Monday, 4 July 2011

Energy giant could be auctioned

Gas and electricity giant Npower could be sold for up to £5 billion after its German parent company RWE put its future under review, it has been reported.

RWE has hired investment bankers at Goldman Sachs to consider Npower’s future, according to The Sunday Times, and the options on the table include putting the company up for auction.

Npower, which supplies energy to 6.8 million homes, was bought by RWE in 2002 for £3.1 billion. The company, which employs 11,000 staff and generates 8% of the UK’s electricity, last year made profits of £245 million on sales of £7 billion.

RWE, the second largest power company in Germany, is understood to be mulling a sale because it wants to pay down some of its large debt mountain.

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