After recently acquiring two large coal-fired power stations – Fiddlers Ferry and Ferrybridge – Scottish & Southern Energy is poised to complete the £2.5bn purchase of two gas distribution networks from National Grid Transco.
NGT invited offers for six of its eight gas networks last September and has said it hopes to agree the sale of up to four soon. Analysts expect the deal to generate £5bn-£6bn.
SSE has teamed up with two players from Canada’s pension fund industry to buy the networks. Favourites to buy the other two are United Utilities, bidding with Cheung Kong Infrastructure, and Dutch investment bank ABN AMRO.