From Bloomberg, October 13:
Citadel agreed to buy German power-trading company FlexPower as the hedge fund giant extends its global reach in the booming natural gas and power markets.
The deal, the value of which was undisclosed, is slated to close before the end of the year, Citadel said in a statement. CFP Energy, which currently finances FlexPower, will sell its entire stake as part of the agreement.
Hamburg-based FlexPower specializes in trading and risk management for a range of customers, including renewable-energy producers and battery operators. The company’s team, which comprises about 60 people, will remain intact and continue to be based in Germany and New Zealand after the deal is completed.
Citadel has become a behemoth in commodities markets in recent years, with a presence across both physical and financial trading. Billionaire Ken Griffin’s firm was among the first hedge funds to actively trade in physical commodities markets.
Today, it has one of the largest physical natural-gas businesses in North America, with a portfolio of transportation and storage assets. Jane Street Group and Qube Research & Technologies also are looking to expand in physical natural-gas trading.
Read More: Qube to Enter US After Building $30 Billion Hedge Fund Giant
Earlier this year, Citadel, which manages about $69 billion, made one of its biggest investments yet in the physical US natural gas market with the $1 billion acquisition of Paloma Natural Gas LLC. The firm also recently bolstered its ability to trade commodities in Asia, expanding into Australia with the hiring of Shell Plc senior trader Keith Handbury. Citadel’s commodities business made about $4 billion of profit last year, driven by natural gas trading....
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