SSE seeks a partner to bid for EDF’s UK assets
SCOTTISH & SOUTHERN ENERGY is in talks with potential partners, including Canada’s Borealis, over a bid for French rival EDF’s electricity distribution grids in the UK, valued at £4bn.
“Given the size of the assets, we are almost certainly going to do that transaction in partnership with someone we already have a business relationship with,” SSE chief executive Ian Marchant said, as the group announced first-half results.
He also said he would be surprised if SSE didn’t team up with Borealis for a bid, but that no formal consortium had yet been put together.
Marchant added the deal could be one of the biggest cash M&A deals in the UK next year, but it would only happen if “it makes sense”. SSE would likely raise cash via a placing for any transaction, he added.
He estimated the possible amount to be raised at about £750m.
EDF has sent out a “teaser” to potential bidders previewing the sale of its three UK distributor networks.
Pre-tax profit at SSE for the six months to September rose 35.7 per cent £410.5m, up from £302.6m in the same period last year.