The Ukraine war fueled the demand for pellets. In addition to its coal-fired power plants, the energy group Leag is now also using renewable fuels. Nothing now stands in the way of a takeover.
The energy group Leag in Cottbus can take over the wood processor Wismar Pellets. The Federal Cartel Office approved the acquisition, as the authority in Bonn announced on Friday. According to its own statements, the Wismar company produces around 250,000 tons of wood pellets annually and is one of the leading manufacturers in Germany. It emerged from the wood processor German Pellets, which had to file for bankruptcy in 2016.
The Lusatian energy producer Leag, which operates coal-fired power plants, wants to expand its business with renewable fuels. In March, Leag had already announced that it would take over the 110 employees of Wismar Pellets GmbH.
The head of the Bundeskartellamt, Andreas Mundt, said: “The market for wood pellets is on the move. Leag already owns three pellet plants in Saxony, Saxony-Anhalt and Brandenburg and, with Wismar Pellets, is taking over the largest pellet plant in northern and eastern Germany. ” One does not see any far-reaching competition problems. In the sale of pellets to private households and small businesses, there is no geographical overlap between the activities of those involved. When supplying larger customers, the transport distances are greater and there are a large number of competitors.
According to the Cartel Office, the Ukraine war and the higher prices, especially for gas and oil, led to a sharp rise in demand for pellets last year.
Source: Stern
