Merger sees International Power fall into foreign hands

A UK power firm fell into foreign ownership yesterday as a merger between International Power and France's GDF Suez was completed.

The deal, which will see GDF own 70 per cent of the newly formed business, combines International's 45 power stations with the French firm's international assets.

International Power has six plants in the UK, including the gas-fired station at Saltend, near Hull, and is a majority owner in the First Hydro hydroelectric plants at Dinorwig and Ffestiniog in North Wales.

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The merger 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.

A report by the Office of Fair Trading recently revealed more than a third of the UK's infrastructure – such as energy, water and transport – was under foreign ownership.

Sir Neville Simms, chairman of International Power, said: "This is a major milestone in the development of International Power."

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