Devon Energy has announced it will merge with its competitor Gexas Energy to create a major new energy company.
The announcement is part of the Government’s decision to increase the number of companies it controls and also allow a new private company to join the existing regulated energy market.
The Government will allow Devon Energy’s existing portfolio of 28 assets to be acquired by Gexam Energy and merged with its existing portfolio, allowing it to become the dominant supplier of electricity to Devon.
The new company will be called Devon Energy, and it will have a majority of the energy generated by Devon in the UK.
“We’re going to create an exciting new energy sector in Devon that will drive our growth in the longer term,” Devon Energy chief executive Michael Burt said.
“This is a great opportunity for us to continue to grow the Devon energy portfolio, with an eye towards the future and a desire to be a part of that future.”
Gexam is the largest independent renewable energy producer in the country, with about 2,500MW of renewable energy capacity.
It also has a number of subsidiaries and subsidiary companies which are both renewable energy and electric utilities, which is where it will be merged with Devon Energy.
The merged company will have its own board and board members, with Devon energy also owning its assets.
Devon Energy chief Executive Michael Bresser said:”We are delighted to be partnering with GExam Energy to transform Devon into a new energy powerhouse.”
The Government is investing in energy innovation, and this new energy infrastructure will drive the development of a new industry for years to come.
“Together, we are making Devon a truly national and international energy hub, with a thriving energy industry and a vibrant economy.”
Read more at TalkSport