Centrica to Buy Bord Gáis Éireann Ahead of Deregulation

UK-based Centrica has clinched an agreement with Ireland’s Bord Gáis Éireann to acquire Bord Gáis Energy (BGE), the vertically integrated energy business, for €1.1 billion (£920 million).

“This is a unique opportunity for Centrica to take a first step in a neighbouring market with strong links to the UK, building on Bord Gáis Energy’s existing capabilities and delivering value for the Group.  Centrica is committed to providing secure supplies of energy and delivering the best service at competitive prices,” Sam Laidlaw, Centrica Chief Executive, commented in a note released on Tuesday. 

Under the transaction, which is expected to close in the first half of 2014, Centrica will acquire BGE’s gas and electricity supply business in Ireland and the Whitegate gas-fired power station.

 “As a leading supplier in competitive markets, Centrica is the natural home for BGE at this very moment when the Irish energy industry is on the eve of deregulating gas supply,” Centrica’s Managing Director for Ireland, Eddy Collier, said.

Centrica teamed up with Brookfield Renewable Energy Partners and iCON Infrastructure Partners.

‘iCON Infrastructure Partners II, L.P. will acquire BGE’s firmus energy supply and regulated gas distribution assets in Northern Ireland and Brookfield Renewable Energy Partners L.P. will acquire BGE’s renewable generation assets,’ explains the note.