International Power tie-up talks off

International Power - the owner of UK assets including the giant coal-fired station at Rugeley in Staffordshire - has said it had failed to reach agreement over a possible tie-up with France's GDF-Suez.

International Power - the owner of UK assets including the giant coal-fired station at Rugeley in Staffordshire - has said it had failed to reach agreement over a possible tie-up with France's GDF-Suez.

Despite preliminary talks over a possible combination with "certain power assets" of GDF-Suez the discussions are over, International Power said.

Shares in the firm - up as much as 10% on Friday's close today on speculation of a deal - slumped on the news to stand 3 per cent down on the day.

The company's statement was in response to reports about talks between the pair over a partnership involving their foreign energy assets in a deal that would create one of the world's leading electricity partnerships.

International Power is one of the largest independent generators in the world with interests in over 45 power stations in 21 countries.

As well as Rugeley, which powers the equivalent of half a million homes, International is the majority owner of the First Hydro hydroelectric plants at Dinorwig and Ffestiniog in North Wales and the gas-fired station at Saltend near Hull.

In August, the company reported half-year profits of £555 million, an increase of 12 per cent on a year earlier after strong contributions from operations in Australia and Asia.

The company's Europe division, which includes its UK operations, saw profits fall by £9 million to £290 million in the six months to June 30.

GDF is 35 per cent owned by the French government and is one of the world's largest utilities with a value several times larger than International Power's current market capitalisation of more than £5 billion.

Recent articles

Info Message

Our sites use cookies to support some functionality, and to collect anonymous user data.

Learn more about IET cookies and how to control them

Close