Steag's German activities to be merged with RAG Saarberg division

RAG, the German coal company, is planning to merge the German activities of Steag, its energy subsidiary, with the energy division of RAG Saarberg, another of its subsidiaries.
The merger will lead to the creation of a new energy division within the group, which will have a share of around 8 % in the German electricity market. This new division will have a turnover of over EUR 2 bn.

The group's business will now include its coal-mining activities in Germany, the new energy division, property business and Degussa, the new chemicals subsidiary. Steag's business with power stations abroad is to be sold, as are the electronics activities.
The group expects to obtain around EUR 300 mm from the sale of these activities. Gaz de France, the French gas company, Electrabel, the Belgian utility, and German utility RWE have all expressed interest in acquiring a minority stake in RAG's new energy subsidiary.