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Energy

Russia's Gazprom completes power firm TGK-1 buy

ST PETERSBURG, Russia, March 20 (Reuters) - Russian gas export monopoly Gazprom GAZP.MM has completed the acquisition of effective control in regional power utility TGK-1 TGKA.MM, a Gazprom unit said on Thursday.

Maria Frolova, a spokeswoman for Mezhregiongaz, Gazprom’s domestic gas sales arm, told Reuters the firm had been cleared by the anti-trust agency to buy 47 percent of TGK-1 and had already paid for it.

TGK-1 held a secondary share sale in October while its parent company, Unified Energy System (UES) EESR.MM, sold off the government's stake in the firm.

Finnish utility Fortum FUM1V.HE, which bought shares in the secondary sale in order to maintain its blocking stake of slightly less than 25 percent in TGC-1, said earlier this month it was not planning to sell it.

UES, Russia’s former electricity monopoly, is in the process of selling off all of its assets in a fundamental restructuring of the Russian power industry aimed at attracting investment and creating a competitive market.

With an installed capacity of 6.2 gigawatts, TGC-1 provides power to the northwest of Russia, including the city of St Petersburg and the Leningrad region. (Reporting by Denis Pinchuk in St Petersburg and Olga Popova in Moscow, writing by Tanya Mosolova; editing by James Jukwey)

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