TOKYO -- Tokyo Electric Power Co. Holdings and Chubu Electric Power announced on Tuesday that they have signed an agreement to move their existing thermal power businesses to their joint venture, Jera.
The two companies have already gradually integrated fuel procurement and other businesses through Jera.
Integrating their thermal power businesses will create a mega company, annually procuring 40 million tons of liquefied natural gas -- one of the largest volumes in the world. The new company will control more than 50% of the domestic market for thermal power.
Following today's agreement, Tepco and Chubu Electric are set to begin talks toward integration. After appraising assets earmarked for the merger and obtaining approval from the Japan Fair Trade Commission, the two companies hope to fully integrate by fiscal 2019.