In a deal worth £4 billion, US energy firm Pennsylvania Power and Light (PPL) has agreed to buy German company E.on’s power distribution business in the UK.
The Central Network’s division which E.on is selling, supplies electricity to more than 5 million people across the Midlands and has 80,000 miles of power distribution network.
The latest deal is part of E.on’s plan to sell assets worth €15 billion by 2013. On its part, PPL is already present in the UK supplying consumers in south west England and the South Wales through own grid.
Hong Kong billionaire Li Ka-Shing, who bought French power group EDF’s UK business last year, was also in the race to acquire E.on’s assets.
E.on will still be present in the UK since it operates nuclear power stations and windfarms and sells gas and electricity to businesses and consumers alike. The German company also owns the Ratcliffe-on-Soar Power Station and the Kingsnorth power station.