Belfast Telegraph

Tuesday 13 October 2015

Power firm follows trend towards foreign ownership

By Graeme Evans

Published 11/08/2010

Another UK power firm is poised for foreign ownership after International Power agreed a merger with France's GDF Suez.

International Power, which owns UK assets including the giant coal-fired station at Rugeley in Staffordshire, will be 70% owned by GDF under the deal to create one of the world's biggest independent power generators.

The proposed tie-up comes after British Energy was bought by another French company, EDF, for £12.5bn in 2008. It leaves Britain owning just two independent energy producers in Centrica and Scottish & Southern Energy.

The new business, which will combine International Power's 45 power stations and the international assets of GDF, will continue to be listed on the London Stock Exchange with GDF as its majority shareholder.

GDF will pay a special dividend of about 90p a share, worth £1.4bn, to International Power's shareholders.

The company yesterday reported half-year profits of £524m, a drop of 5% on a year earlier after strong contributions from operations in Australia and the Middle East were offset by weaker profits in North America.

The merger comes one month after confirmation of the £1bn sale of the transmission and distribution side of Northern Ireland Electricity to the Republic's Electricity Supply Board (ESB).

From the web

Sponsored Videos

Your Comments

COMMENT RULES: Comments that are judged to be defamatory, abusive or in bad taste are not acceptable and contributors who consistently fall below certain criteria will be permanently blacklisted. The moderator will not enter into debate with individual contributors and the moderator’s decision is final. It is Belfast Telegraph policy to close comments on court cases, tribunals and active legal investigations. We may also close comments on articles which are being targeted for abuse. Problems with commenting?

Read More

From Belfast Telegraph