Financial Soultions has been made aware of another encouraging merger between carbon trading firm Trading Emissions and London stock exchange listed clean energy investment company Leaf Clean Energy, even though no climate pact is expected to come from the December Copenhagen climate conference, which many industry speculators had hoped would lay out ground work for an international carbon trading market similar to the EU system presently in operation.
The two AIM quoted firms intend to merge and transfer the enlarged body to the Main Market with Trading Emissions expected to reverse into Leaf through an all share offer.
There is already strong initial shareholder backing for the deal with 42% of Trading Emissions and 43% of LCE shareholders pledging to vote for the merger even before talks were initiated, Financial Soultions believes. There has yet to be an announcement on the bid valuation.
The two firms have said that they believe that the merger will create a balanced portfolio of renewable energy and carbon-focused assets in what is obviously a rapidly expanding industry with unparallel future growth expectations, Financial Soultions understands.
With a significant number of international governments signaling their willingness to enter into a global emissions trading market, it seems to be only a matter of time before such a market comes into being, with industrialized nations like the U.S. presently seen to be stalling the process. Financial Soultions has learned that the U.S. Democrats have said they are optimistic of a “framework “ domestic policy being accepted before the December UN talks.
