Ken Griffin’s multi-strategy hedge fund major Citadel has agreed to acquire German power-trading firm FlexPower, marking another step in the firm’s global expansion in natural gas and power markets, according to a report by Bloomberg.
The deal, the value of which was not disclosed, is expected to close before year-end, with current financier CFP Energy selling its stake.
Hamburg-based FlexPower, which also operates in New Zealand, provides trading and risk management services for clients including renewable-energy producers and battery operators. The 60-person team will remain in place post-acquisition.
Citadel, which manages around $69bn, has rapidly scaled its commodities operations in recent years, including a $1bn acquisition of Paloma Natural Gas LLC in the US earlier this year. Its commodities business generated roughly $4bn in profit last year, driven by natural gas trading.
The purchase of FlexPower positions Citadel to capitalise on heightened volatility in European power markets, particularly as Germany relies heavily on renewables and coal during the heating season, with day-ahead power prices averaging €84/MWh last month. FlexPower trades over 1,700 MW across six European countries, equating to more than 11 TWh annually in short-term power markets.
