Scottish & Southern eyes 1bn bid for Irish group Airtricity

Published on Sunday 23 December 2007 20:37

SCOTTISH & Southern Energy, Britain's biggest renewable energy utility, is believed to be about to mount a step-change in green expansion by launching a 1 billion (£730m) bid for Irish group Airtricity.

Airtricity is one of the world's leading renewable energy companies, and a purchase would fit in with SSE chief executive Ian Marchant's declared plan of expanding into first the Irish wholesale electricity market followed, a couple of years down the line, by a move into the consumer market there.

The group, which trades as Scottish Hydro here, faces competition from leading European generators such as RWE of Germany, EdF of France, and ENI of Italy.

Analysts also believe the Spanish utility group, Iberdrola, which bought SSE's domestic rival ScottishPower earlier this year, could also be in the frame.

One source said: "SSE are definitely interested in Airtricity, as would be several rivals. They are all seeking to expand their renewable energy assets because of the government's targets for greener energy.

"The fact that SSE is also the biggest in this area already would also see them having an edge. Airtricity would also help the Irish dimension generally of Ian Marchant's strategy."

Marchant has said that, over time, he wants SSE to become Ireland's third-biggest power supplier behind the country's Electricity Supply Board and Viridian. The Irish market has 2.3 million customers.

Airtricity, which has been developing onshore and offshore wind farms across Europe, is believed to have hired investment bank Credit Suisse to advise it on a potential sale.