Citadel Acquires Leading Japanese Power Wholesaler, Energy Grid

Acquisition enables Citadel to help drive the development of Japan’s power markets by supporting Energy Grid’s further growth.

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https://prtimes.jp/main/html/rd/p/000000002.000145216.html　

TOKYO, June 28, 2024 – Citadel, a leading global investment firm, today announced that it will acquire Energy Grid Corporation Limited (“Energy Grid"), a leading participant in Japan's wholesale power market. The acquisition will usher in a new era of growth for Energy Grid by leveraging Citadel’s financial, technological, and analytical strength to help more Japanese companies manage their power price risk. It also marks the first major U.S. investment in Japan’s wholesale energy market in recent years.

Established in 2021, Energy Grid provides tailored risk management solutions in physical power. As the growth of Japan’s power market has accelerated in recent years, Energy Grid’s focus and expertise has helped Japanese businesses mitigate their power price volatility risk. As a result, Energy Grid has achieved rapid growth in the past three years and now trades with more than 80 counterparties. 

Citadel was founded in 1990 to drive capital to the world’s most impactful and compelling investments to generate superior long-term returns for the world’s preeminent public and private institutions. Today, Citadel’s team of more than 2,500 professionals manages USD 63 Bn[1] (approx. JPY 9.6 Tn) in investment capital and has delivered extraordinary results for pension plans, university endowments, hospital systems, foundations, and research institutions that deliver meaningful impact for society. The acquisition is being led by Citadel’s Commodities business, one of the world’s largest and most capable investors in commodity markets. Like Energy Grid, one area of strategic focus is helping energy producers and consumers manage their commodity risks in markets including natural gas, power, environmental products, and weather. The Commodities team has over 180 investment professionals working together across 9 offices globally.

Sebastian Barrack, Head of Commodities at Citadel, said, “Energy Grid has cemented its reputation as a trusted partner to the Japanese power industry. We will strengthen this partnership by integrating Citadel's experience in customer-led transactions and risk management with Energy Grid’s local expertise. We look forward to broadening the delivery of hedging solutions to Japanese energy producers and consumers.”

Yohei Jozaki, Representative Director and CEO of Energy Grid, said, “This strategic transaction with Citadel marks a pivotal moment for Energy Grid to build on our success and realize our vision of building a stable and efficient power market in Japan. Going forward, we will leverage Citadel’s financial strength and operational excellence to expand trading volumes, offer longer-term risk management opportunities to more market participants, and continue to contribute to the development of Japan’s power market.”

Terms of the transaction are not being disclosed. It is expected to be completed in Q3 2024, subject to closing conditions. After close, Energy Grid employees will join Citadel.

Goldman Sachs & Co. LLC and Linklaters LLP acted as financial advisor and legal counsel for Citadel while Mitsubishi UFJ Morgan Stanley Securities Co., Ltd., and Nishimura & Asahi (Gaikokuho Kyodo Jigyo) served as financial advisor and legal counsel for Energy Grid.

[1] Investment capital as of June 1, 2024

For further information please visit:

Citadel – https://www.citadel.com

Energy Grid – https://energygrid.co.jp