chubu Electric Power Co., Ltd. (TYO:9502) to integrate the thermal power generation and gas distribution businesses under JERA Co., Inc., the joint venture of the two companies.
This agreement is the last of the four-year three-step plan to integrate the energy businesses of Japan’s largest and third-largest regional power utilities with a goal of establishing a globally competitive energy company that covers the entire energy supply chain from fuel procurement to power generation.
Through this transaction, JERA will become a US$20 billion energy company with capacity which account for nearly half the country’s domestic thermal power generation. JERA will also become the world’s largest liquefied natural gas (LNG) buyer.
The deal will be effective from April 1, 2019, subject to shareholder approval.
GCA has advised TEPCO on its corporate strategies since 2013, from strategy planning, partner selection, joint venture establishment, to forming and executing the plan to complete the integration.
This deal demonstrates GCA’s strength in the Industrials / Energy and Utilities sector as well as its capability to provide long-term advice on strategic initiatives to leading public companies with significant impact on the Japanese energy sector.