TOKYO, June 28 (Reuters) - Citadel will buy Japanese

power firm Energy Grid in its first acquisition in Japan and the

first major U.S. investment in Japan's wholesale energy market

in recent years, billionaire investor Kenneth Griffin's hedge

fund said in a statement.

The privately held Energy Grid provides power price risk

management services to Japanese companies and the deal will give

Citadel direct access to the Japanese power market.

Since Energy Grid's establishment in 2021, the power market

in resource-poor Japan has been volatile due to Russia's

invasion of Ukraine, which precipitated a global energy crisis.

Japan, which imports most of its energy resources, was

already in a precarious position following the March 2011

earthquake and Fukushima nuclear disaster, when many of its

major nuclear power stations were shut down.

The deal will "broaden the delivery of hedging solutions to

Japanese energy producers and consumers", Sebastian Barrack,

head of commodities at Citadel, said.

Energy Grid will expand trading volumes and "offer

longer-term risk management opportunities to more market

participants", said Yohei Jozaki, chief executive officer of

Energy Grid.

The transaction is expected to close in the third quarter of

2024, subject to conditions. The deal size has not been

disclosed.

Miami, Florida-based Citadel manages approximately $63

billion in assets and its flagship fund has gained more than

7.5% so far in 2024, according to a person familiar with the

matter.

(Reporting by Anton Bridge in Tokyo; Editing by Matthew Lewis

and Muralikumar Anantharaman)